Question

Which accounts are opened when the capitals are fixed?​

Answer 1

In case of Fixed Capital method, two accounts are opened for recording the transactions:-

↪️ Capital Account which records the introduction of capital. It remains fixed year after year otherwise than where there is an introduction of new capital and withdrawal of capital.

↪️ Current Account which records all other adjustments like

1. salary,
2. commission,
3. interest on capital,
4. drawings etc.

✔️ So, when the partner's capital are fixed,drawings made by a partner will be recorded in the current account debit side.

Answer 2

Answer:

only capital account

only current account

capital account as well as current account