Under fixed capital method, if additional capital is introduced means the entry is
cash a/c -Dr
To capital a/c
(OR)
cash a/c -Dr
To current a/c
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Basic partnership doubt
Replies (3)
cash a/c-Dr
To capital a/c.
To capital a/c.
then why do we say that this is a fixed capital
cash
to capital account
reason: this amount which is bring in is Capital...u can understand it like fixed asset and current asset. this capital will not be withdrawn by partner in near future..
hope it will clear your doubt..
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