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Does fixed capital account have debit balance
does fixed capital account have debit balance??
Replies (8)
Yes all assets have debit balance in the balance sheet.
Partners current account may have debit balance so does the fixed capital also have debit balance ???
I was thinking about investments. Capital is always credit balance.
Why???
- Debit the “Receiver” and Credit the “Giver” (Personal Accounts)
- Debit – What Comes IN and Credit – What Goes OUT (Real Accounts)
- Debit – Expenses and Losses and Credit – Incomes and Gains (Nominal Accounts)
Here partners accounts are related to personal accounts.
So partner is giving the company money, so company will credit the partner account.
Fixed capital and current capital is for ease of operations. However, capital whether fixed or current can have a debit balance if there is no restriction on having a debit balance as per the partnership deed.
Ok. Capital is debited and partners are credited. These resources don’t even give balance sheet. Partnership is so silly, they try to make it look very complex by publishing set of accounts to increase its popularity. Another marketing scam
*** I meant they don’t publish complete set of accounts.
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