If withdrawn capital is shown on the debit side of capital a/c, then why it is shown on the debit side of current a/c ? (Illustration No. 50 Page No. 5.58 TS Grewal 2020 Edition)

Dear Student,

Under fixed capital method the original capital invested by the partners remain constant, unless additional capital is introduced by an agreement. When this method is adopted , all entries relating to drawings , interest on capital, interest on drawing, salary to partner ,etc. are recorded in the current account.

Regards

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