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Does fixed capital account have debit balance

Atharv Sankliya (1354 Points)

29 November 2021

does fixed capital account have debit balance??

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 29 November 2021

Yes all assets have debit balance in the balance sheet.

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Atharv Sankliya (1354 Points)
Replied 29 November 2021

Partners current account may have debit balance so does the fixed capital also have debit balance ???

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 29 November 2021

I was thinking about investments. Capital is always credit balance.

Atharv Sankliya (1354 Points)
Replied 29 November 2021

Why???

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 29 November 2021

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.

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 30 November 2021

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.

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 30 November 2021

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