Home › CA Foundation › accountancy › partnership › Under the fluctuating capital method, which item…
Under the fluctuating capital method, which item is NOT recorded in the capital account?
Anothing — all adjustments go to the capital account
Binterest on capital
Cshare of profit
Ddrawings
Answer & Solution
Correct answer: A. nothing — all adjustments go to the capital account
Under the fluctuating method ALL adjustments (interest, salary, drawings, profit share) pass through the single capital account, so nothing is excluded.
Related questions
Collectively, partners carrying on a business are called aOpening capital ₹1,00,000; additional ₹50,000 introduced after 6 months; interest at 10% p'Guarantee of profit to a partner' means the partner getsRent paid to a partner for using their premises isP and Q share 1:1. P is guaranteed ₹25,000 minimum by Q. Profit ₹40,000. After guarantee, The document containing the terms of partnership is theIf a partner's capital account shows a debit balance, it usually means the partner hasNet profit ₹90,000; A's salary ₹12,000; interest on capitals ₹18,000 total. Profit availab