Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Fundamentals › Under which method does the capital account bala…
Under which method does the capital account balance change every year?
AFixed capital
BFluctuating capital
CBoth the methods
DNeither of them
Answer & Solution
Correct answer: B. Fluctuating capital
Under fluctuating capital all adjustments hit the capital account, so its balance moves yearly.
Related questions
In a sole proprietorship, where does net profit go?If the deed is silent, how are losses shared?Interest on capital is allowed on capital for what period?Where do partners' capital accounts appear in the balance sheet?A partner's capital account is fixed. Where is his share of profit credited?Rs. 9,000 of omitted interest on capital is shared equally by two partners. Each is chargeInterest on capital was omitted: Rameez Rs. 3,000, Zaheer Rs. 6,000, profits equal. Net adWhat is a past adjustment in partnership accounts?