Current Account of the partners are opened when the capital is _________.

Fluctuating

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Fixed

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Either fixed or fluctuating

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None of the above

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Solution

The correct option is B Fixed
The current account is used for credit of profit or debit of loss, interest on partners capital and drawings. This account fluctuates from year to year. A current account that is held by a partnership firm is referred to as partner current account.

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Current accounts of the partners should be opened when the capitals are:

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