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

Normal

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Floating

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Fixed

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Fluctuating

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Solution

The correct option is C
Fixed

Current accounts of the partners should be opened when the capitals are Fixed.

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Similar questions

List the items which may be debited or credited in capital accounts of the partners when

(i) Capitals are fixed

(ii) Capitals are fluctuating

	Sohan (₹)	Mohan (₹)
Capital on 1st April, 2018	4,00,000	3,00,000
Drawings during the year ended 31st march, 2019	50,000	30,000
Interest on Capital	5%	5%
Interest on Drawings	1,250	750
Share of Profit for the year ended 31st march, 2019	60,000	50,000
Partner's Salary	36,000	.....
Commission	5,000	3,000

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