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Partner's Capital Accounts

If current ac...

Question

If current accounts are not being managed for a partnership firm then partners are maintaining _______________ accounts.

A

Fixed capital account

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B

Partnership account

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C

Fluctuating capital account

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D

Saving account

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Solution

The correct option is C Fluctuating capital account
A partnership term the capitals of partners are fluctuating, all adjustments with regards to the interest on capitals, interest on drawings, partners salaries etc. are passed through the capital accounts of the partners.

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