is credited to the partner's capital account when capitals are fluctuating.

Drawings

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Interest on drawings

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Interest on capital

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Share of loss

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Solution

The correct option is C Interest on capital
Interest on capital, interest on drawings, salaries to the partners, commission for the partners, etc. are credited or debited to their respective capital accounts under fluctuating capital method. Interest on capital is credited to Partner's capital account when capitals are fluctuating.

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Similar questions

Which of the following is credited to Partner`s capital account when capitals are fluctuating?

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

(i) Capitals are fixed

(ii) Capitals are fluctuating

Which of the following is debited to Partner`s capital account when capitals are fluctuating?

Under fluctuating capital account, the interest on capital is credited to ___

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