Question

Mention the items that may appear on the debit side of the Capital Account of a partner when the capitals are fluctuating.

Answer 1

Items that may appear on the debit side of the Capital Account when the capitals are fluctuating :

1. Interest on drawings;

2. Drawings of the partners;

3. Share of loss of each partner;

4. Withdrawal of capital by the partners;

5. Closing Balance of the Partner's capital account.