Question

Partners Capital Account(Fluctuating) is a combination of which two accounts ? Capital and Capital or Capital & Current??

Answer 1

Hi Rahul,
There are two methods for preparing capital accounts:

1. Fixed Capital Method: Under this method two accounts are prepared, Capital Account and Current Account.
2. Fluctuating Capital Method: Under this method, only one account is prepared, i.e. Partners' Capital Account. It records all the items of Partners' Capital and Partners' Current Account.