State one difference between Fixed Capital Account and Fluctuating Capital Account of partners.

Open in App

Solution

Fixed Capital account Fluctuating capital account
1. The balance of the Partner's capital account remains the same throughout and all entries relating to the partners are made in the partner's current account. 1. The balance of the Partner's Capital account fluctuates all the time since all entries relating to the partners are made in the partner's capital account itself.

Suggest Corrections

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

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

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

Join BYJU'S Learning Program

Fixed Capital account	Fluctuating capital account
1. The balance of the Partner's capital account remains the same throughout and all entries relating to the partners are made in the partner's current account.	1. The balance of the Partner's Capital account fluctuates all the time since all entries relating to the partners are made in the partner's capital account itself.