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Partner's Capital Accounts

Under Method,...

Question

Under ___ Method, all adjustments for drawings, salary, interest on capital, salary interest on capital, etc. are made in the capital account.

A

Fixed capital account

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B

Current account

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C

Fluctuating capital account

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D

Floating capital account

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Solution

The correct option is C
Fluctuating capital account

Under Fluctuating Method, all adjustments for drawings, salary, interest on capital, salary interest on capital, etc. are made in the capital account account.

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