Question

Under which Capital Account Method, Current Accounts of partners are not maintained?

Answer 1

Under the 'Fluctuating capital' account method, current accounts of the partners are not maintained. Under this method, only one account is opened, i.e the Partner's Capital account. All entries relating to the partners, like interest on capital and drawings, share of profit etc are made in this account. Hence, the capitals of the partners keep on changing over the years.