Student Community
Answer
Ans – Fluctuating Capital Method Under the Fluctuating Capital Method, the interest on the partner’s capital is recorded on the credit of side of the Partner’s Current Account.
The following are the reasons for allowing Interest on Capital: 1) When the Capitals of Partners are different but Profit Sharing Ratio is Equal:- If a partner invests more capital as compared to other partners and the profit-sharing ratio is…
Items that appear on the debit side of a Partner’s Current Account. 1) Drawings out of Profit by Partner’s 2) Interest on Drawings out of profit