Interest on Capital Accounts of partners under the Fluctuating Capital Account Method is credited to
Interest on Capital Accounts of partners under the Fluctuating Capital Account Method is credited to
a) Interest Account
b) Profit and Loss Account
c) Partner’s Capital Accounts
d) None of these
Anurag Pathak Changed status to publish April 9, 2023
Ans -c)
Explanation:-
Under the Fluctuating Capital Method, all transactions concerning to partners are recorded in the partners’ capital account.
Following transactions are recorded.
a) Interest on capital
b) Partner’s Salary
c) Partner’s Commission
d) Interest on Partner’s Drawings
e) Share of Profit
Anurag Pathak Changed status to publish April 5, 2023
