Question

38. Which accounts are opened when the capitals are fluctuating? (A) Only Capital Accounts (B) Only Current Accounts (C) Capital Accounts as well as Current Accounts (D) Either Capital Accounts or Current Accounts​

Answer 1

Answer:

C only Capital account

Explanation:

Capital account are opened when capitals are fluctuating

Answer 2

Answer:

A Capital Account is a general ledger account which shows some of the special transactions like proprietor’s investment in his own business, the aggregate amount of earning, expenses of companies, etc. There are many more transactions which affect the Capital. Like: Interest on Capital, Interest on Drawings, Salaries to the Partners, Commission for the Partners, etc. These values are put in Profit and Loss Appropriation Account and at the same time credited or debited to their respective Capital Accounts.

Explanation:

Methods of Capital Account Creation

Fluctuating Capital Account Method

Fixed Capital Account Method

Fluctuating Capital Account MethodMethods of Capital Account Creation

Fluctuating Capital Account Method

Fixed Capital Account Method

Fluctuating Capital Account Methods