Mention the items that may appear on the credit side of tha capital account of the partner when the capitals are fluctuating
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When the capitals of partners are fluctuating, all adjustments with regards to the:
1. Interest in capitals
2. Interest on drawings
3. Partners’ salaries
are passed through the capital accounts of the partners. This account is fluctuating whenever there is a presence of any transaction influencing the concerned account.
All the adjustments leading to a Increase in the Capital are shown on the Credit side of the Capital Account.
Explanation:
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