Question

Partner's current account is opened when fluctuating capital method is adopted. (State True or False)

Answer 1

heya !

Question -

Partner's current account is opened when fluctuating capital method is adopted. (State True or False)

Answer -

$true$

Answer 2

The statement partner's current account is opened with the fluctuating capital method adoption is false.

• Partner's current account is opened when the fixed capital method is adopted.
• Under the method of fixed capital account, the current account of the partner is opened. In this way, the partners the capital remains unchanged and all other transactions involving interest on drawings, salaries etc. are recorded in the current account