Question

Partners’ Current Accounts are opened when their capital accounts are

(1) Fixed

(2) Fixed and Fluctuating both

(3) Fluctuating

(4) None of these​

Answer 1

Explanation:

One is Fixed capital method and other is Fluctuating capital account method. In case of fixed capital method,current accounts are opened to record for all other adjustments like salary,commission,interest on capital,loans and drawings etc. Partners capital account shows a fixed balance year after year.

Answer 2

Explanation:

fixed and fluctuating both