Under Fluctuating Capital Method, profits & losses are shared by the partners in
Answers
Answer:
YOUR ANSWER.... ......
Answer:
Under Fluctuating Capital Method, profits & losses are shared by the partners in Partners Capital Account
Explanation:
According to the fluctuating capital system, in order to give a clear picture of capital variations, all profit appropriations must be represented entirely by capital. The capital account for this is formed for just one partner.
Several appropriations, including interest on capital, draws, commissions, and shares in profit and loss, must be documented in the partners' capital account in order to show changes in capital.
The only account maintained under the fluctuating capital technique is the capital account for each partner. All modifications relating to withdrawals, capital interest, capital interest on withdrawals, salaries, and shares of profit or loss are recorded in the capital account itself.
As a result, the balance of the capital account is constantly fluctuating. In the absence of any instructions, this technique should be used to create the partners' capital accounts.
#SPJ2