Question

Under this method capital balances of partner remain constant. Answer in a word / phrase / term.

Answer 1

Fixed capital methods

Answer 2

Answer:

fixed capital method

Explanation:

Under the fixed capital method capital balances of partner remain constant.

The capital of each partner remains constant under the fixed nature of capital from the beginning of the partnership until the end of it. No adjustments are produced such as interest on capital, wage or the commission of the partner, drawings and profit or loss gained during the transaction.