Question

What are the methods of maintaining partners capital accounts? (Answer in one sentence)

Answer 1

Answer:

Partners capital accounts is n equity account in the books of accounting of partnership.

Explanation:

There are various methods of maintaining this type of account:

• Initial and subsequent contribution by the partners  to the partnership in the form of either cash or the market value of the assets .

• Profit and losses earned by business, and allocated to the partners based on the provision of the partnership agreement.

• Distribution to the partners
• Partners have got to ensure that the the records are keep and followed to the level .

Answer 2

answer :1.fixed capital method :

In fixed capital methods there are 2 different accounts Need to be prepared they are partners capital account, partners current account

2.fluctuating capital method :In fluctuating capital method no need to prepare 2 different account, it requires to prepare only one account that is partners capital account in account we need to record original capital invested by capital account all the other adjustments like drawing, interests on drawings.