Question

What is fluctuating capital give answer in one sentence only​

Answer 1

Answer:

Fluctuating capital is a type of capital account which changes/fluctuates every time there is addition in capital or when capital is withdrawn. Interest on capital, profit, salary, commission all appears on the credit side and interest on drawings, drawings appears on the debit side.

Answer 2

Under fluctuating capital method, the capital of the partners does not remain fixed but changes with each and every transaction. In this method, only one account i.e. Capital Account is maintained for each partner.

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