Which accounts are opened when the capitals are fluctuating?
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Answered by
6
Answer:
capital account is used when capital account is fluctuating
Answered by
0
Answer:
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.
Explanation:
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Partners’ Salaries:
Profit and Loss Account
45,000
Anubha
8,400
Interest on Drawings
Kajal
6,000
14,400
Anubha
425
Kajal
325
750
Interest on Capital:
Anubha
4,500
Kajal
3,000
7,500
Profit transferred to
Anubha’s Capital
15,900
Kajal’s Capital
7,950
23,850
45,750
45,750
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