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Distinguish Between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the Basis of Credit Balance - Accountancy

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प्रश्न

Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance

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उत्तर

Basis Fixed Capital Account Fluctuating Capital Account
Credit Balance Fixed Capital Account always
shows a credit balance as all the
adjustments related to interest on
capital, interest on drawings,
salary, etc. are made through
Partners’ Current Account
Fluctuating capital account can
have both debit and credit
balances as all the adjustments of interest on capital, interest on
drawings, salary, etc. are made
through the same account.
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2016-2017 (March) All India Set 2
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