Question

In Fluctuating Capital Method, the capital of a partner ______.

पर्याय

• Unchanged

• Fluctuates from time to time

• Fluctuates only at the beginning of the year but is fixed at the end

• Maintained

Answer 1

In Fluctuating Capital Method, the capital of a partner fluctuates from time to time.

Explanation:

Every transaction involving the partners' capital causes the capital to fluctuate, resulting in a fluctuating capital account.