Give the word / term or phrase which can substitute the following statement.
Method of Capital account in which capital balances of partners changes every year?
Fluctuating Capital Method
Explanation: In this method, the capital balances of partners change every year. This is because under fluctuating capital method, only one account, i.e. Capital Account, is opened and every transaction is recorded in it.
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- Methods of Capital Accounts - Fixed and Fluctuating Capital Method