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InterviewSolution
| 1. |
capital accounts of partners |
| Answer» <p>Capital accounts of the partners can be maintained in two ways;</p><p>1) Fixed Capital Accounts</p><p>2) Fluctuating Capital Accounts</p><p>1) Fixed Capital Accounts</p><p>Under this method the capital invested by the partners remains constant unless additional capital is brought in or some part of the existing capital is withdrawn permanently by agreement. Entry is made in the Capiatl accounts only to record the capital inroduced or withdrawn permenently by the partners . All the other transactions relating to drawings, interest on capital or drawings, salary or commission to the partners, share of profit or loss etc are recorded in the newly opened Current</p> | |