What is meant by 'Fluctuating Capital' of a partner? (AI 2016 C)

What is meant by ‘Fluctuating Capital’ of a partner? (AI 2016 C)

Post category:Accountancy
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SOLUTION

It is a method of maintaining Capital Accounts of partners under which all transactions related to a partner (such as his share of profit/loss, drawings, interest on capital or drawings, salary, etc.,) are recorded in his Capital Account.

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