Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Fluctuating capital account is credited with which of the following?

Options:

Profit of the year

Interest on Capital

Remuneration to the partners

All of above

Correct Answer:

All of above

Explanation:

Fluctuating capital is a type of capital account which changes/fluctuates every time there is addition in capital or when capital is withdrawn. Interest on capital, profit, salary, commission all appears on the credit side and interest on drawings, drawings appears on the debit side.