Option 1- Addition of capital Option 2- Withdrawal of capital Option 3- Drawings against capital According to the fixed capital method, the partners' capital remains unchanged unless additional capital is added or a portion of it is withdrawn, as agreed upon by the partners. Transactions such as profit or loss distribution, capital interest, drawings, and interest on drawings are recorded in a separate account known as the Partner's Current Account. The capital accounts of the partners will always maintain a consistent positive balance, which remains unchanged from year to year unless there are capital injections or withdrawals. Drawings against capital or withdrawal from capital is the same thing. |