CUET Preparation Today
Fluctuating capital account is credited with ________________ |
Interest on Capital Profit share of the partner Remuneration received by partner All of the above |
All of the above |
The correct answer is option 4- All of the above. All the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, salary or commission to partners, etc are recorded directly in the capital accounts of the partners. This makes the balance in the capital account fluctuate from time to time. Crediting all the items in the capital account of partners will increase their balance. |
