Match List – I with List – II. LIST I LIST II A. Only Capital A/c exi… | Accountancy Part A CUET question

Match List – I with List – II.

LIST I	LIST II
A. Only Capital A/c exist	I. Credited to partner's capital account
B. Capital account balance remain unchanged	II. Debited to Partner's Capital Account
C. Fresh/additional capital brought in by partner	III. Fixed Capital Account
D. Permanent withdrawal	IV. Fluctuating Capital Account

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → A-IV, B-III, C-I, D-II

The two methods differ in whether every partner item goes through the capital account or only changes in capital do:

(A) Only Capital A/c exist — this matches (IV) Fluctuating Capital Account. All items are entered in the one capital account, so its balance changes.

(B) Capital account balance remain unchanged — this matches (III) Fixed Capital Account. Profits, drawings and interest go to a separate current account.

(C) Fresh/additional capital brought in by partner — this matches (I) Credited to partner's capital account. Capital introduced increases what the firm owes the partner.

(D) Permanent withdrawal — this matches (II) Debited to Partner's Capital Account. Capital taken out reduces the balance.

NCERT (2026-27 edition):
Fixed Capital Method – “… Under the fixed capital method, the capitals of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement among the partners.”

NCERT (2026-27 edition):
Fluctuating Capital Method – “… Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner. 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.”

NCERT (2026-27 edition):
Fixed Capital Method

Extract from the NCERT textbook