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How to prepare Partners capital a/c and current a/c ???

Capital Account is opened in the case fluctuating capital method and fixed capital method. Current account is prepared only in case of fixed capital method.Capital account in fixed capital method remains fixed from year to year.Current account fluctuates from year to year. In capital account, amount invested by the partner is to be recorded.In current account transactions such as drawings, salary, and interest on capital etc are recorded.Capital account in fixed method show only credit balance.Current account can show a credit or debit balance.


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