Partnership accounts

Accountancy

What's difference between partners capital a/c and current a/c

Harshita Tripathi

CA Inter

★ 2K+

17-Nov-22 11:44

529

Answers (2)

Best Answer

There are two methods of accounting for partnership. 1. Fluctuating capital approach (Without maintaining current account) 2. Fixed capital approach (With current account) 1st case; Here all transactions relating to partners are directly posted in capital account. Current account is not involved 2nd case: Here capital account will remain fixed. All transactions relating to partners are posted in current account.

James Js

CA Inter

★ 1K+

18-Nov-22 13:22

Thank you

Thread Starter

Harshita Tripathi

CA Inter

★ 2K+

18-Nov-22 13:30