Partnership firm

In case of Fixed capital, the amount in Capital is always kept as fixed and all adjustments regarding interest, profit, etc. are done in Partners' Current A/C. So, there are two accounts. In case of fluctuating capital, the amount of capital keeps on changing as there is only one account i.e. Partner's Capital A/c. All adjustments are made in this account itself.

Originally posted by : CA Amit Jaiswal
	In case of Fixed capital, the amount in Capital is always kept as fixed and all adjustments regarding interest, profit, etc. are done in Partners' Current A/C. So, there are two accounts. In case of fluctuating capital, the amount of capital keeps on changing as there is only one account i.e. Partner's Capital A/c. All adjustments are made in this account itself.

Agreed.....Only fixed addition or fixed deduction to Capital are adjusted in Capital A/c in case of Fixed Capital...

Thank you my dear friends...