Partnership

Accounting

Easy

common

Which of the following is the feature of fluctuating capital:

Under this method, two separate accounts are maintained for each partner, viz., 'capital account' and 'current account'.

Each partner has one account, i.e. capital account under this method

Each partner has one account, i.e. current account under this method

The capital account balance remain unchanged unless there is addition or withdrawal of capital.

✅ Correct Option: 2

Under the Fluctuating Capital Method, each partner maintains only one account - the Capital Account. All transactions related to the partner such as additional capital, drawings, share of profit or loss, interest on capital, salary, commission, etc., are recorded in this single Capital Account itself.

This means the capital balance keeps changing (fluctuating) with every transaction recorded.

Analyzing other options:

Option 1 describes the Fixed Capital Method where two separate accounts (Capital Account and Current Account) are maintained for each partner.

Option 3 is incorrect because under fluctuating capital method, the account is called Capital Account, not Current Account.

Option 4 also describes the Fixed Capital Method where the capital account balance remains unchanged except for fresh capital introduced or withdrawn. In fluctuating capital method, the balance keeps changing continuously.

Therefore, Option 2 correctly identifies the feature of fluctuating capital method.

2025: 27 May Shift 1

Which of the following statements results in the reconstitution of a partnership firm :-

(A) Change in profit sharing ratio among partners.

(B) Admission of a new partner.

(D) Dissolution of a partnership.

Choose the correct answer from the options given below:

(A), (B) and (C) only
(A), (B) and (D) only
(A), (B), (C) and (D)
(B), (C) and (D) only

2025: 26 May Shift 2

Neha contributed Rs. 30,000 and Saloni Rs. 90,000 as capital. What will be Saloni's share in profits if the partnership agreement is silent?

2025: 13 May Shift 1

Which statements are true about partnership:

(A) Each partner carrying on the business is the principal as well as the agent for all the other partners.

(B) Valid partnership can be formulated even without a written agreement between the partners.

(D) The maximum number of partners can be 50.

Choose the correct answer from the options given below:

2025: 3 June Shift 2

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

2025: 31 May Shift 1

Which combination of statements is true about partnership-

(A) Valid partnership can be formulated even without a written agreement between the partners.

(B) Methods of settlement of disputes among the partners can't be part of the partnership deed.

(D) Each partner carrying on the business is the principal as well as the agent for all the other partners.

Choose the correct answer from the options given below:

2025: 26 May Shift 2

Which of the following is not always an essential feature of partnership?

Which of the following is the feature of fluctuating capital:

Solution

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