Q.Using the same information for the firm of A and B as in the previous two problems, prepare Partners' Capital Accounts under the Fluctuating Capital Method, and verify that each partner's closing balance equals the total of their Fixed Capital and Current Account balances found earlier.

The Fluctuating Capital Method records everything in a single account per partner, and its closing balance must reconcile exactly with the Fixed Capital Method's two-account total.

Partners' Capital Accounts (Fluctuating Capital Method)

Under this method, every adjustment for each partner — drawings, interest on drawings, interest on capital, salary, and profit share — is recorded directly in the single Capital Account:

Verification against the Fixed Capital Method

A: Fixed Capital ₹1,00,000 + Current Account balance ₹8,660 = ₹1,08,660 — exactly matches the Fluctuating Capital Account's closing balance.

B: Fixed Capital ₹80,000 + Current Account balance ₹18,440 = ₹98,440 — exactly matches the Fluctuating Capital Account's closing balance. …

To convert quickly from a Fixed-Method answer to a Fluctuating-Method answer (or to check one against the other), simply add each partner's Fixed Capital Account balance to their own Current Account balance …

Students sometimes treat the Fixed and Fluctuating Methods as if they should give different final answers for how much a partner owns — they never do; only the NUMBER OF ACCOUNTS and where …