Q.Under fixed capital method, partners' salary, commission and interest on capital will be credited in :

Partners' capital accounts can be maintained in one of two ways. Under the Fixed Capital Method, each partner has two accounts — a Capital Account recording only capital introduced or withdrawn (and so normally staying constant year to year) and a separate Current Account through which interest on capital, salary, drawings, interest on drawings, and share of profit are all routed. Under the Fluctuating Capital Method, a single Capital Account per partner carries all of these items together, so its balance changes every year; this is the method applied by default when …