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If the Partner’s Capital Accounts are fluctuating, in that case following item/items will be recorded in the credit side of capital accounts :
Interest on capital
Salary of partners
Commission of partners
All of the above
- Interest on capital: This is credited to the partner’s capital account, as it represents an additional amount paid to the partner for using their capital.
- Salary of partners: Partners may receive a salary as compensation for their work in the firm. This is also credited to their capital account.
- Commission of partners: Similar to salary, commissions are paid to partners for their efforts, increasing their capital account balance.
- Option 4: All of the above: Each of these items (interest, salary, commission) increases a partner's capital account and is recorded on the credit side.
By: santosh ProfileResourcesReport error
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