Difference Between Capital and Current Account class 12 Accountancy


Are you looking for the difference between capital and current account as per the syllabus of partnership chapter class 12 accountancy CBSE Board.

Yes there are few common differences

Distinction between Capital and Current Account in Partnership Chapter class 12 Accountancy

Following are the major differences among capital and current account.

BasisCapital AccountCurrent Account
1. NeedCapital account of partners are maintained in both fluctuating and fixed capital methodCurrent account of partners are prepared only in case of Fixed Capital Method.
2. Balance of AccountBalance of Capital account always shows credit balance in the fixed capital method. But in a fluctuating capital method, it may show credit or debit balance.Balance of current account may have credit or debit balance.
3. NatureIn fixed capital method, balance of capital account remain unchanged until additional capital or withdrawal out of capital is not practiced.The balance of the current account does not change when capital is introduced or withdrawal.
4. TransactionsThe capital account records the amount invested by the partners.The current account records the transactions such as interest on capital, interest on drawings, commission and salary of partners and profit, etc.


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