Difference between Fixed Capital Account and Fluctuating Capital Account Class 12


Are you looking for the difference between Fixed Capital Account and Fluctuating Capital Account as per the syllabus of parntership chapter class 12 CBSE Board.

Here are the below.

Distinction between Fixed Capital Account and Fluctuating Capital Account.

Following are the common difference among both the accounts.

BasisFixed Capital AccountFluctuating Capital Account
1. No. of Accounts MaintainedTwo Accounts are maintained for each partner 1. Partners Current Account & Partners Capital AccountOnly single account is maintained for each partner i.e. Partners Capital Account
2. Frequency of ChangeClosing Balance of Fixed Capital Account does not change until additional capital or withdrawn out of capital is not practiced. Closing Balance of Partners Current account changes every year.Closing Balance of Partners capital account changes every year.
3. Transferring the TransactionsTransactions relating to additional capital and withdrawal out of capital are recorded in Capital Account. regular transactions such interest on capital, interest on drawings, partners salary, commission and distribution of profit and losses are shown in current account of partners.All transactions are shown in partners capital account. no current account is maintained here.
4. BalanceCapital account always show credit balance. current may show credit or debit balance.capital account may show credit or debit balance.


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