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Under fluctuating capital method in which account will the second effect of interest on drawings be debited?

Answer and explanation

Correct answer: In partners capital account

Under fluctuating capital method partner adjustments are recorded in capital account. Interest on drawings is recoverable from partner so capital account is debited.

Related tags

Fluctuating CapitalInterest On DrawingsDebitAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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