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Interest on a partners capital is Rs 3000. Under fluctuating capital method, where will it go?

Answer and explanation

Correct answer: Credit to partners capital account

Under fluctuating capital method, interest on capital is credited to capital account. It increases the partners capital.

Related tags

Interest On CapitalFluctuating CapitalCreditCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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