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If no information is given whether capital is fixed or fluctuating which method is generally safer to assume?

Answer and explanation

Correct answer: Fluctuating capital method

When there is no indication of current accounts fluctuating method is generally assumed. Then all adjustments are recorded in capital accounts.

Related tags

AssumptionFluctuating CapitalExam TipCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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