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Under fluctuating capital method A capital increased even though he made drawings. Which reason is possible?

Answer and explanation

Correct answer: Profit salary or interest exceeded drawings

Under fluctuating method capital increases if credit items exceed debit items. So profit salary or interest may be more than drawings.

Related tags

Fluctuating CapitalCapital IncreaseReasoningCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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