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Why is it important to distinguish fixed and fluctuating methods while studying capital accounts?

Answer and explanation

Correct answer: Because same items may be recorded in different accounts

In fixed method regular items go to current account and in fluctuating method they go to capital account. Identifying the method saves marks.

Related tags

Fixed Vs FluctuatingCapital AccountsExam ConceptPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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