In the Proforma of Partner's Capital Account under the Fluctuating Capital Method, the Credit side includes which of the following items?(A) Balance b/d (in case of credit opening balance)(B) Salaries(C) Interest on drawings(D) Profit and Loss Appropriation (for share of profit)Choose the correct answer from the options given below:
- A(A), (B) and (C) only
- B(A), (B), (C) and (D)
- C(A), (B) and (D) only
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
In a Fluctuating Capital Account:Credit side items: Items that increase the partner's equity capital balance, such as Opening Credit Balance (A), Salaries allowed (B), Interest on Capital, and Share of Distributable Profits from P&L Appropriation (D).Debit side items: Items that decrease the partner's capital balance, such as Drawings and Interest on drawings (C).Therefore, only (A), (B), and (D) belong on the credit side.