how do we show capital account of parteners if not mentioned in deed

Nafis (Account officer) (50 Points)

29 October 2018

how do we show capital amount in partnership account if it has not been mentioned in partnership deed by partners.

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 29 October 2018

If nothing in deed regarding capital you have apply rules led down by the Indian partnership act ,1932 .

However normaly two method for partners capital

1) Fluctuating capital method - All adjustments are made in patners capital

2) Fixed capital method - For each partner a separate capital account is maintained , moreover a saparate Current Account is also maintained .

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