Concept:Under the fluctuating capital method, a single capital account records all items of partnership distribution and adjustment.
Explanation:When the fluctuating capital system is followed, the partners do not have a separate current account.
Instead, every transaction affecting the partner, such as profit share, drawings, interest on capital, and interest on drawings, is recorded through the capital account itself.
Since profit is an income and increases the owner's equity, the partners' share of profit is credited to the capital account.
This credit raises the closing capital balance of the partner.
It is important not to confuse this with the fixed capital system, where drawings and profit share would be recorded in a separate current account.
Answer:A. capital account