Video narration
Which account should receive your partner's drawings, interest, salary, commission, and profit share? Think of it like a personal bank statement: one record carries the whole balance. Or, a fixed balance sits in one record while later movements use a separate ledger. Under the fluctuating capital account, the opening balance changes with every routine adjustment. Interest on capital, salary, commission, and profit share are credits; drawings, interest on drawings, and loss share are debits. Opening capital plus credits minus debits gives closing capital. But the same adjustments do not stay in one account. With a fixed capital account, the agreed capital stays constant, and routine movements go to the current account. That current account gets the same credits and debits. The partnership agreement decides which items apply; permanent capital added or withdrawn can change fixed capital. So, which account? Fluctuating means adjustments change capital; fixed means they go to current.