Difference between fixed capital account and fluctuating capital account

Difference Between Fixed Capital & Fluctuating Capital Methods

Basis	Fixed Capital Method	Fluctuating Capital Method
1.Number of Accounts maintained	Two accounts, viz., capital and current account.	One account, viz., capital account.
2. Nature of Account / Balance	Remains unaltered	Fluctuates.
3. Adjustments	Adjustments like interest on capital, drawings, interest on drawings, etc. are made in the current accounts.	Adjustments are made in the capital account itself.
4. Appearance in the balance sheet	Both capital and current accounts appear.	Only capital account appears .
5. Specific mention	It should be specifically mentioned in the partnership deed.	Not necessary.
6. Credit / Debit balance	Fixed capital accounts always shows a credit balance.	Fluctuating capital may some times show a debit balance.