DIFFERENCE BETWEEN FIXED & FLUCTUATING CAPITAL METHODS :

Fixed Capital Method	Fluctuating Capital Method
(i) Two accounts of each partner are maintained, i.e. capital account and current account	(i) Only one account of each partner i.e. capital account is maintained.
(ii) Balance in capital account remains the same except when capital is introduced or capital is withdrawn.	(ii) The balance in capital account changes every year because of profits/losses, drawings, interest on capital, interest on drawings, etc.
(iii) All adjustments in respect of profit, loss, drawings, interest on capital, interest on drawings, salary, commission, etc. are made in the current account.	(iii) All adjustments in respect of profit, loss, drawings, interest on capital, interest on drawings, salary, commission, etc. are made in the capital account.
(iv) The capital account will always have a plus or credit balance while the current account may have a debit (negative) balance.	(iv) Fluctuating capital account may sometimes show a debit (negative) balance.