Under the fixed capital method, the capital accounts of partners usually remain constant. However, the fixed capitals may change under the following two circumstances:

Firstly, the capital changes when additional capital is introduced by the partner into the firm. Secondly, it changes when a part of the capital is withdrawn by the partner in accordance with the agreement among the partners.

Apart from these two specific situations, all other transactions like share of profit or loss, interest on capital, and drawings are recorded in a separate account called the Partner's Current Account. This ensures the capital account balance remains fixed year after year.