Accounting for Partnership Firms-Fixed Versus Fluctuating Capital Accounts (CBSE Class-12 Accountancy): Questions 1 - 3 of 6

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Question number: 1

» Accounting for Partnership Firms » Fixed Versus Fluctuating Capital Accounts

One Liner Question▾

Write in Brief

How will you show the following in case the capitals are Fixed

a) Additional capital introduced

b) Drawings

c) Withdrawal of capital

d) Interest on capital and

e) Interest on loan by a partners?

Question number: 2

» Accounting for Partnership Firms » Fixed Versus Fluctuating Capital Accounts

Short Answer Question▾

Write in Short

X and Y are partners sharing profits and losses in the ratio of 3: 2 with capitals of Rs. 50, 000 and Rs. 30, 000 respectively. Each partner is entitled to 6 % interest on his capital. X is entitled to a salary of Rs. 800 per month together with a commission of 10 % of net ‘Profit remaining after deducting interest on capitals and salary but before charging any commission. Y is entitled to a salary of Rs. 600 per. month together I. with-a commission of 10 % of Net profit remaining after deducting interest on capitals and salary and after charging all commissions. The profits for the year prior to calculation of interest on capital but after charging salary of partners amounted to Rs. 40, 000. Prepare partners’ Capital Accounts: . -

  1. When capitals are fixed, and
  2. when capitals are. fluctuating.

Question number: 3

» Accounting for Partnership Firms » Fixed Versus Fluctuating Capital Accounts

Short Answer Question▾

Write in Short

If the partners capital accounts are fixed, where will you record the following items:

i) Salary to a partners

ii) Drawing by a partners

iii) Interest on capital and

iv) Share of profit earned by a partner?

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