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प्रश्न
Answer briefly of the following question :
Give the adjusting entry and closing entry for interest on loan taken by a partner from the firm, when the firm
follows the Fluctuating Capital Method.
उत्तर
Adjusting entry:
Partner's Capital A/c ......... Dr.
To Interest on Loan A/c
Closing entry:
Interest on Loan A/c .......... Dr.
To Profit & Loss A/c
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संबंधित प्रश्न
A and B were partners in a firm sharing profits in the ratio of 4:5. During the year ended 31-3-2015 A withdrew Rs.19,000. Interest on A's drawings was Rs.700.
Pass necessary Journal entry for charging interest on A's drawings assuming that the capitals of the partners were fixed.
Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance
Answer in one sentence only.
What are the methods of maintaining partners’ capital accounts?
Write the word/phrase/term, which can substitute the following sentence.
Under this method capital, balances of partners remain constant.
Write the word/phrase/term, which can substitute the following sentence.
Such capital method in which only Capital Account is maintained for each partner.
Answer in one sentence only.
When is Partners Current Account is opened?
Assertion (A): Under the fluctuating capital method, the balance in the capital account fluctuates from time to time.
Reason (R): Under the fluctuating capital method, all the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings etc, are recorded directly in the capital accounts of the partners.
Answer in one sentence only:
What is fluctuating capital?
Answer in one sentence only :
What is fluctuating capital?
Answer in one sentence only:
What is fluctuating capital?
