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प्रश्न
Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance
उत्तर
| Basis | Fixed Capital Account | Fluctuating Capital Account |
| Credit Balance | Fixed Capital Account always shows a credit balance as all the adjustments related to interest on capital, interest on drawings, salary, etc. are made through Partners’ Current Account |
Fluctuating capital account can have both debit and credit balances as all the adjustments of interest on capital, interest on drawings, salary, etc. are made through the same account. |
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संबंधित प्रश्न
Tom and Harry were partners in a firm sharing profits in the ratio of 5:3. During the year ended 31.3.2015 Tom had withdrawn Rs.40,000. Interest on his drawings amounted to Rs.2,000.
Pass necessary journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating.
Neetu, Meetu, and Teetu were partners in a firm. On 1st January 2018, Meetu retired. On Meetu's retirement, the goodwill of the firm was valued at Rs 4,20,000.
Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.
Kavita, Ravita and Sunita were partners in a firm sharing profits in 2:1:2 ratio. On 31.3.2014 their Balance Sheet was as follows :
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Bills Payable Capitals Kavita 1,40,000 Ravita 1,80,000 Sunita 90,000 |
83,000 19,000
4,10,000 |
Cash Debtors Bills payable Furniture Machinery Agarwal’s Capital |
45,000 34,000 15,000 2,10,000 2,00,000 8,000 |
| 5,12,000 | 5,12,000 |
On 31.9.2014, Sunita died. The partnership deed provided for the following to the executors of the deceased partner:
(a) Her share in the goodwill of the firm, calculated on the basis of three years' purchase of the average profits of the last four years. The profits of the last four years were Rs 1,98,000; Rs 2,24,000: Rs 2,76,000 and Rs 3,27,000 respectively.
(b) Her share in the profit of the firm till the date of her death, calculated on the basis of the average profits of the last four years.
(c) Interest @ 6% per annum on the credit balance, if any, in her Capital account.
(d) Interest on her loan @ 12% per annum.
Prepare Sunita's Capital Account to be presented to her executors
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.
Give the word / term or phrase which can substitute the following statement.
Under this method capital balances of partner remain constant.
State whether the following statement are True or False.
Partner’s current account is opened when fluctuating capital method is adopted.
State whether the following statement are True or False.
The balance of capital account remains constant under fixed capital method.
Write the word/phrase/term, which can substitute the following sentence.
Such capital method in which only Capital Account is maintained for each partner.
The balance of Drawings Account of a partner is transferred to his _______ account under the Fixed Capital Method.
Do you agree/disagree with the following statement:
The balance of Capital Account remains constant under Fixed Capital Method.
State whether the following statement is True or False with reasons:
Adjustments are recorded in Partners Current Account in Fixed Capital Method.
State whether the following statement is True or False with reasons:
Adjustments are recorded in Partners Current Account in Fixed Capital Method.
Answer in one sentence only:
What is fluctuating capital?
Answer in one sentence only :
What is fluctuating capital?
What is fluctuating capital?
Answer in one sentence only:
What is fluctuating capital ?
Answer in one sentence only:
What is fluctuating capital?
