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प्रश्न
Answer in one sentence only.
When is Partners Current Account is opened?
उत्तर
When Fixed Capital Method is adopted by the firm, Partners Current Account is opened.
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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.
Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3:2. During the year ended 31-3-2015 Nusrat had withdrawn Rs.15,000. Interest on her drawings amounted to Rs.300. Pass necessary journal entry for charging interest on drawing assuming that the capitals of the partners were fixed.
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 During the year ended 31.3.2015 Tom had withdrawn Rs.40,000.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.
Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance
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.
Answer in one sentence only.
What is the Fixed Capital Method?
Answer in one sentence only.
What is Fluctuating Capital Method?
Answer in one sentence only.
What are the methods of maintaining partners’ capital accounts?
Give the word / term or phrase which can substitute the following statement.
Under this method capital balances of partner remain constant.
Select the most appropriate alternative from those given below and rewrite the statement.
The interest on capital of a partner is credited to __________________ account.
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.
A partner who provides only capital to the firm is called as nominal partner.
State whether the following statement are True or False.
The balance of capital account remains constant under fixed capital method.
State whether the following statement are True or False.
Capital account always shows credit balance.
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.
State whether the following statement is True or False with reasons.
Adjustments are recorded in Partner's Current Account in Fixed Capital Method.
Answer in one sentence only.
What is Fluctuating Capital?
Do you agree/disagree with the following statement:
The balance of Capital Account remains constant under Fixed Capital Method.
Assertion (A) - Commission provided to partner is shown in Profit and Loss A/c.
Reason (R) - Commission provided to partner is charge against profits and is to be provided at a fixed rate.
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.
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.
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:
What is fluctuating capital?
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?
Answer in one sentence only:
What is fluctuating capital?
