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प्रश्न
State whether the following statement is True or False with reasons.
Adjustments are recorded in Partner's Current Account in Fixed Capital Method.
पर्याय
True
False
उत्तर
Adjustments are recorded in Partner's Current Account in Fixed Capital Method. - True
Explanation:
In the Fixed Capital Method, as the name suggests capital balances (opening and closing) are generally remain fixed. Under this method, adjustments are not to be recorded in Capital Account. All adjustments are recorded in a separate account called Partners’ Current Accounts.
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 During the year ended 31-3-2015 Nusrat had withdrawn Rs.15,000.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 During the year ended 31.3.2015 Tom had withdrawn Rs.40,000.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.
Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance
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.
Method of Capital account in which capital balances of partners changes every year?
Give the word / term or phrase which can substitute the following statement.
Capital method in which partner’s current account is opened.
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.
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.
The balance of Drawings Account of a partner is transferred to his _______ account under the Fixed Capital Method.
When partners adopt Fixed Capital Method then they have to operate ________ Account.
Answer in one sentence only.
What is Fluctuating Capital?
Answer in one sentence only.
When is Partners Current Account is opened?
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.
Vihaan and Mann are partners sharing profits and losses in the ratio of 3 : 2. The firm maintains fluctuating capital accounts and the balance of the same as on 31st March 2022 is ₹ 4,00,000 and ₹ 4,65,000 for Vihaan and Mann respectively. Drawings during the year were ₹ 65,000 each. As per the partnership Deed, Interest on capital @ 10% p.a. on Opening Capital has been allowed to them. Calculate the opening capital of Vihaan given that the divisible profits during the year 2021-22 were ₹ 2,25,000.
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.
Answer in one sentence only:
What is fluctuating capital?
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?
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 ?
