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Question
From the following information, prepare capital accounts of partners Padmini and Padma, when their capitals are fluctuating.
| Particulars | Padmini ₹ |
Padma ₹ |
| Capital on 1st January 2018 (Cr. balance) | 5,00,000 | 4,00,000 |
| Capital on 1st January 2018 (Cr. balance) | 70,000 | 40,000 |
| Interest on drawings | 2,000 | 1,000 |
| Share of profit for 2018 | 52,000 | 40,000 |
| Interest on capital | 30,000 | 24,000 |
| Salary | 45,000 | Nil |
| Commission | Nil | 21,000 |
Solution
| Dr. | Capital Account | Cr. | |||
| Particulars | Padmini | Padma | Particulars | Padmini | Padma |
| To Drawings | 70,000 | 40,000 | By balance b/d | 5,00,000 | 4,00,000 |
| To Interest on Drawings | 2,000 | 1,000 | By share of profit | 52,000 | 40,000 |
| To balance c/d | 5,55,000 | 4,44,000 | By Interest on capital | 30,000 | 24,000 |
| By salary | 45,000 | ||||
| By commission | 21,000 | ||||
| 6,27,000 | 4,85,000 | 6,27,000 | 4,85,000 | ||
| By balance b/d | 5,55,000 | 4,44,000 | |||
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When fixed capital method is adopted by a partnership firm, which of the following items will appear in the capital account?
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From the following information, prepare capital accounts of partners Rooban and Deri, when their capitals are fixed.
| Particulars | Rooban ₹ |
Deri ₹ |
| Capital on 1st April, 2018 | 70,000 | 50,000 |
| Current account on 1st April, 2018 (Cr.) | 25,000 | 15,000 |
| Additional capital introduced | 18,000 | 16,000 |
| Drawings during 2018 – 2019 | 10,000 | 6,000 |
| Interest on drawings | 500 | 300 |
| Share of profit for 2018 – 2019 | 35,000 | 25,800 |
| Interest on capital | 3,500 | 2,500 |
| Salary | Nil | 18,000 |
| Commission | 12,000 | Nil |
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