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Question
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.
Options
₹ 3,30,000
₹ 4,40,000
₹ 4,00,000
₹ 3,00,000
Solution
₹ 3,00,000
RELATED QUESTIONS
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 During the year ended 31-3-2015 Nusrat had withdrawn Rs.15,000.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.
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 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.
Under this method capital balances of partner remain constant.
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.
Capital account always shows credit balance.
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?
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?
