In case the partner ‘s capital accounts are fixed; withdrawal of capital is recorded in which account?(C.B.S. E. 2020, Mumbai, Chennai) Post category:Accountancy Reading time:1 mins read SOLUTION Partner’s Capital Accounts. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhen salary to partners, interest on capital, drawings, interest on drawings, Interest on Drawing etc. are recorded in capital accounts of partners, which method we are following to maintain the capital account? Next PostWhy does the Fixed Capital Account of partners show credit balance even when the firm suffers losses year after year? (C.B.S.E. 2020, Mumbai, Chennai) You Might Also Like Name any two Financing activities that result into inflow of cash. October 4, 2022 Pass entries in the firm’s journal for the following on admission of a partner: (i) Machinery be reduced by Rs. 16,000 and Building be appreciated by Rs. 40,000. (ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to Rs. 80,000. (iii) Provision for warranty claims be increased by Rs. 12,000. August 1, 2022 Three Chartered Accountants Abhijit, Baljit and Charanjit form a partnership, profits being shared in the ratio of 3: 2: 1 subject to the following: (a) Charanjit’s share of profit guaranteed to be not less than Rs. 15,000 p.a. (b) Baljit gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000. The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by Baljit for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above. October 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Pass entries in the firm’s journal for the following on admission of a partner: (i) Machinery be reduced by Rs. 16,000 and Building be appreciated by Rs. 40,000. (ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to Rs. 80,000. (iii) Provision for warranty claims be increased by Rs. 12,000. August 1, 2022
Three Chartered Accountants Abhijit, Baljit and Charanjit form a partnership, profits being shared in the ratio of 3: 2: 1 subject to the following: (a) Charanjit’s share of profit guaranteed to be not less than Rs. 15,000 p.a. (b) Baljit gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000. The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by Baljit for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above. October 18, 2022