Why does the Fixed Capital Account of partners show credit balance even when the firm suffers losses year after year? (CBSE 2020) Post category:Accountancy Reading time:1 mins read SOLUTION Fixed Capital Accounts of partners show credit balance because the losses are adjusted through Partners’ Current 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 PostState any one difference between Fixed Capital Accounts and Fluctuating Capital Accounts of partners. (Al 2014 C) Next PostGive two items which may appear on the debit side of Partner’s Current Account. (Delhi and AI 2018 C) You Might Also Like X, Y and Z are partners sharing profits and losses in the ratio of 5: 3: 2. From 1st April, 2022, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill should be valued at two years’ purchase of the average profit of the preceding five years. The profits and losses of the preceding years ended 31st March, are: October 18, 2022 Give two examples of finance companies. October 4, 2022 What are accumulated losses? September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X, Y and Z are partners sharing profits and losses in the ratio of 5: 3: 2. From 1st April, 2022, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill should be valued at two years’ purchase of the average profit of the preceding five years. The profits and losses of the preceding years ended 31st March, are: October 18, 2022