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 Revenue from Operations, i.e., Net Sales Rs. 6,00,000. Calculate Net Profit Ratio. August 17, 2022 Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were fixed at Rs. 3,00,000, Rs. 1,00,000, Rs. 2,00,000. For the year ended 31st March, 2019, interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year before charging interest was Rs. 2,50,000. Show your working notes clearly and pass necessary adjustment entry. July 21, 2022 X, Y and Z were partners sharing profits and losses in the ratio of 3: 2: 1. Y died on 30th June, 2021. Profit from 1st April, 2021 to 30th June, 2021 was Rs. 3,60,000. X and Z decided to share the future profits in the ratio of 3: 2 respectively with effect from 1st July, 2021. Pass the necessary Journal entries to record Y’s share of profit up to the date of death. August 5, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were fixed at Rs. 3,00,000, Rs. 1,00,000, Rs. 2,00,000. For the year ended 31st March, 2019, interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year before charging interest was Rs. 2,50,000. Show your working notes clearly and pass necessary adjustment entry. July 21, 2022
X, Y and Z were partners sharing profits and losses in the ratio of 3: 2: 1. Y died on 30th June, 2021. Profit from 1st April, 2021 to 30th June, 2021 was Rs. 3,60,000. X and Z decided to share the future profits in the ratio of 3: 2 respectively with effect from 1st July, 2021. Pass the necessary Journal entries to record Y’s share of profit up to the date of death. August 5, 2022