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 The quick ratio of a company is 0.75: 0.50. Will credit purchase of goods Rs. 10,000 increase, decrease or not change the ratio? Give reason in support of your answer. (C.B.S.E. 2020. Punjab) October 3, 2022 X, Y and Z were partners in a firm. Z died on 31st May, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of before death. Profits for the year ended 31st March, 2018, 2019 and 2020 were Rs. 18,000, Rs. 19,000 and Rs. 17,000 respectively. Calculate Z’s share of profit till his death and pass necessary Journal entry for the same when: (a) there is no change in profit-sharing ratio of remaining partners, and (b) there is change in profit-sharing ratio of remaining partners, new ratio being 3: 2. August 5, 2022 What is meant by ‘Gaining Ratio’ on retirement of a partner? (C.B.S.E. 2019) October 8, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
The quick ratio of a company is 0.75: 0.50. Will credit purchase of goods Rs. 10,000 increase, decrease or not change the ratio? Give reason in support of your answer. (C.B.S.E. 2020. Punjab) October 3, 2022
X, Y and Z were partners in a firm. Z died on 31st May, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of before death. Profits for the year ended 31st March, 2018, 2019 and 2020 were Rs. 18,000, Rs. 19,000 and Rs. 17,000 respectively. Calculate Z’s share of profit till his death and pass necessary Journal entry for the same when: (a) there is no change in profit-sharing ratio of remaining partners, and (b) there is change in profit-sharing ratio of remaining partners, new ratio being 3: 2. August 5, 2022