Dev withdrew Rs. 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12% per annum. Calculate interest on Dev’s drawings. (C.B.S.E. 2019)
SOLUTION Dev Total Drawings = Rs. 10,000 x 12 = Rs. 1,20,000Interest on Dev's Drawings = Rs. 1,20,000 x 12 / 100 x 6 / 12* = Rs. 7,200.Average Period…
Why does the Fixed Capital Account of partners show credit balance even when the firm suffers losses year after year? (CBSE 2020)
SOLUTION Fixed Capital Accounts of partners show credit balance because the losses are adjusted through Partners' Current Accounts.
State any one difference between Fixed Capital Accounts and Fluctuating Capital Accounts of partners. (Al 2014 C)
SOLUTION Fixed Capital Account cannot have a debit balance but Fluctuating Capital Account can have a debit balance.
Which capital accounts always show a credit balance? (CBSE 2020)
SOLUTION Fixed Capital accounts always show a credit balance.
Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the Basis of Credit Balance. (Al 2017, COSE 2019)
SOLUTION Fixed Capital Account always shows a credit (positive) balance, while Fluctuating Capital Account may show debit (negative) or credit (positive)'balance.
What is meant by ‘Fluctuating Capital’ of a partner? (AI 2016 C)
SOLUTION It is a method of maintaining Capital Accounts of partners under which all transactions related to a partner (such as his share of profit/loss, drawings, interest on capital or…
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