Doubts

SOLUTION (i) Permanent withdrawal of Capital from business, and; (ii) Closing Balance of Capital.

SOLUTION Interest on Drawings: On the Debit of Current Account. Share of Profit: On the Credit of Current Account.

SOLUTION (i) Drawings, (ii) Interest on Drawings.

SOLUTION (i) Interest on Capital, (ii) Share of Profit.

SOLUTION Under fixed capital method a current account is maintained for each partner and all items relating to partners such as drawings, interest on capital, share of profit or loss…

SOLUTION (a) Capital A/cs and Current A/cs; (b) Only Capital A/cs.

SOLUTION Partner’s Capital is said to be fluctuating when the capital remains changing with every transaction in the Capital Account such as drawings, interest on capital etc.

SOLUTION Partner’s capital is said to be fixed when the capital of partners remain unaltered, unless additional capital is introduced or a part of the capital is withdrawn permanently as…

SOLUTION They need not have a partnership deed because the activity they are carrying is charitable in nature. There is no business and sharing of profits.