What is partner’s Current Account?

Post category:Accountancy
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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 etc. are recorded in this account.

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A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was:

Net Profit before Interest and Tax Rs. 6,00,000; Net Fixed Assets Rs. 20,00,000; Net Working Capital Rs. 10,00,000; Current Assets Rs. 11,00,000. Calculate Return on Investment.

A and B are partners in a firm sharing profits and losses in the ratio 3 : 1. They admit C for 1/4th share on 31st March, 2014 when their Balance Sheet was as follows:

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