When salary to partners, interest on capital, drawings, interest on drawings, Interest on Drawing etc. are recorded in capital accounts of partners, which method we are following to maintain the capital account? Post category:Accountancy Reading time:1 mins read SOLUTION Fluctuating Capital Method. 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 PostName the methods according to which partner’s capital accounts are maintained. Next PostIn case the partner ‘s capital accounts are fixed; withdrawal of capital is recorded in which account?(C.B.S. E. 2020, Mumbai, Chennai) You Might Also Like Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 2: 1. Mohan was admitted for 1/3rd share in the profits. On the date of Mohan’s admission, the Balance Sheet of Ram and Shyam showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Mohan’s admission. November 4, 2022 XYZ Ltd. issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium of Rs. 4 per share, payable as: July 15, 2022 At the time of admission of a partner Suresh, assets and liabilities of Ramesh and Naresh were revalued as follows: (a) A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors Rs. 50,000). (b) Creditors were written back by Rs.5,000. (c) Building was appreciated by 20% (Book Value of Building Rs. 2,00,000). (d) Unrecorded Investments were valued at Rs. 15,000. (e) A Provision of Rs. 2,000 was made for an Outstanding Bill for repairs. (f) Unrecorded Liability towards suppliers was Rs. 3,000. Pass necessary Journal entries. November 4, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 2: 1. Mohan was admitted for 1/3rd share in the profits. On the date of Mohan’s admission, the Balance Sheet of Ram and Shyam showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Mohan’s admission. November 4, 2022
XYZ Ltd. issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium of Rs. 4 per share, payable as: July 15, 2022
At the time of admission of a partner Suresh, assets and liabilities of Ramesh and Naresh were revalued as follows: (a) A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors Rs. 50,000). (b) Creditors were written back by Rs.5,000. (c) Building was appreciated by 20% (Book Value of Building Rs. 2,00,000). (d) Unrecorded Investments were valued at Rs. 15,000. (e) A Provision of Rs. 2,000 was made for an Outstanding Bill for repairs. (f) Unrecorded Liability towards suppliers was Rs. 3,000. Pass necessary Journal entries. November 4, 2022