Question

Capitalisation Method
Numerical Questions
get
ixed and Fluctuating Capital Account
1. On 1st Oct., 2017, Ram and Krishna started a cloth business with capital of 10,000
and * 8.000 respectively. As per partnership agreement partners were entitled to
10% annual interest on their capital and Krishna was entitled to get a salary
of 300 per month. Profit & loss of the firm was to be divided equally among the
partners. Each partner was entitled to withdraw 250 per month as drawings with
interest. The accounts were closed on 31st March, 2018 and there was profit of
6,050 before allowing interest and salary.
Prepare Partners' Capital Accounts on 31st March, 2018 according to
(i) Fixed and
(ii) Fluctuating Capital and Prepare P & L Appropriation Account also
(Ans: Share in Profit : Ram * 1.675; Krishna 1.675: Balance of Current al
Ram 1675: Krishna 2.375; Balance of Capital Account in case of Fluchting
Capital alc: Ram 10,675; Krishna 10.375]​

Answer 1

Answer:

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