Question

hii..✨

. what are the two types of accounts in fixed capital method?

..
. giVe ❤️nd TaKe ❤️


​

Answer 1

$\huge\mathcal\purple{Hello \: Vinaya}$

Under fixed capital method, the capital of the partners is not altered and it remains generally fixed. Two accounts are maintained for each partner namely (a) Capital account and (b) Current account.

Answer 2

$\huge\red{\underline{{\bf A}}}$$\huge\pink{\underline{{\bf N}}}$$\huge\green{\underline{{\bf S}}}$$\huge\purple{\underline{{\bf W}}}$$\huge\orange{\underline{{\bf E}}}$$\huge\blue{\underline{{\bf R}}}$

ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛs: ғɪxᴇᴅ ᴀɴᴅ ғʟᴜᴄᴛᴜᴀᴛɪɴɢ

ᴀ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ ɪs ᴀ ɢᴇɴᴇʀᴀʟ ʟᴇᴅɢᴇʀ ᴀᴄᴄᴏᴜɴᴛ ᴡʜɪᴄʜ sʜᴏᴡs sᴏᴍᴇ ᴏғ ᴛʜᴇ sᴘᴇᴄɪᴀʟ ᴛʀᴀɴsᴀᴄᴛɪᴏɴs ʟɪᴋᴇ ᴘʀᴏᴘʀɪᴇᴛᴏʀ’s ɪɴᴠᴇsᴛᴍᴇɴᴛ ɪɴ ʜɪs ᴏᴡɴ ʙᴜsɪɴᴇss, ᴛʜᴇ ᴀɢɢʀᴇɢᴀᴛᴇ ᴀᴍᴏᴜɴᴛ ᴏғ ᴇᴀʀɴɪɴɢ, ᴇxᴘᴇɴsᴇs ᴏғ ᴄᴏᴍᴘᴀɴɪᴇs, ᴇᴛᴄ. ᴛʜᴇʀᴇ ᴀʀᴇ ᴍᴀɴʏ ᴍᴏʀᴇ ᴛʀᴀɴsᴀᴄᴛɪᴏɴs ᴡʜɪᴄʜ ᴀғғᴇᴄᴛ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ. ʟɪᴋᴇ: ɪɴᴛᴇʀᴇsᴛ ᴏɴ ᴄᴀᴘɪᴛᴀʟ, ɪɴᴛᴇʀᴇsᴛ ᴏɴ ᴅʀᴀᴡɪɴɢs, sᴀʟᴀʀɪᴇs ᴛᴏ ᴛʜᴇ ᴘᴀʀᴛɴᴇʀs, ᴄᴏᴍᴍɪssɪᴏɴ ғᴏʀ ᴛʜᴇ ᴘᴀʀᴛɴᴇʀs, ᴇᴛᴄ. ᴛʜᴇsᴇ ᴠᴀʟᴜᴇs ᴀʀᴇ ᴘᴜᴛ ɪɴ ᴘʀᴏғɪᴛ ᴀɴᴅ ʟᴏss ᴀᴘᴘʀᴏᴘʀɪᴀᴛɪᴏɴ ᴀᴄᴄᴏᴜɴᴛ ᴀɴᴅ ᴀᴛ ᴛʜᴇ sᴀᴍᴇ ᴛɪᴍᴇ ᴄʀᴇᴅɪᴛᴇᴅ ᴏʀ ᴅᴇʙɪᴛᴇᴅ ᴛᴏ ᴛʜᴇɪʀ ʀᴇsᴘᴇᴄᴛɪᴠᴇ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛs.

ᴍᴇᴛʜᴏᴅs ᴏғ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ ᴄʀᴇᴀᴛɪᴏɴ

• ғʟᴜᴄᴛᴜᴀᴛɪɴɢ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ ᴍᴇᴛʜᴏᴅ
• ғɪxᴇᴅ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ ᴍᴇᴛʜᴏᴅ

ғʟᴜᴄᴛᴜᴀᴛɪɴɢ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ ᴍᴇᴛʜᴏᴅ

ғɪʀsᴛʟʏ, ғʟᴜᴄᴛᴜᴀᴛᴇ ᴍᴇᴀɴs ᴀɴʏᴛʜɪɴɢ ʜᴀᴠɪɴɢ ᴜɴᴘʀᴇᴅɪᴄᴛᴀʙʟᴇ ᴜᴘs ᴀɴᴅ ᴅᴏᴡɴs. ʜᴇɴᴄᴇ, ᴜɴᴅᴇʀ ᴛʜɪs ᴍᴇᴛʜᴏᴅ, ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ ᴏғ ᴇᴀᴄʜ ᴘᴀʀᴛɴᴇʀ ᴋᴇᴇᴘs ᴏɴ ᴄʜᴀɴɢɪɴɢ ғʀᴏᴍ ᴛɪᴍᴇ ᴛᴏ ᴛɪᴍᴇ.

ɪɴ ᴀ ғɪʀᴍ, ᴛʜᴇʀᴇ ɪs ᴀ sɪɴɢʟᴇ ᴀᴄᴄᴏᴜɴᴛ ᴜɴᴅᴇʀ ᴛʜᴇ ɴᴀᴍᴇ “ᴄᴀᴘɪᴛᴀʟ” ᴡʜɪᴄʜ sʜᴏᴡs ᴀʟʟ ᴛʜᴇ ɴᴇᴄᴇssᴀʀʏ ɪɴғᴏʀᴍᴀᴛɪᴏɴ ᴀʙᴏᴜᴛ ᴛʜᴇ ᴅɪғғᴇʀᴇɴᴛ ᴛʀᴀɴsᴀᴄᴛɪᴏɴs ʀᴇʟᴀᴛᴇᴅ ᴛᴏ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ. ɪᴛ ᴍᴏsᴛʟʏ sᴛᴀʀᴛs ᴡɪᴛʜ ᴀ ᴄʀᴇᴅɪᴛ ᴀᴍᴏᴜɴᴛ ᴏғ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ ɪɴᴠᴇsᴛᴇᴅ ʙʏ ᴛʜᴇ ᴘᴀʀᴛɴᴇʀ ɪɴ ᴛʜᴇ ɪɴɪᴛɪᴀʟ ᴛɪᴍᴇ ᴏғ ᴛʜᴇ ʙᴜsɪɴᴇss.

ғɪxᴇᴅ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ

ᴀ ғɪʀᴍ ᴘʀᴇᴘᴀʀᴇs ғɪxᴇᴅ ᴀᴄᴄᴏᴜɴᴛ ᴡɪᴛʜ ᴠᴇʀʏ ʙᴀsɪᴄ ᴄᴀᴘɪᴛᴀʟ ʀᴇʟᴀᴛᴇᴅ ᴛʀᴀɴsᴀᴄᴛɪᴏɴs. ᴜɴʟɪᴋᴇ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ, ᴜɴᴅᴇʀ ᴛʜᴇsᴇ ʀᴇᴘᴇᴛɪᴛɪᴠᴇ ᴄᴀᴘɪᴛᴀʟ ʀᴇʟᴀᴛᴇᴅ ᴛʀᴀɴsᴀᴄᴛɪᴏɴs ᴅᴏᴇs ɴᴏᴛ ᴀғғᴇᴄᴛ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ ʙᴀʟᴀɴᴄᴇ. ʟɪᴋᴇ, sᴀʟᴀʀʏ ᴏғ ᴇᴍᴘʟᴏʏᴇᴇs, ᴄᴏᴍᴍɪssɪᴏɴ ғᴏʀ ᴇᴍᴘʟᴏʏᴇᴇs, ɪɴᴛᴇʀᴇsᴛ ᴏɴ ᴄᴀᴘɪᴛᴀʟ, ɪɴᴛᴇʀᴇsᴛ ᴏɴ ᴅʀᴀᴡɪɴɢs, ᴇᴛᴄ.

ᴛʜᴇ ғɪʀᴍ ᴏᴘᴇɴs ᴛʜᴇ ᴀᴄᴄᴏᴜɴᴛ ɪɴ ᴛʜᴇ ɴᴀᴍᴇ ᴏғ “ғɪxᴇᴅ ᴄᴀᴘɪᴛᴀʟ ᴀᴄᴄᴏᴜɴᴛ”. ɪɴɪᴛɪᴀʟ ɪɴᴠᴇsᴛᴍᴇɴᴛ ᴡɪʟʟ ᴀᴘᴘᴇᴀʀ ᴏɴ ᴛʜᴇ ᴄʀᴇᴅɪᴛ sɪᴅᴇ ᴀs ᴛʜᴇ sᴛᴀʀᴛɪɴɢ ᴇɴᴛʀʏ. ᴏɴʟʏ 2 ᴋɪɴᴅs ᴏғ ᴄᴀᴘɪᴛᴀʟ ʀᴇʟᴀᴛᴇᴅ ᴛʀᴀɴsᴀᴄᴛɪᴏɴs ᴄᴀɴ ᴀғғᴇᴄᴛ ɪᴛs ʙᴀʟᴀɴᴄᴇ :

(1) ᴀᴅᴅɪᴛɪᴏɴ ᴏғ ᴄᴀᴘɪᴛᴀʟ

(2) ᴘᴇʀᴍᴀɴᴇɴᴛ ᴡɪᴛʜᴅʀᴀᴡᴀʟ ᴏғ ᴄᴀᴘɪᴛᴀʟ

ᴄᴜʀʀᴇɴᴛ ᴀᴄᴄᴏᴜɴᴛ

ɪᴛ ɪɴᴄʟᴜᴅᴇs ᴀʟʟ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟ ʀᴇʟᴀᴛᴇᴅ ᴛʀᴀɴsᴀᴄᴛɪᴏɴs ᴏᴛʜᴇʀ ᴛʜᴀɴ ᴛʜᴇ ɪɴɪᴛɪᴀʟ ɪɴᴠᴇsᴛᴍᴇɴᴛ ᴏғ ᴄᴀᴘɪᴛᴀʟ, ᴀᴅᴅɪᴛɪᴏɴ ᴏғ ᴄᴀᴘɪᴛᴀʟ ᴀɴᴅ ᴡɪᴛʜᴅʀᴀᴡᴀʟ ᴏғ ᴄᴀᴘɪᴛᴀʟ. ʜᴇɴᴄᴇ, ɪᴛ ᴍᴀɪɴʟʏ ɪɴᴄʟᴜᴅᴇs ɪᴛᴇᴍs sᴜᴄʜ ᴀs :

1. ɪɴᴛᴇʀᴇsᴛ ᴏɴ ᴄᴀᴘɪᴛᴀʟ

2. ɪɴᴛᴇʀᴇsᴛ ᴏɴ ᴅʀᴀᴡɪɴɢs

3. sᴀʟᴀʀɪᴇs ᴀɴᴅ ᴏᴛʜᴇʀ ʀᴇᴍᴜɴᴇʀᴀᴛɪᴏɴ ᴛᴏ ᴇᴍᴘʟᴏʏᴇᴇs

4. ᴄᴏᴍᴍɪssɪᴏɴ ᴛᴏ ᴇᴍᴘʟᴏʏᴇᴇs ᴀɴᴅ ᴇᴠᴇɴ ᴍᴏʀᴇ.

ʜᴇɴᴄᴇ, ʙʏ ᴘʀᴇᴘᴀʀɪɴɢ ᴛʜɪs ᴀᴄᴄᴏᴜɴᴛ, ᴡᴇ ᴄᴀɴ ʟᴇᴛ ᴛʜᴇ ᴍᴀɪɴ ᴄᴀᴘɪᴛᴀʟ ᴏғ ᴛʜᴇ ʙᴜsɪɴᴇss “ғɪxᴇᴅ”. ᴀs ᴀ ʀᴇsᴜʟᴛ ᴏғ ᴡʜɪᴄʜ ᴛʜᴇʀᴇ ɪs ɴᴏ ғʟᴜᴄᴛᴜᴀᴛɪᴏɴ ᴀᴛ ᴀʟʟ. ʜᴇɴᴄᴇ, ᴛʜᴇ ғɪʀᴍ ᴡɪʟʟ ʙᴇ ᴀʙʟᴇ ᴛᴏ ғɪɴᴅ ᴏᴜᴛ ᴛʜᴇ ᴇxᴀᴄᴛ ʀᴇᴀsᴏɴs ʙᴇʜɪɴᴅ ᴛʜᴇ ᴄʜᴀɴɢᴇ.