Partnership

Accounting

Easy

The capital accounts of partners will always show a ____ balance under fixed capital account method

Debit

Credit

Zero

Negative

✅ Correct Option: 2

Under the fixed capital method, partners' capital accounts contain only the original capital contributed. All adjustments like drawings, interest, salary, and share of profit go to the Current Account. Hence, the Capital Account always shows a credit balance.

2022: 15 July Shift 2

When the fixed amount is withdrawn at the end of each quarter, interest on drawing will be calculated for _______

2025: 29 May Shift 2

A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided under partnership deed @10% p.a was omitted. Select the correct option from the following:

2023: 29 May Shift 2

Match List I with List II

LIST I	LIST II
A. Interest on capital	I. Admission of partner
B. Gaining Ratio	II. Profit/Loss in the old profit sharing ratio
C. Sacrificing ratio	III. Continuing partners
D. Revaluation of Assets and Liabilities	IV. when partnership deed specifically provide for it

Choose the correct answer from the options given below:

2022: 16 July Shift 2

A firm which maintains fixed capital had two partners Vimla and Kamla sharing profits in the ratio 1:1 The firm credited the partners with profit without interest on Capital which is allowed in the deed. Choose the correct option to pass a journal entry for the past adjustment if the Interest on capital Rs.2000 for Vimla Rs.3000 for Kamla

2022: 8 Aug Shift 2

Which from the following is not a feature of a partnership firm?

2025: 31 May Shift 1

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission @ 5,000. Amitabh has also given a Loan on April 01 , 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. Profit and Loss Appropriation account shows balance of the Profit and Loss A/c (Net profit before Babul's salary) amounted to:

The capital accounts of partners will always show a ____ balance under fixed capital account method

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