In case partner's capital is fixed, then where interest on drawings charged will be shown? Option 1: Debit side of partner's capital account Option 2: Credit side of partner's capital account Option 3: Debit side of partner's current account Option 4: Credit side of partner's current account

Answer: Debit side of partner's current account. Solution: When partners maintain fixed capital accounts, a separate current account is opened for each partner to record all adjustments and transactions. Interest on drawings is an amount charged from the partner (the partner owes this to the firm). Since it represents an expense or liability for the partner, it reduces the partner's claim on the firm. In the partner's current account: - Credit side shows items favorable to the partner → Interest on capital, Salary, Commission, Share of profit - Debit side shows items against the partner → Drawings, Interest on drawings, Share of loss Since interest on drawings is charged FROM the partner, it appears on the Debit side of partner's current account. Journal Entry:, Particulars, L.F., Debit (₹), Credit (₹), Partner's Current A/c Dr., xxx, To Interest on Drawings A/c, xxx, (Being interest on drawings charged), Note: In case of fluctuating capital account (where no current account is maintained), interest on drawings would be debited to the partner's capital account directly.

Partnership

Accounting

Easy

In case partner's capital is fixed, then where interest on drawings charged will be shown?

Debit side of partner's capital account

Credit side of partner's capital account

Debit side of partner's current account

Credit side of partner's current account

✅ Correct Option: 3

When partners maintain fixed capital accounts, a separate current account is opened for each partner to record all adjustments and transactions.

Interest on drawings is an amount charged from the partner (the partner owes this to the firm). Since it represents an expense or liability for the partner, it reduces the partner's claim on the firm.

In the partner's current account:

Credit side shows items favorable to the partner → Interest on capital, Salary, Commission, Share of profit
Debit side shows items against the partner → Drawings, Interest on drawings, Share of loss

Since interest on drawings is charged FROM the partner, it appears on the Debit side of partner's current account.

Journal Entry:

Particulars	Debit (₹)	Credit (₹)
Partner's Current A/c Dr.	xxx
$\quad$ To Interest on Drawings A/c		xxx
(Being interest on drawings charged)

Note: In case of fluctuating capital account (where no current account is maintained), interest on drawings would be debited to the partner's capital account directly.

2026: 31 May Shift 1

Which of the following statement is not true in case of fluctuating capital method under accounting for partnership?

2023: 20 June Shift 2

Identify the way by which the clauses of partnership deed can be altered.

2026: 20 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Gaining Ratio	(I) Average Profit X 100/Normal rate of return
(B) Value of Goodwill	(II) Old Ratio - New Ratio
(C) Sacrificing Ratio	(III) Super Profit X 100/Normal rate of return
(D) Capitalised Value of average profit	(IV) New Ratio - Old Ratio

Choose the correct answer from the options given below:

2026: 23 May Shift 2

Select the correct options from the following in case there is no partnership deed:

A. Profit and losses of the firm are shared equally.

B. Interest on capital is to be paid at the rate of 6 percent per annum.

C. Interest on the partner's loan is to be paid at the rate of 6 percent per annum.

D. No interest is to be charged on the drawings made by the partners.

Choose the correct answer from the options given below:

2025: 13 May Shift 2

"The business of a partnership concern may be carried on by all the partners or any one of them acting for all", indicate which feature of the partnership?

2022: 23 Aug Shift 2

Match List - I with List - II.

List - I	List - II
(A) Interest on loan	(I) Current Account
(B) Fixed capital	(II) Charge Against Profit
(C) Fluctuating capital	(III) Capital Account
(D) Interest on capital	(IV) Appropriation of Profit

Choose the correct answer from the options given below :

In case partner's capital is fixed, then where interest on drawings charged will be shown?

Solution

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