Download App

Accounts of Partnership Firms-Fundamentals — Accountancy STD 12 — Question

Tamilnadu BoardEnglish MediumSTD 12AccountancyAccounts of Partnership Firms-Fundamentals2 Marks
Question
What is meant by the fixed capital method?
✓

Answer

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:
  1. Capital account and
  2. Current account
The transactions relating to initial capital introduced, additional capital introduced and capital permanently withdrawn are entered in the capital account and all other transactions are recorded in the current account.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "Answer the following questions:" from Accounts of Partnership Firms-Fundamentals→Accounts of Partnership Firms-Fundamentals — all question types→Accountancy STD 12 question papers→Tamilnadu Board STD 12 question papers→Tamilnadu Board question paper generator→

Similar questions

Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a general reserve of ₹ 42,000. Pass the journal entry to distribute the general reserve.
→
Karthik and Kannan are equal partners. They admit Kailash with 1/4 share of the profit. Kailash acquired his share from old partners in the ratio of 7 : 3. Calculate the new profit sharing ratio and sacrificing ratio.
→
What is super profit?
→
Dheena, Surya, and Jankai are partners sharing profits and losses in the ratio of 5:3:2. on 31.3.2018, Dheena retired. On the date of retirement, the books of the firm showed a reserve fund of ₹ 50,000. The pass journal entry to transfer the reserve fund.
→
Ananth and Suman are partners sharing profits and losses in the ratio of 3 : 2. They admit Saran for 1/5 share, which he acquires entirely from Ananth. Find out the new profit sharing ratio and sacrificing ratio.
→
Write a brief note on accounting vouchers.
→
A and B are partners, sharing profits and losses in an equal ratio with Capital of $Rs. 50,000$ and $Rs 40,000$ on $1.4.2017.$ On $1$st July $2017,$ A introduced $Rs.10,000$ as his additional capital, where B introduced only $Rs.1,000.$ Interest $10\%$ p.a. Calculate interest on capital.
→
From the following details of a business concern calculate net profit ratio.
Particulars Amount Rs.
Revenue from operations 9,60,000
Cost of revenue from operations 5,50,000
Office and administration expenses 1,45,000
Selling and distribution expenses 25,000
→
Sunil, Sumathi and Sundari are partners sharing profits in the ratio of 3:3:4. Sundari retires and her share is taken up entirely by Sunil. Calculate the new profit sharing ratio and gaining ratio.
→
Interest on Capital: Mr. A and B started a business on 1.4.2014, with a capital of Rs. 60,000 and 50,000, respectively. On 1st July 2014. Mr. A withdrew Rs 8,000 from his capital. Mr. B introduced additional capital of Rs 10,000 on 30.9.2014. Calculate interest on capital @ 5% p.a. for year ending 31.3.2015.
→