1. Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is a) fixed b) fluctuating Particulars Ali (R.O) Ahmed(R.O) Capital on 01.01.2021 90,000 70,000 Drawings during 2021-2022 12,000 9,000 Interest on Drawings 360 270 Interest on Capital 5,400 4,200 Partner's salary 12,000 --- Commission ---- 6,000 Share of profit for 2021-22 6,000 4,000

1. Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is a) fixed b) fluctuating Particulars Ali (R.O) Ahmed(R.O) Capital on 01.01.2021 90,000 70,000 Drawings during 2021-2022 12,000 9,000 Interest on Drawings 360 270 Interest on Capital 5,400 4,200 Partner's salary 12,000 --- Commission ---- 6,000 Share of profit for 2021-22 6,000 4,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Show how the following items will appear in the
capital accounts of the partners Ali and Ahmed
when their capital is a) fixed b) fluctuating
Particulars
Ali (R.O)
Ahmed(R.O)
Capital on 01.01.2021
90,000
70,000
Drawings during 2021-2022
12,000
9,000
Interest on Drawings
360
270
Interest on Capital
5,400
4,200
Partner's salary
12,000
Commission
6,000
Share of profit for 2021-22
6,000
4,000

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