# Fixed and Fluctuating Capitals Solutions

This page contains the CBSE accountancy class 12 chapter Accounting for Partnership : Basic Concepts – Fixed and Fluctuating Capitals nuerical questions solutions. You can find the questions/answers/solutions for the chapter 2 of CBSE class 12 accountancy in this page. So is the case if you are looking for CBSE class 12 Commerce related topic Accounting for Partnership : Basic Concepts – Fixed and Fluctuating Capitals nuerical questions solutions. If you’re looking for theoretical questions related to Test Your Understanding, Do It Yourself, Short Answers or Long Answers or Distribution of Profits Solutions or Guarantee of Profit to the Partners Solutions or Past Adjustments Solutions, you can find them at
Accounting for Partnership : Basic Concepts – Fixed and Fluctuating Capitals Solutions
1. Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were ₹ 60,000 and ₹ 40,000 as on April 01, 2015. During the year they earned a profit of ₹ 30,000. According to the partnership deed both the partners are entitled to ₹ 1,000 per month as salary and 5% p.a. interest on their capital. They are also to be charged an interest of 5% p.a. on their drawings, irrespective of the period, which is ₹ 12,000 for Tripathi, ₹ 8,000 for Chauhan. Prepare Partner’s capital/current Accounts when, capitals are fixed.
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Date
Particulars
J.F.
Amount

Tripathi
Amount

Chauhan
Date
Particulars
J.F.
Amount

Tripathi
Amount

Chauhan
To Balance c/d
60,000
40,000
By Balance b/d
60,000
40,000
60,000
40,000
60,000
40,000
Date
Particulars
J.F.
Amount

Tripathi
Amount

Chauhan
Date
Particulars
J.F.
Amount

Tripathi
Amount

Chauhan
To Drawings A/c
12,000
8,000
By Partners’ Salaries A/c
12,000
12,000
To Interest on Drawings A/c
600
400
By Interest on Capital A/c
3,000
2,000
To Balance c/d
3,600
6,400
By Profit and Loss Appropriation A/c
1,200
800
16,200
14,800
16,200
14,800
Working Notes:
Salary of each partner:
Per month
= ₹ 1,000
Per year
= ₹ 1,000 × 12
= ₹ 12,000
Total
= ₹ 24,000
Interest on Capital:
Tripathi
{= ₹~60,000 × \dfrac{5}{100}}
= ₹ 3,000
Chauhan
{= ₹~40,000 × \dfrac{5}{100}}
= ₹ 2,000
Total
= ₹ 5,000
Interest on Drawings:
Tripathi
{= ₹~12,000 × \dfrac{5}{100}}
= ₹ 600
Chauhan
{= ₹~8,000 × \dfrac{5}{100}}
= ₹ 400
Total
= ₹ 1,000
Profit (to be distributed):
Net Profit
₹ 30,000
Partners’ Salaries
(₹ 24,000)
Interest on Capital
(₹ 5,000)
Interest on Drawings
₹ 1,000
₹ 2,000
Profit Share:
Tripathi
{= ₹~2,000 × \dfrac{3}{5}}
= ₹ 1,200
Chauhan
{= ₹~2,000 × \dfrac{2}{5}}
= ₹ 800

2. Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capital, were ₹ 90,000 and ₹ 60,000. The profit during the year were ₹ 45,000. According to partnership deed, both partners are allowed salary, ₹ 700 per month to Anubha and ₹ 500 per month to Kajal. Interest allowed on capital @ 5%p.a. The drawings during the year were ₹ 8,500 for Anubha and ₹ 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital account are fluctuating.
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Date
Particulars
J.F.
Amount

Anubha
Amount

Kajal
Date
Particulars
J.F.
Amount

Anubha
Amount

Kajal
To Drawings A/c
8,500
6,500
By Balance b/d
90,000
60,000
To Interest on Drawings A/c
425
325
By Partners’ Salaries A/c
8,400
6,000
To Balance c/d
1,09,875
70,125
By Interest on Capital A/c
4,500
3,000
By Profit and Loss Appropriation A/c
15,900
7,950
1,18,800
76,950
1,18,800
76,950
Working Notes:
Salary
Anubha’s Salary:
Monthly
= ₹ 700
Yearly
= ₹ 700 × 12
= ₹ 8,400
Kajal’s Salary:
Monthly
= ₹ 500
Yearly
= ₹ 500 × 12
= ₹ 6,000
Total
= ₹ 14,400
Interest on Capital
Anubha
{= ₹~90,000 × \dfrac{5}{100}}
= ₹ 4,500
Kajal
{= ₹~60,000 × \dfrac{5}{100}}
= ₹ 3,000
Total
= ₹ 7,500
Interest on Drawings
Anubha
{= ₹~8,500 × \dfrac{5}{100}}
= ₹ 425
Kajal
{= ₹~6,500 × \dfrac{5}{100}}
= ₹ 325
Total
= ₹ 750
Profit (to be distributed):
Net Profit
₹ 45,000
Total Salary
(₹ 14,400)
Interest on Capital
(₹ 7,500)
Interest on Drawings
₹ 750
₹ 23,850
Profit Share:
Anubha
{= ₹~23,850 × \dfrac{2}{3}}
= ₹ 15,900
Kajal
{= ₹~23,850 × \dfrac{1}{3}}
= ₹ 7,950