Current and Capital Account

Under Fixed Capital method, drawings of each partner is debited in his______

Partners’ Current Accounts are opened when their capital accounts are

• Fixed

• Fixed and Fluctuating both

• Fluctuating

• None of these

The interest on capital accounts of partners under the fluctuating capital account method is credited to

• Interest Account

• Partners’ Capital Accounts

• Profit and Loss Account

• Partners’ Current Accounts

The current account of a partner

• Will always have a credit balance

• Can never have a debit balance

• Will always have a debit balance

• May have a debit or credit balance

Interest on partner’s drawing under a fluctuating capital account is debited to

Which of the following is an appropriation of profit?

• Interest on loan

• Interest on Capital

• Rent

• Employees’ salary

In a business, A and B invested amounts in the ratio of 2 : 1, whereas the ratio between and B was 3 : 2. If

the firm earned a profit of Rs. 1,20,000, how much amount did B receive?

Commission paid to partners is debited to _______