Question

List the items which may be debited or credited in capital accounts of the partners when

(i) Capitals are fixed

(ii) Capitals are fluctuating

Answer 1

(i) When capitals are fixed, the following items will be debited or credited in partners capital account

Partner's Capital Account

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}\\ & \text{Bank A/c}& & -& & \text{Balance b/d}& & -\\ & (\text{Permanent}& & & & \text{(Opening Balance)}& & \\ & \text{Withdrawal)}& & & & & & \\ & \text{Balance c/d}& & -& & \text{Bank A/c}& & -\\ & & & & & \text{(Fresh capital Introduced)}& & -\\ & & & & & & & \end{array}$

(ii) When capitals are fluctuating the following items will be debited or credited in partners capital account.

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}\\ & \text{Bank A/c}& & -& & \text{Balance b/d}& & -\\ & (\text{Permanent}& & & & \text{(Opening Balance)}& & \\ & \text{Withdrawal)}& & & & & & \\ & \text{Interest on}& & -& & \text{Bank A/c}& & -\\ & \text{Drawings}& & & & & & \\ & \text{P}\&\text{L Appropriation}& & -& & \text{(Fresh Capital}& & \\ & \text{A/c}& & & & \text{Introduced)}& & \\ & \text{(Loss on Sharing}& & & & \text{Salaries}& & -\\ & \text{Basis)}& & & & & & \\ & & & & & \text{Interest On Capital}& & -\\ & \text{Balance c/d}& & -& & \text{P}\&\text{L Appropriation}& & -\\ & & & & & \text{A/c}& & \\ & & & & & \text{(Profit on Sharing Basis)}& & \end{array}$