Question

State any four items which may be included in the partnership deed from accounting point of view.

List any four items which can be credited to the capital account of a partner when the capital account is fluctuating.

Answer 1

Following are the items that can be included in the Partnership deed from the accounting point of view:

(1) Rate of Interest on Capital

(2) Rate of Interest on Drawings

(3) Salary to partners.

(4) Rate of Interest on Loan taken from a partner.

Following are the items to be credited in the Capital Account of a partner in case of Fluctuating Capital method:

(1) Interest on Capital

(2) Salary to the Partners

(3) Share of Profit

(4) Commission to Partners