Finance Numericals

  In partnership two accounts are prepared for partners’ capital under the method of fluctuating capital method and fixed capital method. Accounts which are prepared under this methods are ledger account. In fluctuating capital method only capital account is prepared which includes all those transactions which helps to increase or decrease the capital of  the partners. Under this method the capitals of partners are fluctuating and it never remains steady. Format of capital accounts: Particulars Amount (X) Amount (Y) Particulars Amount (X) Amount (Y) By Cash / Bank a/c (withdrawn capital)     To Opening balance a/c     By Drawing a/c (out of profit)     To Cash/ Bank A/c     By Interest on drawing capital a/c     To   Commission a/c     B