Fixed Capital Accounts

X and Y are partners sharing profits wqually. Their Balance sheet as on 31st March, 2019 is given below: Z is admitted as a new partner for 1/4th share under the following terms: (a) Z is to introduce Rs 1,25,000 as capital. (b) Goodwill of the firm was valued at nil. (c) It is found that the creditors included a sum of Rs 7,500 which was not to be paid. But it was also found that there was a liability for Compensation to Workmen amounting toRs 10,000. (d) Provision for doubtful debts is to be created @ 10% on debtors. (e) In regard to the Partners' Capital Accounts present Fixed Capital Account Method is to be converted into Fluctuating capital Account Method. (f) Bills of Rs 20,000 accepted from creditors were not recorded in the books. (g) X provides Rs 50,000 loan to the business carrying interest @ 10% p.a. You are required to prepare Revaluation Account, Partners' Capital Accounts, Bank Account and the Balance sheet of the new firm.

Puneet and Trun are in restaurant business having credit balance in their fixed Capital Account as Rs. 2,50,000 each. They have credit balances in their Current Accounts of Rs. 30,000 and Rs. 20,000 respectively. The firm does not have any liability. They are regularly earning profits and their average profit fo last 5 years is Rs. 1,00,000. If the normal rate of return is 10% find the value of goodwill by Capitalisation of Average Profit Method.

It the Partner's Capital Accounts are fixed, interest on capital will be recorded:

If the Partners' Capital Accounts are fixed 'salary payable to partner' will be recorded :

If the Partner's Capital Accounts are fluctuating, in that case following item/items will be recorded in the credit side of capital accounts :