2.4 Preparation of Capital Accounts:

12th BOOK KEEPING BY AJAYSANTHOSH MOURYA

Illustration : 1

Show how the following items will appear in the capital accounts of the partners, Anbu and Balu.

When their capitals are a) fixed and b) fluctuating. 

      

       Solution:

        a)      When capital accounts are fixed:

  

   

  b)      When capital accounts are fluctuating:
 

Illustration : 2

Write up the capital and current accounts of the partners, Kala and Mala from the following and show how these will appear in the Balance Sheet.

 

 

Lesson to be continue -  3 Distributon of Profit