Question

Arun and Selvam are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.

Particulars	Arun ₹	Selvam ₹
Capital on 1st January, 2018	2,20,000	1,50,000
Current account on 1st January, 2018	4,250 (Dr.)	10,000 (Cr.)
Additional capital introduced during the year	Nil	70,000
Withdrew for personal use	10,000	20,000
Interest on drawings	750	600
Share of profit for 2018	22,000	15,000
Interest on capital	1,100	750
Commission	6,900	Nil
Salary	Nil	6,850

Answer 1

Dr.	Capital Account				Cr.
Particulars	Arun	Selvam	Particulars	Arun	Selvam
To balance b/d	2,20,000	2,20,000	By balance c/d	2,20,000	2,20,000
			By bank		70,000
	2,20,000	2,20,000		2,20,000	2,20,000

 

Dr.	Current Account				Cr.
Particulars	Arun	Selvam	Particulars	Arun	Selvam
To balance b/d	4,250		By balance b/d		10,000
To Drawings	10,000	20,000	By share of profit	22,000	15,000
To Interest on Drawings	750	600	By Interest on capital	1,100	750
To balance c/d	15,000	12,000	By Commission	6,900
			By Salary		6,850
	30,000	32,600		30,000	32,600
			By Balance b/d	15,000	12,000