List the items which may be debited or c | Class 12 Accountancy Chapter Accounting for Partnership : Basic Concepts, Accounting for Partnership : Basic Concepts NCERT Solutions

Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter Accounting for Partnership : Basic Concepts. This page offers a step-by-step solution to the specific question from Exercise 4, Question 3: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 3:

List the items which may be debited or credited in capital accounts of the partners when:

(i) Capitals are fixed.
(ii) Capital are fluctuating.

Answer:

(i)When Capitals are fixed

The following items are credited in the Partner's Capital Account when capital accounts are fixed.

(a) Opening balance of capital
(b) Additional capital introduced during an accounting year

The following items are debited in the Partner's Capital Account when capital accounts are fixed.

(a) Part of capital withdrawn
(b) Closing balance of capital

(ii) When Capitals are fluctuating

The following items are credited in the Partner's Capital Account when capital accounts are fluctuating.

(a) Opening balance of capital.
(b) Additional capital introduced during an accounting year
(c) Salaries to the partners
(d) Interest on capital
(e) Share of profit
(f) Commission and bonus to the partners

The following items are debited in the Partner's Capital Account when capital accounts are fluctuating.

(a) Drawings made during the accounting period
(b) Interest on drawings.
(c) Share of loss.
(d) Closing balance of capital.

Other Questions of Chapter Accounting for Partnership : Basic Concepts

Illustrate how interest on drawings will be calculated under various situations.

Give two circumstances under which the fixed capitals of partners may change.

Why it is considered desirable to make the partnership agreement in writing.

Rani and Suman are in partnership with fixed capitals of Rs, 80,000 and Rs.60,000, respectively. During the year 2015-16, Rani withdrew Rs. 10,000 from her capital and Suman Rs. 15,000. Profits before charging interest on capital was Rs. 50,000. Rani and Suman shared profits in the ratio of 3:2. Calculate the amounts of interest on their capitals @ 12% p.a. for the year ended March 31, 2016.

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?

Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

(i) Mohan is an active partner. He wants a salary of Rs. 10,000 per year;
(ii) Shyam had advanced a loan to the firm. He claims interest @ 10% per annum;
(iii) Mohan has contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants equal share in profits.
(iv) Shyam wants interest on capital to be credited @ 6% per annum.

State whether the following statements are true or false:

(i) Valid partnership can be formulated even without a written agreement between the partners;
(ii) Each partner carrying on the business is the principal as well as the agent for all the other partners;
(iii) Maximum number of partners can be 50;
(iv) Methods of settlement of dispute among the partners can’t be part of the partnership deed;
(v) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner;
(vi) Interest on partner’s loan is to be given @ 12% p.a. if the deed is silent about the rate.

Discuss the main provisions of the Indian Partnership Act 1932 that are relevant to partnership accounts if there is no partnership deed.

Explain why it is considered better to make a partnership agreement in writing.

Define Partnership Deed.

Popular questions of class 12 Accountancy

What is Capital Fund? How is it calculated?

What is sacrificing ratio? Why is it calculated?

Why there is need for the revaluation of assets and liabilities on the admission of a partner?

What is subscription? How is it calculated?

If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?

On what occasions sacrificing ratio is used?

Identify various matters that need adjustments at the time of admission of a new partner.

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

What are the different ways in which a partner can retire from the firm?

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?

Recently Viewed Questions of Class 12 Accountancy

What is Capital Fund? How is it calculated?

Reproduce the format of Realisation Account.

What are the different ways in which a partner can retire from the firm?

State the order of settlement of accounts on dissolution.

How deficiency of crditors is paid off at the time of dissolution of firm.

Explain the process dissolution of partnership firm?

Distinguish between firm’s debts and partner’s private debts.

State the difference between dissolution of partnership and dissolution of partnership firm.

Write the various matters that need adjustments at the time of retirement of partner/partners.

On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Accounting for Partnership : Basic Concepts.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

Latest Blog Posts

Stay updated with our latest educational content and study tips

Smart Questions to Ask in a Parent-Teacher Meeting | PTM Made Easy

Parent-Teacher Meetings (PTMs) are more than quick updates on marks — they’re a chance to build a real partnership between home and school. A good Parent-Teacher Meeting conversation helps parents see beyond grades. It opens up insights about a child’s strengths, struggles, emotions and even hidden talents. When parents participate actively, they don’t just track […]

The Secret to Smarter Learning — Building Strong Critical Thinking Skills

In today’s world of endless information , knowing how to think is more important than knowing what to think . From school projects to real – life decisions , critical thinking helps students question ideas , analyze facts and form logical conclusions . But what exactly does critical thinking mean ? Simply put , it’s […]

Study Smarter, Not Harder: Build Productive Habits That Stick

Every student dreams of better grades , stronger focus and more study time – but the real challenge isn’t starting, it’s staying consistent . Building productive study habits is not about studying all day , it’s about studying smart . In today’s fast – paced digital world, distractions are everywhere – from endless phone notifications […]

The Hidden Risks of Online Gaming for Children — Is your child safe while gaming online?

Online gaming has rapidly become one of the most popular pastimes among children. Whether it’s multiplayer mobile games , PC adventures or console challenges , kids are spending more time than ever in the virtual world . On the surface, gaming seems entertaining and even educational – improving hand- eye coordination , teamwork and problem […]

View All Blog Posts

Comments

RAVI
May 14, 2020

Solve my question

Yash ostwal
Jan 14, 2018

Not good Explanation