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Covers preparation of partners’ capital accounts (fixed and fluctuating), drawings accounts, and profit appropriation with salary and interest on capital/drawings. Includes commissions based on net profit before and after commission, monthly/quarterly drawings and interest computation using simple, product, and average period methods, plus journal entries for interest on drawings with fixed vs fluctuating capitals. Also includes work on profit and loss appropriation for a partnership with agreed profit ratio and interest on capital.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/accounting-for-partnership-firms-fundamentals-partnership-accounts-and-interest-on-drawingscapital-class-xii/664889/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/accounting-for-partnership-firms-fundamentals-partnership-accounts-and-interest-on-drawingscapital-class-xii/664889.png","ImageObject",300,407,{"name":92,"@type":93},"notyourbestiee","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-10-29",true,{"@type":102,"interactionType":103,"userInteractionCount":8},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"How do you prepare partners' capital accounts for fixed vs fluctuating capitals?","Question",{"text":112,"@type":113},"The document asks for capital accounts along with drawings for both fixed and fluctuating capital cases, incorporating salary/interest and interest on drawings as per the partnership deed. Profit appropriation is then reflected in the capital balances accordingly.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How is commission to partners calculated when it is based on net profit before or after charging commission?",{"text":117,"@type":113},"It provides formulas for commission as a percentage of net profit before commission, and another formula for commission as a percentage after commission is charged. The rate of commission is used to adjust the base profit accordingly.",{"name":119,"@type":110,"acceptedAnswer":120},"What methods are used to calculate interest on drawings in partnership accounts?",{"text":121,"@type":113},"The content includes calculation of interest on drawings using the simple method and product method, and also an average period method formula. It further specifies how to compute interest when drawings occur at the beginning, middle, or end of the period.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},664889,1793278518,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":8,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":29,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":129,"read_time":143},962094243716,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","ACCOUNTANCY  \nACCOUNTING FOR  \nPARTNERSHIP FIRMS  \nFUNDAMENTALS  \nName:   Date:  Class: XII  \n1. A and B are partners with capitals of ₹60,000 and ₹20,000 respectively on 1st April,2017.Net profit (before taking into account the provisions of the deed) for the year ended 31st March ,2018 was ₹24,000 .The partnership deed provides for the following:  \na) B is entitled to a salary of ₹6,000 p.a  \nb) Interest on capitals is to be allowed @6% p.a  \nc) Interest on drawings is to be charged @5% p.a  \nThe drawings of the partners A and B were ₹6,000 and ₹4,000 respectively and interest on drawings for A being ₹200 and for B ₹100.  \nPrepare capital accounts of partners along with their drawings account:  \ni. If they are fixed and  \nii. If they are fluctuating.  \nSalary or Commission to partner:  \ni. Percentage of net profit before charging commission:  \nNet profit (before commission) x  rate of commission  \n100  \nii. Percentage of net profit after charging commission:  \nNet profit(before commission) x Rate of commission  \n100 + rate of commission  \n2. X and Y are partners in a firm .X is to get a commission of 10% of net profit before charging any commission .Y is to get a commission of 10% on net profit after charging all commissions .Net profit for the year ended 31st March 2018, before charging any commission was ₹55,000 .  \n3. A ,B and C are partners in a firm .According to the Partnership deed ,the partners are  \nentitled to draw ₹7,000 per month. On the first day of every month A b and C drew ₹7,000; ₹6,000 and ₹5000 respectively. Interest on capitals and interest on drawings are fixed at 8% and 10% respectively. Profit for the year ended 31st March 2018 was ₹7,55,000 out of which ₹2,00,000 are to be transferred to General reserve .B and C are entitled to receive salary of ₹30,000 and ₹45,000 p.a respectively and A is entitled to receive a commission @10% on net distributable profits after charging such commission. On 1st April 2017,the balances oftheir capital accounts were ₹5,00,000 ; ₹4,00,000 ;  \n₹3,50,000 respectively.  \nPrepare P&L appropriation A/c for the year ended 31st March 2018 and Capital Accounts  \nof Partners in the books of the firm  \n4. Calculation of Interest on Drawings: Simple method and product method:  \nIn a partnership ,partners are charged interest on drawings @15% p.a .During the year ended 31st March ,2018 a partner drew as follows:  \n\n| Date | 1st May 17 | 1st Aug,17 | 30th sep 17 | 31st Jan 18 | 31st Mar18 |\n| --- | --- | --- | --- | --- | --- |\n| Amt(₹) | 2,000 | 5,000 | 2,000 | 6,000 | 2,000 |\n\nWhat is the interest chargeable from the partner?  \n5. (when drawings are made for a period of 6 months only)A B and C are partners sharing profits equally. A drew regularly ₹6,000 in the beginning of every month for six months ended 30th September ,2017 .B drew regularly ₹6,000 at the end of every month for the six months ended 30th September ,2017 .C drew regularly ₹6,000 in the middle of every month for the six months ended 30th September ,2017 .Calculate interest on drawings @5% p.a when the books are closed on 31st March every year.  \n6. Average Period Method:  \nInterest on Drawings = Total Drawings x Rate of Interest x Average period  \n100 12  \nAverage Period = Months left after First Drawings + Months left after last Drawings  \n2  \n7. A Partner draws ₹1,000 per month. Under the Partnership Deed, interest on Drawings is to be charged @15% p.a .Calculate interest that should be charged to the partner if the drawings are made  \ni. In the beginning of the month  \nii. In the middle of the month or  \niii. At the end of the month  \n8. Calculate interest in Drawings of Mr. Sidhu @10% p.a for the year ended 31st March,2018in each of the following alternative cases:  \nCase.1 If he withdrew ₹6,000 in the beginning of each quarter  \nCase.2 If he withdrew ₹6,000 at the end of each quarter  \nCase.3 If he withdrew ₹9,000 in the middle of each quarter  \n9. Calculate interest on drawings of Rakesh @10% p.a for the year","cbCaivcXSqCszyE6","https://ap.wps.com/l/cbCaivcXSqCszyE6","pdf",214981,"English","# Partnership Fundamentals\n## Capital Accounts, Drawings and Profit Appropriation\n## Salary/Commission, Interest on Capital and Drawings\n## Interest on Drawings Methods (Simple, Product, Average Period)\n## Journal Entries for Interest on Drawings","[{\"question\":\"How do you prepare partners' capital accounts for fixed vs fluctuating capitals?\",\"answer\":\"The document asks for capital accounts along with drawings for both fixed and fluctuating capital cases, incorporating salary/interest and interest on drawings as per the partnership deed. Profit appropriation is then reflected in the capital balances accordingly.\"},{\"question\":\"How is commission to partners calculated when it is based on net profit before or after charging commission?\",\"answer\":\"It provides formulas for commission as a percentage of net profit before commission, and another formula for commission as a percentage after commission is charged. The rate of commission is used to adjust the base profit accordingly.\"},{\"question\":\"What methods are used to calculate interest on drawings in partnership accounts?\",\"answer\":\"The content includes calculation of interest on drawings using the simple method and product method, and also an average period method formula. It further specifies how to compute interest when drawings occur at the beginning, middle, or end of the period.\"}]","ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS - Partnership Accounts and Interest on Drawings/Capital (Class XII) | PDF",15]