Open App

Commerce Exam > Commerce Notes > Crash Course of Accountancy - Class 12 > Partner Capital Account

Partner Capital Account | Crash Course of Accountancy - Class 12 - Commerce PDF Download

Partner capital a/c
It is a personal account And is a liability for the firm so it carries a credit balance, so the items which will
Increase its balance will be credited like
Interest on capital
Partner Salary
Partner Commission
Divisible profits
Capital introduced
Decrease its balance will be credited like
Interest on drawings
Drawings
Capital withdrawn

Types of capital account

· Fixed capital account
· Fluctuating capital account

Fluctuating Capital Method:
· Only one account, i.e. capital account is maintained for each partner.
· All the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, salary or commission to partners, etc are recorded directly in the capital accounts of the partners
Capital a/c

Particulars	A	B	Particulars	A	B
To drawings	****	****	By balance b/d (cr. Balance)	***	***
To interest on drawings	Xxxx	Xxxx	By interest on capital	XXX	XXX
			By salary	XXX	XXX
			By commission	Xxx	Xxx
			By divisible profits	XXX	XXX

Fixed Capital Method

· The capitals of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement among the partners.
· All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in a separate accounts, called Partner’s Current Account
· The partners’ capital accounts will always show a credit balance, which shall remain the same (fixed) year after year unless there is any addition or withdrawal of capital
· The partners’ current account on the other hand, may show a debit or a credit balance.
· Two accounts are maintained for each partner viz., capital account and current account

Capital a/c

Particulars	A	B	Particulars	A	B
to bank (capital withdrawn)		*******	By balance b/d	*******	*******
To balance c/d	*******	*******	By bank (capital introduced)	*******	*******

Current a/c
Particulars	A	B	Particulars	A	B
To balance b/d (dr. balance)	***	***	By balance b/d (cr. Balance)	***	***
To drawings	****	****	By interest on capital	XXX	XXX
To interest on drawings	Xxxx	Xxxx	By salary	XXX	XXX
To balance c/d			By commission	Xxx	Xxx
			By divisible profits	XXX	XXX

The document Partner Capital Account | Crash Course of Accountancy - Class 12 - Commerce is a part of the Commerce Course Crash Course of Accountancy - Class 12.

All you need of Commerce at this link: Commerce

	Crash Course of Accountancy - Class 12 79 docs\|41 tests

Crash Course of Accountancy - Class 12

79 docs|41 tests

Join Course for Free

Top Courses for Commerce

View all

FAQs on Partner Capital Account - Crash Course of Accountancy - Class 12 - Commerce

1. What is a partner capital account in commerce?

Ans. A partner capital account in commerce refers to the individual account maintained for each partner in a partnership firm. It records the initial capital investment made by each partner, as well as any subsequent contributions, withdrawals, and share of profits or losses. The capital account is essential for tracking the financial interests of each partner and determining their entitlements in the partnership.

2. How is the partner capital account calculated?

Ans. The partner capital account is calculated by considering the initial capital investment made by each partner, any additional contributions or withdrawals, and the share of profits or losses attributed to each partner. To calculate the closing balance of the capital account, the opening balance is adjusted by adding contributions and share of profits, and subtracting withdrawals and share of losses.

3. What is the significance of partner capital accounts in commerce?

Ans. Partner capital accounts play a crucial role in commerce as they help maintain transparency and fairness in partnership arrangements. These accounts allow partners to track their individual investments and share of profits or losses accurately. They also serve as a basis for determining the distribution of profits, the allocation of losses, and the overall financial position of each partner within the partnership.

4. How are partner capital accounts different from current accounts in commerce?

Ans. Partner capital accounts and current accounts are both used in commerce, but they serve different purposes. While partner capital accounts track the long-term investment and financial interests of each partner, current accounts are used to record short-term transactions such as withdrawals, deposits, and expenses. Current accounts are typically settled at the end of an accounting period, while capital accounts remain ongoing throughout the partnership.

5. Can partner capital accounts change over time?

Ans. Yes, partner capital accounts can change over time due to various factors. Changes in partner capital accounts can occur when partners make additional capital contributions, withdraw funds, or when there are profits or losses in the partnership. It is essential to regularly update and reconcile partner capital accounts to reflect these changes accurately.

Related Exams

Commerce

About this Document

	4.77/5 Rating
	Nov 24, 2024 Last updated

Document Description: Partner Capital Account for Commerce 2024 is part of Crash Course of Accountancy - Class 12 preparation. The notes and questions for Partner Capital Account have been prepared according to the Commerce exam syllabus. Information about Partner Capital Account covers topics like and Partner Capital Account Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Partner Capital Account.

Introduction of Partner Capital Account in English is available as part of our Crash Course of Accountancy - Class 12 for Commerce & Partner Capital Account in Hindi for Crash Course of Accountancy - Class 12 course. Download more important topics related with notes, lectures and mock test series for Commerce Exam by signing up for free. Commerce: Partner Capital Account | Crash Course of Accountancy - Class 12 - Commerce

Description

Full syllabus notes, lecture & questions for Partner Capital Account | Crash Course of Accountancy - Class 12 - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for Crash Course of Accountancy - Class 12 | Best notes, free PDF download

Information about Partner Capital Account

In this doc you can find the meaning of Partner Capital Account defined & explained in the simplest way possible. Besides explaining types of Partner Capital Account theory, EduRev gives you an ample number of questions to practice Partner Capital Account tests, examples and also practice Commerce tests

	Crash Course of Accountancy - Class 12 79 docs\|41 tests

Crash Course of Accountancy - Class 12

79 docs|41 tests

Join Course for Free

Download as PDF

Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Signup for Free!

Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.

Start learning for Free

10M+ students study on EduRev

Exam

MCQs

Previous Year Questions with Solutions

Semester Notes

Summary

Free

shortcuts and tricks

Viva Questions

study material

Important questions

Sample Paper

Partner Capital Account | Crash Course of Accountancy - Class 12 - Commerce

video lectures

pdf

Partner Capital Account | Crash Course of Accountancy - Class 12 - Commerce

mock tests for examination

practice quizzes

Extra Questions

Objective type Questions

ppt

past year papers

Partner Capital Account | Crash Course of Accountancy - Class 12 - Commerce

;

Additional Information about Partner Capital Account for Commerce Preparation

Partner Capital Account Free PDF Download

The Partner Capital Account is an invaluable resource that delves deep into the core of the Commerce exam. These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective. With the help of these notes, you can grasp complex subjects quickly, revise important points easily, and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner, allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material, or toppers' notes, this PDF has got you covered. Download the Partner Capital Account now and kickstart your journey towards success in the Commerce exam.

Importance of Partner Capital Account

The importance of Partner Capital Account cannot be overstated, especially for Commerce aspirants. This document holds the key to success in the Commerce exam. It offers a detailed understanding of the concept, providing invaluable insights into the topic. By knowing the concepts well in advance, students can plan their preparation effectively. Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.

Partner Capital Account Notes

Partner Capital Account Notes offer in-depth insights into the specific topic to help you master it with ease. This comprehensive document covers all aspects related to Partner Capital Account. It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation. Practice papers and question papers enable you to assess your progress effectively. Additionally, the paper analysis provides valuable tips for tackling the exam strategically. Access to Toppers' notes gives you an edge in understanding complex concepts. Whether you're a beginner or aiming for advanced proficiency, Partner Capital Account Notes on EduRev are your ultimate resource for success.

Partner Capital Account Commerce Questions

The "Partner Capital Account Commerce Questions" guide is a valuable resource for all aspiring students preparing for the Commerce exam. It focuses on providing a wide range of practice questions to help students gauge their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation. The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level. Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.

Study Partner Capital Account on the App

Students of Commerce can study Partner Capital Account alongwith tests & analysis from the EduRev app, which will help them while preparing for their exam. Apart from the Partner Capital Account, students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc. The EduRev App will make your learning easier as you can access it from anywhere you want. The content of Partner Capital Account is prepared as per the latest Commerce syllabus.

Education Revolution