Capital Accounts

The governing concept is proportional allocation of total capital according to the prescribed capital ratio. The ratio 2:3 contains 2 + 3 = 5 total parts. Therefore, the value of one part is Rs 2,50,000 ÷ 5 = Rs 50,000. B is assigned three parts, so B's target capital is 3 × Rs 50,000 = Rs 1,50,000. Thus, option A is correct. Option B represents only two parts, which belongs to A, while option C exceeds B's three-part share and option D represents only one part. The calculation also confirms that A's capital would be Rs 1,00,000 and both capitals together would equal Rs 2,50,000.

This is a capital-ratio allocation problem. The prescribed ratio 2:2:1 has five total parts. The value of one part is calculated as Rs 1,25,000 ÷ 5 = Rs 25,000. Since the third partner has one part, that partner's capital must be Rs 25,000. Therefore, option A is correct. Rs 50,000 would represent two parts and would be the capital of either of the first two partners. Rs 70,000 does not correspond to any whole-number share in the given ratio, and Rs 1,00,000 represents four parts rather than one. Adding the capitals of the partners gives Rs 50,000 + Rs 50,000 + Rs 25,000 = Rs 1,25,000, confirming the result.

The governing concept is the allocation of total partner capital according to the stated ratio. The ratio 2:2:1 contains 2 + 2 + 1 = 5 total parts. The third partner is assigned one part, so the value of one part is ₹5,00,000 ÷ 5 = ₹1,00,000. Equivalently, the required capital is ₹5,00,000 × 1/5 = ₹1,00,000. Therefore option A is correct. Option B represents two ratio parts and would apply to either of the first two partners. Option C is half of the total, not one-fifth, while option D is the entire firm’s capital. The calculation assumes the ratio applies directly to total capital.

The governing concept is transfer of a credit balance from a partner's current account to the partner's capital account. Both balances are credits and therefore they are added, not offset. Existing capital is Rs 1,30,000 and the current-account credit is Rs 22,000. New capital = Rs 1,30,000 + Rs 22,000 = Rs 1,52,000 credit. Thus option A is correct. Option B incorrectly subtracts the current balance, option C changes both the side and the amount, and option D merely repeats the old capital without recording the transfer. The current account becomes nil for this transferred balance.

The governing concept is the formula for interest on capital: Interest = Average Capital × Rate ÷ 100. Substituting the supplied figures gives ₹90,000 × 11 ÷ 100. Since 11% of ₹90,000 is ₹9,900, the interest on capital is ₹9,900 and option A is correct. Option B results from applying 10% instead of 11%. Option C treats the percentage rate as though it were a rupee amount, which is not valid. Option D represents an amount close to the capital plus interest rather than the interest alone. Because average capital is expressly provided, no separate opening or closing capital calculation is necessary.

Under the fixed capital method, the balance of a partner’s capital account is intended to remain unchanged except for permanent additions or withdrawals of capital. Routine items such as drawings, interest on drawings, partner’s salary, interest on capital, and the share of profit or loss are therefore recorded in the partner’s current account. Since drawings reduce the partner’s claim, they are debited to that current account. Debiting the fixed capital account would alter the fixed balance and is not the normal treatment. Profit and Loss Account and Sales Account are unrelated to this personal adjustment. Hence option A is correct.

Under the fluctuating capital method, each partner generally has only one capital account, and its balance changes whenever an adjustment affects that partner. Items such as salary, interest on capital, share of profit and commission are credited to the partner’s capital account, while drawings, interest on drawings and share of loss are debited there. A separate current account is not maintained under this method. Therefore the partner’s salary is credited to the Partner’s Capital Account, making option A correct. The Salary Expense Account is not the appropriate partner-related account for recording the appropriation entry, and Cash is not credited unless an actual cash payment is made.

The governing concept is the recording of assets and liabilities taken over by a partner during dissolution. Taking over a liability gives the partner’s capital account a credit of ₹16,000 because the firm’s obligation is discharged by the partner. Taking over goods gives the capital account a debit of ₹6,000 because the partner receives an asset. The net effect is therefore credit ₹16,000 − debit ₹6,000 = credit ₹10,000. Option A is correct. Option B wrongly adds both amounts, option C reverses the net direction, and option D ignores the liability component. The calculation assumes the stated values are the agreed takeover amounts.

The governing concept is adjustment of a partner’s capital account for an asset taken over at an agreed value. The existing credit balance of ₹26,000 represents the amount payable to the partner before considering the asset. When the partner takes an asset worth ₹4,000, that amount is debited to the partner’s capital account because the asset is transferred to the partner and reduces the cash amount payable. Calculation: remaining credit = ₹26,000 − ₹4,000 = ₹22,000. Therefore, option A is correct. Option B incorrectly adds the asset, while options C and D confuse the account’s balance with an individual debit entry.

The governing concept is the transfer of a credit balance from a partner’s current account to the same partner’s capital account. A credit balance in the current account represents an amount due to the partner, such as accumulated profits, interest on capital, or other credits. On transfer, the capital account is credited by that amount. Therefore, the partner’s recorded capital increases, although the total amount due to the partner does not necessarily change; it is only reclassified between accounts. Option A is correct. Option B would apply to a debit balance transfer, option C has no basis, and option D ignores the credit posted to capital.