1.Prepare the Capital Accounts of the partners Rehan and Sahil from the following details assuming

that their capitals are fluctuating. (3 Marks)

Particulars	Rehan (OMR)	Sahil (OMR)
Capital as on 1.1.2001	80,000	50,000
Drawings during 2001	6,000	4,000
Interest on capital at 6%	?	?
Interest on drawing at 5%	?	?
Profit shares of 2001	8,000	6,000
Partners Salary	--	2,000
Commission	1,600	1,200
Interest on Sahils Loan	---	3,000

Solution: Fluctuating Capital A/c

Particulars	Rehan (OMR)	Sahil (OMR)	Particulars	Rehan (OMR)	Sahil (OMR)

2. Asma and Rahma are partners in a firm showing profits and losses in the ratio 3:2. Their capitals on 1.4.2003 were OMR 160,000 and OMR 120,000 respectively. The Net Profit of the firm for the year ended 31^st March 2004 before making adjustments for the above items was OMR 60,000. Drawings of the partners during the year were, Asma OMR 12,000 and Rahma OMR 8,000. Their partnership deed for the following: (3 Marks)

1. Interest on capital at 5% P.a.

2. Interest on drawings at 6% p.a.

3. Asma and Rahma to get a salary of OMR 10,000 each per annum

4. Asma to get a commission of 10% on Net profits before charging such commission

Show the Profit & Loss Appropriation account and Capital accounts of the partners.

Solution: Profit & Loss Appropriation account

Particulars	Amount(OMR)	Particulars	Amount(OMR)

Fluctuating Capital A/c

Particulars	Asma (OMR)	Rahma (OMR)	Particulars	Asma (OMR)	Rahma (OMR)