Capital A/c balance : Kaviya Rs. 50,000 ; Divya Rs. 40,000
Current A/c balance : Kaviya Rs. 38,700 ;Divya Rs. 25,960

Interest Drawings :
\(\text { Arun }=2,000 \times \frac{15}{100} \times \frac{6}{12}=\text { Rs. } 150\) 
\(\text { Arora }=4,000 \times \frac{15}{100} \times \frac{6}{12}=\text { Rs. } 300\)

Loss : Arun Rs. 2,344; Arora Rs. 1,406

Interest of drawings:
Priya - 8,000 \(\times\) 4 = Rs. 32,000
\(\text { Interest as drawings }=\text { Total Amount of drawing } \times \frac{\text { Rate }}{100} \times \frac{\text { average period }}{12}\) 
\(\text { Priya }=32,000 \times \frac{6}{100} \times \frac{4.5}{12}\) 
= Rs. 720
Kala = \(2,000 \times 12 \times \frac{5.5}{12} \times \frac{6}{100}\) 
= Rs. 660.

Interest as Drawing of Sundar :
\(\text { Total Drawings } \times \frac{\text { Rate }}{100} \times \frac{5.5}{12}\) 
\(=4,000 \times 12 \times \frac{10}{100} \times \frac{5.5}{12}\) 
= Rs. 2,200
Interest as drawing of Shanmugam
\(\text { Total Drawings } \times \frac{\text { Rate }}{100} \times \frac{6.5}{12}\) 
\(=8,000 \times 12 \times \frac{10}{100} \times \frac{6.5}{12}\) 
= Rs. 5,200
Interest on Drawing : Sundar Rs. 2,200; Shanmugam Rs. 5,200

Capital of 'A'
\(=\left[50,000 \times \frac{10}{100} \times \frac{3}{12}\right]+\left[60,000 \times \frac{10}{100} \times \frac{9}{12}\right]\) 
= Rs. 1,250+ Rs.4,500
= Rs. 5,750
Capital of 'B'
= \(\left[40,000 \times \frac{10}{100} \times \frac{3}{12}\right]+\left[42,000 \times \frac{10}{100} \times \frac{9}{12}\right]\) 
= Rs. 1,000 + Rs. 3,150
= Rs.4,150

a) Interest as prince's capital
\(=1,60,000 \times \frac{6}{100} ={ Rs. } 9,600\) 
b) Interest as Queen's capital
= \(\left[1,20,000 \times \frac{6}{100} \times \frac{6}{12}\right]+\left[1,04,000 \times \frac{6}{100} \times \frac{6}{12}\right]\) 
= Rs. 3,600 + Rs. 3,120
= Rs. 6,720
\(=\left[80,000 \times \frac{6}{100} \times \frac{9}{12}\right]+\left[1,04,000 \times \frac{6}{100} \times \frac{3}{12}\right]\) 
= Rs..3,600 + Rs.1,560
= Rs.160

Under fxed capital method, Capital Account and current Accounts are maintained. In Current a/c all adjustments relating to partners are recorded as the credit side of current account viz. Interest, on capital, Share of profits, Salary, Commission etc recorded on the debit side, drawings, interest on drawings, share of loss are recorded current account sometimes show credit balance or debit balance.

Interest on Drawings will be recorded at the Debit side of current account share of profit will be recorded on the credit side of current Account.

When the capitals are fixed, the capital amounts of a partner will never, show debit balance.
Since all transactions between the firm and partners are recorded in the current account.

Interest on Drawings will be recorded at the Debit side of current account share of profit will be recorded on the credit side of current Account.

When the capitals are fixed, the capital amounts of a partner will never, show debit balance. Since all transactions between the firm and partners are recorded in the current account:

Values shown by the firm are
i. Responsibility :
Firm has shown responsibility towards senior citizens by giving them their dues.
ii. Compassion:
Partners have shown compassion towards senior citizens by fulfilling their duties towards senior citizens .

(i) Under this method, only one capital account is maintained for each partner.
(ii) The capital is changing from period to period.
(iii) This capital account shows always a credit balance
(iv) All adjustment relating to partners are recorded directly in the capital account.

(i) In sole proprietorship, the profit or loss in the profit and loss account is transferred directly to the sole proprietor's capital account. In partnership, profit and loss appropriation account is prepared to which net profit or loss from profit and to which net profit or loss from profit and loss account is transferred.
(ii) In the profit and loss appropriation account, adjustments for interest on capital, interest on drawings, salary and other remuneration due to the partners are shown. Finally, the balance in the appropriation account is transferred to the partner's capital account in the profit sharing ratio.
(iii) Capital account balance of the sole proprietor alone is shown in the balance sheet of sole proprietorship. The balance sheet of a partnership concern shows the balances in the individual capital accounts (an current accounts) of the partners.