Partner's drawings - accounting treatment

There are two methods of Accounting for Partners Drawings:

1. Fixed Capital Method

2. Fluctuating Capital Method

Under Fixed Capital method, the capital introduced initially by the partners remains the same. Any drawings made by the partners in anticipation profits gets debited to a seperate account called Partners Current A/c. Other items like remuneration payable, Interest on Capital, Current Account Balance gets credited to this account. 

Consider this example: Mr X initially introduces a capital of10,00,000 in to the partnership firm.  During the year he withdraws300,000 in anticipation of profits. He gets50,000 as remuneration,75,000 as interest on Capital A/c and at the end of the year he gets a profit of350,000.  Now you have to pass the following entries:

   1) Drawings A/c Dr   300,000                                                   

        To Bank A/c                           300.000

     2)    Partners Current A/c Dr                 300,000

         To Drawings A/c                                               300,000

His Current A/c appears somewhat like this:

                                                      X'S CURRENT A/C

To Drawings                      300,000             By Remumeration Payable        50,000

                                                                          By Int. on Capital A/c                    75,000

 To Balance                       175,000              By P&L A/c (Sh. of Profit)              350,000

                                            475,000                                                                          475000

Please Note that under fixed Capital method the balance in the Capital A/c does not change.  Under flucuating Capital all these are credited/debited to their respective capital A/c's and the balance keeps fluctuating.

Cheers,

Viggi

I have a query to ask here. What if the partnership firm is based on a slightly different business model? Like in case there are 3 partners and they undertake IT projects from overseas clients. Suppose, Project A has been undertaken by first partner and project B by the second partner, Project C by the third partner and a Project D on which first and second partners are working. Now first partner will get all the income generated from project A plus 50 % from Project D and similarly second partner will get all income generated from Project B plus 50% from Project D.

Will limits of section 40(b) apply here as well? But under what head? This is not salary. Should all this sharing of income from projects be simply treated as sharing of profits because this cannot be treated as remuneration in my opinion. 

I would really appreciate if somebody could guide me on this. Quite a technical issue for me.

Thanks in advance