What is subscription? How is it calculated?
Subscription is a membership fee paid by the member on annual basis. This is the main source of income of such organisations.
For example, a club received Rs. 20,000 as subscriptions during the year 2016-17 of which Rs.3,000 relate to year 2015-16 and Rs.2,000 to 2017-18, and at the end of the year 2016-17 Rs.6,000 are still receivable.
In this case, the Receipt and Payment Account will show Rs.20,000 as receipt from subscriptions. But the Income and Expenditure Account will show Rs. 21,000 as income from subscriptions for the year 2016-17, the calculation of which is given as below:
Subscriptions received in 2016-17 20,000
Less: Subscriptions for the year 2015-16 3,000
17,000
Less: Subscription for the year 2017-18 2,000
15,000
Add: Subscriptions outstanding for the year 2016-17 6,000
Income from subscriptions for the year 2016-17 21,000
What is Capital Fund? How is it calculated?
What is sacrificing ratio? Why is it calculated?
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.
Why is Profit and Loss Adjustment Account prepared? Explain.
If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
Why it is considered desirable to make the partnership agreement in writing.
On what occasions sacrificing ratio is used?
Identify various matters that need adjustments at the time of admission of a new partner.
On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.
If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?
What is sacrificing ratio? Why is it calculated?
Explain the process dissolution of partnership firm?
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
Give two circumstances under which the fixed capitals of partners may change.
State the difference between dissolution of partnership and dissolution of partnership firm.
Reproduce the format of Realisation Account.
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.
Understandable
Differentiate between receipts and payments accounts and income and expenditure account
What is capital fund? How it is calculated?