If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
If a fixed amount is withdrawn on the first day of every quarter, then the interest is calculated on the amount withdrawn for a period of seven and half months. Example: If a partner withdraws Rs 1,000 in the beginning of each quarter and the interest is charged @ 10% on the drawings, then interest on drawings is calculated as:
Total drawings made by the partner during the whole year are Rs 4,000, i.e. Rs 1,000 × 4.
Interest on drawings = 4,000 x 10% x 7(1/2) / 12 = 1,250
What is Capital Fund? How is it calculated?
What is sacrificing ratio? Why is it calculated?
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
What is subscription? How is it calculated?
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.
Why it is considered desirable to make the partnership agreement in writing.
State the meaning of Income and Expenditure Account.
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
State the difference between dissolution of partnership and dissolution of partnership firm.
State the order of settlement of accounts on dissolution.
In the absence of Partnership deed, specify the rules relating to the following :
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to 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.
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?
On what occasions sacrificing ratio is used?
Give two circumstances under which the fixed capitals of partners may change.