What is sacrificing ratio? Why is it calculated?
Sacrificing ratio refers to the ratio in which the old partners surrender their share of profit in favour of new partner/s.It is calculated by the difference between old ratio and new ratio of the old partner/s.
What is Capital Fund? How 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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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?
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.
On what occasions sacrificing ratio is used?
Reproduce the format of Realisation Account.
Identify various matters that need adjustments at the time of admission of a new partner.
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
State the meaning of Income and Expenditure Account.
What is Capital Fund? How is it calculated?
What is subscription? How is it calculated?
State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities
State the difference between dissolution of partnership and dissolution of partnership firm.
State the order of settlement of accounts on dissolution.