Gupta and Sharma were partners in a firm. They wanted to admit two more members in the firm. List the categories of individuals other than minors who cannot be admitted by them.
Folowing are the person other than minor cann't be admitted as partner:
1) Lunatic person or person of unsound mind
2) Insolvent person.
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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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?
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?
What is subscription? How is it calculated?
Explain the process dissolution of partnership firm?
On what account realisation account differs from revaluation account.
State the meaning of Income and Expenditure Account.
State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities
State the meaning of ‘Not- for- Profit’ Organisations.
Identify various matters that need adjustments at the time of admission of a new partner.
Define Partnership Deed.
On what occasions sacrificing ratio is used?
What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?