What is Capital Fund? How is it calculated?
In case of Not-for-profit organisation, Capital fund can be considered as excess of its assets over its liabilities. Any surplus or deficit ascertained from Income and Expenditure account is added to (deducted from ) the capital fund.
This is termed as an Accumulated Fund.
Calculation of Capital Fund
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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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?
Identify various matters that need adjustments at the time of admission of a new partner.
State the meaning of Receipt and Payment Account.
Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
Reproduce the format of Realisation Account.
What are the different ways in which a partner can retire from the firm?
What is a Realisation Account?
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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 it is considered desirable to make the partnership agreement in writing.
State the meaning of Income and Expenditure Account.
State the difference between dissolution of partnership and dissolution of partnership firm.
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assume it as nil.
If capital fund at beg is not given in the qstn ......??
If capital fund at beg is not given in the qstn ......??