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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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 ‘Not- for- Profit’ Organisations.
Why is Profit and Loss Adjustment Account prepared? Explain.
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities
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.
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
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 it is considered desirable to make the partnership agreement in writing.
What is subscription? How is it calculated?
What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?
Thank you
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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 ......??