If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
If a fixed amount is withdrawn on the first day of every quarter, then the interest is calculated on the amount withdrawn for a period of seven and half months.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.
State the meaning of Receipt and Payment Account.
What is a Realisation Account?
Reproduce the format of Realisation Account.
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?
What are the features of Receipt and Payment Account?
Why is Profit and Loss Adjustment Account prepared? Explain.
Write the various matters that need adjustments at the time of retirement of partner/partners.
State the difference between dissolution of partnership and dissolution of partnership firm.
What is Capital Fund? How is it calculated?
Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?