On what occasions sacrificing ratio is used?
The sacrificing ratio is used in following situation:
1) When the existing partners of a partnership firm mutually agrees on change of profit sharing ratio.
2) when a new partner is admitted and amount of goodwill brought by him or her is transferred among the old parners in sacrificing ratio of the old partners.
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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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.
Identify various matters that need adjustments at the time of admission of a new partner.
What is sacrificing ratio? Why is it calculated?
On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
Explain the process dissolution of partnership firm?
What is Capital Fund? How is it calculated?
Why it is considered desirable to make the partnership agreement in writing.
State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities
State the meaning of Income and Expenditure Account.
State the order of settlement of accounts on dissolution.
What is subscription? How is it calculated?