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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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.
Why is Profit and Loss Adjustment Account prepared? Explain.
State the difference between dissolution of partnership and dissolution of partnership firm.
State the meaning of ‘Not- for- Profit’ Organisations.
What is Capital Fund? How is it calculated?
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.
State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities
Identify various matters that need adjustments at the time of admission of a new partner.
What is sacrificing ratio? Why is it calculated?
Give two circumstances under which the fixed capitals of partners may change.
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.