Write two items of debit side of Current Accounts. Post category:Accountancy Reading time:1 mins read SOLUTION (i) Drawings, (ii) Interest on Drawings. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWrite two items of credit side of Current Accounts. Next PostIf the partner’s capitals are fixed, where will you record interest on drawings and share of profit of a partner? You Might Also Like Partnership Deed of C and D, who are equal partners, has a clause that any partner may retire from the firm on the following terms by giving a six-month notice in writing: The retiring partner shall be paid − (a) the amount standing to the credit of his Capital Account and Current Account. (b) his share of profit to the date of retirement, calculated on the basis of the average profit of the three preceding completed years. (c) half the amount of the goodwill of the firm calculated at 11/2 times the average profit of the three preceding completed years. C gave a notice on 31st March, 2017 to retire on 30th September, 2017, when the balance of his Capital Account was Rs. 6,000 and his Current Account (Dr.) Rs. 500. Profits for the three preceding completed years ended 31st March, were: 2015 − Rs. 2,800; 2016 − Rs. 2,200 and 2017 − Rs. 1,600. What amount is due to C as per the partnership agreement? August 3, 2022 State two situations in which interest on partners’ capital is generally provided. (Foreign 2017, CBSE 2019) October 7, 2022 Adil and Bhavya are partners sharing profits and losses in the ratio of 7: 5. They admit Cris, their manager, into partnership who is to get 1/6th share in the business. Cris brings in Rs. 1,00,000 for his capital and Rs. 36,000 for the 1/6th share of goodwill which he acquires 1/24th from Adil and 1/8th from Bhavya. Profits for the first year of the new partnership was Rs. 2,40,000. Pass necessary Journal entries for Cris’s admission and apportion the profit between the partners. November 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Partnership Deed of C and D, who are equal partners, has a clause that any partner may retire from the firm on the following terms by giving a six-month notice in writing: The retiring partner shall be paid − (a) the amount standing to the credit of his Capital Account and Current Account. (b) his share of profit to the date of retirement, calculated on the basis of the average profit of the three preceding completed years. (c) half the amount of the goodwill of the firm calculated at 11/2 times the average profit of the three preceding completed years. C gave a notice on 31st March, 2017 to retire on 30th September, 2017, when the balance of his Capital Account was Rs. 6,000 and his Current Account (Dr.) Rs. 500. Profits for the three preceding completed years ended 31st March, were: 2015 − Rs. 2,800; 2016 − Rs. 2,200 and 2017 − Rs. 1,600. What amount is due to C as per the partnership agreement? August 3, 2022
State two situations in which interest on partners’ capital is generally provided. (Foreign 2017, CBSE 2019) October 7, 2022
Adil and Bhavya are partners sharing profits and losses in the ratio of 7: 5. They admit Cris, their manager, into partnership who is to get 1/6th share in the business. Cris brings in Rs. 1,00,000 for his capital and Rs. 36,000 for the 1/6th share of goodwill which he acquires 1/24th from Adil and 1/8th from Bhavya. Profits for the first year of the new partnership was Rs. 2,40,000. Pass necessary Journal entries for Cris’s admission and apportion the profit between the partners. November 3, 2022
