Can a partner be exempted from sharing the losses in a firm? If yes, under what circumstances? Post category:Accountancy Reading time:1 mins read SOLUTION Yes, if all partners agree that one or more of them shall not bear the losses. 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 PostGive the adjusting entry and the closing entry for recording commission allowed to a partner, when the firm follows the fixed capital method. (I.S.C. 2015) Next PostWhy is it that the Capital Account of a partner does not show a “Debit Balance’’ inspite of regular and consistent losses year after year? You Might Also Like Why is ‘Goodwill’ considered an ‘Intangible Asset’ but not a ‘Fictitious Asset’? (ISC 2020) September 26, 2022 What is Working Capital Turnover Ratio? October 3, 2022 A, B, C and D were partners in a firm sharing profits in the ratio of 4: 3: 2: 1. On 1st January, 2015, they admitted E as a new partner for 1 / 10 share in the profits. E brought Rs. 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at Rs. 1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer. (Delhi 2015) October 8, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Why is ‘Goodwill’ considered an ‘Intangible Asset’ but not a ‘Fictitious Asset’? (ISC 2020) September 26, 2022
A, B, C and D were partners in a firm sharing profits in the ratio of 4: 3: 2: 1. On 1st January, 2015, they admitted E as a new partner for 1 / 10 share in the profits. E brought Rs. 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at Rs. 1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer. (Delhi 2015) October 8, 2022