Give one limitation of ratio analysis. Post category:Accountancy Reading time:1 mins read SOLUTION Ratio analysis becomes less effective due to price level changes. 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 two uses of Ratio Analysis. Next PostWhat is meant by ‘Liquidity of Business’? You Might Also Like A, B and C are partners in a firm. Their profit-sharing ratio is 2: 2: 1. C is guaranteed a minimum of Rs. 1,00,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2021 and 2022 were Rs. 4,00,000 and Rs. 6,00,000 respectively. Prepare Profit and Loss Appropriation Account for the two years. October 11, 2022 If total assets are Rs. 2,00,000; total liabilities are Rs. 40,000; amount realised on sale of assets is Rs. 1,75,000 and realisation expenses are Rs. 3,000, what will be the profit or loss on realisation? September 27, 2022 A, B and C are partners sharing profits in the ratio of 4/9 : 3/9 : 2/9. B retires and his capital after making adjustments for reserves and gain (profit) on revaluation stands at Rs. 1,39,200. A and C agreed to pay him Rs. 1,50,000 in full settlement of his claim. Record necessary Journal entry for adjustment of goodwill if the new profit-sharing ratio is decided at 5 : 3. August 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B and C are partners in a firm. Their profit-sharing ratio is 2: 2: 1. C is guaranteed a minimum of Rs. 1,00,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2021 and 2022 were Rs. 4,00,000 and Rs. 6,00,000 respectively. Prepare Profit and Loss Appropriation Account for the two years. October 11, 2022
If total assets are Rs. 2,00,000; total liabilities are Rs. 40,000; amount realised on sale of assets is Rs. 1,75,000 and realisation expenses are Rs. 3,000, what will be the profit or loss on realisation? September 27, 2022
A, B and C are partners sharing profits in the ratio of 4/9 : 3/9 : 2/9. B retires and his capital after making adjustments for reserves and gain (profit) on revaluation stands at Rs. 1,39,200. A and C agreed to pay him Rs. 1,50,000 in full settlement of his claim. Record necessary Journal entry for adjustment of goodwill if the new profit-sharing ratio is decided at 5 : 3. August 3, 2022
