Mention two ratios in which one figure is from Profit and Loss Account and one from Balance Sheet. Post category:Accountancy Reading time:1 mins read SOLUTION (i) Working Capital Turnover Ratio and (ii) Trade Receivables Turnover Ratio. 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 PostCan Current Ratio and Quick Ratio be same at any moment? Next PostState one transaction which results in an increase in ‘Liquid Ratio’ and no change in ‘Current Ratio’. You Might Also Like Ankur, Bhavna and Disha are partners in a firm. On 1st April, 2017, the balance in their Capital Accounts stood at Rs. 14,00,000, Rs. 6,00,000 and Rs. 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on capital @ 6% per annum and salary to Bhavna @ Rs. 50,000 p.a. and a commission of Rs. 3,000 per month to Disha as per the provisions of the partnership Deed. Bhavna’s share of profit (excluding interest on capital) is guaranteed at not less than Rs. 1,70,000 p.a. Disha’s share of profit (including interest on capital but excluding commission) is guaranteed at not less than Rs. 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profit of the firm for the year ended 31st March, 2018 amounted to Rs. 9,50,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. July 22, 2022 Why salary and commission paid to partners are recorded in Profit & Loss Appropriation Account instead of Profit & Loss Account? September 26, 2022 State whether conversion of debentures into equity shares by a financing company will result in inflow’, outflow’ or no flow’ of cash. October 4, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ankur, Bhavna and Disha are partners in a firm. On 1st April, 2017, the balance in their Capital Accounts stood at Rs. 14,00,000, Rs. 6,00,000 and Rs. 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on capital @ 6% per annum and salary to Bhavna @ Rs. 50,000 p.a. and a commission of Rs. 3,000 per month to Disha as per the provisions of the partnership Deed. Bhavna’s share of profit (excluding interest on capital) is guaranteed at not less than Rs. 1,70,000 p.a. Disha’s share of profit (including interest on capital but excluding commission) is guaranteed at not less than Rs. 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profit of the firm for the year ended 31st March, 2018 amounted to Rs. 9,50,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. July 22, 2022
Why salary and commission paid to partners are recorded in Profit & Loss Appropriation Account instead of Profit & Loss Account? September 26, 2022
State whether conversion of debentures into equity shares by a financing company will result in inflow’, outflow’ or no flow’ of cash. October 4, 2022