Give two uses of Ratio Analysis. Post category:Accountancy Reading time:1 mins read SOLUTION (i) Helpful in judging the profitability of the business.(ii) Helpful in judging the liquidity of the business. 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 Objectives of Ratio Analysis. Next PostGive one limitation of ratio analysis. You Might Also Like Atul and Amit are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2019 is as follows: August 2, 2022 Pass Journal entries for the following: (a) Realisation expenses of Rs. 15,000 were to be met by Rahul, a partner, but were paid by the firm.(b) Ramesh, a partner, was paid remuneration of Rs. 25,000 and he was to meet all expenses. (c) Anuj, a partner, was paid remuneration of Rs. 20,000 and he was to meet all expenses. Firm paid an expense of Rs. 5,000. July 25, 2022 Sajal and Kajal are partners sharing profits and losses in the ratio of 2: 1. On 1st April, 2021 their Capitals were: Sajal – Rs. 5,00,000 and Kajal – Rs. 4,00,000. Prepare Profit and Loss Appropriation Account and the Partners’ Capital Accounts at the end of the year after considering the following items: (a) Interest on Capital is to be allowed @ 5% p.a. (b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being Rs. 3,00,000. (c) Interest on partners’ drawings @ 6% p.a. Drawings: Sajal Rs. 1,00,000 and Kajal Rs. 80,000. (d) 10% of the divisible profit is to be transferred to Reserve. Profit, before giving effect to the above, for year ended 31st March, 2022 is 7,02,600. October 11, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Atul and Amit are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2019 is as follows: August 2, 2022
Pass Journal entries for the following: (a) Realisation expenses of Rs. 15,000 were to be met by Rahul, a partner, but were paid by the firm.(b) Ramesh, a partner, was paid remuneration of Rs. 25,000 and he was to meet all expenses. (c) Anuj, a partner, was paid remuneration of Rs. 20,000 and he was to meet all expenses. Firm paid an expense of Rs. 5,000. July 25, 2022
Sajal and Kajal are partners sharing profits and losses in the ratio of 2: 1. On 1st April, 2021 their Capitals were: Sajal – Rs. 5,00,000 and Kajal – Rs. 4,00,000. Prepare Profit and Loss Appropriation Account and the Partners’ Capital Accounts at the end of the year after considering the following items: (a) Interest on Capital is to be allowed @ 5% p.a. (b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being Rs. 3,00,000. (c) Interest on partners’ drawings @ 6% p.a. Drawings: Sajal Rs. 1,00,000 and Kajal Rs. 80,000. (d) 10% of the divisible profit is to be transferred to Reserve. Profit, before giving effect to the above, for year ended 31st March, 2022 is 7,02,600. October 11, 2022