How will you assess the liquidity or short-term financial position of a business? Post category:Accountancy Reading time:1 mins read SOLUTION Short-term financial position of the business is assessed by calculating current ratio and liquid 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 PostMention two ratios in which both the figures are from Balance Sheet. Next PostWhy liquid ratio is considered more dependable than current ratio? You Might Also Like Azad and Benny are equal partners. Their capitals are Rs. 40,000 and Rs. 80,000 respectively. After the accounts for the year had been prepared, it was noticed that interest @ 5% p.a. as provided in the Partnership Deed was not credited to their Capital Accounts before distribution of profits. It is decided to pass an adjustment entry in the beginning of the next year. Record the necessary Journal entry. July 21, 2022 Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2021 stand as Ali Rs. 25,000 and Bahadur Rs. 20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2022 amounted to Rs. 3,500 and Rs. 2,500 respectively. Profit for the year, before charging interest on capital and annual salary of Bahadur @ Rs. 3,000, amounted to Rs. 40,000, 10% of divisible profit is to be transferred to Reserve. Prepare Partners’ Current Account and Capital Accounts recording the above transactions. October 11, 2022 Mention two differences between ‘Premium on Issue of Debentures’ and ‘Premium on Redemption of Debentures’. September 29, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Azad and Benny are equal partners. Their capitals are Rs. 40,000 and Rs. 80,000 respectively. After the accounts for the year had been prepared, it was noticed that interest @ 5% p.a. as provided in the Partnership Deed was not credited to their Capital Accounts before distribution of profits. It is decided to pass an adjustment entry in the beginning of the next year. Record the necessary Journal entry. July 21, 2022
Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2021 stand as Ali Rs. 25,000 and Bahadur Rs. 20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2022 amounted to Rs. 3,500 and Rs. 2,500 respectively. Profit for the year, before charging interest on capital and annual salary of Bahadur @ Rs. 3,000, amounted to Rs. 40,000, 10% of divisible profit is to be transferred to Reserve. Prepare Partners’ Current Account and Capital Accounts recording the above transactions. October 11, 2022
Mention two differences between ‘Premium on Issue of Debentures’ and ‘Premium on Redemption of Debentures’. September 29, 2022