If the partner’s capitals are fixed, where will you record interest on drawings and share of profit of a partner? Post category:Accountancy Reading time:1 mins read SOLUTION Interest on Drawings: On the Debit of Current Account. Share of Profit: On the Credit of Current Account. 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 PostWrite two items of debit side of Current Accounts. Next PostMention two items that may appear on the debit side of a Partner’s Fixed Capital Account. You Might Also Like Nirman Ltd. issued 50,000 equity shares of Rs. 10 each. The amount was payable as follows: September 29, 2022 Ram, Laxman and Bharat are partners sharing profits in the ratio of 3: 2: 1. Goodwill is appearing in the books at a value of Rs. 1,80,000. Laxman retires and at the time of his retirement, goodwill is valued at Rs. 2,52,000. Ram and Bharat decided to share future profits in the ratio of 2 : 1. The Profit for the first year after Laxman’s retirement amount to Rs. 1,20,000. Give the necessary Journal entries to record goodwill and to distribute the profit. Show your calculations clearly. August 3, 2022 Give one point of distinction between Reserve Capital and Capital Reserve. September 28, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Nirman Ltd. issued 50,000 equity shares of Rs. 10 each. The amount was payable as follows: September 29, 2022
Ram, Laxman and Bharat are partners sharing profits in the ratio of 3: 2: 1. Goodwill is appearing in the books at a value of Rs. 1,80,000. Laxman retires and at the time of his retirement, goodwill is valued at Rs. 2,52,000. Ram and Bharat decided to share future profits in the ratio of 2 : 1. The Profit for the first year after Laxman’s retirement amount to Rs. 1,20,000. Give the necessary Journal entries to record goodwill and to distribute the profit. Show your calculations clearly. August 3, 2022