On dissolution, what entry is passed if a partner under takes to make payment of a liability of the firm? Post category:Accountancy Reading time:1 mins read SOLUTION Realisation A/c Dr. To Partner’s Capital A/c 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 PostOn dissolution of a partnership firm, where is profit or loss on realization transferred? Next PostOn dissolution of firm, what entry is passed for payment of an unrecorded liability? You Might Also Like While preparing Cash Flow Statement, the accountant of ‘Rachna Ltd.’, a financing company, included ‘Interest received on loan’ in financing activities. Was he correct in doing so? Give reason. October 6, 2022 Amit, Binita and Charu are three partners. On 1st April, 2018, their Capitals stood as: Amit Rs. 1,00,000, Binita Rs. 2,00,000 and Charu Rs. 3,00,000. It was decided that: (a) they would receive interest on Capital @ 5% p.a., (b) Amit would get a salary of Rs. 10,000 per month, (c) Binita would receive commission @ 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2019 was Rs. 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners. July 21, 2022 What is the purpose of allowing interest on partners’ capital? September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
While preparing Cash Flow Statement, the accountant of ‘Rachna Ltd.’, a financing company, included ‘Interest received on loan’ in financing activities. Was he correct in doing so? Give reason. October 6, 2022
Amit, Binita and Charu are three partners. On 1st April, 2018, their Capitals stood as: Amit Rs. 1,00,000, Binita Rs. 2,00,000 and Charu Rs. 3,00,000. It was decided that: (a) they would receive interest on Capital @ 5% p.a., (b) Amit would get a salary of Rs. 10,000 per month, (c) Binita would receive commission @ 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2019 was Rs. 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners. July 21, 2022