Should the bank overdraft be included in current liabilities? Post category:Accountancy Reading time:1 mins read SOLUTION Yes, it should be treated as a current liability because this facility is granted by bank for a period of one year or less and it has to be renewed at the end of period allowed by bank. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ 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 PostWhy prepaid expenses are not considered as liquid assets? Next PostThe current ratio of a company is 2: I. Stale giving reason whether purchase of goods on credit will increase, decrease or not change the ratio. (C.B.S.E. 2020. Delhi) You Might Also Like Why is sacrifice ratio calculated? September 26, 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 are equity shares? September 28, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
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