State the ratio in which the partners share the gain or loss on revaluation of assets and liabilities. Post category:Accountancy Reading time:1 mins read SOLUTION The partners share the gain or loss on revaluation of assets and liabilities in their “old profit-sharing 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 PostState any two reasons for the preparation of ‘Revaluation Account’ on the admission of a partner. Next PostWhat are accumulated profits? You Might Also Like Harshad and Dhiman are in partnership since 1st April, 2018. No partnership agreement was made. They contributed Rs. 4,00,000 and Rs. 1,00,000 respectively as capital. In addition, Harshad advanced an amount of Rs. 1,00,000 to the firm on 1st October, 2018. Due to long illness, Harshad could not participate in business activities from 1st August, 2018 to 30th September, 2018. Profit for the year ended 31st March, 2019 was Rs. 1,80,000. Dispute has arisen between Harshad and Dhiman. Harshad Claims: (i) He should be given interest @ 10% per annum on capital and loan; (ii) Profit should be distributed in the ratio of capital; Dhiman Claims: (i) Profit should be distributed equally; (ii) He should be allowed Rs. 2,000 p.m. as remuneration for the period he managed the business in the absence of Harshad; (iii) Interest on Capital and loan should be allowed @ 6% p.a. You are required to settle the dispute between Harshad and Dhiman. Also prepare Profit and Loss Appropriation Account. July 20, 2022 Calculate Cash Flow from Investing Activities from the following information: August 18, 2022 Bharat Ltd. was incorporated with a capital of Rs. 2,00,000 divided into shares of Rs. 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. Rs. 3 per share (including Rs. 1 premium) was payable on application, Rs. 4 per share (including Rs. 1 premium) on allotment, Rs. 2 per share on first call and Rs. 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet. July 13, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Harshad and Dhiman are in partnership since 1st April, 2018. No partnership agreement was made. They contributed Rs. 4,00,000 and Rs. 1,00,000 respectively as capital. In addition, Harshad advanced an amount of Rs. 1,00,000 to the firm on 1st October, 2018. Due to long illness, Harshad could not participate in business activities from 1st August, 2018 to 30th September, 2018. Profit for the year ended 31st March, 2019 was Rs. 1,80,000. Dispute has arisen between Harshad and Dhiman. Harshad Claims: (i) He should be given interest @ 10% per annum on capital and loan; (ii) Profit should be distributed in the ratio of capital; Dhiman Claims: (i) Profit should be distributed equally; (ii) He should be allowed Rs. 2,000 p.m. as remuneration for the period he managed the business in the absence of Harshad; (iii) Interest on Capital and loan should be allowed @ 6% p.a. You are required to settle the dispute between Harshad and Dhiman. Also prepare Profit and Loss Appropriation Account. July 20, 2022
Bharat Ltd. was incorporated with a capital of Rs. 2,00,000 divided into shares of Rs. 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. Rs. 3 per share (including Rs. 1 premium) was payable on application, Rs. 4 per share (including Rs. 1 premium) on allotment, Rs. 2 per share on first call and Rs. 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet. July 13, 2022