What is meant by ‘Reconstitution of a Partnership Firm’? (Delhi and Al 2014) Post category:Accountancy Reading time:1 mins read SOLUTION Reconstitution of a partnership firm means change in economic relationship among partners. For example,change in profit-sharing ratio or retirement of a partner. 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 PostNusrat and Sonu were partners in a firm sharing profits in the ratio of 3: 2. During the year ended 31st March, 2015 Nusrat had withdrawn Rs. 15,000. Interest on her drawings amounted to Rs. 300. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fixed. (Delhi 2016) Next PostDoes the change in profit-sharing ratio result into dissolution of the partnership firm? Give reason in support of your answer. (AI 2017 C) You Might Also Like What will be the impact of ‘Issue of shares against the purchase of fixed assets’ on a debt equity ratio of 1: 1? October 3, 2022 Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account: (a) Stock Rs. 2,00,000. ‘P’ took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost. (b) Debtor Rs. 2,25,000. Provision for Doubtful Debts Rs. 25,000. Rs. 20,000 of the book debts proved bad. (c) Land and Building (Book value Rs. 12,50,000) sold for Rs. 15,00,000 through a broker who charged 2% commission. (d) Machinery (Book value Rs. 6,00,000) was handed over to a creditor at a discount of 10%. (e) Investment (Book value Rs. 60,000) realised at 125%. (f) Goodwill of Rs. 75,000 and prepaid fire insurance of Rs. 10,000. (g) There was an old furniture in the firm which had been written off completely in the books. This was sold for Rs. 10,000. (h) ‘Z’ an old customer whose account for Rs. 20,000 was written off as bad in the previous year, paid 60%. (i) ‘P’ undertook to pay M Rs. P’s loan of Rs. 50,000. (j) Trade Creditors Rs. 1,60,000. Half of the trade Creditors accepted Plant and Machinery at an agreed valuation of Rs. 54,000 and cash in full settlement of their claims after allowing a discount of Rs. 16,000. Remaining trade Creditors were paid 90% in final settlement. July 25, 2022 Calculate interest on drawings of Ashok @ 10% p.a. for the year ended 31st March, 2019, in each of the following alternative cases: Case 1. If he withdrew Rs. 7,500 in the beginning of each quarter. Case 2. If he withdrew Rs. 7,500 at the end of each quarter. Case 3. If he withdrew Rs. 7,500 during the middle of each quarter. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.