What is the nature of Interest on Debentures? Post category:Accountancy Reading time:1 mins read SOLUTION Interest on debentures is a charge against the profit which means interest on debentures shall always be paid whether profits are sufficient or not. 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 PostAmount raised by a company by debenture is loan or capital? Next PostGive any two points of distinction between a Share and a Debenture. You Might Also Like R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M died and his share is taken by R and S in the ratio of 1: 2. Calculate the new profit-sharing ratio. August 4, 2022 Iqbal and Kapoor are in partnership sharing profits and losses in 3: 2. Kapoor died three months after the date of the last Balance Sheet. According to the Partnership Deed, the legal heir is entitled to the following: (a) His capital as per the last Balance Sheet. (b) Interest on above capital @ 3% p.a. till the date of death. (c) His share of profits till the date of death calculated on the basis of last year’s profits. His drawings are to bear interest at an average rate of 2% on the Amount irrespective of the period. The net profits for the last three years, after charging insurance premium, were Rs. 20,000; Rs. 25,000 and Rs. 30,000 respectively. Kapoor’s capital as per Balance Sheet was Rs. 40,000 and his drawings till the date of death were Rs. 5,000. Draw Kapoor’s Capital Account to be rendered to his representatives. August 5, 2022 The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2 : 2 : 1, have existed for same years. Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in the profit-sharing ratio should come into effect retrospectively were for the three years. Harry and Porter have agreement on this account. The profits for the last three years were: July 22, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M died and his share is taken by R and S in the ratio of 1: 2. Calculate the new profit-sharing ratio. August 4, 2022
Iqbal and Kapoor are in partnership sharing profits and losses in 3: 2. Kapoor died three months after the date of the last Balance Sheet. According to the Partnership Deed, the legal heir is entitled to the following: (a) His capital as per the last Balance Sheet. (b) Interest on above capital @ 3% p.a. till the date of death. (c) His share of profits till the date of death calculated on the basis of last year’s profits. His drawings are to bear interest at an average rate of 2% on the Amount irrespective of the period. The net profits for the last three years, after charging insurance premium, were Rs. 20,000; Rs. 25,000 and Rs. 30,000 respectively. Kapoor’s capital as per Balance Sheet was Rs. 40,000 and his drawings till the date of death were Rs. 5,000. Draw Kapoor’s Capital Account to be rendered to his representatives. August 5, 2022
The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2 : 2 : 1, have existed for same years. Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in the profit-sharing ratio should come into effect retrospectively were for the three years. Harry and Porter have agreement on this account. The profits for the last three years were: July 22, 2022