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 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 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 What is meant by dissolution of partnership? September 27, 2022 X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2, decided to share future profits and losses equally with effect from 1st April, 2019. On that date, the goodwill appeared in the books at Rs. 12,000. But it was revalued at Rs. 30,000. Pass Journal entries assuming that goodwill will not appear in the books of account. July 27, 2022 Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2: 2: 1. On 1st July, 2020 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2019-20 Rs. 5,00,000 and that from 1st April to 30th June, 2020 were Rs. 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales. Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same.(CBSE 2018 C, Modified) August 5, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2, decided to share future profits and losses equally with effect from 1st April, 2019. On that date, the goodwill appeared in the books at Rs. 12,000. But it was revalued at Rs. 30,000. Pass Journal entries assuming that goodwill will not appear in the books of account. July 27, 2022
Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2: 2: 1. On 1st July, 2020 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2019-20 Rs. 5,00,000 and that from 1st April to 30th June, 2020 were Rs. 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales. Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same.(CBSE 2018 C, Modified) August 5, 2022