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According to section 31 of the Indian Partnership Act, 1932, when can a person be admitted as a new partner?
According to section 31 of the Indian Partnership Act, 1932, a person can be admitted as a new partner when. If it is agreed in the partnership Deed If the above-mentioned agreement is absent, all the partners must agree for the admission
According to section 31 of the Indian Partnership Act, 1932, a person can be admitted as a new partner when.
If it is agreed in the partnership Deed
See lessIf the above-mentioned agreement is absent, all the partners must agree for the admission
Define admission of partners.
Admission of a partner is a mode of reconstituting the firm because, with the admission of a partner, the existing agreement ends and new agreement among all the partners comes into force.
Admission of a partner is a mode of reconstituting the firm because, with the admission of a partner, the existing agreement ends and new agreement among all the partners comes into force.
See lessExplain the three types of the accounting treatment of Investment Fluctuation Reserve
The three types of the accounting treatment of Investment Fluctuation Reserve are. When the book value and market value of the investment are the same- The amount of investment fluctuation reserve is transferred to partners’ capital account in their old profit-sharing ratio. When the market value ofRead more
The three types of the accounting treatment of Investment Fluctuation Reserve are.
When the book value and market value of the investment are the same- The amount of investment fluctuation reserve is transferred to partners’ capital account in their old profit-sharing ratio.
See lessWhen the market value of investments is less than the book value- In this case, the treatment on investment fluctuation reserve depends on the amount of decrease.
When there is an increase in the market value of investment- The amount of investment fluctuation reserve is distributed among partners and an increase in the value of the investment is credited to revaluation account.
Define Investment Fluctuation Reserve
Investments are recorded in the book of a company at cost. However, in the market, it might change. It may be higher or lower than the book value. Investment fluctuation reserve is a reserve set aside out of profit to meet fall in the market value of the investment.
Investments are recorded in the book of a company at cost. However, in the market, it might change. It may be higher or lower than the book value. Investment fluctuation reserve is a reserve set aside out of profit to meet fall in the market value of the investment.
See lessState accounting treatment for transfer of Accumulated losses
All partners’ capital (current) A/c Dr. ( In old ratio) To Profit and Loss A/c (Dr. Balance) Dr. To Deferred Revenue Expenditure A/c Dr. (Say, advertisement suspense account)
All partners’ capital (current) A/c Dr. ( In old ratio)
To Profit and Loss A/c (Dr. Balance) Dr.
To Deferred Revenue Expenditure A/c Dr. (Say, advertisement suspense account)
See lessState accounting treatment for transfer of Reserves and Accumulated profits
Reserve A/c Dr. Profit and Loss A/c (Cr. Balance) Dr. Workmen Compensation Reserve A/c Dr. (Excess of reserve over liability) Investments Fluctuation Reserve A/c Dr. ( Excess of reserve over the difference Between book value & Market value) To all partners’ capital/current A/c (in old ratio)
Reserve A/c Dr.
Profit and Loss A/c (Cr. Balance) Dr.
Workmen Compensation Reserve A/c Dr. (Excess of reserve over liability)
Investments Fluctuation Reserve A/c Dr. ( Excess of reserve over the difference
Between book value & Market value)
To all partners’ capital/current A/c (in old ratio)
See lessMention the points when a firm reconstitute.
A firm reconstituted in the event of. Change in the profit- sharing ratio among the existing partners Admission of a partner or partners The retirement of a partner Death of a partner The amalgamation of two or more partnership firms.
A firm reconstituted in the event of.
Change in the profit- sharing ratio among the existing partners
See lessAdmission of a partner or partners
The retirement of a partner
Death of a partner
The amalgamation of two or more partnership firms.
X, Y, and Z are partners sharing profits in the ration of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of the workmen compensation reserve appearing in the balance sheet on the date when no information is available for the same?1) Distributed among the partners in their capital ratio2) Distributed among the partners in their new profit-sharing ratio3) Distributed among the partners in their old profit-sharing ratio4) Carried forward to a new balance sheet
Distributed among the partners in their old profit-sharing ratio
Distributed among the partners in their old profit-sharing ratio
See lessHow gaining share of each partner is calculated.
The gaining share of each partner is calculated as follows: Gaining Share= New Share – Old Share
The gaining share of each partner is calculated as follows:
Gaining Share= New Share – Old Share
See lessDefine Gaining ratio.
Gaining ratios is the ratio in which one or more partners gain a share of profit as a result of sacrificed share in profits by one or more partners of a company.
Gaining ratios is the ratio in which one or more partners gain a share of profit as a result of sacrificed share in profits by one or more partners of a company.
See less