Classify the following activities as (i) Operating, (ii) Investing or (iii) Financing in case of a ‘Financial Enterprise’: (a) Proceeds from Sale of Investments; (b) Interest received on Debentures held as Investment Post category:Accountancy Reading time:1 mins read SOLUTION (a) Operating, (b) Operating. 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 whether depreciation charged by a Company will result in inflow, outflow or no flow of Cash. Next PostUnder which type of activity will you classify ‘Proceeds from sale of investment’ while preparing Cash Flow Statement? You Might Also Like State whether cash deposited in bank will result in inflow, outflow or no flow of cash? October 6, 2022 Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019 after closing the books of account, their Capital Accounts stood at Rs. 4,80,000 and Rs. 6,00,000 respectively. On 1st May, 2018, Simrat introduced an additional capital of Rs. 1,20,000 and Bir withdrew Rs. 60,000 from his capital. On 1st October, 2018, Simrat withdrew Rs. 2,40,000 from her capital and Bir introduced Rs. 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% p.a. had been omitted. Profit for the year ended 31st March, 2019 amounted to Rs. 2,40,000 and the partners’ drawings had been: Simrat – Rs. 1,20,000 and Bir – Rs. 60,000. Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating. July 21, 2022 Calculate the amount of Manan’s monthly drawings for the year ended 31st March, 2022, in the following alternative cases when Partnership Deed allows interest on drawings @10% p.a. : (i) If interest on drawings is Rs. 1,950 and he withdrew a fixed amount in the beginning of each month. (ii) If interest on drawings is Rs. 2,400 and he withdrew a fixed amount in the middle of each month. (iii) If interest on drawings is Rs. 2,750 and he withdrew a fixed amount at the end of each month. October 11, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
State whether cash deposited in bank will result in inflow, outflow or no flow of cash? October 6, 2022
Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019 after closing the books of account, their Capital Accounts stood at Rs. 4,80,000 and Rs. 6,00,000 respectively. On 1st May, 2018, Simrat introduced an additional capital of Rs. 1,20,000 and Bir withdrew Rs. 60,000 from his capital. On 1st October, 2018, Simrat withdrew Rs. 2,40,000 from her capital and Bir introduced Rs. 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% p.a. had been omitted. Profit for the year ended 31st March, 2019 amounted to Rs. 2,40,000 and the partners’ drawings had been: Simrat – Rs. 1,20,000 and Bir – Rs. 60,000. Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating. July 21, 2022
Calculate the amount of Manan’s monthly drawings for the year ended 31st March, 2022, in the following alternative cases when Partnership Deed allows interest on drawings @10% p.a. : (i) If interest on drawings is Rs. 1,950 and he withdrew a fixed amount in the beginning of each month. (ii) If interest on drawings is Rs. 2,400 and he withdrew a fixed amount in the middle of each month. (iii) If interest on drawings is Rs. 2,750 and he withdrew a fixed amount at the end of each month. October 11, 2022