A partnership deed provides for the payment of interest on capital but there was a loss instead of profits during the year 2018-2019. At what rale will the interest on capital be allowed? Post category:Accountancy Reading time:1 mins read SOLUTION In case of loss, no interest on capital will be allowed. 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 the provisions of the Indian Partnership Act., 1932, regarding charging of interest on drawings from a partner when: (a) The firm has a partnership deed; (b) The firm does not have a partnership deed. Next PostState the two situations under which interest on capital is generally provided. (C.B.S.E. 2019, Delhi) You Might Also Like A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary Journal entries. August 1, 2022 Give two characteristics of Goodwill. September 26, 2022 Mention a case where Profit & Loss Appropriation Account will be prepared even if Profit & Loss Account discloses net loss. September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary Journal entries. August 1, 2022
Mention a case where Profit & Loss Appropriation Account will be prepared even if Profit & Loss Account discloses net loss. September 26, 2022