SOLUTION When the Capital Accounts of partners are fixed, they always show a Credit Balance. All transactions relating to loss or profit, drawings, salaries etc. are shown in their Current…
SOLUTION Yes, if all partners agree that one or more of them shall not bear the losses.
SOLUTION (i) Adjusting Entry: Partner’s Commission A/c Dr. To Partner’s Current A/c (Commission allowed to the partner) (ii) Closing Entry: Profit and Loss Appropriation A/c Dr. To Partner’s…
SOLUTION It is necessary to have a partnership deed for following reasons(i) It regulates the rights, duties and liabilities of each partner. Each partner becomes aware of his partnership terms;…
SOLUTION Fixed Capita! Account will always show Credit Balance whereas Fluctuating Capital Account can show a Debit Balance also.
SOLUTION Following are the circumstances under which the fixed capital of partners may change:(i) Fresh capital introduced by a partner, and (ii) Capital withdrawn by' a partner permanently with the…
SOLUTION In the absence of any provision in the partnership deed, no partner is entitled for any remuneration.
SOLUTION It is important to have a partnership deed in writing because it contains terms and conditions agreed upon by all the partners and is helpful in avoiding all misunderstandings…