Doubts

SOLUTION Sundry Assets A/c                     Dr. To Revaluation A/c(Unrecorded assets recorded)

SOLUTION Sacrificing ratio may be applied in the following circumstances (Any two):(i) When there is admission of a partner.(ii) When there is retirement of a partner.(iii) When there is death…

SOLUTION Change in profit-sharing ratio amounts to dissolution of partnership and not dissolution of firm as the existing agreement comes to an end and the firm continues under new agreement.

SOLUTION Reconstitution of a partnership firm means change in economic relationship among partners. For example,change in profit-sharing ratio or retirement of a partner.

SOLUTION JOURNAL DateParticularsL.FAmount (Dr.)Amount (Cr.)2015March 31Nusrat’s Current A/c                    Dr.   To Interest on Drawing A/c 300300

SOLUTION In the absence of provision in the Partnership Deed, deficiency arising out of guarantee of profit to a partner is borne by the other partners in their old profit-sharing…

SOLUTION Following are two situations in which interest on partners' capital is generally provided:(a) When profit shares are equal but capital contributed by partners are unequal.(b) When profit shares are…

SOLUTION JOURNAL DateParticularsL.FAmount (Dr.)Amount (Cr.)2015March 31Tom’s Capital A/c                    Dr.  To Interest on Drawing A/c 20002000

SOLUTION 7.5 Months.