Distinguish between average profits and super profits. Post category:Accountancy Reading time:1 mins read SOLUTION Average profit is the average of the profits of past few years whereas superprofit is the excess of average profits over normal profits. 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 PostHow does the market situation affect the value of goodwill of a firm? Next PostWhen there is change in the profit-sharing ratio amongst existing partners, does it require adjustment for goodwill? You Might Also Like Anupama Ltd. issued 12,000; 8% Debentures of Rs. 100 each at a discount of 5% payable as 25% on application; 20% on allotment and balance after three months. Pass Journal entries. July 16, 2022 A company receives a dividend of Rs. 2 Lakhs on its investment in other company’s shares. Will it be cash inflow from operating or investing activities in case of a (i) Finance Company; (ii) Non-finance Company? October 6, 2022 Ram, Mohan and Sohan were partners sharing profits in the ratio of 2: 1: 1. Ram withdrew Rs. 3,000 every month and Mohan withdrew Rs. 4,000 every month. Interest on drawings @6% p.a. was charged, whereas the partnership deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error. October 11, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Anupama Ltd. issued 12,000; 8% Debentures of Rs. 100 each at a discount of 5% payable as 25% on application; 20% on allotment and balance after three months. Pass Journal entries. July 16, 2022
A company receives a dividend of Rs. 2 Lakhs on its investment in other company’s shares. Will it be cash inflow from operating or investing activities in case of a (i) Finance Company; (ii) Non-finance Company? October 6, 2022
Ram, Mohan and Sohan were partners sharing profits in the ratio of 2: 1: 1. Ram withdrew Rs. 3,000 every month and Mohan withdrew Rs. 4,000 every month. Interest on drawings @6% p.a. was charged, whereas the partnership deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error. October 11, 2022