Give two reasons in favour of having a Partnership Deed. Post category:Accountancy Reading time:1 mins read SOLUTION (i) In case of any dispute or doubt, Partnership Deed is the guiding document;(ii) It can specify the rights and duties of each partner. 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 PostGupta and Sharma were partners in a firm. They wanted to admit two more members in the firm. List the categories of individuals other than minors who cannot be admitted by them. (Delhi 2017) Next PostKajal, Neerav and Alisha are partners in a firm sharing profits in the ratio of 3: 2: 1. They decided to admit Rajan, their landlord as a partner in the firm. Rajan brought sufficient amount of capital and his share of goodwill premium. The accountant of the firm passed the entry of rent paid for the building to Rajan in ‘Profit and Loss Appropriation Account’. Is he correct in doing so? Give reason in support of your answer. (Al 2015 C) You Might Also Like X and Y entered into partnership on 1st April, 2017. Their capitals as on 1st April, 2018 were Rs. 2,00,000 and Rs. 1,50,000 respectively. On 1st October, 2018, X gave Rs. 50,000 as loan to the firm. As per the provisions of the partnership Deed: (i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve. (ii) Interest on capital at 12% p.a. and Interest on Drawings @ 10% p.a. (iii) X to get monthly salary of Rs. 5,000 and Y to get salary of Rs. 22,500 per quarter. (iv) X is entitled to a commission of 5% on sales. Sales for the year were Rs. 3,50,000. (v) Profit to be shared in the ratio of their capitals up to Rs. 1,75,000 and balance equally. Profit for the year ended 31st March, 2019 before allowing or charging interest was Rs. 4,61,000. The drawings of X and Y were Rs. 1,00,000 and Rs. 1,25,000 respectively. Pass the necessary Journal entries relating to appropriation out of profit. Prepare Profit and Loss Appropriation Account and the Partners’ Capital Accounts. July 21, 2022 A and B are partners in a firm sharing profits and losses in the ratio 3 : 1. They admit C for 1/4th share on 31st March, 2014 when their Balance Sheet was as follows: August 2, 2022 Ankur, Bhavna and Disha are partners in a firm. On 1st April, 2017, the balance in their Capital Accounts stood at Rs. 14,00,000, Rs. 6,00,000 and Rs. 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on capital @ 6% per annum and salary to Bhavna @ Rs. 50,000 p.a. and a commission of Rs. 3,000 per month to Disha as per the provisions of the partnership Deed. Bhavna’s share of profit (excluding interest on capital) is guaranteed at not less than Rs. 1,70,000 p.a. Disha’s share of profit (including interest on capital but excluding commission) is guaranteed at not less than Rs. 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profit of the firm for the year ended 31st March, 2018 amounted to Rs. 9,50,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. July 22, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X and Y entered into partnership on 1st April, 2017. Their capitals as on 1st April, 2018 were Rs. 2,00,000 and Rs. 1,50,000 respectively. On 1st October, 2018, X gave Rs. 50,000 as loan to the firm. As per the provisions of the partnership Deed: (i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve. (ii) Interest on capital at 12% p.a. and Interest on Drawings @ 10% p.a. (iii) X to get monthly salary of Rs. 5,000 and Y to get salary of Rs. 22,500 per quarter. (iv) X is entitled to a commission of 5% on sales. Sales for the year were Rs. 3,50,000. (v) Profit to be shared in the ratio of their capitals up to Rs. 1,75,000 and balance equally. Profit for the year ended 31st March, 2019 before allowing or charging interest was Rs. 4,61,000. The drawings of X and Y were Rs. 1,00,000 and Rs. 1,25,000 respectively. Pass the necessary Journal entries relating to appropriation out of profit. Prepare Profit and Loss Appropriation Account and the Partners’ Capital Accounts. July 21, 2022
A and B are partners in a firm sharing profits and losses in the ratio 3 : 1. They admit C for 1/4th share on 31st March, 2014 when their Balance Sheet was as follows: August 2, 2022
Ankur, Bhavna and Disha are partners in a firm. On 1st April, 2017, the balance in their Capital Accounts stood at Rs. 14,00,000, Rs. 6,00,000 and Rs. 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on capital @ 6% per annum and salary to Bhavna @ Rs. 50,000 p.a. and a commission of Rs. 3,000 per month to Disha as per the provisions of the partnership Deed. Bhavna’s share of profit (excluding interest on capital) is guaranteed at not less than Rs. 1,70,000 p.a. Disha’s share of profit (including interest on capital but excluding commission) is guaranteed at not less than Rs. 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profit of the firm for the year ended 31st March, 2018 amounted to Rs. 9,50,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. July 22, 2022