How will a firm deal with a situation when its partnership deed provides for interest on capital, but the profit earned by it is not enough to do so, at the rate mentioned in the deed? Post category:Accountancy Reading time:1 mins read SOLUTION The available profit will be distributed among the partners in the ratio of interest on capital. 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 PostAbha and Bharat were partners. They shared profits and losses equally. On 1st April, 2014 their Capital Accounts showed balances of Rs. 3,00,000 and Rs. 2,00,000 respectively. Calculate the amount of Profit to be distributed Between the partners in the partnership deed provide for Interest on Capital @10% p.a. and the firm earned a profit of Rs. 50,000 for the year ended 31st March, 2015. (C.B.S.E. 2016, Comptt.) Next PostAnna and Bobby were partners sharing profits and losses in the ratio of 5: 3. On 1st April, 2014, their Capital Accounts showed balances of Rs. 3,00,000 and Rs. 2,00,000 respectively. Calculate the amount of profit to be distributed between the partners if the Partnership Deed provided for Interest on Capital @10% p.a. and the firm earned a profit of Rs. 45,000 for the year ended 31st March, 2015. (C.B.S.E. 2016, Comptt. Outside Delhi) You Might Also Like State giving reason, whether issue of shares for consideration other than cash will result into inflow, outflow or no flow of cash. (C.B.S.E. 2020, Kerala) October 6, 2022 What is the ideal Quick Ratio? October 1, 2022 Show how the following will be recorded in the Capital Accounts of the Partners Sohan and Mohan when their capitals are fluctuating: July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
State giving reason, whether issue of shares for consideration other than cash will result into inflow, outflow or no flow of cash. (C.B.S.E. 2020, Kerala) October 6, 2022
Show how the following will be recorded in the Capital Accounts of the Partners Sohan and Mohan when their capitals are fluctuating: July 21, 2022