How will you treat Bank Overdraft in a Cash Flow Statement? (C.B.S.E. 2015) Post category:Accountancy Reading time:1 mins read SOLUTION Bank Overdraft is short-term borrowing and will be treated as financing activity. 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 PostUnder which type of activity will you classify ‘Commission and Royalty Received’ while preparing Cash Flow Statement? Next PostWhere will you show purchase of Goodwill in a Cash Flow Statement? You Might Also Like A, B and C were partners. Their fixed capitals were Rs 60,000, Rs. 40,000 and Rs. 20,000 respectively. Their profit-sharing ratio was 2 : 2 : 1. According to the Partnership Deed, they were entitled to interest on capital @ 5% p.a. In addition, B was also entitled to draw a salary of Rs. 1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year, Rs. 80,000, were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry. July 22, 2022 What is meant by fluctuating capital of partners? September 23, 2022 Retirement or death of a partner wilt create a situation for the continuing partners, which is known as: (a) Dissolution of Partnership. (b) Dissolution of Partnership Firm; (c) Winding up of business. (d) None of these. (C.B.S.E. Sample Paper 2020) October 8, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B and C were partners. Their fixed capitals were Rs 60,000, Rs. 40,000 and Rs. 20,000 respectively. Their profit-sharing ratio was 2 : 2 : 1. According to the Partnership Deed, they were entitled to interest on capital @ 5% p.a. In addition, B was also entitled to draw a salary of Rs. 1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year, Rs. 80,000, were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry. July 22, 2022
Retirement or death of a partner wilt create a situation for the continuing partners, which is known as: (a) Dissolution of Partnership. (b) Dissolution of Partnership Firm; (c) Winding up of business. (d) None of these. (C.B.S.E. Sample Paper 2020) October 8, 2022