What is meant by ‘Liquidity of Business’? Post category:Accountancy Reading time:1 mins read SOLUTION ‘Liquidity of Business’ refers to the firm’s ability to meet its current obligations, i.e., short-term liabilities. 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 PostGive one limitation of ratio analysis. Next PostWhat is Current Ratio? You Might Also Like Distinguish between average profits and super profits. September 26, 2022 Amit and Sumit entered into partnership on 1st April, 2021 contributing Rs. 1,50,000 and Rs. 2,50,000 respectively towards capital. The Partnership Deed provided for interest on capital @ 10% p.a. It also provided that Capital Accounts shall be maintained following Fixed Capital Accounts method. The firm earned net profit of Rs. 1,00,000 for the year ended 31st March 2022 . Pass the Journal entry for interest on capital. July 21, 2022 State the reason why a partner’s wife loan is transferred to Realisation A/c? September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Amit and Sumit entered into partnership on 1st April, 2021 contributing Rs. 1,50,000 and Rs. 2,50,000 respectively towards capital. The Partnership Deed provided for interest on capital @ 10% p.a. It also provided that Capital Accounts shall be maintained following Fixed Capital Accounts method. The firm earned net profit of Rs. 1,00,000 for the year ended 31st March 2022 . Pass the Journal entry for interest on capital. July 21, 2022