Why a retiring or heirs of a deceased partner are entitled to a share of goodwill of the firm? Post category:Accountancy Reading time:1 mins read SOLUTION Since the retiring or deceased partner will not be sharing future profits; goodwill is given to compensate him for the same. 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 PostWhy are assets and liabilities revalued at the time of retirement of a partner? Next PostCan a retiring partner or Legal Representatives of a Deceased Partner claim a share in the subsequent profits of the firm. You Might Also Like Abha, Bobby and Vineet are partners sharing profits and losses equally. As per Partnership Deed, Vineet is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is Rs. 2,20,000.Determine the amount of commission payable to Vineet. October 11, 2022 Name any two sub-line items (sub-headings) under which “Current Liabilities” shall be classified in a Company’s Balance Sheet. September 30, 2022 Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019 after closing the books of account, their Capital Accounts stood at Rs. 4,80,000 and Rs. 6,00,000 respectively. On 1st May, 2018, Simrat introduced an additional capital of Rs. 1,20,000 and Bir withdrew Rs. 60,000 from his capital. On 1st October, 2018, Simrat withdrew Rs. 2,40,000 from her capital and Bir introduced Rs. 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% p.a. had been omitted. Profit for the year ended 31st March, 2019 amounted to Rs. 2,40,000 and the partners’ drawings had been: Simrat – Rs. 1,20,000 and Bir – Rs. 60,000. Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Abha, Bobby and Vineet are partners sharing profits and losses equally. As per Partnership Deed, Vineet is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is Rs. 2,20,000.Determine the amount of commission payable to Vineet. October 11, 2022
Name any two sub-line items (sub-headings) under which “Current Liabilities” shall be classified in a Company’s Balance Sheet. September 30, 2022
Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019 after closing the books of account, their Capital Accounts stood at Rs. 4,80,000 and Rs. 6,00,000 respectively. On 1st May, 2018, Simrat introduced an additional capital of Rs. 1,20,000 and Bir withdrew Rs. 60,000 from his capital. On 1st October, 2018, Simrat withdrew Rs. 2,40,000 from her capital and Bir introduced Rs. 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% p.a. had been omitted. Profit for the year ended 31st March, 2019 amounted to Rs. 2,40,000 and the partners’ drawings had been: Simrat – Rs. 1,20,000 and Bir – Rs. 60,000. Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating. July 21, 2022