Important Questions for CBSE Class 12 Accountancy Reconstitution of a partnership Firm: Change in profits Sharing Ratio(Among the Existing partner) Any change in existing agreement of partnership amounts to reconstitution of a firm. As a result, the existing agreement comes to an end and a new agreement comes into existence and the firm continues. 1. Modes of Reconstitution … [Read more...]
Important Questions for CBSE Class 12 Accountancy Concepts of Partnership and Partnership Deed
Accounting for Partnership : Basic Concepts Important Questions for CBSE Class 12 Accountancy Concepts of Partnership and Partnership Deed 1.Partnership According to Section 4 of the Indian Partnership Act, 1932, ‘Partnership is defined as, ‘the relation between persons who have, agreed to share the profits of a business carried on by all or any of them acting for … [Read more...]
Important Questions for CBSE Class 12 Accountancy valuation and Treatment of Goodwill
Accounting for Partnership : Basic Concepts Important Questions for CBSE Class 12 Accountancy valuation and Treatment of Goodwill 1. Meaning of Goodwill Goodwill means the good name or reputation of a business earned by a businessman through his hard work and honesty. This helps the business to earn more profit. 2. Methods of Valuation of Goodwill (i) Average profit method … [Read more...]
Important Questions for CBSE Class 12 Accountancy Death of a partner
Reconstitution of a partnership Firm:Retirement/Death of a partner Important Questions for CBSE Class 12 Accountancy Death of a partner 1. Death of A Partner The partnership comes to an end immediately, whenever a partner dies although the firm may continue with the remaining partners. The deceased partner is entitled to get his share in the firm as per the provision of a … [Read more...]
Important Questions for CBSE Class 12 Accountancy Computation of Appropriation Items and Change Items
Accounting for Partnership Important Questions for CBSE Class 12 Accountancy Computation of Appropriation Items and Change Items 1. Interest on Capital Interest on capital is allowed to compensate partners for contributing capital to the firm. It is paid only if the same has been provided for in the partnership. Interest on Capital = Amount of Capital x Rate/100 x … [Read more...]