Reconstitution of a partnership Firm:Admission of a partner Important Questions for CBSE Class 12 Accountancy Treatment of Goodwill 1. Accounting Treatment of Goodwill When a new partner is admitted, his share in future profits of the firm is equal to the sacrifice of profit by an existing partner or partners of the firm, the amount he pays to compensate this sacrifice is … [Read more...]
Important Questions for CBSE Class 12 Accountancy Introduction and New profit Sharing Ratio and Sacrificing Ratio
Reconstitution of a partnership Firm:Admission of a partner Important Questions for CBSE Class 12 Accountancy Introduction and New profit Sharing Ratio and Sacrificing Ratio 1. Meaning Admission of a partner is one of the modes of reconstituting the firm under which old partnership comes to an end and a new one between all partners (including incoming partner) comes into … [Read more...]
Important Questions for CBSE Class 12 Accountancy Past Adjustments and Guarantee of profits to a partner
Accounting for Partnership : Basic Concepts Important Questions for CBSE Class 12 Accountancy Past Adjustments and Guarantee of profits to a partner 1. Past Adjustments Sometimes, after the final accounts of a firm have been closed, it is found that certain matters have been left out by mistake. In such cases, instead of altering the final accounts which have already been … [Read more...]
Important Questions for CBSE Class 12 Accountancy Profit and Loss Appropriation Account
Accounting for Partnership : Basic Concepts Important Questions for CBSE Class 12 Accountancy Profit and Loss Appropriation Account 1. It is an extension of profit and loss account and shows appropriation or distribution of profits. After the profit and loss account has been prepared, the profit for the year is transferred to the profit and loss appropriation account. This … [Read more...]
Important Questions for CBSE Class 12 Accountancy Maintenance of Capital Accounts of Partner:Fixed and Fluctuating capital
Accounting for Partnership : Important Questions for CBSE Class 12 Accountancy Maintenance of Capital Accounts of Partner:Fixed and Fluctuating capital 1. Fixed Capital Under this method, the capitals of the partners shall remain fixed, unless additional capital is introduced or a part of the capital is withdrawn, as per the agreement among the partners. Two accounts are … [Read more...]