accounting for partnership_una
TRANSCRIPT
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Chapter- 2 Accounting for Partnership- Basic
Concept(Remedial Material)
Salient features :-
1. Feature of Partnership: Two or more persons, Agreement between partners,Existence of business with prot motive, Relationship of principal and agent.
. !artnership deed is a written agreement between partners containing all terms andconditions about partnership.
". #or calculating $ivisible !rot among partners %!rot & 'oss Appropriation A(c) isopened.
4. Rules applicale in the Asence of Partnership !eed.a. The partners shall share rm*s prots or losses e+uall.b. -f an partner has given some loan to the rm, he is entitled to tae interest
on such loan / 0 p.a.c. 2o partner is entitled to get an remuneration as salar, commission, fees
etc.d. 2o interest is allowed to partners on the capital invested b them.e. 2o interest will be charged on drawings made b the partners.
345 There are two methods of maintaining capital account of partners
f. #ixed capital method6 two accounts 37apital a(c and 7urrent a(c aremaintained5
g. #luctuating capital method6 onl on 37apital a(c5 is maintained
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o.
"uestion Mar$s
1. $ene !artnership. 1
. 8hat is meant b Article of !artnership9 1
". ive one di;erence between ! & ' A(c and ! & ' Appropriation A(c. 1
. A and ? were partners is a rm sharing prots in the ratio of 4 : " .Their
xed capitals were Rs. 14@@@@ and 1@@@@@ respectivel. The partnership
deed provides that :
1. -nterest on capital should be allowed / 1 p.a.
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. A should be allowed a salar of Rs. @@@@ p.a.". A commission of 1@ of the net prot should be allowed to ? The net prot for the ear ended "16"6@@1 was 1@@@@@.
!repare prot and loss appropriation account.
. A and ? are partners in a rm. The partnership deed !rovides that interest
on drawings will be charged / 0 p.a. $uring the ear ended "1616@@0 A
withdrew Rs. 4@@ at the beginning of the ever month and ? withdrew
Rs.4@@ at the end of each month. 7alculate interest on the partner*
drawings.
@@@,C@@@,D0@@@,A"@@ 3B 04PC @=45
3ii5 $r. D*s 7apital "@@@F 7r. B*s capital 4@ , 7r. C*s capital =4@
3iii5 ?alances of adGusted 7apital A(cs : B "=4,C
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. ive one e;ect of Retirement of a !artner. 1
". ive < di;erences between Hacricing Ratio and aining Ratio. "(