Fundamentals of...

Instead of altering old accounts, necessary adjustments can be made through:

How drawing against capital is differ from drawings against profit:

A,B and C are partners sharing profits and losses in the ratio of 2:2:1 respectively. A is entitled to a commission of 10 % on net profit before charging such commission. Net profit before charging commission is Rs.1,20,000.Find out commission payable to A.

If rent payable to a partner is Rs. 10,000 and there is a loss in the firm of Rs. 15,000. How much rent will be paid to the partners?

For transfer of Profit from Profit and Loss Appropriation account to Reserve account, which account to be credited

A, B and C are partners. They admit D and guarantee that his share of profit will not be less than Rs. 20,000. Profits to be shared 4:3:3:2 respectively. Total profits were Rs. 96,000. It was agreed that deficiency amount (if any) payable to D over his share will be borne by A, B and C in the ratio of 3:2:1.Calculate share of profit for each partner.

Ram and Rohit started business on 1st April, 2012 with capitals of Rs. 250,000 and Rs.150,000 respectively. On the 1st October 2012, they decided that their capitals should be Rs.200,000 each. The necessary adjustments in the capitals were made by introducing or withdrawing cash. Interest on capital is allowed at 8% p.a. Calculate the interest on Rohit’s Capital on March 31, 2013.

A, B and C are partner in a firm. They have introduced Rs. 50,000, Rs. 40,000 and Rs. 30,000 respectively; and agreed to distribute profit or loss in the ratio of their capital. Firm earned profit of Rs. 60,000 during the year. Distribute profit among partners. Pass journal entry.

Which account is to be recorded on debit side for charging the interest on partner’s loan?

What is the nature of rent paid to a partner?

Calculate interest on drawing if Partner withdrew Rs. 6,000 at the end of each quarter. Rate of interest on drawings is 10% p.a. and accounting period is 1st January to 31st December.

Calculate the Interest on Drawings of Ram @10% p.a for the year ended 31st March 2012.If Ram withdraw drawings Rs. 2000 p.m in the beginning of every month.

P and Q were partners in a firm sharing profits and losses in the ratio 3:2.They admit R for 1/6th share in profits and guaranteed that his share will not be less than Rs. 25000.Total profit of the firm were Rs. 90,000 Calculate share of profit for each partner when guarantee is given by P.

R, S and T are partners in a firm. They decided to share profits up to Rs. 10,000 in the ratio 30%, 50% and 20% respectively. Above this amount profits are shared equally. If the profits of the firm for the year was Rs. 25,600.Distribute the profit.

Suppose cash withdrawn by Rohit from his partnership firm for personal use was Rs. 7000. The rate of interest is 12% p.a. Calculate interest on drawings on average basis.

When partners accounts are fixed where the drawings will be recorded?

Profit and Loss Appropriation Account is prepared ______

Calculate interest on drawings, if owner withdrew the following amounts as follows Jan.31 Rs. 6000, Mar.31 Rs.4000, July 1 Rs.8000, Sep.30 Rs.3000, 1 Nov, Rs.5000. Accounts are closed on 31st December every year and rate of interest on drawings is 10% p.a.

A, B and C are partners sharing profits equally. A and B has given a minimum gurantee of Rs. 8,000 to the C. How much amount of profit C will get, when profit of the firm is Rs.30,000.

A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1 with a guarantee of minimum profits to C for Rs. 15,000. Total profits of the firm for the year ended on December 31, 2012 amounted Rs. 1,20,000. Any excess payable to C on account of such guarantee shall be borne by B. What amount of profit will be given to the partners?