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Answer:- Both are incorrect because, in the absence of the Partnership Deed, the provisions of the Indian Partnership Act, of 1932 will apply. As per the Indian Partnership Act, 1932, a partner who has given a loan to the firm…

When drawings of equal amounts are made at regular monthly intervals on the 1st day of every month, interest is charged on the total drawings for 6.5 months (i.e., average period). Interest on Drawings = Total Drawings * Rate of…

When drawings of equal amounts are made at regular monthly intervals on the last day of every month. Interest is charged on the total drawings for 5.5 months (i.e., average period) Interest on Drawings = Total Drawings * Rate of…

Answer:- When the dates of drawings are given and the interest is to be charged at an agreed rate per annum, interest will be calculated on the basis of time.

Answer:- Profit and Loss Appropriation Account Profit & Loss Account 1 It shows the appropriation of net profit It shows the net profit earned or net loss incurred. 2 It starts with the net profit transferred from the Profit &…

Answer:- The profit and Loss Appropriation Account is prepared to show the appropriation of net profit between/among the partners.

Answer:- i) Interest on Partner’s Capital ii) Salary to a Partner iii) Commission to a Partner iv) Share of Profit

Answer:- i) Net Profit for the year ii) Interest on Drawings

Ans:- Date Particulars L.F Dr. (₹) Cr. (₹) March, 31 Profit & Loss Appropriation A/c   …Dr. To Investment Fluctuation Reserve A/c (Being 10% of Profit transferred to Investment Fluctuation Reserve) 27,500       27,500

Answer:- Items that may be shown on the debit side of the Capital Account of a partner are: i) Drawings ii) Interest on drawings iii) Share of Loss