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Answer:- Divisible profit means profit remaining to be distributed between/among partners after allowing remuneration (i.e., Salary, Commission, etc.) to partners, interest on capital, transfer to reserve, and charging interest on drawings.
Answer:- No, the Accountant is not right in doing so because Raghav had given a loan of ₹ 1,00,000 @ 10% p.a. interest to the partnership firm which is agreed to be paid.
Answer:- Nil, because in the absence of a Partnership Deed interest on Capital is not allowed.
Answer:- Interest on Loan by Partner = ₹ 20,000 * 6/100 * 9/12 = ₹ 900
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.