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Answer:- Adjusting Entry: Commission A/c  …Dr. To Partner’s Current A/c Closing Entry: Profit and Loss Appropriation A/c  …Dr. To Commission A/c

Guarantee of minimum profit means assurance to give a minimum amount of profit to a partner or partners. The guarantee may be given by one or some or all of the partners in the existing profit-sharing ratio or in an…

In the given situation following accounting, steps are taken by a partnership firm. Step 1: Calculate the expected profit on the business guaranteed by him. Step 2: The above profit (Calculated as per step 1) will be charged to the…

Answer:– Awdesh’s share of profit = ₹ 12,00,000 * 1/6 = ₹ 2,00,000 Guaranteed amount for half year = ₹ 3,00,000 * 6/12 = ₹ 1,50,000 Since the actual share of profit (₹ 2,00,000) exceeds the guaranteed amount, no deficiency…

Jiten’s share of Loss = ₹ 1,50,000 * 1/6 = ₹ 25,000 Guaranteed amount of profit for half year = ₹ 2,00,000 * 1/2 = ₹ 1,00,000 Deficiency = Guaranteed amount – (- ₹ 25,000) Deficiency = ₹ 1,00,000 –…

Answer:- Past adjustments refers to adjustments made to rectify the error of incorrect distribution of profits or error in respect of Interest on Capital/Drawings of a partner, salary or commission to a partner, sharing of profits.

Ans – d) Explanation a) Interest on the loan of the partner to the firm is charged @ 6% p.a. in the absence of the partnership Deed. b) Interest on the Partner’s Drawings is not charged in the absence of…

Ans – d) Explanation:-

a) Ans = ii) Explanation:- Net Profit = (Profit – Rent on Pixie’s Premises) – Interest on Pixie’s Loan Net Profit = 1,21,000 – 12000 * 6% * 6/12 Net Profit = 1,21,000 – 360 Net Profit = ₹ 1,20,640…

Ans – d) Explanation:-