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Ans – b) Explanation:- 1. Calculation of Alia’s Interest on Drawings Average Month = 12 + 1/2 = 6.5 Month Interest on Alia’s Drawings = 20000 * 12 * 8% * 6.5/12 = ₹ 10,400 2. Calculation of Karan’s Interest…
Ans – c) Explanation Average Month = 7.5 + 1.5/2 = 4.5 Months Interest on Y’s Drawings = 36,000 * 3 * 10% * 4.5/12 = ₹ 4050
Ans – d) Explanation Salary due to a partner of the firm is the appropriation and is recorded in the profit and Loss Appropriation Account. On the other hand, interest on a loan of the partner, rent to the partner,…
Ans – a) Explanation:- Salary of Z = 8,000 * 12 = ₹ 96,000 Net Profit before charging Z’s commission = 13,56,000 – 8000 * 12 = ₹ 12,60,000 Z’s Commission = 12,60,000 * 5/105 = ₹ 60,000 Total Remuneration…
1. Ans -a) Explanation:- Interest on Partner’s Capital = 2,00,000 * 10% = ₹ 20,000 2. Ans – c) Explanation:- Interest on A’s Current A/c = 50,000 * 10% = ₹ 5,000 (Allowed) Interest on B’s Current A/c = 40,000…
Ans – b) Explanation:- Ben share in profit = 1,32,000 * 1/11 = ₹ 12,000 Deficiency in Share of Ben = Minimum guarantee – share in profit Deficiency in share of Ben = 16,000 – 12,000 = ₹ 4,000 Arif’s…
Ans – c) Explanation:- Under Fixed Capital Method. The Capital accounts are divided into two accounts. 1. Partner’s Current Account 2. Partner’s Capital Account As the name suggests, Fixed Capital Method. All recurring nature transactions of partners are recorded in…
And – d) Explanation:- The transaction between the partners and the firm is carried out through an adjusting entry. As no cash transaction is required.
Ans – b) Explanation:- When a guarantee is given by one or more partners to the other partners. Loss on the such guarantee is borne by those partners who gave the guarantee.
Ans – c) Explanation:- Rent paid to partners is a charge against profit. Thus it is transferred to Profit and Loss Account.