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No in the absence of a written partnership Deed. The consent of all the partners is required to admit a new partner. Thus K can not be admitted. But if there is a partnership deed with a written agreement Y…
Rent to the Partner is considered a charge against Profit. Thus it would be recorded at the debit side of Profit and Loss Account. Note:- Charge against profit are the expense that is to be paid by the firm irrespective…
Fixed Capital account always has credit balance Whereas, the Fluctuating Capital Account may have credit or debit balance
The Companies Act, 2013 (Section 464) empowers the Central Government to prescribe a number of partners in a firm subject to a maximum of 100 Partners. The Central government has prescribed a maximum number of partners in a firm to…
The Companies Act, 2013 (Section 464) empowers the Central Government to prescribe a number of partners in a firm subject to a maximum of 100 Partners. The Central government has prescribed a maximum number of partners in a firm to…
The following are the two characteristics. Agreement:- The partnership comes into existence through an agreement, either written or oral. It is the basis of a relationship among partners, which may be for a particular venture, for a period, or at…
The Companies Act, 2013 (Section 464) empowers the Central Government to prescribe a number of partners in a firm subject to a maximum of 100 Partners. The Central government has prescribed a maximum number of partners in a firm to…
No, the Partnership firm does not have a separate legal entity from its partners. Since the firm’s debts are payable from the personal assets of the partners if the firm is unable to repay its liabilities.
Ans – b) As per Business Entity Concept, the partnership firm is a separate entity from partners from the viewpoint of accounting. Thus all business transactions are recorded from the business point of view. For example when capital is introduced…
Ans – d) When Capital is fixed, the drawing against capital is recorded at the debit side of the Capital account itself. The Journal entry is Partner’s Capital A/c Dr. To Bank A/c Thus Assertion (A) is incorrect. Drawings against…