Choose the correct sequence of the following transactions in the context of the Division of Profits:
Choose the correct sequence of the following transactions in the context of the Division of Profits:
i) Guarantee by Firm to Partners
b) Guarantee by Partners to Firm
c) Transfer of Profits to Profits & Loss Appropriation Account
d) Guarantee by Partner to Partner
Options
a) i), iii), iv), ii)
b) iii), i), ii), iv)
c) iii), ii), i), iv)
d) ii), iii), iv), i)
Anurag Pathak Changed status to publish April 9, 2023
Ans – c)
1. The first profit is transferred to P & L Appropriation Account.
2. It is raised by the guarantee given by the partner to the firm.
3. Then guarantee given by the firm to the partner is considered.
3. At the end, the guarantee given by one partner to the other is considered.
Anurag Pathak Changed status to publish April 4, 2023
