Parul and Aruna, school time friends, …

Parul and Aruna, school time friends, met at the school reunion. Farul had become a fashion designer and had worked for a few years with a leading fashion designer Aruna, after completing her MBA in Marketing, had worked with a leading retail store. At the meeting they had a brief discussion about setting up their own garment stores for teens and agreed to meet later and discuss the business prospects. 200.000 50% They met again to discuss the possibility of starting the business and after discussions decided to set up ready-made garments stores exclusively for teenagers with a high disposable family incomes and who follow latest fashion trends. They decided to open their first store on 15th April, 2022 They decided to produce and sell clothes which were not expensive as it will give the customer value for money and, in the process, their turnover will increase due to which the profit will also be high. They decided to open their flagship store in Select City Wallk, Saket. New Delhi. The name decided was C4T a short form of Clothes & Teens They discussed and finalised the business plan, capital requirement and sources, etc. Parul was to design the clothes and source the material besides identifying tailoring source, which was to be outsourced Aruna, besides looking after marketing, was to identify and rent a suitable place for the store, renovate it and take care of the legal aspects. It was agreed that each partner will initially contribute 10 lakhs towards capital. Aruna employed Bikram, an experienced accountant, and requested him to draw the Partnership Deed and get the firm registered under the applicable laws. She gave him the of partnership agreed between her and Parul located a shop measuring 800 square feet, finalised the rent and entered into an ment. It was agreed that rent for the shop will be ₹ 15,000 per month starting from April, 2022 and in between period will be used for furnishing the shop. A security deposit ual to six months rent was to be given A bank account was opened with the State Bank of India in the name of CIT in which they deposited cheques of 10 lakhs each. Cheques for ₹ 90,000 as security deposits for rent, 7,000 as Security Deposit for Electricity were issued. A contract was signed for 3,50,000 for renovation of the outlet which was paid. A website was got developed from a local developer to attract mail orders. Website designing and hosting expense came to 1,00,000. Rent for website space was ? 20,000 payable from 1st April 2023. A computer and printer was purchased for 50,000. The firm took a term loan of 10 lakhs from the bank repayable in 20 equal quarterly instalments. First instalment was to be paid on 30th June, 2022. The bank granted loan interest being 12% per annum. Loan repayment schedule was as follows: Date June 30, 2023 September 30, 2027 December 31, 2022 March 31 2023 Principal ( 50.000 50,000 50,000 30.000 Interest

Accounting for partnership Firms Fundamentals notes

On 1st April ,2019 ,Mathew Ltd issued 10,000,9%Debentures of rs.100each at a discount of 5%,redeemable at premium of 5%.These debentures were redeemable as follows: On 31st March ,20-2000debentures On31st March,21. 5000Deb On 31st March 22. 3000Debentures . Prepare account for loss on issue of debenture , 9%Debentures ,and premium on redemption

U and V Were Partners in a firm

Gita Radha and Garv are partner sharing prophets in the ratio of 1 by 2 2 by 5 and 1 by 10 find the new profit sharing ratio of the remaining partners if girl retires

Ativ, Meha and Nupur were partners in a firm sharing profits and losses in the ratio of 5 : 3:2. On 31-03-2016 their Balance sheet was as under: Liabilities Amount (T) Assets Amount (R) | Trade Creditors 26,500 Bank 23.500 Debtors 1,00,000 Stock 50,000 Fixed Assets 40,000 Advertisement Expenditure 25,000 Employees Provident Fund Ativ's Capital Meha's Capital 30,000 55,000 1,20,000 Nupur's Capital 10,000 2,40,000 2,40,000 Ativ retired on 1-4-2016. For this purpose, the following adjustments were agreed upon: (i) Goodwill of the firm was to be valued at 2 years purchase of the average profits of 3 completed years preceding the date of retirement. The profit for previous years were: 2013-14 55,000; 2014-15 7 65,000; 2015-16 7 60,000.

B and C are partner sharing profit in the ratio 3 2. Goodwill appears in the book at Rs3000 DIs admitted into partnership on payment of 2000 for 1/4, share as goodwill .B and C between themselves.Sharing future profit and loses equally given journal.

Q. 120. Risha and Nisha were partners. The partnership deed provides: (1) That the accounts be balanced on 31st December each year. (ii) The profits be divided as follows: Risha one-half, Nisha one-third and carried to Reserve account one-sixth. (ii) That in the event of death of a partner, her executor will be entitled to the following: (a) The capital to her credit at the date of death. (b) Her proportion of profit to date of death based on the average profits of the last three completed years. (c) Her share of goodwill based on three year's purchase of the average profits for the three preceding completed years. On 31st December, 2020 the Trial Balance was as under: Particulars Risha's Capital Nisha's Capital Reserves Bills Receivables Investments Cash Creditors Dr. (3) Cr. (3) 90,000 60,000 30,000 50,000 40,000 1,10,000 20,000 2,00,000 2,00,000 The profits for the three years were: 2018 ₹4,200; 2019 ₹3,900 and 2020 ₹4,500. Nisha died on 31st May, 2021. Draw up the deceased Partner's Capital A/c and Executor's A/c. Ans. Balance due to Nisha's Executor's ₹77,740.]

Q. 46. Ayushi and Shristhi are partners sharing profits in 3 : 2. Their Balance Sheet showed Stock at ₹3,10,000; Machinery at ₹4,95,000; Debtors at ₹6,00,000; Creditors at ₹3,47,000. They admit Tina as a partner and new profit sharing ratio is agreed at 4: 3: 2. Following terms were agreed : (1) Machinery is overvalued by 10%. (ii) Unrecorded debtors of ₹20,000 be brought into books and provision for doubtful debts be created at 10%. (iii) Creditors of ₹27,000 are not likely to be paid. Shristhi's share in loss on revaluation amounted to ₹36,000. You are required to calculate the revalued value of stock

The capital of the firm of anuj and benu is , 100000 and the market rate of interest is 15% . Annual salary to the partner is 60000 each. The profit for the last three years were , 300000 ,360000 , 420000. Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profit

Rao and Majumdar are partners sharing profits and losses in the ratio of 3: 2. Rao died on 31st December, 2020. The following was the Balance Sheet on that date: Payment to Executors in Instalments Liabilities Amount Assets Amount ed on 281 Creditors Reserve Rao's Capital Majumdar's Capital 24,000 Cash at Bank 15,000 Stock 18,000 40,000 Amount 18,000 25,000 Debtors Furniture 20,000 35,000 The share of Rao in firm's goodwill was agreed at 36,000. Assets and liabilities were valued reasonably. Assuming that 10,000 was paid immediately on January 1, 2021 and the balance was payable in three equal instalments on 31st December every year and interest was payable @ 12% per annum on unpaid balance. Prepare Rao's Executor's Account.