Suresh and Mahesh are partners sharing …

Suresh and Mahesh are partners sharing profits and losses in the ratio 3:1. On January 1st,2015,they admitted Naresh as a new partner for 1/4th share in the share in the profits of the firm. Naresh brings ₹20,000 for his 1/4th share in the profits of the firm. The capitals of Suresh and Mahesh after all adjustments in respect of goodwill,revaluation of assets and liabilities,etc have been worked out at ₹50,000 for Suresh and ₹12,000 for Mahesh . It is agreed that partner's capitals will be according to new profit sharing ratio. Calculate the new capitals of Suresh and Mahesh and pass the necessary journal entries assuming that Suresh and Mahesh brought in or withdrew the necessary cash as the case may be for making their capitals in proportion to their profit sharing ratio.   Posted by Shreya Maloo 5 years, 10 months ago

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Assertion (A): A firm is reconstituted in the event of change in the profit sharing ratio among existing partners, admission of a partner, retirement of a partner and death of a partner. Reason (R): Reconstitution of the firm leads to change in profit-sharing ratio among the partners.

Dr vinod Kumar book solutions

Sharma and varma were partners in a firm sharing profits in the ratio of 4:1. Their capitals on 1.04.2006 were sharma ₹500000 and verma ₹ 100000. The partnership deed provided that sharma will get a commission of 10% on the profit after allowing a salary ₹5000 to verma. The profit of the firm for the year ended 31st March 2007 was ₹280000.

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On the basis of new partner capital

Is depreciation charged from machinery an abnormal loss?

On 1st April 2023 A and b comments to business with capital of ₹600000 and ₹200000 respectively on 31st March 2024 the net profit (before taking into account the provisions of deed) was ₹240000 interest on capital is to be allowed at 6% per annum b was entitled to a salary of ₹60000 per annum the drawings of the partners A and b were ₹60000 and ₹40000 respectively the interest on drawings for a being ₹2000 and b ₹1000 assuming that A and b are equal partners prepare the profit and loss appropriation account and partners capital account as at 31st March 2024

Illustration 27 cash flow

Illustration 27 of cash flow investing activiates