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Posted by Subham Sarma 5 years, 5 months ago
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Gaurav Seth 5 years, 5 months ago
Guarantee A partner may be admitted into the firm with a guarantee of minimum profit, which means that if his share of profit is less than that of guaranteed profit, then he would be paid the guaranteed share of profit.
The deficiency (difference between guaranteed profit and actual profit) is borne by partner or partners who have guaranteed the profit in agreed ratio.
Different conditions regarding guarantee of profit are:
(i) Guarantee by the firm to a partner.
(ii) Guarantee by one partner to another partner.
(iii) Guarantee given by the partner to the firm.
(iv) Simultaneous guarantee by the firm to the partner and by the partner to the firm. Steps Involved in the Distribution of Profits under Guarantee Arrangement
Step 1 Calculate the actual share of profit/loss of guaranteed partner.
Step 2 Calculate the guaranteed amount.
Step 3 Calculate the amount of deficiency
Deficiency = Guaranteed Amount – Actual Share of Profit
Step 4 Distribute the deficiency among the guaranteeing partners in their guaranteeing ratio.
Step 5 Distribute the actual profits/losses among all the partners in their profit sharing ratio as if there is no guarantee arrangement.
Step 6 Recover share of deficiency (as per step 3) from the guaranteeing partners and give credit for the same to guaranteed partner.
Posted by Subham Sarma 5 years, 5 months ago
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Priyanshi Kumari 5 years, 5 months ago
Gaurav Seth 5 years, 5 months ago
2
Section 4 of the Indian Partnership Act 1932 defines partnership as the 'relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all'. In order to form a partnership, there should be at least two persons coming together for a common goal.
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Priyanshi Kumari 5 years, 5 months ago
Gaurav Seth 5 years, 5 months ago
A cost sheet is a statement that shows the various components of total cost for a product and shows previous data for comparison. You can deduce the ideal selling price of a product based on the cost sheet.
A Cost Sheet depicts the following facts:
- Total cost and cost per unit for a product.
- The various elements of cost such as prime cost, factory cost, production cost, cost of goods sold, total cost, etc.
- Percentage of every expenditure to the total cost.
- Compare the cost of any two periods and ascertain the inefficiencies if any.
- Information to management for cost control
- Calculate and summarize the total cost of the product.
Posted by Bahubali Kamagouda 5 years, 5 months ago
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Gaurav Seth 5 years, 5 months ago
Capital Turnover Ratio or Net Assets Turnover Ratio:
It measures the entity’s ability to generate sales or cost of goods sold per rupee of long-term investment. A higher ratio indicates better utilization of long-term funds of owners and the lenders. Thus,
Capital Turnover Ratio = Sales or Cost of Goods sold/Net Assets
Net Assets or Capital employed = Net Fixed Assets + Net Current Assets
Net Current Assets = Current Assets – Current Liabilities.
Posted by Bahubali Kamagouda 5 years, 5 months ago
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Posted by Simran Morya 5 years, 5 months ago
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Shalu Singh 5 years, 5 months ago
Gaurav Seth 5 years, 5 months ago
Q : Aseem and nihar started business on 1st april 2019 with capital of Rs 300000 and Rs 200000 respectively . according to the partnership deed, nihar is to get salary of Rs 5000 per month aseem is to get 10% comission on profit after allowing salary to nihar and intrest is to be allowed on capital @ 6%p.a . profit sharing ratio between the two partner is 3:2 . during the year , the firm earned profit of Rs 250000 Aseem had given loan of Rs 100000to the firm on 1april 2019 intrest on loan allowed @8% nihar was given loan of Rs 200000 on which intrest was charged Rs11000. Manager was to be allowed comission of Rs 3000 .make profit and loss appropration account
Answer :
Click on the given link:
<a href="https://www.amu.ac.in/emp/studym/100010676.31.03.pdf">https://www.amu.ac.in/emp/studym/100010676.31.03.pdf</a>
Posted by Ashok Kumar Pathariya 5 years, 5 months ago
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Gaurav Seth 5 years, 5 months ago
Format of Fluctuating Capital Account Method
Capital A/c
| Date | Particulars | A | B | Date | Particulars | A | B |
| Drawings and interest on Drawings | Opening Balance or Initial Investment | ||||||
| Loss transferred from Profit and Loss A/c | Addition of capital, Interest on Capital, Salary, Commission or any other remuneration | ||||||
| Closing Balance | Profit transferred from Profit and Loss Appropriation A/c |
Posted by Ashok Kumar Pathariya 5 years, 5 months ago
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Gaurav Seth 5 years, 5 months ago
Profit and Loss Appropriation A/c
| Date | Particulars | Amount | Date | Particulars | Amount |
| To Interest On CapitalA/c | By Profit And Loss A/c (Profit transferred from P&L A/c) | ||||
| To Partner’s Salary A/c | By Interest on Drawings A/c | ||||
| To Reserves A/c | |||||
| To Partner’s Commission A/c | |||||
| To Profit transferred to Partner’s Capital/Current Account |
Posted by Harshita Makhijani 5 years, 5 months ago
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Yash Kumar 5 years, 5 months ago
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Yash Kumar 5 years, 5 months ago
Posted by Manju Vijayan 5 years, 5 months ago
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Posted by Simran Morya 5 years, 5 months ago
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Gaurav Seth 5 years, 5 months ago
PROFIT AND LOSS APPROPRIATION ACCOUNT
| Particulars | Amount | Particulars | Amount |
| To Interest on capital X= 50,000 To Salary Y= 30,000 |
80,000 | By net profit | 80,000 |
| Total | 80,000 | Total | 80,000 |
Interest on X's capital = 20,00,000*8%=1,60,000
Salary to Y = 8000*12 = 96,000
Total = 2,56,000
Net profits available is less than the appropriations to be made. So,the appropriations are to be made in the ratio of interest and salary i.e 5:3.
Posted by Naaz Khatoon 5 years, 5 months ago
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Gaurav Seth 5 years, 5 months ago
Hint :
1) profit on rev 60000-12000-20000-10000-3000 =15000 Now profit on rev + G/R = 75000+15000 =90000 P gains 1/36 So p's acc DR 90000*1/36= 2500 R sac 1/36 So R's acc C/R 90000*1/36=2500 B/s capital P=397500 Q=300000 R=202500 B/S total= 1030000 Other values of b/s will be same as before
Posted by Anish Jaswani 5 years, 5 months ago
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Harshit Pandit 5 years, 3 months ago
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