ICSE & ISC > Class 12 > Accountancy | CBSE Board | Homework Help

Common size and comparative

Posted by Kadan Long 3 years, 5 months ago

1 answers

Sia ? 3 years, 5 months ago

Basis of Difference	Comparative	Common Size
Meaning	The comparative statements are that statement which shows the comparison between the component of the financial statement of the business for the period of more the two years	The Common-Size statement is that statement which shows the percentage to a common base of all accounts of the financial statement of the business for the period of more than two years.
Base of Comparison	In this, the value of the basis year compared with the value of the current year.	In this, the value of the current year compared with the current year.
Number of Years required	Minimum Financial Statements of two years are required.	The financial Statement of One year is required.
Results expressed in	The results are expressed in the pictorial as well as percentage form.	The results are expressed in the percentage form.
Type of Comparision included	It included both types of Intra and inter-firm comparison.	It included only inter-firm comparison.
Helps in	It helps in the decision making for the management for future planning.	It helps the stakeholder in the decision of the investment.
Useful in	It is useful to compare the current year results with the prevision year.	It is useful to compare the current year results with its competitors’ results.

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ANSWER

Yogita Ingle 4 years ago

Dissolution of a firm: As per Indian Partnership Act, 1932: “Dissolution firm means termination of partnership among all the partners of the firm”

When a firm is dissolved, the business of the firm terminates. All the assets the firm are disposed off and all outsiders’ liabilities and partners’ loan and partner capital are paid.

Dissolution of Partnership: Dissolution of Partnership refers to terminal of old partnership agreement (i.e., Partnership Deep) and a reconstruction the firm.

It may take place on

· Change in profit sharing ratio among the existing partner:

· Admission of a partner; and

· Retirement of Death of partner.

It may or may not result into closing down of the business as the remount partners may decide to carry on the business under a new agreement.

Yogita Ingle 5 years, 9 months ago

It is very difficult to assess the value of goodwill, as it is an intangible asset. In case of sale of a business, its value depends on the mutual agreement between the seller and the purchaser of the business. Usually, there are three methods of valuing goodwill:
1. average profit method
2. Super profit method
3. Capitalization method

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