Distinguish between 'Dissolution of Partnership' and 'Dissolution of Firm' on the basis of (i) Effect, and (ii) Court's Intervention
Distinguish between 'Dissolution of Partnership' and 'Dissolution of Firm' on the basis of (i) Effect, and (ii) Court's Intervention
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:Stock of Medicines:
On 1.4.2017
On 31.3.2018
Advance to Suppliers for Medicines
On 1.4.2017
On 31.3.2018
62,000
54,000
11,500
18,200
2. Distinguish between 'Dissolution of Partnership' and 'Dissolution of Firm' on the basis of
(i) Effect, and
(ii) Court's Intervention
3. A, B and C were partners sharing profits in the ratio of 5 : 3 : 2. A retires and B and C
acquire C's share in the ratio of 1 : 4. Goodwill of the firm is valued at 1,50,000. Pass
necessary journal entry to adjust goodwill and find out the new profit sharing ratio.
2
4. From the following information calculate the amount of subscription to be credited to the
Income and Expenditure Account for the year 2017-18:
2/7
000
30,000
Subscriptions outstanding on 31st March, 2017
Subscriptions outstanding on 31st March, 2018
Subscriptions received in Advance on 31st March, 2017
Subscriptions received in Advance on 31st March, 2018
Subscriptions received during the year
Subscriptions of 24,000 are still in arrears for the year 2016-17
10,000
18,000
2,00,000
OR
Show the following information in the Balance Sheet of Taj Club as at 31st March, 2021 :
General Fund as at Ist April, 2020
9% General Fund Investments as at Ist April, 2020
Interest on General Fund Investments
Tournament Fund as at Ist April, 2020
8% Tournament Fund Investments as at Ist April, 2020
Interest on Tournament Fund Investments
Toumament Expenses
Proceeds from Sale of Tournament Tickets
Donation Received for Tournament
30,00,000
20,00,000
1,20,000
10,00,000
8,00,000
48,000
3,00,000
4,20,000
2,00,000
1,50,000
Life Membership Fee
Q. 5. Ashish, Bhola and Chanu were partners in a firm sharing profits and losses in the ratio of
5:3:2. Their books are closed on March 31st every year.
Bhola died on Ist August, 2019. The executors of Bhola are entitled to his share of profit
up to his date of death on the basis of sales till date of death. Sales for the year ended
March 31, 2019 was 20,00,000 and profit for the same year was 4,00,000. Sales show
a growth trend of 25% and percentage of profit earning is increased by 4%.
Pass necessary Journal Entry for Bhola's share of profit.
3
Q. 6. Phillips Ltd. purchased machinery for 25,00,000 and Computers for 5,00,000 from
Bhushan Ltd. and paid the amount as follows :
(i) By making online payment of 26,00,000.
(ii) By issue of 9% debentures of 7500 each at 4% discount and redeemable at 5%
premium after 5 years.
Pass necessary entries in the books of Phillips Ltd.
3
OR
XLtd, issued 5,000, 7% Debentures of 100 each, payable as : 20 on application, 30 on
allotment, and 750 on first and final call. All the debentures were applied for and allotted
and the amount was received on the due dates except that one debentureholder holding 200
debentues did not pay the allotment money and another debentureholder holding 300
debentures paid the first and final call along with the allotment money.
Journalise the above transactions in the books of the company using Calls-in-Arrears
Account and Calls-in-Advance Account as and when necessary.
:::
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