Question 2 If an associate has preference share, the proper way of computing the share in net income of an associate for the current year assuming the preference share is cumulative would be
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.
Please answer with reason for all why the option is correct and why the other options are incorrect
Question 2
If an associate has
a. Deduct the preference dividend for the current year only, whether declared or not
b. Deduct the preference dividend for the current year, if declared only
c. Deduct the preference dividend for the current year including any previous undeclared
preference dividend
d. Deduct both the preference and ordinary dividend for the current year only, whether
declared or not
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