Important questions : Admission of a Partner
IMPORTANT QUESTIONSCHAPTER 5: Admission of a PartnerWrite the effects of admission of a partner?Define new profit sharing ratio?X and Y are partners sharing profit in the ratio of 3 : 2. They admit Z as a new partner for ⅕th shares in profit. Calculate the new profit sharing ratio and sacrificing ratio.A and B are partners sharing profits and losses equally. They admit C, as a new partner who acquires his share as ⅕th from A and ¼th from B. You are required to calculate the …
Read more
CHANGE IN PROFIT SHARING RATION AMONG EXISTING PARTNERS : MOST IMPORTANT QUESTION
CHANGE IN PROFIT SHARING RATION AMONG EXISTING PARTNERS : MOST IMPORTANT QUESTION
Define Sacrificing Ratio?Define Gaining Ratio?Aman, Yatin and Uma were partners sharing profits and losses in the ratio of 5 : 3 : 2. Uma retired and her share was taken over by Aman and Yatin in 5 : 3 ratios. Calculate the gaining ratio of Aman and Yatin.P, Q and R are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaini…
CLASS 12TH GOODWILL: MOST IMPORTANT QUESTIONS
CLASS 12TH GOODWILL: MOST IMPORTANT QUESTIONSWhat do you mean by goodwill?Explain the different methods of valuation of goodwill?Pooja purchased Ritik’s business on 1st April, 2019. It was agreed to value goodwill at three year’s purchase of average normal profits of the last four years. The profits of Ritik’s business for the last four years were:-
Year endedRs.31st March, 201690,00031st March, 20171,60,00031st March, 20181,80,00031st March, 20192,20,000
Following are noticed…
CLASS 12TH PARTNERSHIP : MOST IMPORTANT QUESTIONS
CLASS 12TH PARTNERSHIP : MOST IMPORTANT QUESTIONSWhat are the essential features of a partnership?Write the contents for partnership deed?X and Y started business with capital of Rs. 1,00,000 and Rs. 60,000 on 1st April 2018. Y is entitled to a salary of Rs. 800 per month. Interest is allowed on capitals and is charged on drawings at 6% per annum. Profits are to be distributed equally after the above noted adjustments. During the year X withdrew Rs. 16,000 and Y withdrew Rs.…
Read more
Depreciation - Meaning, Definition, Causes, Objectives and Factors Affecting Depreciation
Depreciation - Meaning, Definition, Causes, Objectives and Factors Affecting Depreciation
Depreciation The non-trading fixed assets of a business like land, building, machinery, furniture etc. may be get depreciated in value due to various reasons. In other words, the value of such assets reduces each year due to use. Such gradual ad permanent reduction in the value of the assets due to wear and tear or from any other causes is called Depreciation. The word depreciation is de…
Depreciation, Fluctuation and Obsolescence
Depreciation, Fluctuation and Obsolescence
Depreciation It is a gradual deterioration or decrease in the value of asset after using that asset in our day to day work or after spending of time. In this world, everything is perishable, so making true profit and calculates true value of any asset at present time, it is very necessary to depreciate on fixed asset and deduct from it.
FluctuationIf you are doing business or linked with any business, you know that prices are always u…
Factors affecting the amount of Depreciation
Factors affecting the amount of Depreciation
It is almost impossible to calculate the actual and accurate amount of depreciation. However, to estimate the amount of depreciation following factors are considered:
1. Original Cost of the Assets: Original cost includes the purchase price of the asset plus freight and installation expenses. Depreciation is charged on cost of asset so, it is found as:
Cost of Asset = Purchase price Freight (Transportation expenses) Installation (er…
Methods of Depreciation
Methods of Depreciation
To find out the depreciation of assets or any kind of property, there are different forms or kinds of methods are available. The different kinds of depreciation methods are as follows:1. Fixed Installment or Straight line method.2. Diminishing Balance or written down value method.3. Sums of the digit method4. Annuity method5. Depreciation fund or Sinking fund method6. Insurance policy method7. Revaluation method8. Activity method
1. Fixed Installment or…
Provision of Depreciation Account
Provision of Depreciation Account
Provision of depreciation is the collected value of all depreciation .With making of this account we are not credited depreciation in asset account. But transfer every year depreciation to provision of depreciation account. Every year we adopt this procedure and when assets are sold we will transfer sold assets ‘total depreciation to credit side of asset account. For calculating correct profit or loss on fixed asset. This provision uses with …
Educating & empowering people to ditch debt, save money and build real wealth! Now more than ever, people are focused on their finances and prioritizing their financial well-being.
Social Plugin