Past Adjustments for Past Errors after Closing Books Of Accounts Archives

Partnership Association of two or more persons who agree to do business carried by all or any of them and share its profits and losses. Partner: Members of Partnership. Firm: All members combined together to form a partnership is collectively known as Firm. Firm Name- The name under which Partnership Business is carried on. Partnership Deed: A written agreement signed by all partners, that contains terms and conditions of Partnership such as, Description of Partners, Description of Firm Nature of Business, Address of Firm Interest Rate on Partners’ Loan Interest Rate on Capital & Drawing Capital Contribution of Each Partner Profit Sharing Ratio Provisions related to Admission, retirement & Death of Partner Remuneration to Partners etc. Provisions of Partnership Act, 1932 in Absence of Partnership Deed Particulars Provisions of Indian Partnership Act, 1932 1. Sharing of profit/Losses Equal 2. Interest on Capital No Interest 3. Interest on Drawings No Interest Charged 4. Remuneration (Salary, Commission & others) No remuneration 5. Interest on Loan By a Partner 6 % Per Annum (even firm suffers loss as Interest on Partner’s Loan is a charge against Profit)

Accounting for Partnership- Minimum Earnings Guaranteed by a Partner Guarantee of Profit Past adjustment entries Appropriation of Profit Fixed & Fluctuating Capital, Minimum Earnings Guaranteed by a Partner, Guarantee of Profit, Past adjustment entries, Appropriation of Profit, Fixed & Fluctuating Capital

By admin, 2 yearsJune 22, 2022 ago

Past Adjustments for Past Errors after Closing Books Of Accounts

Class 12 Accounts

Accounting For Partnership