Topics
Introduction to Partnership
Introduction to Partnership and Partnership Final Accounts
Accounts of ‘Not for Profit’ Concerns
Partnership Final Accounts
- Introduction of Final Accounts
- Preparation of Final Accounts
- Effects of Adjustments-Closing Stock
- Effects of Adjustments-Outstanding Expenses
- Effects of Adjustments-Prepaid Expenses
- Effects of Adjustments-Income Received in Advance
- Adjustments - Income Receivable
- Effects of Adjustments-Bad and Doubtful Debts
- Effects of Adjustments-Provision for Discount on Debtors and Creditors
- Effects of Adjustments-Depreciation
- Adjustments - Interest on Capital, Drawings and Loans
- Adjustments - Interest on Investment and Loans
- Adjustments - Goods Destroyed by Fire Or Accident (Insured Or Uninsured)
- Adjustments - Goods Stolen
- Adjustments of Financial Statements - Goods Distributed as Free Samples and Manager's Commission
- Adjustments - Goods Withdrawn by Partners
- Adjustments - Unrecorded Purchases and Sales
- Adjustments - Capital Expenditure Included in Revenue Expenses and Vice-versa
- Adjustments - Bills Receivable Dishonoured
- Adjustments - Bills Payable Dishonoured
- Adjustments - Deferred Expenses
- Adjustments - Capital Receipts Included in Revenue Receipts and Vice-versa
- Adjustments - Commission to Working Partner Managers on the Basis of Gross Profit Net Profit, Sales, Etc
- Partnership Final Accounts
Reconstitution of Partnership (Admission of Partner)
Reconstitution of Partnership
- Meaning of Reconstitution
- Different Ways of Reconstitution
- Admission of a Partner
- Need of Admission of a Partner
- Capital Brought by New Partner
- Admission of a Partner - Sacrifice Ratio and New Ratio
- Concept of Goodwill
- Admission of a Partner - Adjustment of Accumulated Profits and Losses
- Admission of a Partner - Revaluation of Assets and Liabilities
- Admission of a Partner - Adjustment of Capitals
- Admission of a Partner - Treatment of Goodwill
- Meaning of Retirement or Death of a Partner
- Needs of Retirement Or Death of a Partner
- Retirement Or Death of a Partner - Treatment of Goodwill
- Retirement or Death of a Partner - Adjustment of Accumulated Profits and Losses
- Retirement or Death of a Partner - Revaluation of Assets and Liabilities
- Retirement Or Death of a Partner - Adjustment of Capitals
- Retirement Or Death of a Partner - New Ratio
- Retirement Or Death of a Partner - Gain Ratio
- Retirement Or Death of a Partner - Amount Due to Retiring Parter
- Reconstitution of Partnership
Reconstitution of Partnership (Retirement of Partner)
- Reconstitution of Partnership (Retirement of Partner)
- Treatment of Goodwill
- Transfer of Reserve Fund Or General Reserve/Accumulated Profit Or Loss
- Accounting for Revaluation of Assets and Reassessment of Liabilities
- Retirement Or Death of a Partner - Adjustment of Capitals
- Total Payable Amount to Retiring Partner
Dissolution of Partnership Firm
Accounts of “Not for Profit” concerns
- Not for Profit Concerns
- Features of "Not for Profit" Concerns.
- Receipts and Payments Account
- Feature of Receipts and Payments Account
- Effects of Adjustments-Outstanding Expenses
- Additional Information - Prepaid Expenses of the Current and Previous Year
- Effects of Adjustments-Accrued Income
- Effects of Adjustments-Income Received in Advance
- Additional Information - Subscription Received in Advance
- Additional Information - Subscription Outstanding of the Current and Previous Year
- Effects of Adjustments-Depreciation
- Additional Information - Capitalisation of Entrance Fees
- Additional Information - Creation of Special Funds Out of Donations
- Additional Information - Stock of Stationery
- Additional Information - Opening Balances of Assets and Liabilities
- Preparation of Income and Expenditure Account and Closing Balance Sheet
- Accounts of “Not for Profit” Concerns
Reconstitution of Partnership (Death of Partner)
Single Entry System
- Meaning of Single Entry
- Difference Between Single Entry System and Double Entry System
- Preparation of Statements for Single Entry System
- Additional Information - Additional Capital
- Effects of Adjustments-Drawings
- Additional Information - Depreciation on Fixed Asset
- Effects of Adjustments-Bad and Doubtful Debts
- Additional Information - Undervaluation of Assets and Liabilities
- Additional Information - Overvaluation of Assets and Liabilities
- Adjustments - Interest on Capital, Drawings and Loans
- Additional Information - Partners Salary
- Effects of Adjustments-Outstanding Expenses
- Effects of Adjustments-Prepaid Expenses
- Illustrations of Single Entry System
- Single Entry System Examples and Solutions
Dissolution of Partnership Firm
Bill of Exchange (Only Trade Bill)
- Introduction of Bill of Exchange (Only Trade Bill)
- Necessity of Bill of Exchange (Only Trade Bill)
- Draft Or Format of Bills
- Parties to the Bill of Exchange
- Acceptance of Bill
- Important Terms of Bills of Exchange - Term of Bill
- Important Terms of Bills of Exchange - Days of Grace
- Important Terms of Bills of Exchange - Date of Maturity
- Important Terms of Bills of Exchange - Due Date
- Honouring of Bill
- Dishonour of Bill
- Important Terms of Bills of Exchange - Noting of Bill
- Protesting of Bill
- Basic Term of Bills of Exchange - Notary Public
- Basic Term of Bills of Exchange - Noting Charges
- Accounting Treatment of Bill by the Drawer Or Holder and Drawee
- Accounting Treatment - Retaining the Bill Till Due Date. Honour Or Dishonour, Insolvency of the Drawee Or Acceptor
- Accounting Treatment - Endorsement of the Bill, Honour/ Dishonour and Also Insolvency of Acceptor
- Accounting Treatment - Discounting the Bill with the Bank Honour/Dishonour and Insolvency
- Accounting Treatment of Bill - Sending the Bill to the Bank for Collection, Honour Or Dishonour and Insolvency
- Accounting Treatment of Bill - Making Part Payment of Basic Amount, Interest and Noting Charges and Drawing of New Bill
- Accounting Treatment of Bill - Honour Or Dishonour of New Bill
- Accounting Treatment of Bill - Insolvency of the Acceptor and Settlement of His Account
- Accounting Treatment of Bill - Retirement of Bill
- Accounting Treatment of Bill - Journal Entries and Ledger
- Bill of Exchange Examples and Solutions
Bills of Exchange
Company Accounts - Issue of Shares
Company Accounts
- Share and Share Capital
- Nature and Types of Share and Share Capital
- Accounting for Share Capital
- Share Capital - Issue and Allotment of Equity Shares
- Private Placement of Shares
- Public Subscription of Shares
- Over Subscription of Shares
- Under Subscription of Shares
- Issue at Par and Premium and at Discount
- Calls in Advance and Arrears
- Issue of Shares for Consideration Other than Cash
- Accounting Treatment of Forfeiture and Re-issue of Share
- Disclosure of Share Capital in Company’s Balance Sheet (Horizontal Form)
- Meaning and Concept of Debentures
- Issue of Debentures at Par at Premium and at Discount
- Issue of Debentures for Consideration Other than Cash
- Interest on Debentures
Analysis of Financial Statements
- Concept of Financial Statement Analysis
- Comparative Statements
- Common Size Statements
- Cash Flow Analysis
- Ratio Analysis and its Types
- Concept of Accounting Ratios
- Classification of Ratios
- Introductions to Current Ratio
- Introductions to Liquid Ratio
- Introductions to Gross Profit Ratio
- Operating Profit Ratio
- Return on Investment (ROI)
- ROCE
Analysis of Financial Statements
Computer in Accounting
- (A) Simple Dissolution
- (B) Dissolution Under Insolvency Situation
Related QuestionsVIEW ALL [10]
Following is the Balance Sheet of Vaibhav, Sanjay, and Santosh.
| Balance Sheets as on 31st March 2019 | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Captital Accounts : | Machinery | 6,000 | |
| Vaibhav | 36,000 | Goodwill | 9,000 |
| Sanjay | 27,000 | Stock and Debtors | 57,000 |
| Creditors | 12,000 | Profit and Loss Account | 18,000 |
| Bank Overdraft | 18,000 | Santosh’s Capital | 3,000 |
| 93,000 | 93,000 | ||
Santosh is declared insolvent so firm is dissolved and assets realised as follows:
1. Stock and Debtors ₹ 54,000, Goodwill - NIL, Machinery at Book value.
2. Creditors allowed discount at 10%.
3. Santosh could pay only 25 paise in rupee of the balance due.
4. Profit-sharing ratio was 8:4:3.
5. A contingent liability against the firm ₹ 9,000 is cleared.
Give Ledger Account to close the books of the firm.
Shashwat and Shiv are equal partners. Their Balance Sheet stood as under :
| Balance Sheets as on 31st March 2019. | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Shaswat’s Capital A/c | 6,000 | Plant and Machinery | 14,750 |
| Creditors | 39,000 | Furniture | 4,000 |
| Debtors | 5,000 | ||
| Stock | 6,250 | ||
| Cash at Bank | 3,000 | ||
| Shiv’s Capital | 12,000 | ||
| 45,000 | 45,000 | ||
Due to weak financial position, all partners were declared bankrupt
The Assets were realised as follows :
Stock ₹3,500, Furniture ₹ 2,000, Debtors ₹ 5,000 and Machinery ₹ 7,000 The cost of collection and distributing the estate amounted to ₹ 1,500. Shashwat’s private estate in not sufficient even to pay his private debts, whereas in Shiv’s private estate there is a surplus of ₹ 500.
Prepare necessary ledger accounts to close the books of the firm.
Shweta, Nupur, and Sanika are partners sharing Profits and Losses in the ratio of 3:2:1. Their Balance Sheet as on 31st March 2019 was as follows :
| Balance Sheets as on 31st March 2019. | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Capital A/c | Sundry Assets | 1,60,000 | |
| Shweta | 65,000 | Cash at Bank | 5,000 |
| Nupur | 15,000 | Capital A/c: Sanika | 10,000 |
| Sundry Creditors | 95,000 | ||
| 1,75,000 | 1,75,000 | ||
The firm is dissolved as on 31st March 2019. Sundry Assets realised @ 60% of its book value. Realisation expenses ₹ 2000 paid by Shweta, Nupur, and Sanika both are insolvent. Nupur’s private estate has got a surplus of ₹3,000 and that of Sanika ₹ 8,000.
Show necessary ledger accounts to close the books of the firm.
Sitaram, Gangaram, and Rajaram are partners sharing Profits and Losses in the ratio of 4:2:3. On. 1st April 2019 they agreed to dissolve the partnership, their Balance Sheet was as follows :
| Balance Sheets as on 31st March 2019 | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Capital: | Building | 55,000 | |
| Sitaram | 65,000 | Machinery | 25,000 |
| Gangaram | 45,000 | Furniture | 12,000 |
| Rajaram | 7,000 | Investment | 15,000 |
| Reserve Fund | 18,000 | Bills Receivable | 3,500 |
| Profit and Loss Account | 5,400 | Sundry Debtors | 21,000 |
| Loan from Tukaram | 10,000 | Stock | 28,000 |
| Sundry Creditors | 12,000 | Cash in hand | 5,500 |
| Bills Payable | 4,600 | Cash at Bank | 2000 |
| 1,67,000 | 1,67,000 | ||
The assets realised: Building ₹ 46,750 Machinery ₹ 18,550 Furniture ₹ 9,600; Investment ₹ 10,650 Bill Receivable and Debtors ₹ 20,750; All the liabilities were paid off. The cost of realisation was ₹ 800. Rajaram becomes bankrupt and ₹ 1,100 only was recovered from his estate.
Show Realisation Account, Bank Account, and Capital Account of the partners.
Complete the following table:
| Capital Deficiency |
Cash brought by Insolvent Partner |
Insolvent Loss |
| ? | ₹ 7,000 | ₹ 21,000 |
Asha, Usha, and Nisha were partners sharing Profits and Losses in the ratio of 2:2:1. The following is the Balance Sheet as on 31st March 2019.
| Balance Sheets as on 31st March 2019 | ||||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) | |
| Capital Accounts: | Machinery | 1,00,000 | ||||
| Asha | 1,20,000 | Investment | 48,000 | |||
| Usha | 40,000 | Debtors | 1,10,000 | |||
| Nisha | 40,000 | (-) R.D.D. | 6,000 | 1,04,000 | ||
| General Reserve | 12,000 | Stock | 40,000 | |||
| Creditors | 80,000 | Profit and Loss A/c | 36,000 | |||
| Asha’s Loan A/c | 16,000 | Bank | 8,000 | |||
| Bills payable | 28,000 | |||||
| 3,36,000 | 3,36,000 | |||||
On the above date, the partners decided to dissolve the firm.
1. Assets were realised as under Machinery ₹ 90,000, Stock ₹ 36,000, Investment ₹ 42,000 and Debtors ₹ 90,000.
2. Dissolution expenses were ₹ 6,000.
3. Goodwill of the firm realised ₹ 48,000
Pass Journal Entries to close the books of firm.
