Topics
Introduction to Partnership and Partnership Final Accounts
- Concept of Partnership
- Partnership Deed
- Provisions of the Indian Partnership Act, 1932
- Special Aspects of Partnership Accounts> Partner's Capital Account
- Partner's Capital Account> Fixed Capital Account
- Partner's Current Account
- Partner's Capital Account> Fluctuating Capital Account
- Examples on Partners’ Capital Accounts
- Partnership Final Accounts
- Trading Account
- Profit and Loss Account
- Balance Sheet
- Adjustments in Final Account
- Examples on Partnership Final Accounts
Introduction to Partnership
Partnership Final Accounts
- Partnership Final Accounts
- Adjustments - Income Receivable
- Interest on Capital and Current Accounts
- 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- Adjustments - Goods Withdrawn by Partners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
Accounts of ‘Not for Profit’ Concerns
Reconstitution of Partnership
- Modes of Reconstitution of a Partnership Firm
- Admission of Partner
- New Profit Sharing Ratio
- Methods of Valuation of Goodwill
- Admission of Partner> Adjustment of Capital
- Admission of Partner> Revaluation of Assets and Liabilities
- Admission of Partner> Accounting Treatment of Goodwill
- Retirement of Partner
- Needs of Retirement Or Death of a Partner
- Retirement/Death of a Partner> Treatment of Goodwill
- Retirement/Death of a Partner> Revaluation of Assets and Liabilities
- Retirement/Death of a Partner> New Profit Sharing Ratio
Reconstitution of Partnership (Admission of Partner)
- Reconstitution of Partnership
- Admission of Partner
- New Profit Sharing Ratio
- Sacrificing Ratio
- Admission of Partner> Accounting Treatment of Goodwill
- Average Profit Method
- Super Profit Method
- Admission of Partner> Reserves and Accumulated Profit/Losses
- Admission of Partner> Revaluation of Assets and Liabilities
- Admission of Partner> Adjustment of Capital
- Examples on Admission of Partner
Reconstitution of Partnership (Retirement of Partner)
- Retirement of Partner
- Retirement/Death of a Partner> New Profit Sharing Ratio
- Retirement/Death of a Partner> Gaining Ratio
- Retirement/Death of a Partner> Treatment of Goodwill
- Hidden Goodwill
- Retirement/Death of a Partner> Reserves and Accumulated Profits/Losses
- Retirement/Death of a Partner> Revaluation of Assets and Liabilities
- Retirement/Death of a Partner> Adjustment of Capitals
- Computation of Amount Due to the Retiring Partner
- Payment of Amount due to Retiring Partner
- Examples on Retirement of Partner
Dissolution of Partnership Firm
Accounts of “Not for Profit” concerns
- Concept of Non-Profit Concerns
- Receipts and Payments Account
- Additional Information - Prepaid Expenses of the Current and Previous Year
- Additional Information - Subscription Received in Advance
- Additional Information - Subscription Outstanding of the Current and Previous Year
- 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
- Income and Expenditure Account
Reconstitution of Partnership (Death of Partner)
- Death of Partner
- Retirement/Death of a Partner> New Profit Sharing Ratio
- Retirement/Death of a Partner> Gaining Ratio
- Retirement/Death of a Partner> Revaluation of Assets and Liabilities
- Determination of Amount due to the Deceased Partner
- Settlement of Amount Payable to the Deceased Partner
- Examples on Death of Partner
Dissolution of Partnership Firm
- Concept of Dissolution of Partnership Firm
- Difference Between Dissolution of Partnership and Dissolution of Firm
- Accounting at the Time of Dissolution of a Firm
- Types of Firm Dissolution> Simple Dissolution
- Accounting Entries To Close The Books Of Accounts
- Transfer Stage
- Realisation/Disposal Stage
- Distribution Stage
- Treatment of Unrecorded (Undisclosed) Assets and Liabilities
- Process of Dissolution> Valuation of Goodwill
- Process of Dissolution> Realisation Account
- Examples on Simple Dissolution
- Types of Firm Dissolution> Dissolution under Insolvency Situation
- When One Partner Becomes Insolvent
- When Two Partners Become Insolvent
- When All Partners Are Insolvent
Single Entry System
- Concept of Single Entry System
- Statements of Affairs
- Additional Information - Additional Capital
- Effects of Adjustments-Drawings
- Concept of Depreciation
- Additional Information - Undervaluation of Assets and Liabilities
- Additional Information - Overvaluation of Assets and Liabilities
- Interest on Capital and Current Accounts
- Additional Information - Partners Salary
- Illustrations of Single Entry System
Bill of Exchange (Only Trade Bill)
- Necessity of Bill of Exchange (Only Trade Bill)
- Acceptance
- Concept of Bills of Exchange
- Honouring and Dishonouring of Bill of Exchange
- Accounting Treatment> Discounting the Bill of Exchange
- Accounting Treatment> Retaining the Bill till the Due Date
- Accounting Treatment> Endorsement of Bill of Exchanges
- Accounting Treatment > Bills Sent to Bank for Collection
- Insolvency of Drawee
- Retirement of Bill under Rebate
- Accounting at the Time of Dissolution of a Firm
- Examples on Bills of Exchange
Bills of Exchange
- Credit Transactions
- Concept of Bills of Exchange
- Acceptance
- Due Date
- Promissory Note
- Honouring and Dishonouring of Bill of Exchange
- Classification of Bills for Accounting
- Accounting Treatment> Retaining the Bill till the Due Date
- Accounting Treatment> Discounting the Bill of Exchange
- Accounting Treatment> Endorsement of Bill of Exchanges
- Accounting Treatment > Bills Sent to Bank for Collection
- Renewal Bill of Exchange
- Retirement of Bill under Rebate
- Insolvency of Drawee
- Examples on Bills of Exchange
Company Accounts
- Concept of Shares
- Shareholder's Fund> Share Capital of a Company
- Private Placement of Shares
- Terms of Issue of Shares> Issue of Shares at Par
- Under Subscription of Shares
- Over Subscription of Shares
- Types of Share Issue
- Forfeiture of Shares
- Concept of Debentures
- Terms of Issue of Debentures> Issue of Debentures at Par
- Issue of Debentures for Consideration Other than Cash
- Interest on Debentures
Company Accounts - Issue of Shares
- Joint Stock Company
- Concept of Shares
- Kinds of Shares> Equity Shares
- Kinds of Shares> Preference Shares
- Shareholder's Fund> Share Capital of a Company
- Treatment of Share Capital in Balance Sheet
- Methods of Issue of Share Capital
- Terms of Issue of Shares> Issue of Shares at Par
- Terms of Issue of Shares> Issue of Shares at Premium
- Terms of Issue of Shares> Issue Shares at Discount
- Over Subscription of Shares
- Pro-rata Allotment
- Under Subscription of Shares
- Calls-In-Arrears
- Calls-In-Advance
- Issue of Shares for Consideration other than Cash
- Forfeiture of Shares
- When Shares Were Originally Issued at a Premium
- When Shares Were Originally Issued at Discount
- Reissue of Forfeited Shares
Analysis of Financial Statements
- Comparative Financial Statement
- Common-Size Statement
- Concept of Cash Flow Statement
- Quick Ratio/Acid Test Ratio/Liquid Ratio
- Classification of Ratios> Income Statement Ratio
- Classification of Ratios> Combined/Mixed Ratio
- ROCE
Analysis of Financial Statements
- Concept of Financial Statements
- Concept of Financial Statement Analysis
- Formats of Financial Statement Analysis
- Tools of Analysis of Financial Statements
- Comparative Financial Statement
- Comparative Balance Sheet
- Comparative Income Statement
- Common-Size Statement
- Common Size Balance Sheet
- Common-Size Income Statement
- Concept of Cash Flow Statement
- Preparation of Cash Flow Statement
- Concept of Ratio Analysis
- Current Ratios/Working Capital Ratios
- Quick Ratio/Acid Test Ratio/Liquid Ratio
- Gross Profit Ratio
- Net Profit Ratio
- Operating Profit Ratio
- Operating Ratio
- Return on Investment
- Return on Capital Employed
Computer In Accounting
- Introduction
- Modes of Dissolution of Firm
Maharashtra State Board: Class 12
Definition: Dissolution of Partnership Firm
- Indian Partnership Act 1932, Sec. 39, provides that, "The dissolution of the partnership between all the partners of a firm is called the dissolution of a firm."
- "The act of process of ending an official organization or legal agreement."
- "The dissolution of partnership firm indicates the discontinuance function as a firm."
CBSE: Class 12
Maharashtra State Board: Class 12
CISCE: Class 12
Maharashtra State Board: Class 12
CISCE: Class 12
Key Points: Dissolution of Partnership Firm
- Dissolution of a partnership firm means a change in the agreement; the business may continue. Dissolution of a firm means complete closure of business (Sec. 39).
- After the firm's dissolution, assets are sold, liabilities are paid, and the remaining balance is shared among partners.
- Modes of dissolution: Without Court Order and By Court Order.
- Without Court: Occurs by mutual agreement, partner insolvency, unlawful business, expiry of term, completion of venture, or notice if the partnership is at will.
- By Court: Happens if a partner is of unsound mind, permanently disabled, guilty of misconduct, breaches the agreement, the firm runs at a loss, or if the court finds it just and fair.
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Related QuestionsVIEW ALL [127]
Read the following hypothetical situation and answer question on the basis of the same.
|
Nitya, Shreya and Ishita are partners in a firm. They share profit in the ratio of 5 : 3 : 2. Their fixed capital are ₹1,80,000; ₹1,60,000 and ₹2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹7,500 at the end of every quarter. |
The partnership deed provide that interest on capital will be allowed @10% p.a. The amount of interest on Ishita's capital will be:
Gautam, Viral and Ashwin were Partners sharing profits and losses equally. Their Balance sheet as on 31st December, 2011 was as follows:
Balance Sheet as on 31st December, 2011
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Capital Accounts: | Building | 73,900 | |
| Gautam | 75000 | Furniture | 44,100 |
| Virat | 45000 | Stock | 25,400 |
| Reserve Fund | 27,000 |
Debtors |
33,600 |
| Creditors | 48,500 | Cash | 15,000 |
| Bank Loan | 11,500 | Ashwin’s Capital | 15,000 |
| 207000 | 207000 |
The firm was dissolved due to insolvency of Ashwin and the following was the result.
(i) The realisation of Assets were as follows:
a) The stock was completely damaged and could realise worth Rs 16,500 only.
b) Building was sold for Rs 49,800.
c) Furniture was realised by the firm at Rs 23,100 less than the book value.
d) A Customer who owes Rs 14,400 became insolvent and nothing could be recovered from his private estate.
(ii) Creditors were paid for Rs 36,900 in full settlement and Bank Loan was discharged fully.
(iii) The expenses of realisation Rs 4,100
(iv) Ashwin became insolvent and the firm could recover only Rs 4,000 from his private estate.
Prepare Realisation A/c, Partner’s Capital A/c and cash A/c to close the books of the firm.
| Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3 : 2. Their fixed capitals are ₹ 1,80,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹ 7,500 at the end of every quarter. |
The average number of months for which interest on drawings will be calculated, will be:
