Meaning of Goodwill in Partnership Accounts
This article explains the meaning of goodwill with the help of an example.
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Accounts
Investment Fluctuation Reserve in Partnership Accounts
Meaning of Investment Fluctuation Reserve For quick understanding of journal entries. Click here For detailed understanding of the topic, read on below Meaning of Investment We all earn income and make expenses. We all save some part of our income for future for known or unknown expenses. Suppose Mr A earns Rs 10 Lakhs every
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Workmen Compensation Reserve in Partnership Accounts
Meaning of Workmen Compensation Reserve Meaning of Workmen Workmen means any person (male or female) working as an employee of the firm. Traditionally the term workmen is used to refer to the people who do labour work. But here it can be an employee working at any level in the organization or doing any kind
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Past Adjustments in Partnership Accounts
What are Past Adjustments Past adjustments refer to corrections made to the accounts of a partnership for past transactions that were not properly recorded or recognized at that time. These adjustments are necessary to reflect the true financial position and performance of the partnership. In previous classes we have studied the chapter rectification of errors.
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Guarantee of Profits in Partnership Accounts
What is the meaning of Guarantee of Profits When one or more partners give guarantee of minimum profits to one or more partners then this is guarantee of profits in partnership accounts. Suppose A, B and C are partners. C is given a guarantee that in any year his share of profits will never be
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Profit and Loss Appropriation A/c
What is Profit and Loss Appropriation A/c Profit and Loss Appropriation Account is a nominal ledger account that records the allocation of net profit or loss among partners in a partnership firm. In a partnership, the profits or losses are distributed among partners according to the agreed terms as per the partnership agreement. Items in
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Commission to Partners
Meaning of Commission to Partners There are several ways in which the profits are appropriated among the partners. Like Interest on capital, salary and commission. As a part of appropriation of profits partners may be paid commission out of profits. It is shown in the profit and Loss Appropriation A/c on the debit side. As
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Interest on Loan by firm to Partner
Meaning of Loan by firm to partner Loan Concept Animation Loan Concepts Firm Partner 💰 Loan 💸 Interest 💰 Loan 💸 Interest Firm to Partner Loan Firm gives loan to partner. Partner pays Interest to firm. Explain Partner to Firm Loan Partner gives loan to firm. Firm pays Interest to partner. Explain Meaning – If
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Interest on Loan by partner to Firm
Meaning of Loan by partner to firm Loan Concept Animation Loan Concepts Firm Partner 💰 Loan 💸 Interest 💰 Loan 💸 Interest Firm to Partner Loan Firm gives loan to partner. Partner pays Interest to firm. Explain Partner to Firm Loan Partner gives loan to firm. Firm pays Interest to partner. Explain Meaning – Each
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Charge Against Profits vs Appropriation of Profits
Meaning of Charge Against profits All the items which go to firms profit and loss A/c are charge against profits. These are called charge as these are to be paid whether the firm earns profits or incur losses. These items are deducted from the Revenue from operations (Sales) of firm to find the Net profit
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