Difference between Purchased Goodwill and Self Generated Goodwill
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Accounts
Meaning of Goodwill in Partnership Accounts
This article explains the meaning of goodwill with the help of an example.
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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
Profit and Loss Appropriation Account – Complete Guide Profit and Loss Appropriation Account Complete Guide to Appropriation of Profits in Partnership Firms Partnership Accounting Process Flow Trading Account Determines Gross Profit/Loss → Profit & Loss Account Determines Net Profit/Loss → Appropriation Account Distributes Profit/Loss to Partners What is Profit and Loss Appropriation Account? The Profit
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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
Loan by Firm to Partner – Complete Guide Loan by Firm to Partner A Complete Guide to Accounting Treatment & Journal Entries Loan by Firm to Partner – Overview Loan by Firm to Partner Nature Asset for the firm Accounting Debit balance on asset side Interest Income for the firm, expense for partner Journal Entries
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Interest on Loan by partner to Firm
Loan by Partner to Firm – Complete Guide Loan by Partner to Firm A Complete Guide to Accounting Treatment & Journal Entries Loan by Partner to Firm – Overview Loan by Partner to Firm Nature External liability for the firm Accounting Credit balance on liability side Interest Expense for the firm, income for partner Journal
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