Tiêu đề Copy of Book 1 Notes with adjustments.pdf ✅

F11d1m••·· DI Parlllershll nnn Partnership Deed/Articles of Partnership: ❖ Written Agreement ❖ Terms & conditions (Agreed by all partners) ❖ To avoid misunderstanding & disputes ❖ Not compulsory under law (Voluntary in nature) Rules applicable in the absence of Partnership Deed/ If the Partnership agreement is done but it is silent about the foHowinc items: .:. Profit Sharing Ratio .. Interest on Capital Equally( Use if there is Two Partners1/Three Partners-1⁄4) Not allowed .. Interest on Drawing Not charged ... Salary/Commission Not Entitled ... Interest on Partners loan Allowed@6% p.a. Dr. PROFIT AND LOSS ACCOUNT Cr. f ort he eare nded ................. Particulars Amount Particulars Amount To Loss for the year/loss before By Profit for the year /Profit before interest* Xxx interest* Xxx To Interest on Partners loan A XXX B XXX Xxx To Rent: Partners Name Xxx To Manager's Commission Xxx To Net Profit transferred to Profit and Loss Appropriation A/c xxx ....... XXX -........._ Xxx Dr. *If item relating to "Interest PROFIT on Loan" AND LOSS is present. APPROPRIATION ~ ACCOUNT Cr. for the year ended ............... Particulars Amount Particulars --............. Amount To Salary/commission/Bonus: By Profit and loss A/c (Profit transferred ~xxx A XXX from Profit & loss A/c) B XXX XXX By Interest on drawing: To Interest on capital: A XXX A XXX B XXX XXX B XXX XXX By Loss transferred to: To Reserve/General Reserve A/c XXX A's Capital A/c/Current A/c** XXX To Provision for Donation A/c XXX B's Capital Ale/Current A/c** XXX XXX To Profit transferred to: A's Capital A/c/Current A/c** XXX B's Capital A/c/Current A/c** ~ XXX Xxx Xxx **If Partners capital is Fixed.

Dr. PROFIT AND LOSS APPROPRIATION ACCOUNT Cr. for the year ended ................ . Particulars Amount Particulars Amount To Profit and loss A/c (Loss transferred By Interest on drawing: XXX from Profit & loss A/c) A XXX B XXX By Loss transferred to: A's Capital A/c/Current A/c** XXX XXX B's Capital A/c/Current A/c•• XXX Xxx Xxx **If Partners capital is Fixed. When Appropriations are more than Profits: In case where appropriations such as interest on capital, salary of partner etc, are more than available profits, than the profits will distributed in the ratio of appropriations(IOC: Salary: Commission etc). Calculation of Interest on Capital: Interest on capital is always provided on the opening capitals of the partners. Interest is allowed only when there is profit in the firm. Calculation of Opening Capital: Particulars X Closing capital Xxx (+)Drawings Xxx (+)Loss during the year Xxx (-)Profits already Credited Xxx (-) additional Capital (if any) Xxx Opening capital Xxx Interest on Capital = Opening Capital X Rate/ 100 @commercewaalididi Calculation of Interest on Drawing: y Xxx Xxx Xxx Xxx Xxx Xxx (a) Simple Method: Used when there is single amount and date is given** Rate months Interest on drawing= Amount of DrawingX 100 X 12 z Xxx Xxx Xxx Xxx Xxx Xxx •• If the date of drawing is not given in the question or if the drawing is done during the year than use 6 months for calculating interest on drawing. (b) Product method: This method is used when drawing is done at unequal intervals and the amount of drawing is different. Following chart is used S.no. (1) Date of Drawing Months upto 31st march Amount of Drawing from the date of drawing (2) (3) (4) TOTAL OF PRODUCT Rate 1 Interest on drawing= Total of Product X 100 X 12 Product (5) = (3) X (4) XXX (c) When the rate of interest on drawing is given without the suffix per annum, interest will be charged without considering time or date of drawing.