WHAT IS WORKMEN COMPENSATION RESERVE Workmen Compensation Reserve is a reserve created out of firm’s profits to meet possible liability…
TREATMENT OF GOODWILL ON ADMISSION OF PARTNER
TREATMENT OF GOODWILL ON ADMISSION OF PARTNER Goodwill is an intangible asset which enables a firm to earn higher profit…
DIFFERENCE B/W GAINING & SACRIFICING RATIO
DIFFERENCE B/W GAINING & SACRIFICING RATIO Before understanding the difference between Gaining & Sacrificing Ratio, one must learn the meaning…
GAINING RATIO
MEANING The ratio in which the continuing partners acquire the outgoing partner’s share is called the Gaining Ratio. It is…
SACRIFICING RATIO
MEANING Sacrificing Ratio is the ratio in which old or existing partners forego, i.e., sacrifice their share of profit in…
MEMORANDUM REVALUATION ACCOUNT FORMAT
MEMORANDUM REVALUATION ACCOUNT Memorandum Revaluation Account is prepared in case when partners do not want to alter or revise the value…
REVALUATION ACCOUNT
REVALUATION ACCOUNT Revaluation account is a nominal account. It is prepared in case when partners want to alter or revise…
DRAWINGS
DRAWINGS Drawings means the amount withdrawn by partners for their personal use. It may be in the form of cash…
PARTNER’S CAPITAL ACCOUNTS
MEANING Capital Account is a personal account for each proprietor. In case of partnership firm there is a separate Capital…
PROFIT AND LOSS APPROPRIATION ACCOUNT
Profit and loss Appropriation account is an extension of Profit and Loss account. All the appropriations i.e. the distributions payable…