Case Study Accountancy Class 12
Partnership
Case Study
Explanation: Given in the Case Study "Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively."
When Fixed Capital is Given Remuneration will be transferred to Partners Current Account.
Question 2:
Upon the admission of Sundaram the sacrifice for providing his share of profits would be done:
(a) by Amit only.
(b) by Mahesh only.
(c) by Amit and Mahesh equally.
(d) by Amit and Mahesh in the ratio of 3:2.
Answer: (D) by Amit and Mahesh in the ratio of 3:2.
Explanation: In the Case Study only new Partners Profit Share is given and Sacrifice made by the old partners is not given.
In this case, it is assumed that the new partner has acquired his share from old partners in their old profit sharing ratio.
Question 3:
Sundaram will be entitled to a remuneration of _____________at the end of the year.
Answer: ₹ 15000
Explanation: Given in the Case Study ".............Sundaram as a new partner and offered him 20% as a share of profits along with monthly remuneration of ₹ 2,500."
2500 X 12 = 15000
Question 4:
While taking up the accounting procedure for this reconstitution the accountant of the firm Mr. Suraj Marwaha faced a difficulty. Solve it be answering the following:
For the amount of loan that Sundaram has agreed to provide, he is entitled to interest thereon at the rate of ____________.
Answer: 6% p.a.
Explanation: In the Case Study the Rate of Interest for Loan is not mentioned.
and According to the Indian Partnership Act 1932, in the absence of information about Interest on Loan, it will be given @ 6% p.a.
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