Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Retirement of a partnerWhen one of the partners retires ante the others will continue trading, the n it is important that he gets a share of the goodwill that he helped create in addition to the total amounts due to him from the partnership.To ensure that this objective is achieved, the following entries are normally passed in the partners capital accounts.
DR. Goodwill CR. Partners capital accounts(With the value of goodwill to all the partners capital accounts according to old PSR)To write off the goodwill:DR. Partners capital accounts CR. Goodwill(With the total value of goodwill and in only capital accounts of remaining partners using new PSR)To get the total due to a retiring partner, we find out the balance in the current accounts and any loans advanced in the partnership and the balances in these accounts are transferred to the capital accounts.Incase the partner has retired partway during the financial year, then we update the current account first with the partners share of the profits as per profit and loss appropriation account up to the date of retirement.The partnership may not have sufficient cash to pay the retiring partner and thus may agree with the retiring partner that his total dues from the partnership be converted into a loan paying a certain interest per annum. However, if the partnership is able to pay the amount due, the retiring partner then the following entry is passed:DR. Retiring partners capital accounts Cr. Cash book
How should I handle Booking an invoice in one month for Raw material that has not been received until the following month?
On December 31, 2014, Santana Company has $7,194,600 of short-term debt in the form of notes payable to Golden State Bank due in 2015. On January 28, 2015, Santana enters into a re
If fixed costs are $259,238, the unit selling price is $112, and the unit variable costs are $63, what is the break-even sales (units)?
Q. If a stockholder receives a dividend that reduces retained earnings by the fair market value of the stock, the stockholder has received a a. large stock dividend. b. cash divide
what are methods of calculating depreciation?
Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan. Items A B
Looking for someone who can help me with my investment project
Stock A has an expected return of 9 percent, a standard deviation of 20 percent, and a market beta of 0.5. Stock B has an expected rate of return of 10 percent, a standard deviatio
Litigation Support/Dispute Resolution - A service that CPAs every so often provide to attorneys -for example expert testimony about the value of a business or other asset, for
Analyze one completed M&A transaction from recent times There are two main requirements (1) an analysis of the strategic and economic rationale behind the merger, and (2) an analy
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd