Journal Entries Under Fluctuating and Fixed Capital Methods

Interest on Capital According to the Partnership Act, no interest is provided on capital, but if it is agreed upon among the partners, it will be provided at an agreed rate. Interest on capital is not an expense of the business. That is to say, it is not deducted from the total income to arrive at the net income. It is a part of the profit-sharing scheme. The journal entry for interest on capital…

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Distribution of Profit and Loss MCQs

This set of multiple choice questions (MCQs) focuses on the distribution of profit and loss. These MCQs can help you to prepare for your exams, interviews, and different tests. To begin, simply click the “Start quiz” button below! Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information Distribution of profit & loss mcqs You have already completed the…

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Distribution of Profit & Loss: Fill In the Blanks

1. A partnership is an between two or more persons who combine their assets to carry on a business. See answer 2. The difference between a partnership and a sole proprietorship is that of . See answer 3. A partnership is formed by a written or agreement. See answer 4. Liability of partners in a partnership business is . See answer 5. In the absence of an agreement, the income sharing ratio between…

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