31/10/2025
ACCOUNTING CHALLENGE OF THE DAY!
A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They admit C, their Manager, as a partner with effect from 1 st April, 2022, for 1 /4th share of profits.
C, while a Manager, was in receipt of a salary of ₹ 27,000 p.a. and a commission of 10% of net profit after charging such salary and commission.
In terms of the Partnership Deed, any excess amount, which C will be entitled to receive as a partner over the amount which would have been due to him if he continued to be the Manager, will be borne by A. Profit for the year ended 31 st March, 2023 amounted to ₹ 2,25,000.
Prepare Profit & Loss Appropriation Account for the year ended 31st March, 2023.
#12 #2026
29/10/2025
Accounting Challenge of the day!
Asin and Shreya are partners in a firm. They admit Ajay as a new partner with 1/5th share in the profits of the firm. Ajay brings ₹5,00,000 as his share of capital. The value of the total assets of the firm was ₹ 15,00,000 and outside liabilities were valued at ₹5,00,000 on that date.
Give the necessary Journal entry to record goodwill at the time of Ajay’s admission. Also show your workings.
26/10/2025
Accounting Challenge of the Day!
A and B are partners with capitals of ₹5,00,000 and
₹3,00,000 respectively. The profit for the year ended 31st March 2022 was ₹ 3,46,000 before allowing interest on partner’s loan.
Show the distribution of profit after taking the following into consideration:
(i) Interest on A’s Loan of ₹ 1,50,000 to the firm provided on 1st April, 2021.
(ii) Interest on capital to be allowed @ 5% p.a.
(iii) Interest on drawings @ 6% p.a. Drawings were A ₹60,000 and B ₹40,000.
(iv) B is to be allowed a Commission of 2% on sales. Sales for the year were ₹30,00,000.
(v) 10% of the divisible profits is to be set aside to General Reserve.
23/10/2025
ACCOUNTING CHALLENGE OF THE DAY!
Aan and Mohan are partners sharing profits and losses in the ratio of 3 : 2. The firm maintains fluctuating Capital Accounts and the balance in their Capital Accounts as on 31st March, 2023 was R 4,00,000 and ₹ 3,50,000 respectively. Drawings during the year were ₹ 75,000 each. As per Partnership Deed interest on Capital @ 10% p.a. on Opening Capital had been allowed to them.
Calculate Opening Capitals of partners given that net profit during the year 2022-23 was
₹2,25,000. Show your working.
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