What is meant by unlimited liability of a partner ?

State the provisions of Indian Partnership Act, 1932 regarding interest on parther's capital and interest on partner's loan when there is no partnership deed.

Ram and Mohan are partners in a firm without any partnership deed.  Their capitals are Ram Rs. 8,00,000 and Mohan  Rs. 6,00,000.  Ram is an active partner and looks after the business.  Ram wants that profit should be shared in proportion of capitals.  State with reason whether his claim is valid or not.

Why is "Goodwill" considered an 'intangible Asset' but not 'Fictitious Asset'?

What is normal profit ?

How does the factor 'location' after the goodwill of a firm ?

How does the factor " efficiency of management" affect the goodwill of the firm ?

What are super profits ?

What is meant by ' average profit ' ?

K and P were partners in a firm sharing profits in 4 : 3 ratio.  Their capitals on 1.4.2009 were : K Rs. 80,000 and P Rs. 60,000.  The partnership deed provided as follows :
(i) Interest on capital and drawing will be allowed and charged @ 12% p.a. and 10% p.a. respectively.
(ii) K and P will be entitled to get monthly salary of Rs. 2,00 and Rs 3,000 respectively.
The profits for the year ended 31.3.2010 were Rs.  1,00,300.  The drawings of K and P were Rs. 40,000 and Rs. 50,000 respectively. Interest on K's drawings was Rs. 2,000 and on P's drawings Rs. 2,500.
Prepare Profit and Loss Appropriation Account of K and P for the year ended 31.3.2010 assuming that the capitals of the partners were fluctuating.

Sharma and Verma were partners in a firm sharing profits in the ratio of 4 : 1.  Their capitals on 01- 04 -2006 were Sharma Rs. 5,00,000 and Verma Rs. 1,00,000.  The partnership deed provided that Sharma will get a commission of 10% on the profit after allowing a salary Rs. 5,000 per month to Verma.  The profit of the firm for the year ended 31st March, 2007 was Rs. 2,80,000.
Prepare Profit and Loss Appropriation Account of Sharma and Verma for the year ended 31.03.2007.

D, E and F were partners in a firm sharing profits in the ratio of 5 : 7 : 8.  Their fixed capitals were D Rs. 5,00,000, E Rs. 7,00,000. and F Rs. 8,00,000.  Their partnership deed provided for the following :
(i) Interest on capital @ 10% p.a
(ii) Salary of Rs, 10,000 per month of F.
(iii) Interest on drawings @ 12% p.a.
D withdrew Rs. 40,000 on 31st January, 2009; E withdrew Rs.  50,000 on 31st March, 2009 and F withdrew Rs. 30,000 on 31st December, 2009.
During the year ended on 31st December, 2009 the firm earned a profit of Rs. 3,50,000.
Prepare the Profit and Loss Appropriation Account for the year ended 31st December, 2009.

A, B and C were partners in a firm having capitals of Rs. 60,000; Rs. 60,000 and Rs. 80,000 respectively.  Their Current Account balances were A : Rs, 10,000; B : Rs 5,000 and C : Rs, 2,000 (Dr.). According to the partnership deed the partners were entitled to interest on capital @ 50% p.a. C being the working partner was also entitled to a salary of Rs. 6,000 p.a.
The profits were to be divided as follows:
(a) The first Rs. 20,000 in proportion to their capitals.
(b) Next Rs. 30,000 in the ratio of 5 : 3 : 2.
(c) Remaining profits to be shared equally.
The firm made a profit of Rs. 1,56,000 before charging any of the above items.  Prepare the Profit & Loss Appropriation Account and pass necessary journal entry for appropriation of profit.

P, Q, R and S are partners in a firm sharing profits as 4 : 2 : 1 respectively.They earned a profit of Rs.1,80,000 for the year ended 31st March, 2015.As per partnership deed, They are to charge a commission @ 20% of the profit after charging such commission which they will share as 2 : 3 : 2 : 3.You are required to show appropriation of profits among the partners.

X and Y are partners sharing profits and losses in the ratio of 2:3 with capitals of Rs.2,00,000 and Rs.3,00,000 respectively. On 1st October 2014 X and Y granted loans of Rs.80,000 and Rs.40,000 respectively to the firm. Show the distribution of profits/losses for the year ended 31st March 2015 in each of the following alternatives.
Case.1 if the profits before any interest for the year amounted to Rs.21,000.
Case 2 if the profits before any interest for the year amounted to Rs.3,000
Case 3 if the profits before any interest for the year amounted to Rs.5,000

L, M and N are partners.Their fixed capitals as at 31st March, 2014 were: L Rs.50,000, M Rs.1,00,000 and N Rs.1,50,000.Profit for the year 2014-2015 amounting to Rs.60,000 were distributed.Interest on capital was credited @10% per annum instead of 12% per annum.pass the necessary adjusting entry.

X, Y and Z are partners.Their fixed capitals as at 31st March, 2015 were: X Rs.50,000, Y Rs.1,00,000 and Z Rs.1,50,000.Profit for the year 2014-2015 amounting to Rs.60,000 were distributed.Interest on capital was credited @10% per annum Though there was no such provision in the partnership deed.Pass the necessary adjusting entry.

A partnership firm earned the following net profits during the last three years.
2013 - Rs.34,000,  2014 - Rs.40,000,  2015 - Rs.46,000
The capital investment in the firm throughout the above mentioned period has been Rs.1,60,000. having regard to the risk involved, 15% is considered to be fair return on the capital.calculate value of goodwill on the basis of two year's purchases of average super profit earned during the above mentioned three years.

What is the status of partnership from an accounting viewpoint?

L and M are partners sharing profits equally, L withdrew regularly Rs 8,000 in the beginning of every month for six months ended 30th September 2017. Calculate interest on drawings @5% per annum

Raj and Sameer are partners sharing profits equally.Raj withdrew regularly Rs 8000 at the end of every month for six months ended 30th September 2017. Calculate interest on drawings @ 5% per annum.

Calculate interest on drawings of Mr.Ghai @ 10% per annum for the year ended 31st March 2018, in each of the following alternative cases
Case I If he Withdrew Rs.15,000 in the beginning of each quarter.
Case II If he Withdrew Rs.15,000 at the end of each quarter.
Case III If he Withdrew Rs.15,000 during the middle of each quarter.

A and C are partners with fixed capitals of the Rs.2,00,000, Rs. 1,50,000 and Rs.1,00,000 respectively. THe balance of current accounts on 1st January, 2004 were A Rs.10,000 (Cr.) and B Rs.4,000 (Cr.) and C Rs.3,000 (Dr.). A gave a loan to the firm of Rs.25,000 on 1st July, 2004. THe Partnership deed provided for the following:-
(i) Interest on Capital at 6%.
(ii) Interest on drawings at 9%. Each partner drew Rs.12,000 on 1st July, 2004.
(iii) Rs.25,000 is to be transferred in a Reserve Account.
(iv) Profit sharing ratio is 5 : 3 : 2 upto Rs.80,000 and above Rs.80,000 equally. Net Profit of the firm before above adjustment was Rs.1,98,360.
From the above information prepare Profit and Loss Appropriation Account, Capital and Current Accounts of the partners.