Past Adjustments – While preparing the books of accounts of any partnership firm, a lot of attention is given to the fact that there are no errors so that the final results display the financial information accurately. This provides a true and fair financial position of the firm which helps in better decision making for … Read more
Distribution of Profit and Losses in Partnership Examples: When there is a change in the profit sharing ratio among the partners then all the accumulated profits and reserves are distributed between them in the old ratio. This is done, because at present the partners share their profits or losses in old profit sharing ratio whereas … Read more
Partners Capital Account is an equity account in the accounting records of a partnership. A separate capital account is to be maintained for each partner and the capital contributed by each of them is credited to this account. The capital account of partners can be maintained in any of the following two ways: Fixed Capital Account Fluctuating Capital … Read more
Partnership Deed is the written agreement between the partners, which is duly signed and registered under the Act and contains all the terms and conditions which govern the operation of the activities of the partnership firm. Since partnership results out of an agreement, it is essential that there must be some terms and conditions agreed … Read more
Define Partnership in Accounting Partnership firm involves two or more people, who join together to earn profits. Accounting for partnership firms involves preparing and maintaining the full set of accounts for the firm where all income, expenses, partners contribution, drawings etc. are recorded. As per the Section 4 of The Partnership Act, 1932, “Partnership is … Read more
The Syllabus of Accountancy Class 12 CBSE Notes comprises of the following chapters. We have prepared various notes along with detailed questions and their solution for Accounts class 12, who may be studying in CBSE, ISC or as per the NCERT syllabus. Find the Question Paper for Accounts Examinations CBSE Class 12. Syllabus of Accountancy Class … Read more
Peculiar Items of Non Profit Organisation (NPO) Although a non profit organisation class 12 prepares its financial statements on the same lines as that of a company, however, there are a some peculiar items which vary in terms of their nature. They require special treatment in the financial statements. Some of the peculiar items are … Read more
A company prepares a Balance Sheet at the end of the accounting year to ascertain the financial position of the business. Even though a not-for-profit organisation does not engage in any sort of manufacturing or trading business and carries on its activities for the sole motive of welfare of the society, it is equally important … Read more
Just like a business concern prepares a Profit and Loss account at year-end to summarize the incomes and expenses, a not-for-profit organization prepares an Income and Expenditure account. The main objective of Income and Expenditure account is to determine the surplus or deficit for a particular accounting year. Features of Income and Expenditure Account – … Read more
The Receipt and Payment account notes is a summarised form of presenting the receipts and payments made by a non-trading concern or a non-profit organisation. It is simply a synopsis of the cash and bank transactions. It is prepared on the basis of the cash receipts earned and cash payments incurred as are recorded in … Read more