Key Adjustments on Admission of a New Partner: Capital Adjustment: The capital contributions of existing partners may need to be adjusted based on the new profit-sharing ratio. Profit Sharing Ratio:…
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Partnership Deed: A partnership deed, also known as a partnership agreement, is a legal document that outlines the rights and responsibilities of each partner. It includes details such as capital…
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A computerised accounting system processes financial transactions as per Generally Accepted Accounting Principles (GAAP) to produce user-demanded reports. This system operates under two aspects: accounting principles and user-defined structures for…
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A Cash-Flow Statement provides a summary of cash inflows and outflows from operating, investing, and financing activities during a specific period. It helps in evaluating a company's liquidity, solvency, and…
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Accounting ratios are quantitative tools used to analyze financial statements. They help in assessing the financial health and operational efficiency of a business. The main types of ratios include: Liquidity…
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This chapter begins by explaining the meaning and nature of financial statements, which are the end products of the accounting process. Financial statements provide a true picture of a company's…
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This chapter explains the meaning and significance of financial analysis, emphasizing its role in evaluating the financial performance and position of a company. It introduces several techniques used in financial…
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The chapter delves into various aspects of share capital, starting from the issuance of shares to the accounting treatment of calls-in-arrears, calls-in-advance, and forfeiture of shares. Key topics covered include:…
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The chapter covers a range of topics, including: Definition and Types of Debentures: Explains what debentures are and their various types such as bearer debentures, registered debentures, secured debentures, unsecured…
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The reconstitution of a partnership firm occurs when there is any change in the existing agreement among the partners. This chapter focuses on two specific scenarios: the retirement and the…
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