Posts

CHANGE IN PROFIT SHARING RATIO AMONG THE EXISTING PARTNERS (ACCOUNTANCY - CLASS : 12)

Image
  CHANGE IN PROFIT SHARING RATIO AMONG THE EXISTING PARTNERS   Partnership, as is commonly known, is an agreement between two or more persons for sharing the profits or losses of the business carried on by all or anyone of them acting for all. Any change in the partnership agreement brings to an end the existing agreement and a new agreement comes into force. It amounts to reconstitution of the firm.   Reconstitution is said to take place when there is a change in the profit-sharing ratio among the existing partners, admission of a new partner, retirement of a partner, death of a partner etc. Due to change in profit sharing ratio, one or more of the existing partners may acquire extra share in profits. In such a case, in order to maintain equity among the partners, it is necessary to make adjustments for goodwill, revaluation of assets and reassessment of liabilities, undistributed reserves, accumulated profits and losses etc. At the time of change in profit sha...
Post a Comment
Read more

ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS (ACCOUNTANCY , CLASS : XII)

Image
  ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS   Definition of Partnership: According to Section 4 of Partnership Act 1932, “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.   Features of Partnership   1.      No. of partners: There must be at least 2 persons to form a partnership and as per Rule 10 of the Companies (Miscellaneous) Rules, 2014, a partnership firm cannot have more than 50 members. All such persons must be competent to contract. According to Indian Contract Act, 1872, every person except the following is competent to contract: (a)   Minor, (b) Persons of unsound mind and (c) Persons disqualified by any law.   2.      Agreement: Partnership comes into existence by an agreement, either written or oral. The agreement forms the basis of mutual rights and duties of partners.   3. ...
Post a Comment
Read more

CONSUMER PROTECTION (BUSINESS STUDIES - CLASS : XII)

Image
 Class : XII (BUSINESS STUDIES)  CHAPTER 12: Consumer Protection   Introduction Under the modern concept of marketing, consumer is treated as the king of the market and all marketing activities aim at satisfying consumer’s needs and wants. But in reality a consumer is not treated like a king, instead he is being cheated and exploited. Due to growing competition and in an attempt to maximise profits by selling more, some businessmen are involved in unfair trade practices like adulteration, misleading advertisement, black-marketing, under-weight, over-charging etc. Thus, it becomes essential to protect the consumer against all these malpractices. In this regard, Government has made many efforts from time to time. The Consumer Protection Act, 1986 is available for the protection of the consumer.   Meaning of Consumer A consumer is an individual or a group of people who use or consume goods or avail services. However, under the Consumer Protection Act, a cons...
Post a Comment
Read more