What is adjustment of capital? Sometimes the capitals of the partners are adjusting at the time of admission of a new partner. Adjustment of the capital of partners in a partnership firm is another major adjustment that requires proper accounting treatment. Partner’s capitals may be adjusted in the following two ways: How to adjust of …
What is Interest on capital? The interest on capital is allowed(given) by the firm to the partners for contributing the capital introduced by the partners in the firm. So, it is- “INTEREST” On “CAPITAL” What are the features of Interest on capital? Nature of Interest on capital– It is an appropriation of profit. Hence it …
What is the Partnership Deed? A written document that consists of the terms of agreement or rules relating to the partnership, is called Partnership deed. It is also called “Articles of Partnership”. What are the Features of Partnership Deed? Is it mandatory to make a partnership agreement? – It is not mandatory to have a …
