Accounts - 3. page

Shares: The capital of the company is divided into units of small denomination. These units are called shares. Sec. 2(46) of the Companies Act explains the meaning of share as […]

Types of Shares : According to the Companies (Amendment) Act, 2000, the share capital of a company limited by share, shall be of two kinds only namely: I) Preference Shares […]

Characteristics Of Company Accounts : A company has the following essential characteristics: 1) Voluntary Association It is a voluntary association of persons. No law can compel persons to form a company. It […]

Settlement of claim of the retiring partner : The retiring partner is entitled for the amount due to him from the firm. The amount due to the retiring partner is […]

Preparation of Revaluation Account, Capital Accounts, Bank Account and the Balance Sheet of the reconstituted partnership firm : Illustration :  Lalitha, Jothi and Kanaga were partners of a firm sharing profit and […]

Calculation of New Profit sharing ratio and Gaining ratio : 1. Nothing is mentioned about the new ratio If nothing is mentioned about the new ratio, old ratio of the […]

Revaluation of assets and Liabilities At the time of retirement of a partner, it is necessary to revalue the assets and liabilities of the firm. It is necessary that the […]

Transfer of Undistributed Profit or Loss :   At the time of retirement of a partner, undistributed profit or loss of the old firm should be transferred to all partners’ […]

Transfer of Accumulated Reserve: Any amount kept aside as Reserve, General reserve, Reserve fund, contingency reserve etc., at the time of retirement of a partner, should be transferred to the […]

Treatment of Goodwill At the time of retirement of a partner, adjustment for goodwill of the firm, if any, has to be made as in admission. In retirement too, we […]