In case of a Partnership Firm, a ______ is prepared to show the distribution of profits among different partners.
Profit & Loss Appropriation A/c
The correct answer is option 4. The Profit & Loss Appropriation Account is used in a partnership firm to show how the net profit or loss is distributed among the partners according to their agreed profit-sharing ratios.
X and Y are partners in a partnership firm without any agreement. X has withdrawn Rs. 55,000 out of his capital as drawings. What is the interest on drawings that may be charged from X by the firm?
The _______ Account shows the distribution of profit after the same has been earned and computed by a partnership firm.
X and Y are partners sharing profits and losses in the ratio of 3 ∶ 2. They admit Z as a new partner with 1/5 share in the profits. Calculate the new profit sharing ratio of the partners.
Ram and Shyam are partners in a firm with capital of ₹ 4,80,000 and ₹ 3,10,000, respectively. They admitted Ganesh as a partner with $\frac{1}{4}$th share of profit. Ganesh brings ₹ 3,00,000 as his capital. Ganesh's share of goodwill will be