Fundamentals of Partnership

 

Nature of partnership

 

Partnership deed

 

Capital accounts – Fixed vs. Fluctuating

 

Interest on capital, drawings, salaries

 

Profit sharing ratio adjustments

 

Change in Profit Sharing Ratio

Sacrificing & gaining ratio

 

Revaluation of assets and liabilities

 

Treatment of reserves

 

Admission of a Partner

 

New profit-sharing ratio

 

Treatment of goodwill

 

Adjustment of capital

 

Revaluation and balance sheet preparation

Retirement or Death of a Partner

 

Gaining ratio, goodwill treatment

 

Settlement of retiring/deceased partner

 

Adjustment of capital

 

Dissolution of Partnership Firm

 

Settlement of accounts

 

Realisation account

 

Treatment of unrecorded assets/liabilities

Issue of Shares

 

Types of shares

 

Issue at par, premium, or discount

 

Over-subscription and pro-rata allotment

 

Forfeiture and reissue of shares

 

Issue of Debentures

 

Types and issue at par/premium/discount

 

Redemption of debentures

 

Financial Statements of a Company

 

Format of Balance Sheet & Statement of Profit & Loss (As per Schedule III of Companies Act)

Notes to Accounts

 

Cash Flow Statement

 

Operating, Investing, and Financing activities

 

Direct and Indirect method