61. What is noting of bill of exchange?
When the bill is dishonoured notary public records the fact and reasons of dishonoured bill and issues noting certificate, it is called noting of bill.
62. What is draft?
A bill of exchange before acceptance is called a draft.
63. What is the relation between drawer and drawee?
The relation between the drawer and drawee is that of creditor and debtor.
64. What are days of grace?
Three additional days allowed for payment of bill are known as days of grace.
65. What do you mean by renewal of a bill?
Renewal of bill means cancellation of old bill and drawing of a new bill.
EXTRA NON - TEXTUAL OBJECTIVES
EXTRA NON - TEXTUAL OBJECTIVES
State the provision of 'Indian partnership Act 1932' relating to sharing of profits in absence of any provision in the partnership deed.
Which account is prepared by the ‘Not for Profit’ concerns for finding out surplus or deficit of the financial year?
A businessman’s daughter comes to father’s garments shop and takes the clothes ofher choice for her personal use. Why this transaction is to be accounted forwhen the business belongs to the proprietor? In what manner, the transaction isto be recorded? What impact it would have on the financial statements, if the transaction is not recorded?
List the items that may appear on the debit side and credit side of a partner's fluctuating capital account.
Ramesh, a partner in the firm has advanced a loan of a Rs. 1,00,000 to the firm and has demanded on interest @ 9% per annum. The partnership deed is silent on the matter. How will you deal with it ?
At the time of change in profit sharing ratio among the existing partners, where will you record an unrecorded liability ?
Anand, Bhutan and Chadha are partners sharing profits in ratio of 3:2:1. On 1st April 2007, they decided to share profits equally. Name the partners who is gaining on consequence of such change.
In a partnership firm assets are Rs.5,00,000 and liabilities are Rs. 2,00,000. The normal profit rate is 15%. State the amount of normal profits.
State the amount of goodwill, if goodwill is to be valued on the basis of 2 years’ purchase of last year’s profit. Profit of the last year was Rs.20,000.
Where will you record ‘increase in machinery’ in case of change in profit sharing ratio among the existing partners?
Pass the journal entry for increase in the value of assets or decrease in the value of liabilities in the Revaluation A/c?
P,Q and R are partners in a firm sharing profits in the ratio of 2:2:1 on 1.4.2007 the partners decided to share future profits in the ratio of 3:2:1 on that day balance sheet of the firm shows General Reserve of Rs 50,000. Pass entry for distribution of reserve.
“The gaining partner’s should compensate to sacrificing partner’s with the amount of gain.” Journalize this statement.
A and B are partners, sharing profits in the ratio of 3:2. C admits for 1/5 share . State the sacrificing ratio.
How should the goodwill of the firm be distributed when the sacrificing ratio of any of the existing partner is negative (i.e. he is gaining)
In case of admission of a partner, in which ratio profits or loss on revaluation of assets and reassessment of liabilities shall be divided?
The goodwill of a partnership is valued at Rs.20,000. State the amount required by a new partner, if he is coming for 1/5 share in profits.