Accountancy, asked by lekhanashine74830, 8 hours ago

2. Case Study: Read the following hypothetical text and answer the given questions: Mahesh and Ramesh were partners in Hotel business sharing profit and losses in ratio 3:2. They sold food items across the counter and did home delivery too. Their initial fixed capital contribution was 1,00,000 and 275,000 respectively. At the end of first year their profit was 1,10,000 before allowing the remuneration of 32,000 per quarter to Mahesh and 23,000 per half year to Ramesh. Such a huge profit in the very first year and along with increase in the demand for home delivery, encouraged them to expand their business. They needed additional capital to meet the demand. Delivery van, few Cities and an additional person was required to support. Six months later from the beginning of accounting year they decided to admit partnership and offered her t share in profits along with mont! 2/2 remuneration of 1,500. She was asked to introduce 1,20,000 fo. and €60,000 for goodwill. Besides this Usha was required to provide *80,000 as loan for two years. Usha readily accepted the offer. The terms of the offer were duly accepted and she was admitted as a partner. Question 1: Remuneration to Mahesh and Ramesh will be transferred to Account. a. Capital b. Loan c. Current d. None of the above. Question 2: at the end of the year. Usha will be entitled to a remuneration of Question 3: For the amount of loan that Usha has provided, is entitled to interest thereon at the rate of Question 4: Upon the admission of Usha the sacrifice for providing her share of profits would be done: a. By Mahesh only b. By Ramesh only c. By Mahesh and Ramesh equally d. By Mahesh and Ramesh in the ratio 3:2. Question 5: There was no written agreement between the partners. Can Usha claim for Interest on Capital provided by her to the firm. 3 Arun Varun and Tharun were partners in a firm Due to some

Answers

Answered by vs5168531

Answer:

partnership firm. 2. Case Study Read the following hypothetical text and answer the given questions: Mahesh and Ramesh were partners in Hotel business sharing profit and losses in ratio 3:2. They sold food items across the counter and did home delivery too. Their initial fixed capital contribution was 21,00,000 and 275,000 respectively. At the end of first year their profit was 21,10,000 before allowing the remuneration of $2,000 per quarter to Mahesh and 3,000 per half year to Ramesh. Such a huge profit in the very first year and along with incrcase in the demand for home delivery, encouraged them to expand their business. They needed additional capital to meet the demand. Delivery van, few Scotties and an additional person was required to support. Six months later from the beginning of accounting year they decided to admit Usha into partnership and offered her th share in profits along with monthly remuneration of 1,500. She was asked to introduce 1,20,000 for capital and 860,000 for goodwill. Besides this Usha was required to provide 380,000 as loan for two years. Usha readily accepted the offer. The terms of the offer were duly accepted and she was admitted as a partner, Question 1: Remuneration to Mahesh and Ramesh will be transferred to

SEE ANSWERS

Answer

2.3/5

shahilshahi888

Helping Hand

1 answer

5 people helped

To keep reading this answer, download the free app

Join millions of students having fun with homework

4.6

VIEW ANSWER IN-APP

izvoru47 and 3 more users found this answer helpful

THANKS

2.3

(3 votes)

Find Accountancy textbook solutions?

SEE ALL

Class 12

Class 11

Class 10

Accountancy

392 solutions

Double Entry Book Keeping 11 - T S Grewal

440 solutions

Elements Of Accounts Part 1 Class - 11

301 solutions

Bookkeeping And Accountancy

607 solutions

NCERT Class 11 Accountancy - Financial Ac…

269 solutions

Double Entry Book Keeping 12 - Vol 1

773 solutions

Accountancy (Volume 1)

257 solutions

Elements Of Accounts Part 1 Class - 12

332 solutions

Bookkeeping And Accountancy

655 solutions

CBSE Board Exam - Accountancy

419 solutions

SEE ALL

Answer

3.0/5

adharrshv478

Ace

205 answers

2.3K people helped

UNLOCK

e3radg8 and 3 more users found this answer helpful

THANKS

3.0

(2 votes)

Still have questions?

FIND MORE ANSWERS

ASK YOUR QUESTION

New questions in Accountancy

Q. 77. A, B and C entered into a partnership on 1st Apr80000,50000 and 40000 respectively. Each partner ispital @ 8% p.a. B is entitled to a salary of …

Sterling enterprises is a partnership business with Ryan, Williams and Sania as partners engaged in production and sales of electrical items and equip …

Hindustan Traders consigned 20,000 kgs. of oil to Ganesh Traders of Bijapur. The invoice price of each kg was * 80 being cost + 25%. The consignor pai …

preparation of a comparative evaluation of two years ago trial balance of a manufacturing form of business

Started business with cash rs 200,000,bank rs 150,000, building rs 50,000 furniture rs 3,000 vehicle rs 55,000 ledger account

Answer it plz and plz give correct answer

From the following particulars, prepare a branch account in head office books, showing the profit or loss of the branch: ₹ Opening stock at the branch …

Authorised capital 2,00,000 of a company is divided into 2,000 shares of 100 each. 1200shares were issued to the public. The public has applied for 1, …

आजारी पडण्याची कारणे आणि उपाय यांची यादी ( list ) बनवा.

- चिराग लिमिटेड में 'अ' सामग्री की एक सप्ताह हेतु औसतन 1,000 इकाइयों की आवश्यकता है जो कि 30१ प्रति इकाई के मूल्य पर क्रय की जाती है। आदेश लागत प्रति …

Answered by sureeshravi

Answer:

Question 1: Remuneration to Mahesh and Ramesh will be transferred to c) Current Account of the partners.
Question 2: Usha will be entitled to a remuneration of Rs.9000
Question 3: For the amount of loan that Usha has provided, is entitled to interest thereon at the rate of 6%.
Question 4: Upon the admission of Usha the sacrifice for providing her share of profits would be done by d) Mahesh and Ramesh in the ratio 3:2
Question 5: No, Usha cannot claim interest on the amount of capital provided by her to the firm.

Explanation:

Question 1:
Remuneration to Mahesh and Ramesh will be transferred to the current accounts of the partners, as the capitals are fluctuating.

Question 2.
Usha will be entitled to a remuneration of Rs.9000.

Calculation of Usha's remuneration:

Monthly remuneration of Usha= Rs.1500
∵ She has been admitted after 6 months of the business, she will get remuneration for 6 months for the year.
∴ Usha'sremuneration= 1500×6
= Rs.9000

Question 3.
For the amount of loan that Usha has provided, is entitled to interest thereon at the rate of 6%, according to the Partnership Act, 1932, since the partnership deed doesn't talk about the rate of interest allowed to Usha for the loan provided by her to the firm.

Question 4.
Upon the admission of Usha the sacrifice for providing her share of profits would be done by Mahesh and Ramesh in the ratio 3:2, i.e., their old profit sharing ratio.

Question 5.
No, Usha cannot claim interest on the amount of capital provided by her to the firm, as there is no mention about the interest on capital in the partnership deed.

Previous Question

Next Question