Question

2
Selling Expenses of an
organization at 50% level of
activity amounted to Rs.
2,00,000; out of which 10% is
fixed. Determine the total
selling expenses at 75% level
of activity(Use the rules of
Flexible Budget) *​

Answer 1

Answer:

(a) They can claim over the personal property of sole proprietor as his liability is unlimited.

(b) Creditors can approach both Anthony and Akbar and they are liable to pay back in their profit sharing ratio but in case one of the partners becomes insolvent then creditor can 'am claim from only one partner also.