(i) (a) Joint Co-venture Account Personal Accounts of other Co-ventures
(b) Memorandum Joint Venture Account Joint Venture with…. (other Co-venture) Account
(ii) If there is a loan advanced to a partner, the same should be transferred to his capital account thereby reducing the amount of capital repayable to him.
(iii) Interest on Capital A/c Dr.
To Partner’s Current A/c
(Being the interest on capital allowed to partners)
Profit and Loss Appropriation A/c Dr.
To Interest on Capital A/c
(Being the interest on capital transferred to Profit and Loss Appropriation A/c)
(iv) Securities Premium Reserve cannot be used to write off bad debts.
Securities Premium Reserve can be write off for following purposes :
• in paying up unissued shares to be issued as fully paid bonus shares.
• in writing off preliminary expenses.
• for buy – back of shares Under Section 11 A.
• in writing off the expenses etc.
(v) Balance Sheet is prepared as per Schedule III of the Indian Companies Act, 2013. Whereas Balance Sheet is prepared as per Partnership Act, 1932. The details of items of Balance Sheet are to be given in the Notes to Accounts in Company’s Balance Sheet but there is no need to maintain Notes to Accounts in firm’s Balance Sheet.
(vi) Issue of Shares for Consideration other than Cash is shown in the Balance Sheet under the head ‘Share Capital’ and sub-head ‘Subscribed Capital’.