(i) (a) Memorandum Joint Venture Account.
(b) Joint Venture with Account.
(ii) The differences between fixed capital and fluctuating capital are :
(iii) Debentures issued as collateral security may be accounted for in the following two ways :
(a) No entry may be passed in the books, or
(b) The following entry may be passed.
Debenture Suspense AJc Dr.
To Debentures A/c
(Being debentures @ Rs ………. issued as collateral security)
(iv) Two differences between revaluation Account and Realization Account are:
(v) Normally a company cannot issue shares at a discount of more than 10% of the face value of shares.
However, a higher rate may be permitted subject to a special resolution and prior sanction of the Company Law Board. Hence, in this case prior sanction of Company Law Board is required as the rate of discount is exceeding 10%.
(vi) Sundry Members A/c Dr.
To Interest on Calls in Arrears A/c
(Being interest due)
Interest on Calls in Arrears A/c Dr.
To Statement of Profit and Loss A/c
(vii) (a) When a firm has a partnership deed, interest on drawings may be charged at the specified rate.
(b) When a firm does not nave a partnership deed, interest on drawings is not to be charged.
(viii) Number if year’s purchase in the valuation of goodwill represents an estimated number with which average profit or super profit is to be multiplied for the purpose of calculating the value of goodwill.
It may also specify the number of y ears a firm may be expected to earn the same amount of profits in the coming years.
(ix) The following items may be deducted from a deceased partners’ capital account:
(a) Profit & Loss (Debit balance)
(b) Drawings
(c) Interest on drawings
(d) Old goodwill written off
(x) Premium received on the issue of debentures as a capital profit because it is not received in the normal course of business or it is not relating to the day to day operations of a business.