(ii) Loss on Issue of Debentures arises when debentures are to be redeemed at a value higher than their face value.
(iv) The word Memorandum is affixed to the Memorandum Joint Venture Account because it is not a part of the Double Entry System of Book Keeping. It is just a rough account prepared to calculate the Profit or Loss.
(v) Employees Provident Fund to be credited to the Realization Account as a liability and it’s payment is also to be debited to the Realization Account.
(v) Employees Provident Fund A/c Dr.
To Realization A/c
(Being employees’ provident fund transferred)
Realization A/c Dr.
To Bank A/c
(Being employees provident fund paid off)
(ix) The amount payable to the retiring partner would be transferred to his Loan Account and reflected in the Balance Sheet as a liability .
(x) The deficient amount would be debited to the New Partner’s Capital Account and Credited to the Profit and Loss Appropriation Account.
New Partner’s Capital A/c Dr.
To Profit & Loss Appropriation A/c
(Being deficient amount in the business guaranteed adjusted)