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When a partner is given guarantee by oth...

When a partner is given guarantee by other partners, loss on such guarantee will be borne by :

A

Partnership firm

B

All the other partners

C

Partners who give the guarantee

D

Partner with highest profit sharing ratio

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Current Accounts of the Partners should be opened when the capitals are _____________. (ii) in the absence of an agreement, interest on partner 's loan shall be paid @ __________. (iii) In the absence of an agreement , partners shall _________ salaries. (iv) When there is no agreement among the partners, the profit or loss of the firm will be shared ___________ by the partners. (v) __________ is an extension of Profit and Loss Account . (vi) Minimum number of persons required to start partnership business is__________ (vii) Number of partners which should not exceed for partnership business is ____________. (viii) Salary or Commission to a partner is an ______________ out of profit.

Guarantee given to partner 'A' by the other partners 'B & C' means :

Knowledge Check

  • When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne by

    A
    All of the other partners
    B
    Partnership firm
    C
    Partners who gave the guarantee
    D
    None of these

  • When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne by

    A
    All of the other partners.
    B
    Partnership firm.
    C
    Partners who gave the guarantee.
    D
    None of these.

  • Retiring partner is compensated by the continuing partners in their

    A
    Gaining Ratio
    B
    Capital Ratio
    C
    Sacrificing Ratio
    D
    Profit-sharing Ratio

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    Guarantee Of Profit To A Partner

    Arun, Boby and Chintu are partners in a firm sharing profit in the ratio or 2:2:1. According to the terms of the partnership agreement, Chintu has to get a minimum of Rs. 60,000, irrespective of the profits of the firm. Any Deficiency to Chintu on Account of such guarantee shall be borne by Arun. Prepare the profit and loss appropriation account showing distribution of profits among partners in case the profits for year 2015 are: (i) Rs. 2,50,000, (ii) 3,60,000.

    Fill in the blanks with appropriate words: (i) Current Accounts of the Partners should be opened when the capitals are_____ (ii) In the absence of an agreement, interest on partner's loan shall be paid @______ (iii) In the absence of an agreement, partners shall _____ salaries. (iv) When there is no agreement among the partners, the profit or loss of the firm will be shared _____ by the partners. (v) ______ is an extension of Profit and Loss Account. (vi) Minimum number of persons required to start partnership business is _______ (vii) Number of partners which should not exceed for partnership business is____ (viii) Salary of Commission to a partner is an ______ out of profit.

    Radha, Mary and Fatima are partners sharing profits in the ratio of 5:4:1. Fatima is given a guarantee that her share of profit, in any year will not be less than Rs. 5,000. The profits for the year ending March 31, 2017 amounts to Rs. 35,000. Shortfall if any, in the profits guaranteed to Fatima is to be borne by Radha and Mary in the ratio of 3:2. Record necessary journal entry to show distributioin of profit among partner.

    Retiring partner is compensated by the continuing partners in their

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