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17 Cards in this Set
- Front
- Back
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Partnership
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Persons carring on a business with a common view to profit
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Partnership Act default position (SIP 5)
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(No) Salary, (No) Interest on capital, Profits shared equally, 5% interest on sums advanced over and above capital
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Appropriation of profit
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Sharing out partners' dues (in line with agreement)
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(Partner's) Current a/c
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Partner's accum. profits - drawings
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(Partner's) Capital a/c
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Balance on partner's investment
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Partners only receive interest for bal in…
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Capital a/c
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J. Interest to partners
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Dr Exp (interest) Cr. Partner's current a/c
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J. Appropriation of profit in partnership (2 steps)
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Step 1. Dr P/L ledger (net profit) Cr. Appropriation a/c Step 2. Dr. Appropriation a/c Cr. Partner's current a/c
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Cash
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On hand, in bank (readily available)
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Cash equivalents
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Short term, highly liquid, readily convertible investments
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Cashflow. Operating activities
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Cash movement re. principle revenue producing activities
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Cashflow. Investing activities
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Cash movement re. acquising / disposal of NCAs and investments (non cash equivalent)
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Cashflow. Financing activities
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Cash movement re. resulting in change to equity / borrowings of entity
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Cashflow. Treatment. Depreciation
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Add back (not cash exp but deducted from SPL. Thfre add back
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Cashflow. Treatment. Loss / gain on sale of NCL
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Loss: add back, Profit: deduct. (not cash exp)
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Cashflow. Treatment. Finance cost
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Remove. (replaced under 'interest paid')
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Cashflow. Treatment. Inventories / TP / TR
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AIR
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