By G J Taylor (auth.)
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Extra info for Accounting for Business Organisations: A Practical Approach
A written agreement is therefore much easier to verify and should cover the following points:(i) The responslbi lities to be assumed by each partner. (n) The initial capital of each partner. (iii) The profit/loss sharing· ratio. (iv) Interest on capital and drawings. (v) Salaries (vi) Drawing rights. Finally, the letter shoo Id point out that without a partnership agreement, the provisions of the Partnership Acts will apply. grossly unfair. This may, of course, be 35. 2 Profit and Loss Account for the year ended 31st December, 19-1.
Clearly there are many problems with the accuracy of the information on cost, useful life and residual valuetand all of these can affect the choice of both method and rate of depreciation. 30. 4 (a) Straight-line method 1. Annual depreciation charges: Formula: cost residual value useful life in years =£ 400,000 - 52,000 4 =£ 87,000 per annum depreciation net book value of assets (original cost £400,000) Year end Annual Cumulative Depreciation Net book value Dec 3119-3 19-4 19-5 19-6 87,000 87,000 87,000 87,000 313,000 226,000 139,000 52,000 2.
1. Inland Revenue (for tax purposes) 32. Supermarket Cost (base) FIFO (cost method) Category(final figure) Varied, fast-moving consumer goods (fmcgs). Department store Cost/replacement cost Adjusted selling price Category Diverse - From durable(white) goods to fmcgs. Problems of valuation. Fashion boutique Net realisable value FIFO Article/category Problem of fashion - who wants last season's clothes? Article method if 'one-offs'. Wholesaler Cost/replacement cost FIFO Category Much work-in-progress on long term projects.