CA foundation CHAPTER 8 PARTNERSHIP ACCOUNTS unit-2 treatment of goodwill

Accountancy

In Illustration 11 ,interest on capital is deducted from profits of relevant years But in, practical question 1, interest on capital is deducted directly from average profits Why is this different treatment ??

Monisha KM

CA Inter

★ 825

23-Sep-22 13:19

1K+

Answers (3)

Hello, that's not a problem if the capital remains the same throughout the period, either way is totally acceptable

Aswin Chandar

CA Final

★ 40K+

23-Sep-22 13:45

Thank you

Thread Starter

Monisha KM

CA Inter

★ 825

23-Sep-22 15:44

Thread Starter

Monisha KM

Thank you

My pleasure.

Aswin Chandar

CA Final

★ 40K+

23-Sep-22 15:52