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Question
Choose the correct sequence of the following transactions in context of Division of Profits.
- Guarantee by Firm to Partners
- Guarantee by Partners to Firm
- Transfer of Profits to Profit and Loss Appropriation Account
- Guarantee by Partner to Partner
Options
(i); (iii); (iv); (ii)
(iii); (i); (ii); (iv)
(iii); (ii); (i); (iv)
(ii); (iii); (iv); (i)
Solution
(iii); (ii); (i); (iv)
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| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) |
| Capitals: | Plant and Machinery | 1,25,000 | ||
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| To Interest on Capital | By Profit & loss account (After manager’s commission) | __(2)__ | |
| Richa | ______ | ||
| Anmol | ______ | ||
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| ______ | ______ |
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| ______ | ______ |
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