Download PDF by G J Taylor (auth.): Accounting for Business Organisations: A Practical Approach

By G J Taylor (auth.)

ISBN-10: 1349077852

ISBN-13: 9781349077854

ISBN-10: 1349077879

ISBN-13: 9781349077878

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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. £ £ Sales Stock, 1st Jan, 191-1 Add: Purchases Less: Returns Out Less: Stock, 31st Dec 19-1. Cost of goods sold Gross Profit Provisions for Depreciation :Equipment Motor Van Carriage Out Discounts Allowed Salaries Bad Debts Provision for Doubtfu I Debts Rent & Rates Wages Light & Heat Genera I Expenses Postage & Stotionery Net Profit 1250 7686 -8936 -248 8688 Less: Returns 172 20878 1540 7148 13730 20878 20878 Gross Profit Discounts Received 13730 68 560 600 243 242 1260 100 140 600 3827 400 472 300 5054 13798 -13798 - -Salaries:Smart 21050 Net Profit 5054 1000 Interest on Capital :Smart 150 Bright 150 Share of Profits :Smart 1251 Bright -2503 5054 5054 t:S t:Sright and S Smart Balance Sheet as at 31st Dec, 1981 36.

The main considerations for each of the choices are as follows:- Ordinary Shares If the past performance of the company has been to the satisfaction of the existing shareholders, it may be that they will be prepared to risk a further investment in the form of more shares. However, they may not be too happy to see new investors brought in from outside, thereby diluting their interest in the company. The main advantage from the company's point of view is that a dividend does not have to be paid on ordinary shares if circumstances do not justify it.

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. £ £ Sales Stock, 1st Jan, 191-1 Add: Purchases Less: Returns Out Less: Stock, 31st Dec 19-1. Cost of goods sold Gross Profit Provisions for Depreciation :Equipment Motor Van Carriage Out Discounts Allowed Salaries Bad Debts Provision for Doubtfu I Debts Rent & Rates Wages Light & Heat Genera I Expenses Postage & Stotionery Net Profit 1250 7686 -8936 -248 8688 Less: Returns 172 20878 1540 7148 13730 20878 20878 Gross Profit Discounts Received 13730 68 560 600 243 242 1260 100 140 600 3827 400 472 300 5054 13798 -13798 - -Salaries:Smart 21050 Net Profit 5054 1000 Interest on Capital :Smart 150 Bright 150 Share of Profits :Smart 1251 Bright -2503 5054 5054 t:S t:Sright and S Smart Balance Sheet as at 31st Dec, 1981 36.

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Accounting for Business Organisations: A Practical Approach by G J Taylor (auth.)


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