Beyond Academy

Department Accounting Departmental Accounting is a account which is prepared when all the division of a business is located under one roof and it is prepared to a ascertain profit and loss of each department separately.  Advantages of departmental accounting Main advantages of departmental accounting are:  1. Result of each department may be critically compared.  2. Result of different department may help the management in decision making.  Q. What is unrealised profit on stock?  When good are sent at invoice price then the stock either opening or closing are valued at invoice price. Loading included on stock is called unrealised profit on stock.  ------------------*****------------------

Partnership Account:  Dissolution (Important notes) Garner vs Morry Rule (One Partner Insolvency) If a partner become insolvent and fail to pay his debit balance of capital account either whole or in part, the unrecoverable portion is a loss to be borne by solvent partners. (i.e., When partner become insolvent but firm is solvent) Rule let down in Garner vs Murry are as under: 1. All the partners who are solvent should bring cash equal to there share of loss on realisation. 2. The loss arising as a result of insolvency of the partners should be borne by the solvent partners in the ratio of there last agreed capital. 3. In case of fixed capital system capital as per last balance sheet represent last agreed capital. 4. In case of fluctuating capital system however the necessary adjustment in respect of reserve, unappropriated profit or loss, etc must be made to get the last agreed capital. Q. Explain the rules of gradual realisation of assets and piece meal distribu...