0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What are the difference between fixed capital and fluctuating capital?
Difference between Fixed and Fluctuating Capital AccountsFixed and fluctuating capital accounts are the terms which are often used in the context of partnership. Partners can maintain the capital accounts in two ways one is fixed capital account and other is fluctuating capital accounts, let's look at the difference between both of them - Fixed Capital Account - Under this system, the capital which is introduced by partners will remain fixed throughout the life of the partnership. Hence under this method two type of accounts are made one is capital account and other is current account. Therefore all entries relating to drawings, interest on capital, profit and loss share of partner are made in a separate account for each partner, it is called current account of partners. However when partner brings additional capital or withdraws capital permanently, then capital account is credited or debited respectively.Fluctuating Capital Account - Under this method capital account of partners will not remain fixed rather they will keep fluctuating from time to time. In this method all the entries related to drawings, interest on capital and share of profit and loss of partner are recorded in capital account, hence in this method there is no need for current account.Fluctuating capital account method is usually preferred by partners; however they can also use fixed capital account according to their business and preference.
What is the capital required to start a Partnership firm?
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
A partnership will take a carryover basis in an asset it acquires when?
a partner owning 25% of partnership capital and profits sells the asset to the partnership
What is partners' capital?
'capital partners' generally work as a unit to unite indvidual assets or capital for investment and shares liability, prifit loss etc according to the partnership agreemnets. there could several types of capital partnership, relying on the field od operation.
The capital for the business is provided by one or more individual?
Partnership
How do you show capital employed in partnership balance sheet?
Capital employed is shown as partners share capital in balance sheet or partners capital statement.
Why sole porprietorship is more popular then partnership in Pakistan?
Sole proprietorship is popular than partnership because of the little capital outlay.
What is capital money for the business provided by one or more individual?
partnership
The capital money for the business is provided by one or moe individual?
partnership
Is there a difference between a partnership balance sheet and a corporation balance sheet?
In partnership balance sheet capital of all partners is shown while in corporate balance sheet capital of all share holders is shown.
How do the articles of partnership affect the partnership?
A Partnership Agreement (actual name of the document) dictates how the company is controlled, who has what powers, how the earnings / profits / capital is allocated, what is to happen in certain circumstances... They are pretty important. If a partnership is set up without a Partnership Agreement then it is considered a common-law partnership and everything is allocated equally among the partners.
What is carried interest?
Over the past several decades, private equity funds, venture capital funds, hedge funds, and similar alternative investment vehicles3 have attracted large amounts of capital investment from institutional investors such as pension funds and educational and charitable institution endowments, as well as from wealthy individual investors. These investors become limited partners in the funds, which are generally structured as partnerships. Some of the funds are established in offshore jurisdictions as well as in the U.S. The assets invested in these funds generally are managed by groups of individuals who contribute a relatively small amount of capital to the fund (in relation to amounts of capital contributed by the investors) and who provide investment expertise in selecting, managing, and disposing of fund assets. It is a common practice for managers of the funds to receive "carried interests." A carried interest generally is a right to receive a percentage of fund profits without an obligation to contribute to the capital to the fund. In the case of a fund that is a partnership, the carried interest may be structured as a partnership profits interest, under which the partner has a right to receive a percentage of partnership profits, but has no obligation to contribute capital to the partnership, and has no right to partnership assets on liquidation of the partnership. Under a partnership profits interest, a partner generally does not have an obligation to contribute to the partnership's capital if the partnership experiences losses.
