PPT ON FINANCIAL ACCOUNTING

1. PROF SUMA SOMASAGAR
DEPARTMENT OF COMMERCE
SUBJECT:- FINANCIAL ACCOUNTING

4. 1.Paying outside debts
2.Paying loans & advances taken from
partners ratebly
3.Paying partners capitals rateably
4.The balance should be distributed among
the partners in their profit sharing ratio.

5. Solvent partners:-
It partners assets are not to pay off it’s
liabilities, partners are to bring necessary
cash from their private assets i.e called
solvent partners
Insolvent partner:-
If a partner is unable to bring the necessary
cash from is private estste, is called as
insolvent partner.
Who is to bear loss of insolvent partner:-
That loss is treated as capital loss which
should bear by solvent partners

6. 1. If there is a loss on realisation ,the solvent
partners have to bring in cash equal to
their respective share of such loss .
2. The capital deficiency of an insolvent
partner is to be shared by the solvent
partners in the ratio of their respective
capitals which stood just before
dissolution.