CONTENTS

Foreword
Accounting for Not-for-Profit Organisation

iii
1

Meaning and Characteristics of Not-for-Profit

Organisation
Accounting Records of Not-for-Profit Organisations
Receipt and Payment Account
Income and Expenditure Account
Balance Sheet
Some Peculiar Items
Income and Expenditure Account based on Trial Balance
Incidental Trading Activity

1
2
4
12
17
21
38
40

Chapter 2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8

Accounting for Partnership : Basic Concepts

Nature of Partnership
Partnership Deed
Special Aspects of Partnership Accounts
Maintenance of Capital Accounts of Partners
Distribution of Profit among Partners
Guarantee of Profit to a Partner
Past Adjustments
Final Accounts

64
64
66
68
68
73
88
93
95

Chapter 3

Reconstitution of a Partnership Firm Admission

of a Partner

115

Modes of Reconstitution of a Partnership Firm

Admission of a New Partner
New Profit Sharing Ratio
Sacrificing Ratio
Goodwill
Adjustment for Accumulated Profits and Losses
Revaluation of Assets and Reassessment of Liabilities
Adjustment of Capitals
Change in Profit Sharing Ratio among the
Existing Partners

115
116
117
119
122
144
145
151
161

Chapter 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8

3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9

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Chapter 4

Reconstitution of a Partnership Firm

Retirement/Death of a Partner

176
176

4.2
4.3
4.4
4.5
4.6
4.7

Ascertaining the Amount Due to

Retiring/Deceased Partner
New Profit Sharing Ratio
Gaining Ratio
Treatment of Goodwill
Adjustment for Revaluation of Assets and Liabilities
Adjustment of Accumulated Profits and Losses
Disposal of Amount Due to Retiring Partner

177
178
182
192
194
195

4.8

Adjustment of Partners Capital

204

4.9

Death of a Partner

210

Dissolution of Partnership Firm

226

Dissolution of Partnership
Dissolution of a Firm
Settlement of Accounts
Accounting Treatment

226
227
229
230

4.1

Chapter 5
5.1
5.2
5.3
5.4