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What is natur...

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What is nature of donations?as per partnership firm.
Under which account they are shown(final accounts)
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Solution

Dear student Donations are the expense for any business enterprise and are nominal in nature. They have to be shown under debit side is profit and loss Account while preparation of final Accounts. Regards

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Q. Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the 31st March, 2019 when the Balance Sheet of the firm as under:


Liabilities				Amount (₹)	Assets			Amount (₹)
Sundry Creditors				20,000	Bank			7,500
Bills Payable				25,500	Sundry Debtors			58,000
Babu's Loan				30,000	Stock			39,500
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Chetan		27,000		1,52,000
Current A/cs:
Ashok		10,000
Babu		5,000
Chetan		3,000		18,000


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The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investments for ₹ 40,000 and Freehold property took over by Chetan at ₹ 55,000. The remaining Assets realised as follows:
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