Locking Solutions

When it comes to considering safety of our valuable possessions, we think of the safest place where in we can keep them. The best place is somewhere in which nobody else could approach and in which you can have a piece of mind that your valuables are kept safely. The best solution for this problem is to purchase a Locker. Lockers are of different kinds. There are lockers that are used by students in schools and they are called School Lockers. There are also many other varieties of lockers such as the Gym Lockers that are used by gym goers to store their belongings.

Lockers are generally in rectangular shape. They are also available in many different forms which suit many different purposes. Lockers are also made of different materials. There are metal, plastic and Wood Lockers available for different purposes. You can also get the best quality Lockers for sale at cheaper prices if you will browse the web.

There are many companies all over the world that provides world-class lockers. They are easy to find since they are just a click away. They provide online services like purchase and sales which can be done by just sitting in front of your computer at home.

Worried about size? Try ring finger size chart.us

I was afraid of online shopping as I was afraid of being cheated or getting merchandise of inferior quality. With regards to jewelry articles, especially rings, this option never appealed to me. It was not just the thought of being cheated but also of not being able to secure a ring of the right size. It seemed virtually impossible to buy a ring online and be sure that it is of the perfect size. I used to bank on local stores to purchase jewelry. However, one fine day, one of my close friends visited my place, and I asked him to accompany me for shopping. He then introduced me to some of the benefits of virtual shopping like prices and comfort benefits, but then I told him about my reservations. This is when he directed me to this site with that featured not only an impressive collection of rings but also of an amazing ring finger size chart. Through the site, I was able to purchase a diamond ring for my wife through a safe, secured payment process. I also acquired a ring of the perfect size. True to its word it fitted perfectly on my wife’s finger. I would recommend this site to all who are reluctant to shop online.

Get Help On Your Multiple Debt

When you find yourself heavily debted, there are many options that you can try to free yourself from the problems that these may cause you. However, you need credit counseling to know what are the options available for you out there and the best option for your situation. Consumers everyday talked about debt consolidation. But the problem is that people used this term to describe debt relief in general.

A debt consolidation loan is when you pay off your smaller debts with the use of one new loan that is usually offered at lower rate of interest. These loans are secured loans. This means that this type of loan is attached to a collateral like your home. These loans are very risky. This is because you can lose your home if you will run into trouble again financially and could not make the payment for this new loan. However, this can really be a good option if you know how to properly manage your debts.

Methods Related to Search Engine Optimization

The process of search engine optimization contains many other branches to help your website or web page to have a higher ranking. Here are some of these other methods that are involved in search engine optimization:

Preventing Crawling

In order to avoid contents that are undesirable in the search index, Webmasters will instruct spiders to crawl certain files or directories by the use of robots.txt files. This spider will crawl into the root directory of the domain. As a search engine crawler may keep a cached copy, this may crawl pages that a webmaster does not want to crawl. Google had already warned webmasters that they should stop indexing internal search results because those pages are considerably called as search spam.

Increase Prominence

There are many methods that are able to increase prominence of a webpage. One of these process is Cross linking, this provide more links for the important pages that may improve visibility. Other things that are able to increase the traffic of a website are by writing content for the frequently searched key words and the relevance of the search queries. Updating the content will keep the search engines crawling back frequently which will give an additional weight to the site. Also, adding relevant keywords to the Meta data of the web page will improve the relevancy of the page and at the same time will increase the site’s traffic. Normalization of the URL of the web-pages that are accessible via URLs can help make sure that the links are of different versions.

Getting Indexed

Leading search engines such as Yahoo, Google and Bing are using crawlers to look for pages for their algorithmic search results. Yahoo notably operates a paid submission service that guarantee crawling for a cost per click fee or a set fee. These programs are usually guarantee inclusion in database, but it does not guarantee specific ranking in the search result. Google offers “webmaster tools” where Sitemap can be created and submitted with no payments just to ensure that all the pages are found, especially for the pages that are not easily found by simply following a link.

Live Chat Will Help You Convert Visitors into Potential Customers

Most Search Engine Optimization or SEO services say that they can create traffic into your website. Traffic alone can give you many hits on your website but the visitors could not be interested with what you promote. If you want a partner for your SEO that would covert visitors into your potential customers then you must visit livemoz.com .They offer a live chat service that would enable you to use live chat as a form of communication with your visitors. It is a form of an instant message that immediately attends to the needs of your customers. Most visitors get impatient when they can not get quick replies with their questions and products. Through live chat, the operator would be able to attend to the customers as quickly as possible because it is in real time system. Moreover, it is advantageous than emails or telephones because not all customers are willing wait and are sometimes demanding. This conversion optimization technique enables the user to increase the number of orders and at the same time decrease the cost of acquisition. By converting visitors into customers, the website would be able to boost their sales and much productive than before. If you are interested in having their package, they come in two forms, one is the Livemoz Free and the other is Livemoz Premium. The only difference between them is that the former is automated by a robot and has a monthly fee. Visit livemoz.com for more information about their live chat services.

How to Find a Legitimate Online Tutoring Company

whether it is dealing with Line segment, Indices, or solving Algebraic expressions which give you stress as a student, there is an online help for you. There are many Online tutoring companies out there that can provide the right solution to the problem which you are having right now. It is, however, important that you make a careful decision regarding which online company to trust because there are also scam sites out there as there are legitimate ones. Make sure to find a legitimate site to help you with your academic needs. You can easily tell which ones are legitimate by searching for their support system. A legitimate online tutoring site will directly provide their contact email, number or address through their website. There should not be problems when contacting a legitimate online tutoring site and they shall reply to you as soon as possible.

Making sure that you have chosen a legitimate online tutoring site is very important. This will make sure that you are safe and away from scammers who programmed their sites to take the member’s money away.

Maximize Website Performance

If you are looking for a way to catapult your efforts in social media marketing and to ignite the performance of your website, then you need help from Washington dc web designer. They provide any website owner an expert SEO service and world-class web design.

Tips in Choosing the Best Web Host

When choosing the best web host for your website, it is imperative that we get the best deals. We would like to get the best prices and the best packages that top providers of web hosting are offering currently to their new members. From this list, you can narrow down your list and select a few on the probable hosts. To do this, you need to select a good service for web hosting by checking out on the level of the services which they are offering. Determine the server type, bandwidth, variety of hosting plans and the amount of disk space that is available at reasonable prices.

Once you are satisfied with what is offered by your preferred provider, you can move to the next level and that is to consider the web tools that they offer. It is very important that you look at the variety and the usability of the tools offered by your preferred web hosting service. Ask them questions about the scope and nature of the service they provide. Most of them are offering Content Management Services or CMS. This is a simple way to edit your website through the use of user-friendly interface. You should be able to add pages, pictures and categories easily.

Finding the best web host is easy if you know where to start. Just remember to follow these guidelines when choosing the right web hosting service for your website. Your chosen website hosting company should be able to help you make your online business easier and much more convenient.

Best Online Reputation Management Strategies for e-business

Mostly, users visit any website by search engine results. In search engines, users mostly prefer sites that come on top of all other sites. If your site is display with a positive reputation then no doubt users will prefer to visit your site, and it will be helpful to divert traffic to your site and boost your profits. If negative reputation is on your page then your site will be surely ignored by any user, and your business will get down rapidly. There are some methods to remove negative reputations. The reputation management tool is one of that mostly websites are using to regain positive reputation and customers trust. Reputation management is handling by professionals who optimize your website by help of social media websites, press releases, blogs and forums. With the help of these techniques, your site manages to come on top in search engine results with a positive reputation.

Reputation management also offers services like the quality content creation and positive link updating and keeps an eye on your business products, services and reputations. Reputation management is same like search engine optimization so you have another benefit that your site will always remains on top of search engines result in a page. By using reputation management services, you do not need to worry about competition over the internet and traffic.

Tvonics Dtr-Hd500 – Spectacular Features For Guaranteed Satisfaction

Are you tired of the usual entertainment in your home? Are you bored by nominal entertainment devices? Do you really want to experience a fresh amazing fun-filled entertainment experience? If you are serious about getting the entertainment that you rightly deserve, you should definitely try the unique device of a TVonics dtr-hd500 . Apart from exceeding your entertainment expectations, let’s look at some other reasons why you shouldn’t hesitate in going online and purchasing your very own:
Superb Images

Unlike any other device, this instrument produces a magnificent picture quality that is second to none. Both you live and recorded favorite programs will have superb picture and color quality freeview box, very sharp with a consistent display of great results. In the past you may have had troubles with your picture quality with this amazing device all your image problems will vanish into thin air.
User-Friendly Auto Set-up compact with a menu system

Not only do these devices produce excellent quality images, as well as audio, but the device is extremely user-friendly and it comes with an auto set-up and menu system which makes your interaction with the device an easy and smooth one. There is no need to worry about lengthy installation instructions and complex wiring activities.

This is because this HD device will automatically install itself, all you need to do however, is plug in the system and press the confirmation button and you should be fine. In case the channels are not readily tuned in, you may need to a do a simple troubleshooting like retuning the instrument. In addition to this recording your favorite TV show is simple, and you will have the chance to book recordings of a trailer, that’s if you see something being advertised that interests you.

Entertainments at a Reasonable Price

This device unlike other TVonics dtr-hd500 are reasonably priced. If you are looking for great entertainment at an affordable price this device is the most suitable option for you. Imagine having this wonderful entertainment device in your living room at a ridiculously low price. Even if this device wasn’t at a bargain price, you will still be getting value for your money, considering the high quality entertainment that you would be getting.

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How To Install Google Analytics On WordPress

How To Install Google Analytics On WordPress

Disco Lights Javascript

Color Changing JavaScript Copy The Below JavaScript code in Notepad and save the file with .html extension. And You are Done. Open The file with browser and see the magic.


<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
<html lang="en" xml:lang="en" xmlns="http://www.w3.org/1999/xhtml">
<head>
<title>Animated Transparent PNG Bubbles in JavaScript</title>
<style type="text/css">
html, body {
    background: #000;
    color: #FFF;
    height: 100%;
}
body {
    margin: 0;
    overflow: hidden;
    padding: 0;
    position: relative;
}
table {
    border-collapse: collapse;
    border-spacing: 0;
    empty-cells: show;
    height: 100%;
    width: 100%;
}
p, address {
    background: rgba(0, 0, 0, 0.25);
    font-family: Georgia;
    font-style: normal;
    margin: 0;
    padding: 5px;
    position: absolute;
}
p {
    left: 5px;
    max-width: 50%;
    top: 5px;
}
address {
    bottom: 5px;
    right: 5px;
    text-align: right;
}
td {
    /* border: 1px solid #000; */
    min-height: 0;
}
td img {
    border: 0;
    display:block;
    height: 100%;
    width: 100%;
    image-rendering: optimizeSpeed; /* Firefox 3.6 */
    -ms-interpolation-mode: nearest-neighbor; /* IE 7+ */
}
a{color:#FFF;}
a:hover{color:#06F;}
</style>
</head>
<body>


<script type="text/javascript">


var gridWidth = 3, gridHeight = 2;
var cellCount = gridWidth * gridHeight;


var w = Math.ceil(100 / gridWidth);
var h = Math.ceil(100 / gridHeight);
document.write('<table border="0" cellpadding="0" cellspacing="0">');
for (var r = 0; r < gridHeight; r++)
{
    document.write("<tr>");
    for (var c = 0; c < gridWidth; c++)
    {
        document.write('<td style="width:' + w + '%;height:' + h + '%"><img src="disco-floor.png"></td>');
    }
    document.write("</tr>");
}
document.write("</table>");


var elements = document.getElementsByTagName("TD");
var cells = new Array(elements.length);
// Copy the element collection into an array because it is faster
for (var i = 0; i < cells.length; i++)
{
    cells[i] = elements[i];
}


function colorFromHue(hue)
{
    var ramp = [255, 255 - Math.round(hue % 1 * 255), 0, 0, Math.round(hue % 1 * 255), 255];
    var i = Math.floor(hue % 6);
    return "rgb(" +
        ramp[ i         ] + "," +
        ramp[(i + 4) % 6] + "," +
        ramp[(i + 2) % 6] + ")";
}


var discoFloorHue = 0;
function animate()
{
    for (var i = cellCount; i--; )
    {
        //var i = Math.floor(Math.random() * cellCount);
        cells[i].style.backgroundColor = colorFromHue(discoFloorHue + Math.random() * 2);
    }
    discoFloorHue = (discoFloorHue + 0.5) % 6;
    window.setTimeout(animate, 1000 / 2);
}


animate();


</script>


<p>The idea was to create a nice full screen animation with very low CPU usage.
Firefox calculates the cell height a bit different.
<a href="#" onclick="this.parentNode.style.display='none';return false">Hide&nbsp;this&nbsp;text</a>.</p>


</body>
</html>

Color Changing On Text On Image JavaScript

Color Changing JavaScript Copy The Below JavaScript code in Notepad and save the file with .html extension. And You are Done. Open The file with browser and see the magic.


<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 


Transitional//EN" 


"http://www.w3.org/TR/html4/loose.dtd"> 
<html lang="de"> 
<head> 
<title>CSS2 Crosshairs Effect - Table Column and 


Row Hover for CSS2 Browsers</title> 
<style type="text/css"> 

body{
font-family:Georgia;
}
h1{
margin-top:0;
}
address{
font-style:normal;
text-align:right;
}

td:hover{
background:#F0F;
}
tr:hover{
background:#F00;
}
col:hover{
background:#00F;
}
.col2{
background:#FF0;
}

</style> 
</head> 
<body> 

        <h1>CSS&thinsp;2 Crosshairs Effect</h1> 

        <p>Table Column and Row Hover for CSS2 


Browsers</p> 

        <p>Uses <code>&lt;col&gt;</code> and 


<code>col:hover</code> to hover
            the columns. Although this is CSS2, it 


does not work with actual
            browsers (but will in the future).</p> 

        <table border="1" cellspacing="0" 


width="100%"> 
            <colgroup> 
                <col class="col1" /> 
                <col class="col2" /> 
                <col class="col3" /> 
                <col class="col4" /> 
                <col class="col5" /> 
            </colgroup> 
            <tr> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
            </tr> 
            <tr> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
            </tr> 
            <tr> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
            </tr> 
            <tr> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
            </tr> 
            <tr> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
                <td>Some Table Data</td> 
            </tr> 
        </table> 

        <p>Tested with:</p> 
        <ul> 
            <li>Mozilla 1.6, Firefox 0.8 (but does 


not hover the column)</li> 
            <li>Opera 7.5 (but does not hover the 


column)</li> 
            <li>Does <em>not</em> work with 


Internet Explorer 5.0, 6.0</li> 
        </ul> 


</body> 
</html>

Color Changing JavaScript

Color Changing JavaScript


Copy The Below JavaScript code in Notepad and save the file with .html extension. And You are Done. Open The file with browser and see the magic.


<html> 
<head> 
<title>Color Changing JavaScript</title> 
</head> 
<body id="x" onload="i=setInterval('x.bgColor=i++',9)"> 
</body> 
</html>

How to Get Paid Writing Articles for the Web

Have you ever thought of spending the whole day or a couple of hours browsing and writing online, and then smiling to the bank afterwards? Well, writing for the web is one of the best ways to work flexibly online and earn payments for the job you do. You can write a couple of articles in your spare time and earn some cool money afterwards. So, my aim in this post is to tell you some of the best ways to make money online, writing articles for the web. After you read this, you should be on your way to getting started.

First, let me allay any fears you may have about writing. Writing articles for the web is great because it does not take much effort, even if you are not an expert. The average word limit used online is hardly more than 500 words. So, even if you are a slow writer, it won't take you more than an hour to get an article written.
Now, you can make money writing articles for the web in two ways - freelance writing and article marketing. Both are great, but you can choose which one works best for you and suits your lifestyle the most.

In freelance writing, you write an article for someone and get paid. There are many websites you can get writing tasks from. For example, Helium, Associated Content, Elance, Scriptlance, Freelancer and others. There are also other sites that pay you based on a revenue sharing method. You can as well make extra money from this site too each month, depending on how significant you write.

Secondly, you can make money through article marketing. Writing articles for the web in this way requires that you get paid for recommending products or services. For example, if you are an affiliate marketer selling phones for a company, you write about phones and post a link to the site where the individual can purchase the phone. If they end up buying the product, then you get paid a commission for the product. There are many websites that can help you make up to 75% in commission depending on the volume of sales made through your referral article.

These are just two great ways to make money writing articles for the web. There are so many other means to make money writing for the web. So, it is up to you to define where your passion lies. So, which of these two ways of writing do you prefer? I want to see your comments.

How To Upload Change Wordpress New Theme

How To Upload Change Wordpress New Theme

BUSINESS COMMUNICATION

UNIT I BUSINESS COMMUNICATION
UNIT STRUCTURE
1:0 Introduction
1:1 Meaning
1:2 Objectives of communication
1:3 Communication Process
1:4 Channels or Types of Communication.
1:5 Barriers to Communication
1:6 Essentials of Effective Business letter
1:7 The Layout and Design of a Business Letter
1:8 Kinds of Business Letters
SELF- ASSESSMENT QUESTIONS: I
1:9 Summary
Unit Questions
Recommendations for further readings
Answers of Self-Assessment Questions

UNIT - I
BUSINESS COMMUNICATION
1:0 INTRODUCTION
The word “Communication” is derived from the Latin
word “communico” which means “To share”. It is the act of
sharing or imparting a share of anything. In its vital sense, it
means a sharing of ideas and feelings in a mood of mutual
understanding. It is a two-way process in which a speaker
must have a listener to share the experience.
Communication is the tool with which we exercise
influence on others, bring about changes in the attitudes and
views of our associates, motivate them and establish and
maintain relations with them. Without communication there
would not be any interaction between persons. Hence, there
cannot be a Government or society without
communication.
The ability of communication depends upon the
advancement of the society he lives. Among human beings,
the more civilized and advance groups have higher communication
ability than the less advanced groups. It is
found that about 75% of the effective hours of a man is being
spent on communication i.e., speaking, writing, listening, reading
etc.
1:1 Meaning
Communication is the act of influencing and inducing
others to interpret an idea in the manner intended by the
speaker or writer. Communication is an exchange of facts,
ideas, opinions or emotions by two or more persons. It is the
process by which information is transmitted between
individuals and/or organisations so that an understanding
response results. We shall now see some of the important
definitions given by eminent authorities on the subject.
Definition
Definition of W.H.Newman and C.F.Summer Jr
“Communication is a exchange of facts, ideas, opinions or
emotions by two or more persons”.
Definition of Fred G.Meyer.
According to Fred G.Meyer, “Communication is the
intercourse by words, letters or messages, intercourse of
thoughts or opinions. It is the act of making one’s ideas and
opinions known to others.
1:2 Objectives of communication
Communication is a process through which different
persons are connected to each other in such a manner to
achieve a common objective. Without communication, group
activity is impossible. It helps the members to co-ordinate
with each other, exchange their ideas and thereby to make
progress.
1. Information:
One of the important objectives of communication is
passing or receiving information about a particular fact or
circumstance. Every organisation whether a small or large, a
complex or a simple require information which is required to
be communicated. Top-level management personnel require
complete, accurate and precise information to plan and
organise. Employees become very efficient and responsible
if they know well about the various aspects of an
enterprise. It can be done either through spoken or written
language or by using any other system of signs. Information
required for daily work can be given orally. If large groups
have to be informed, a meeting may be called.
Information that are required for the organisation are
normally obtained from the sources like old files, personal
observation, Radio, TV, Cinema, Newspapers, Periodicals,
Pamphlets, Government publications, Chambers of
Commerce, meetings, seminars and conferences, personal
interviews with people, questionnaire and trade fairs and
exhibitions.
2. Advice:
Advice is also a kind of information. It means opinion
given as to the action to be taken. Advice is normally given to
a person either to influence his opinion or his behaviour. It
may prove helpful, but it may also lead to disaster. So to make
advice effective, while offering advice, the adviser should keep
the following points in mind:
1. Advice should be related to aspecific piece of
work.
2. It should meet the needs of the recipient.
3. It should not make the recipient to feel inferior.
4. The adviser should make the recipient to feel that
he is being advised for his own betterment.
3. Order:
Order is an authoritative communication. Orders are
absolutely necessary for any organisation irrespective of its
nature and size. It a directive to somebody, normally a
subordinate, to do something, to alter the course of something
he has already done, or not to do something. An order to be
effective-
1. Should be clear and complete,
2. Should be given in a friendly manner,
3. Its execution should be possible.
4. Suggestion:
The term suggestion means proposing something for
acceptance or rejection. Communication is used to convey
suggestion or ideas. This is being constantly done in all human
groups. Someone or the other is making suggestions and other
react to them . This happens in any social group like a family,
office, factory, State, Nation etc. Effective communication
promotes the acceptance and trial of good suggestions.
Subordinates normally give suggestions. This is because, they
are the one’s who are actually involved in the work and have
a better understanding of the shortcomings and can make
useful suggestions for improvements. That is why, in big
concerns suggestions are collected at regular intervals by
means of a suggestion box. Such suggestions are known as
upward communication.
5. Persuasion:
Including, compelling or promoting a person to act
mostly in a positive way is known as persuasion. Persuasion
is an important objective of communication. Management
try to persuade their workers to put in their best effort; sellers
persuade their customers to buy etc. It takes place through
some kind of communication. Persuasion is more easily done
by a person who-enjoys respect and confidence of those
whom he wishes to persuade. However, if persuasion is to be
effective, they must not be conscious of being persuaded.
6. Education:
Education involves imparting instruction, character
building, enriching mental faculties, giving training to human
beings etc. It aims at widening the knowledge and
improving skills. It is carried on at various levels of
management namely, top level, employees’ level and at the
level of outside public. Employees are trained essentially by
communication. All education takes place by means of
communication.
7. Warning:
Warning is a forceful means of communication. It may
be given orally or in writing. Very often, we come across
notices like “No smoking”, “Beware of dogs’, ‘Danger’ etc.
These are some warnings or cautions. In offices and factories,
higher officials give warnings to their subordinates, by
issue of memos.
8. Motivation:
Inspiring the interest in their job in the minds of the
employees in known as motivation. If the people are
adequately motivated, they will have high morale and this will
be low if the level of motivation is low. Low morale is the
basic cause for indiscipline. Motivation determines the
behaviour of a person to a greater extent. In motivation,
employees are motivated in such a manner to work willingly
and eagerly. A motivated worker does not need much
supervision.
9. Counseling:
Counseling is done by a man of greater skill or
knowledge on some specific subject and he offers his counsel
without any personal interest. Companies, which are interested
in their employees’ welfare, have centres to counsel their
employees. It is very much similar to giving advice. However,
there are some differences between the two also. They arei)
Counseling is objective and impersonal,
whereas advice is personal touch.
ii) Counsel is almost professional, whereas
advice is not so, and
iii). Counsel is eagerly sought, whereas advice
is very often unwelcome.
10. Morale Boosting:
Morale is the term usually applied to armed forces
during war time and to sports and athletic teams. It refers to
team spirit and co-operation of people for a common purpose.
Its importance has been realised by the management only
recently. The management feels that if the morale is high,
production would be higher and on the other hand if it were
low, the production would also be low. It is already stated
that motivation and morale are inter-connected and dependant
on each other. If the workers are highly motivated, morale is
also said to be high. On the other hand, if the degree of
motivation is low, the morale is also said to be low.
11. Appreciation:
Praising of initiative, good effort and work by
employees is known as appreciation. It is very useful for
creating a good attitude. It may be conveyed orally or in
writing. If given publicity, it will have better effect.
1:3 COMMUNICATION PROCESS
Communication is a process whereby one person or one
group conveys some information to another person or to
another social group. Communication is a social process for
exchanging information and establishing understanding
between two or more parties. Conceptually, communication
is seen as a two-way process by which people communicate
with one another. The sender, who creates a message designed
to elicit a specific response from the receiver, initiates
communication. The receiver interprets the message according
to his own understanding and sends a message back to the
sender. If the purpose of the sender and the response of the
receiver are inconsistent, the communication process will fail,
and the sender may wish to initiate the process again with
some modifications to the message. Thus, the nature of
communication is considered as a continuous, inter-personal
process.
As shown in the following figure, the sender of the
communication starts with and idea to be shared with the
receiver. Using a set of encoding skills, the sender translates
the idea into a transmittable message. Employing encoding
skills, the receiver converts the idea into a feedback message
to the sender. The sender now uses decoding skills to translate
the feedback and compares that with the original idea. The
sender determines whether the message was properly received
and understood. Often, understanding is not achieved and the
sender must try again. The communication process often
breaks down because the process is replete with barriers to
communication.
1:4 CHANNELS OR TYPES OF COMMUNICATION.
Types of communication can be discussed under the
following two broad heads.
1. On the basis of organisational structure:
1. Formal Communication, and
2. Informal Communication.
2. On the basis of media used:
1. Written Communication, and
2. Oral Communication
1. Organisational Structure
On the basis of organisational structure,
communication can be further classified into two namely,
1. Formal Communication, and
2. Informal Communication
We shall now describe them briefly.
1. Formal Communication:
Formal communication takes place via formal channels
of the organisational structure established by the management.
These channels are deliberately created for regulating the
communication flow and to link various parts of the
organisation. They are helpful for performing functions like
planning, decision-making, co-ordination and control. In a
formal communication system, matters with regard to who
should communicate, what, when and how to be
communicated and to whom to be communicated are all clearly
defined. The formal organisation chart describes the formal
lines of authority, power, responsibility and accountability
of organisational members. All these relationships involve
communication. Formal communications are in writing. There
are three forms of formal communication namely
1. Downward,
2. Upward, and
3. Horizontal.
1. Downward Communication:
Communication is said to be downward when it moves
from the top to the bottom. Downward channels are used for
passing on managerial decisions, plans, policies and
programmes to subordinates down the line for their
understanding and implementation. Downward
communications are used by the superiors to convey their
orders, instructions and directions to their subordinates.
In the words of D.Katz and R.L.Kahn, the purpose of
downward communication are to-
1. Give job instructions.
2. Create an understanding of the work and
its relations with other tasks.
3. Inform about procedures.
4. I n f o r m s u b o r d i n a t e s a b o u t t h e i r
performance.
5. I n d o c t r i n a t e t h e w o r k e r s t o
organisational goals.
However, downward communication suffers from
certain drawbacks. They are..
1. It develops an authoritative atmosphere
that might be detrimental to morale.
2. As information passes through the
various levels of hierarchy, it might be
distorted, misinterpreted etc.,
2. Upward Communication:
Communication is said to be upward when it flows from
the subordinates to the top management. Upward
communication is used by subordinates for transmitting
information, ideas, views and requests to their superiors on
matters relating to their jobs, responsibilities etc.,. Upward
communications are also used to convey views, suggestions,
grievances and problems of subordinates to their superiors.
It enables the subordinates to communicate to the superiors
the progress of the work and response to the work assigned to
them. Upward communication may be oral or written. It also
enables the management to know he extent to which the subordinates
understand the policies and programmes of the organisation.
3. Horizontal Communication:
Communication is horizontal when it flows between
individuals at the same operational level i.e.,. between two
departmental heads. The purpose of the horizontal
communication is to enable managers and others of the same
rank to interact on important matters, to exchange information
and co-ordinate their activities without referring all
matters to the top level management
2. Informal Communication
Informal Communication is free from all the formalities
of formal communication. It is based on the informal
relationship among the members of the organisation. Informal
communication is usually oral and may be conveyed by a
simple gesture, glance, nod or smile. The informal relationship
that supplements the formal organisational relationship is
referred to as the ‘grapevine’. According to H.Koontz and
O’Donnel,
“the grapevine, of course, thrives on information not
openly available to the entire group, whether because it is
regarded as confidential, or because formal lines of communication
are inadequate to disperse it, or because it is of
the kind that would never be formally disclosed”.
Informal communications are made by members of the
organisation to transfer information both on the matters of
task related and non-task related. These communications are
free from any trappings of authority and status differentials.
Informal communications often serve as supplement to formal
communications. Managers and others may sometimes pass
on information informally which they would not like to
transfer formally for strategic and practical reasons.
II. Media Used:
On the basis of media used, communication can be
classified into four namely
1. Oral communication
2. Written Communication
3. Non-verbal Communication and
4. Audio-Visual Communication
1. Oral Communication
Oral communication refers to face to face
communication. It offers interchange of ideas at the personnel
level. There can be questions and answers . The sender and
receiver of the message are in direct contact. If the listener does
not understand the message, he can ask for a clarification or
raise questions and get the answers. If matters are to be conveyed
within an organisation, oral communication is considered as the
best as well as the cheapest method of communication.
Especially, it is of vital importance in handling difficult or
complicated situations.
Merits of Oral Communication
Merits of oral communication are as follows:
1. It is economical when compared to written
communication.
2. It is more flexible and can be effectively
combined with gesture and other expressions.
3. It is more effective on account of direct
contact between the communicator and
communicatee.
4. It leads to better understanding because
response to the message can be obtained on
the spot, and doubts, clarifications etc. Can
also be removed quickly.
5. It is faster and saves time.
Demerits of Oral Communication
Oral communication has certain demerits. They are:
1. It is not suitable in cases where the message
is long and complicated, when the audience
is large and when there is no need for
interaction.
2. It does not provide any record for future
reference.
3. It is time consuming and costly.
4. It cannot be used as a communication media
where people scattered over a wide area.
5. It can be irritating and wasteful when the
persons involved are poor in talking skills.
2. Written Communication
Written communication, on the other hand, is very wide
in its scope and covers entire paper work relating to all kinds of
transactions, agreements, proposals etc,. Infact, the main work
of any office is written communication. Written communication
though has a place inside the organisation, it is of paramount
importance in conveying messages to the external world. Though
modern devices such as telephone etc. have lessened the
dependence on writing, it still serves as the main channel for all
the business transactions. This is because, a written communication
can carry assurance of transactions, confirm the dealing
and form a reliable record for future reference. Besides, it is
the cheapest method of contacting the external world. Hence,
it saves money as well as time. Moreover, people place more
reliance in pen than in the tongue.
Merits of Written Communication:
There are certain obvious advantages in written
communication.
1. Letters or written communications can be kept
as a legal record.
2. They can be retained for purpose of future
reference.
3. They are formulated more carefully than oral
communication.
4. They can save money and time.
5. The written communication is used for all
practical purposes in every organisation.
Limitations of Written Communication:
A written communication, though has many points to its
credit, is not an unmixed blessing. It too has certain definite
limitations. It is not suitable under all circumstances. The
following are the situations in which a written communication
is unsuitable.
1. Complicated Matters:
Complicated or difficult matters cannot be handled
through written communication.
2. Confidential Matters :
Confidential matters cannot be reduced to writing
3. Instructions and Clarifications:
Instructions to a subordinate cab be best given orally
than in writhing. If the subordinate seeks any clarification,
he can get it at once.
4. Assessing the Reaction:
The reaction of the receiver can be best assessed only in a
face to face communication.
5. For Expressing the Feelings:
When two persons are talking, many matters can be said
expressly. But many matters are left unsaid or said by
implication i.e. understood. This is impossible through a written
communication.
3. Non-verbal Communication
All the communication that occurs in between the people
in an organisation may not be spoken, heard, written or read. In
other words, all the communication is not verbal. Some may be
non-verbal i. e. unwritten and unspoken. The most 5 important
aspect in communication is “to hear what is n’t being said”.
Sometimes , the non-verbal message also helps in carrying a
verbal message. E.g. smiling while greeting your colleague.
Mostly, non-verbal messages are spontaneous. However, it does
not mean that they are less important. Then on-verbal communication
includes the pitch and tone of the voices, body
movement, physical appearance, time, touch, space and territory.
The common types of non-verbal communication in business
are detailed as shown below.
1.Body Movement:
Body movement as a media of communication can be
discussed under three heads namely,
(i) Facial expression,
(ii) Gestures, and
(iii) Body stance.
i) Facial Expression:
Successful communicators use facial expression as a very
effective media of communication. The most expressive part of
human body is face-especially eyes. Eye contact and eye
movements tell a lot about a person. Hence, normally receiver
of oral communication give much attention to facial expression
while receiving the message. This is because it will give a lot
of information about the inner feelings of the communicatee,
which can’t be understood otherwise. However, if a subordinate
committed a serious mistake , executive may show anger on his
face. If this is the case the subordinates may feel very bad and
act indifferently. So most of the executives now -a - days learnt
to scold the subordinate with a feeling of concern for him. This
type of approach motivates the subordinates to improve their
work performance.
ii) Gestures:
Gesture is a motion of the body or limbs. It is an action
intended to express the idea of feeling or to enforce an argument.
Gesture includes hand and upper body movements. They
provide a lot of important information to face- to - face
conversations. They are used to reinforce your verbal message.
iii) Body stance:
Body stance is another form of non-other communication.
It includes posture of standing, placement of arms and legs,
distribution of weight etc. By seeing the standing position of a
person, one can understand whether he is interested in the talk
or feel very bore etc. For example, leaning slightly towards the
communicator would be taken as a sign of interest and
involvement in the talk, whereas leaning back might be taken as
a sign of boredom.
2. Physical Appearance:
Physical appearance of a person is important for creating
a good impression. This is because attractive people tend to be
seen as more intelligent and more likeable than unattractive
people are. So they can earn more. One can not change all of
his physical features. Some are changeable and others not.
However, understanding the importance of physical appearance
can help any body to emphasise their strong points.
One’s clothing, Jewellery, furnishings at home and office
provide information about their value, taste, status, age etc.
Hence, we should give due weightage to these aspects also to
get a good appearance.
3. Voice Qualities:
No one speaks in single tone i.e. in an unvaried pitch of
the voice. Voice qualities include volume, speed, pitch, tone,
and accent. They carry both intentional as well as unintentional
messages.
Based on the pitch of the voice, the circumstance when it
was conveyed etc., same sentence might carry different meanings.
For e. g. while answering the question who was late? Say you
were late, the emphasis is given to the word “you” i.e. the
answer here is you for the question who was late? Whereas while
responding to the other person’s denial of being late say you
were late, emphasis is given to “were”. However ,while stressing
how late the person was, say you were late emphasis is given
to the word “late”.
4. Space and Territory:
Different types of communication occur at different
distances. Competent communicators determine their own
personal space needs and those of others. They make the
necessary adjustments to facilitate achieving his objective while
communicating with people who prefer more or less space.
Edward T. Hall in his work, “The Hidden Dimension” has
stated that the psychologists have identified four zones within
which people interact.
i) Intimate Zone:
Intimate zone extends from physical contact to about 18
inches where all your body movements occur. This is the area
in which you move throughout the day. It is an area normally
reserved for close, intimate interactions. Business associates
typically enter this space infrequently and only briefly perhaps
to shake hands or pat someone on the back
ii) Personal Zone:
This Zone, extending from 18 inches to about 4 feet, is
where conversation with close friends and colleagues takes place.
Unlike inter action in the intimate zone, normal talking is the
frequent in the personal zone. Some, but not a great deal of,
business interaction occurs here. For example, business launches
typically occur in this zone.
.
iii) Social Zone:
Social zone extends from 4 feet to 12 feet. This is the
zone where most business exchanges occur. Informal business
conferences and staff meetings occur within this space.
iv) Public Zone :
The public zone extends from 12 feet to as far as the eye
can see and the ear can hear. This is the most formal zone, and
the least significant interactions occur here. Because of the great
distance, communication in the public zone is often one way, as
from a speaker to a large audience.
4. Audio- visual communication
Audio-visual communication uses the methods that
are seen and heard. It makes use of short films, slides, video
tapes, telecasts etc. Examples are small advertisement films, or
documentary films related to social issues etc. Screened just
before the main picture.
Audio-visual communication combines both sight and
sound to attract the attention of the communicatee. If it is of
only visual communication, people may just casually look at it
and forget afterwards. But if audio is also combined with visual
aids, the message conveyed will be retained much longer than
through other media. It is most suitable for mass publicity, propaganda
and mass education.
1:5 BARRIERS TO COMMUNICATION
Communications fail due to various reasons.
Sometimes, subordinates may not be receptive. Sometimes,
the superiors lack in their expression. Besides, some other
barriers may also come into operation. The various barriers to
communication can be discussed as below.
1. Perception:
An individual’s view of reality is known as perception.
Two individuals do not see things exactly alike. People differ
greatly in the way they perceive things and events. Even a single
individual has different perceptual styles depending on time and
circumstances.
Hodgetts say that, “the sender’s meaning and the
receiver’s interaction are not always identical, but it is not
necessary that they be so”. This is the basic barrier to
communication.
2. Semantic or Language Barriers:
Language serves as the basis for the communication. It is
the medium through which views are conveyed. Sender should
select the words and construct the sentences carefully. Words
that are used to convey messages have several meanings. The
sender selects the words as per his own frame of reference and
which he thinks will convey the meaning he proposes to
communicate. On the other hand, the receiver reads or listens to
the message and interprets it within his own frame of reference.
As people vary in their experience, knowledge of the language
etc., there is a possibility of semantic distortions. Thus, semantic
difficulties come in the way of clear understanding.
3. Perfunctory Attention:
If receiver pays very little attention to the message,
communication in the sense of transfer of information and
understanding will fail. When the employee is pre-occupied with
a number of problems, sender faces such problem. In this case,
employee should be made to keep away his problems and listen
to the message. If this is not done, he cannot proceed the
communication further.
4. Status:
One of the basic barriers to communication arises due to
status relationship that exits in every organisation. The superior
subordinate relationships in the organisational structure inhabit
free movement of information and understanding, exchange of
ideas, views etc.. Generally those who receive communication
judge the sender and naturally sender’s status has its own weight.
For e.g., any communication received from the management is
viewed as troublesome by trade unions; any message from
workers will be discounted by management etc.
5. Resistance to Change:
Generally, people resist changes. Resistance to changes
will be strong when the proposed change is great. Managers
should take all possible steps to overcome such resistance to
change. One method of overcoming resistance is explaining
the subordinates as to how they will be benefited by such changes.
6. Organisational Structure:
Effective communication depends greatly sound
organisational structure. If the organisational policies, rules and
procedures are not clear, smooth flow of communication cannot
be ensured. If the organisational structure has several layers of
management, it may result in delay and distortion in
communication. Lack of facilities that ensures effective
communication is another barrier that comes in the way of clear
understanding.
7. Premature Evaluation:
Premature evaluation refers to a tendency of forming a
judgement before listening to the message fully. Premature
evaluation misrepresents the message. Thus, it acts as a barrier
to effective communication.
8. Emotional Attitude:
Emotional attitude of the parties involved in the exchange
of information is another barrier to effective communication.
When an individual is emotional, he may not be able to know
the frame of mind of other person.
9. Failure to communicate:
Failure to communicate is a pervasive barrier to
communication. The communicator may be lazy or it may be
assumed that everything is known to all. Sometimes, failure to
communicate may also arise from an intention to embarrass the
receiver or from complexes like superiority, inferiority or due
to status difference, Communication also has no impact on those
who are not willing to listen / read the message.
10. Other Barriers:
Other barriers include faulty translation, badly expressed
messages, loss by transmission, lack of attention, unclarified
assumption, inadequate adjustment period and communication
distrust.
1:6 ESSENTIALS OF EFFECTIVE BUSINESS LETTER
All type of business letter must confirm to certain well
recognised principles and should possess certain essential
qualities. Business letters devoid of universally accepted
requisites will prove ineffective.
The essential of a business letter can be analysed under
the following heads.
(i) The structure of a business letter.
The structure of a business letter refers to the proper
arrangement of the various parts or the different elements of
a business letter. To give the letter the right look and to ensure
clarity and convenience, the letter should consist of the following
components.
1. The Heading.
2. The Date.
3. The Inside Address.
4. The Salutation.
5. The Body of the letter.
6. The complimentary Close.
7. The Signature.
Each of these part has a definite place and position in
all business letters.
1. The Heading
Almost all business firms use printed letterheads for their
correspondence. Generally, the name and the address are
printed on the top of the letterhead but it frequently gives
other particulars such as the description of business, the telephone
number, the telegraphic address, the telex number, Fax
number, E-mail address etc. The letterhead of the large concern
may give the addresses of its branches and that of a branch
may give the address of its head office. To give a balanced
appearance to the letter, nearly one fifth of the total space
should normally be used for the heading .

2. The date
This gives the date of the month and the year. It appears
on the right hand side of the letterhead about five spaces below
the heading. Some letterheads contain a printed line
indicating where the date should be typed. In England, the
usual method of indicating the date is to state it in original
numbers such as Ist March 2000. In U.S.A., it is usual to state
the numbers of month before the date in cardinal numbers
e.g. March 1, 2000. Some people omit the comma after the
date and the full stop after the year, but it is generally
considered correct to use them.
The practice of writing the date as 1-3-2008 or 1/3/2008
should be avoided because it would give rise to errors,
particularly in foreign correspondence. For example, in U.S.A.
1/3/2008 would been January 3rd, 2008 while in England and
in other Common Wealth Countries it would mean as 1st
March 2008.
3. The Inside Address
This gives the name and full address of the person, firm
or company to whom the letter is written. It is one of the
essential ingredients of the physical make up of the business
letter. It is generally typed two lines below the date line and
above the salutation on the left-hand margin of the letterhead.
Importance of Inside Address
The typing of inside address is highly useful in many
ways. They are:
1. This will provide the despatch clerk all the
particulars that are necessary for writing
the address on the envelope.
2. If window type envelops are used, the inside
address is a must.
3. Since it is also imprinted on the office copy
of the letter, it will be easy to identify the
number and the nature of the letters sent out
to specified parties.
4. The Salutation
The salutation is the similar to greeting like ‘good
morning”, “good day”, “good afternoon” etc. used by us in
social life. It is written about three spaces below the inside
address.
The form of salutation depends on the personal relation
between the writer and the address as well as upon the letter’s
rank or position.
The following are the usual forms used in business letters.
Sir, Dear Sir, Dear Sirs, Gentlemen, Dear Mr. Raveen,
Madam, Mesdames etc.
5. The Body of The Letter
This is the most important part of the letter. The ultimate
object of a business letter is to convey a message. The body
of the letter contains the principal message to be conveyed to
the other party. Hence the other parts, though necessary, are
only subordinates to the body of the letter. It is no exaggeration
to say that the whole of this book deals with the writing of the
body of different types of letters. Therefore, the writer should
take utmost care to set out the matter clearly. The matter
should be properly arranged and presented in a logical manner.
In this connection, Mr.L.Gartside suggests the
following points which the reader should always bear in his
mind.
1. Write simply, clearly, politely, grammatically
and to the point.
2. Paragraph correctly confining each
paragraph to one topic.
3. Avoid stereo typed phrases and commercials.
6. The Complementary Close or Subscription
The complementary close is merely a courteous leave
taking. In other words, it is merely a polite way of ending a
letter. It is like the salutation, conventional in form and
meaning. A letter without a close or an appropriate close is
vulgar and ineffective.
The complementary close is written three spaces below
the last line of the body of the letter and just above the
signature.
7. The signature
The signature follows immediately after the
complementary close. It is usually written in black ink.
Facsimiles can be used only in case of circular letters.
Since the letter binds the signatory, the signature has
assumed great importance. A person may sign in different
letters in different capacities. Therefore, the signatory
should clearly indicate the capacity in which he signs. For
instance, if the person signs in his individual capacity, his
signature does not bid the firm.
If he signs as a representative of the firm, he is not
personally liable. Therefore, care should be taken while
signing the letter.
1:7 THE LAY-OUT AND DESIGN OF A BUSINESS
LETTER
The overall arrangement and appearance of the different
parts of a letter is called its lay-out. It refers to the
arrangement of the various parts of a finished letter and to the
neatness and spacing of the written matter.
With the advent of computers in almost all offices, the
computer itself does the job of a suitable format and alignment
proportionate to the matter therein were the conventional layout
refers to-
(i) Arrangement of a letter proper on paper.
The arrangement of the typed area on the sheet of paper
should look good. As a rule, the body of the letter is expected
to start two spaces below the salutation and end two spaces
above complimentary close. The body should be aligned on
the right hand side with the first line of the inside address of
the person to whom the letter is written.
(ii) Margins.
The right hand and left hand margins should be of nearly
equal width, even though the former may be a little wider
than the latter. The margin should not be less than an inch
wide, in any case. However, an inch and a half is generally
preferred. The margins on the sides should be about 2/3rd as
wide as those at the top and the bottom in order to see that the
letter looks well spaced.
(iii) Spacing.
It is better to use single spacing between the lines, with
double spacing between the paragraphs. However, if the letter
is short, double-spacing may be used throughout, with the
first line of each paragraph indented to indicate the necessary
divisions.
(iv) Forms of Indentions.
We come across four ways in which letters are typed
and indented. (a) Block or straight edged form; (b) Indented
or stepped-inform; (c) Semi-blocked or combination form; (d)
Hanging indention form. Of these the first three are more
popular than the last.
(a) Block or Straight-Edged Form
It is the most popular form used at present. Indention
is avoided. The introductory address, salutation and body
paragraphs are aligned right from between the paragraphs
which are indented.
This is the most symmetic form. It saves time for the
typist as there is no need to shift the carriage of the typewriter
too often.
(b) Semi-Block or Combination Form
This form of lay-out is combination of the Block and
Indented forms. The heading and the inside address are in
Block form while the initial line of each paragraph of the text
is indented five to ten spaces. This enables to identify clearly
the separated paragraphs of the letter.
Both these forms are usually accompanied by open
punctuation, i.e., no terminal marks punctuate the lines of the
heading and those of the inside address.
(c) Indented or Stepped-in Form
Here the lines of the inside address and the opening
line of each paragraph begin a few spaces away from the
margin. The lines of the inside address are indented five
spaces to the right of the first letter of the preceding line above.
Close punctuation is adopted in this form. There is a mark of
punctuation for each line of the inside address.
The full-stops are marked at the end of the last line of the
letter-head and the inside address. The intervening lines of
both are followed by commas.
(d) Hanging Indention Form
In this form the inside address and the salutation are
typed in BlockForm. The first-line of each paragraph in the
body of the letter commences right at the left-hand margin
but the subsequent lines are indented five or more spaces.
Single spacing is used between the lines with double spacing
between the paragraphs. This form is not much used.
However, it is favoured in sales letters to draw the attention
of the customers. It is suitable for letters of a very informal
character that can stand novelty.
1:8 KINDS OF BUSINESS LETTERS
In every business concern, Letters have to be
drafted and sent to the customers on various occasions.
Therefore, business letters depending on the occasion in which
they are sent can be classified as under;
1. Letters of inquiry seeking information about the
required grades and replies.
2. Offers and acceptance.
3. Orders and their execution
4. Credit and status enquiry
5. Claims and adjustments.
6. Collection letters.
7. Circular letters.
8. Sales letters.
9. Banking correspondence
10. Insurance correspondence
11. Export and import correspondence
12. Agency correspondence
13. Transport correspondence
14. Secretarial correspondence
15. Correspondence with the Government
16. Public relations letters.
The above classification is purely a matter of convenience.
The techniques of drafting these letters will be
discussed in subsequent chapters.
SELF- ASSESSMENT QUESTIONS
Answer the following questions
1. Communication is an exchange of __________ by two
or more persons.
2 Face - to - face Communication becomes more effective
if accompanied with appropriate body language.
True / False
3. Match the following
1.Written communication - a. accurate
2. Oral communication - b. Permanent record
3. Information must be - c. Immediate feed back
1:9 SUMMARY
Communication is a process whereby one person or one
group conveys some information to another person or to
another social group. Formal communication takes place via
formal channels of the organisational structure established
by the management. Informal Communication is free from all
the formalities of formal communication. Communications fail
due to various reasons is called barriers to communication. The
essential of a business letter is to be analyses throughly in the
end portion of this chpater.
UNIT QUESTIONS
1. Define communication.
2. What are the objectives of communication?
3. What are the process of Business Communication?
4. Name the various methods of business communication.
5. What are the advantages and disadvantages of oral,
written communication?
6. State the main barriers to communication.
7. Is communication essential to business?
8. List out the kinds of business letters.
9. Explain the layout of good Business letter.
10. Explain the various essential of a good business letter.
RECOMMENDATION FOR FURTHER READINGS
1. Business communication - M.S. Ramesh,
CC.Palkan shethi,
Madhumati,
2. Business communication
& Customer Relations - Dr. C. B. Gupta
3. Business communication - Kathiresan & P.R. Radha
4. Essentials of Business
communication - Rajendra pal,
J.S.Korcahalli
ANSWERS OF SELF- ASSESSMENTS QUESTIONS:
1. Facts, ideas, opinions, or emotions.
2. True
3. 1-b, 2-c, 3-a

PARTNERSHIP DISSOLUTION

LESSON – 12
PARTNERSHIP DISSOLUTION
OBJECTIVES
After studying this chapter, you should be able to understand:
• Explain the meaning of dissolution.
• Distinguish between dissolution of firm and dissolution of partnership
• Explain the different modes of dissolution
• Understand the procedure for closing the books of the firm
STRUCTURE
12.1 Introduction
12.2 Differences between Dissolution of partnership & Dissolution of a firm
12.3 Settlement of Accounts
12.4 Preparation of Accounts
12.5 Insolvency of Partner and All Partner Insolvent
12.6 Piece-meal Distribution
Unit Questions.
12.1. INTRODUCTION
The term dissolution stands for discontinuation. This may lead to dissolution of partnership or dissolution of firm. In dissolution of partnership, change in partnership relation takes place. The firm continues its business. In the case of dissolution of firm the dissolution of partnership between all the partners of the firm and termination of the firm’s business take place.

12.2. DIFFERENCES BETWEEN DISSOLUTION OF PARTNERSHIP AND DISSOLUTION OF FIRM
Continuation of Business. In the firm dissolution business ceases to exist but in partnership dissolution the business of the firm is continued.
Partnership Relationship. In the dissolution partnership among partners does not exist. Partnership among partners does exist in partnership dissolution.
Scope. Dissolution of firm implies dissolution of partnership whereas the reverse is not so, i.e., dissolution of partnership does not necessarily mean the dissolution of firm.
CIRCUMSTANCES UNDER WHICH A FIRM IS DISSOLVED
Dissolution by mutual agreement.
Dissolution due to the happening of contingencies.
Dissolution by notice in the case of partnership at will.
Dissolution by court.
CIRCUMSTANCES FOR THE DISSOLUTION OF PARTNERSHIP
Admission of a partner
Retirement of a partner
Death of a partner
Insolvency of a partner
On removal of a partner
Change in the profit-sharing ratio.
12.3. SETTLEMENT OF ACCOUNTS
Regarding the settlement of accounts partnership deed may specify explicitly. If it is not specified in the partnership deed then settlement is to be made on the lines specified below in accordance with provisions of Partnership Act. The act specified two important points:
Treatment of losses, and
Application of assets.
Treatment of Losses. Losses including deficiencies of capital are to paid in the following order:
First out of Profit
Then out of capital
Lastly by partners individually in their profit-sharing ratio.
Application of Assets. Assets of the firm shall be applied in the following manner and order.
In paying firm’s debts to third parties
In paying to each partner, what is due to him on account of advances.
In paying to each partner, which is due to him on account of capital.
The residue, if any, shall be divided among the partners in their profit-sharing ratio.
DIFFERENCES BETWEEN REVALUATION AND REALISATION ACCOUNT
Meaning. Revaluation account is prepared to record the revaluation of assets and liabilities but Realisation account is prepared to record the realization of assets and discharge of liabilities.
Purpose. Revaluation account is prepared to know the profit/loss due to revaluation while realization account is prepared to determine the profit/loss due to realization.
Time of Preparation. Revaluation account is prepared at the time of reconstitution of partnership (admission, retirement/death), whereas realization account is prepared at the time of dissolution.
Recording: Only Revaluation Account only revaluation of assets and liabilities are recorded and in Realisation Account both book values and realisation values are recorded to close down the assets and liabilities.
PROCEDURE
Transfer all assets and liabilities other than cash, capital and reserves to the Realisation A/c at book value.
Open cash, capital and Reserve accounts separately.
Post all the adjustments twice.
Transfer the balance in the P&L A/c and Reserve A/c to the Partners’ Capital A/c in the profit-sharing ratio.
Transfer the balance in the Capital A/c to Cash A/c
All accounts will close.
12.4. PREPARATION OF ACCOUNTS
For dissolution, the accounts to be prepared are: (a) Realisation A/c, (b) Partner’s Capital Account, (c) Cash account or Bank account.
Journal Entries
Realisation A/c Dr.
To Sundry Assets A/c
(For closing all assets at book value except cash or bank balance)
Sundry Liabilities A/c Dr.
To Realisation A/c
(For closing all liabilities at book values except cash, capital and reserves)
Cash A/c Dr.
To Realisation A/c
(For the actual amount realised on sale of assets)
Partners’ Capital A/c Dr.
To Realisation A/c
(For the agreed value of assets taken over by partners)
Realisation A/c Dr.
To Cash A/c
(For payment of liabilities)
Realisation A/c Dr.
To Partners Capital A/c
(For payment of liabilities by a partner)
Realisation A/c Dr.
To Cash A/c
(For expenses of realization)
Partners Capital A/c Dr.
To Cash A/c
(For when a partner is to bear the expenses of realisation)
Realisation A/c Dr.
To Partners’ Capital A/c
(For transferring the profit on realisation to Partners’ Capital A/c.
For loss a reverse entry will be passed)
Partners’ Capital A/c Dr.
To Cash A/c
(For paying the amount due to the partner)
Cash A/c Dr.
To Partners’ Capital A/c
(For the amount received from the partner)
Example 1:
A,B and C sharing profits in the proportion of 3:2:1 agreed upon dissolution of their partnership firm on 31.3.1990 and its balance sheet was as under:
BALANCE SHEET
Liabilities Rs. Assets Rs.
Creditors
Joint Life Policy Reserve
Investment Flutuation Reserve
Capital:
A
B
Mrs. A Loan 18,500
14,000
6,000

40,000
20,000
10,000 Cash at Bank
Debtors 9,300
Less: Provision 600

Stock
Investment (Cost)
C’s Current Account
Machinery
Joint Life Policy 5,420


8,700
7,550
20,830
11,500
40,500
14,000
1,08,500 1,08,500

The life policy is surrendered for Rs. 12,000. The investments are taken over by A for Rs.17,500. A agrees to discharges his wife loan. B taken over all the stock at Rs.7,000 and debtors amounting Rs.5,000 at Rs.4,000. Machinery is sold for Rs.55,000. The remaining debtors realize 50% the book value. The expense of realization amount to Rs.600.
It is found that an investment not recorded in the books is worth Rs.3,000. The same is taken over by one of the creditors at this value.
Show the necessary ledger accounts including the Final Accounts of the partners on completion of the dissolution of the firm.
Solution.
Dr REALISATION A/c Cr.
Particulars Rs. Particulars Rs.
To Machinery
To Stock
To Investments
To JLP
To Debtors
To Cash Expenses
To A’s Capital(Wife loan)
To Cash (Drs.18,500-3,000)
To Capital A/c:
A
B
C 40,500
7,550
20,830
14,000
9,300
600
10,000
15,500

14,235
9,490
4,745 By Creditors
By JLP Reserve
By Investment Fluctuation Res.
By RDD
By Mrs. A’s Loan A/c
By Cash (JLP)
By Cash(Machinery+Debtors)
By A’s Capital A/c(Investment)
By B’s Capital A/c(7,000+4,000) 18,500
14,000
6,000
600
10,000
12,000
57,150
17,500
11,000
1,46,750 1,46,750

Dr. PARTNERS’ CAPITAL A/cs Cr.
Particulars A
Rs. B
Rs. C
Rs. Particulars A
Rs. B
Rs. C
Rs.
To Balance
To Realisation
To Cash A/c -
17,500
46,735 -
11,000
18,490 11,500
-
- By Balance
By Realisation
By Realisation
By Cash 40,000
14,235
10,000
- 20,000
9,490
-
- -
4,475
-
6,755
64,235 29,490 11,500 64,235 29,490 11,500

Dr. CASH A/c Cr.
To Balance
To Realisation A/c
To Realisation A/c
To C’s Capital A/c 5,420
12,000
57,150
6,755 By Realisation (Expenses)
By Realisation(Crs.)
By A’s Capital A/c
By B’s Capital A/c 600
15,500
46,735
18,490
81,325 81,325

12.5. INSOLVENCY OF A PARTNER
PROCEDURE
Find out the loss on realization and transfer it to Partners Capital A/cs in the profit-sharing ratio.
Make the solvent partners bring in cash equal to their share of realization loss.
Find out the deficiency in the Insolvent Partner’s Capital A/c to the Solvent Partner’s Capital A/c according to the rule in Garner Vs. Murray.
RULE IN GARNER VS. MURRAY
Partnership arises on the basis of contract between the partners. The Contract Act prescribes the qualification for contract. An insolvent loses his contractual capacity when he is declared insolvent. Prior to 1904 an important decision was given in the case of Garner Vs. Murray on this point. The facts in the case of Garner Vs. Murray were:
There were three equal partners Garner, Murray, Wilkins.
Capital of all the partners were not equal
Wilkins became insolvent and the firm was dissolved
He was unable to pay anything
Murray took objection to the point that the loss due to the firm on account of insolvency is capital loss and that it should be shared in capital ratio.
Justice Joyce came out with the following striking decisions. The implications of the decision were:
Solvent partners must bring in cash equal to their share of realization loss
Deficiency in the Insolvent Partner’s Capital account is to be shared by the solvent partners in the ratio of their capitals as stood on the day of the dissolution. i.e., in the ratio of their capitals adjusted for Reserve and P&L A/c given in the opening balance sheet.
When the capitals are fixed, the deficiency in the Insolvent Partner’s Capital A/c will be transferred to the Solvent Partners Capital A/c in the opening capital ratio.
CRITICISMS OF GARNER VS. MURRAY
There are two important criticisms regarding this rule. They are:
a) The solvent partners are to introduce cash first to meet the realization loss and then introduce cash for meeting the loss due to insolvency.
b) Solvent partners with surplus capital alone are to meet the insolvency loss. This will induce the solvent partners to reduce their capital to nil or to make it as negative balances.
Steps in insolvency are:
1. Preparation of Realisation account.
2. Capital accounts of Partners
3. Cash account or Bank account
Applicability of Garner vs. Murray in India
There is nothing which prevents to assume that the decision in Garner vs. Murray will also apply to India on the following grounds:
a) Section 48 of Indian Partership Act is almost a copy of Section 44 of British Partnership Act upon shich the decision in Garner vs. Murray is based.
b) Secondly, there has been no case law in India which has examined this issue.
JOURNAL ENTRIES
a) Realisation A/c Dr.
To Sundry Assets
(For closing all assets at book value except cash or bank balance)
b) Sundry Liabilities A/c Dr.
To Realisation A/c
(For Closing all liabilities at book value except cash, capital and reserves)
c) Cash A/c Dr.
To Realisation A/c
(Actual amount realised on sale of assets)
d) Partners Capital A/c Dr.
To Realisation A/c
(For the agreed value of assets taken over by partners)
e) Realisation A/c Dr.
To Cash A/c
(For payment of liabilities)
f) Realisation A/c Dr.
To Partners Capital A/c
(For payment of liabilities by a partner)
g) Realisation A/c Dr.
To Cash A/c
(For expenses of realisation)
h) Partner’s Capital A/c Dr.
To Cash A/c
(For a partner is to bear the expenses of realisation)
i) Partners Capital A/c Dr.
To Realisation A/c
(For the loss on realization and transfer it to Partners Capital A/c in the profit-sharing ratio)
j) Cash A/c Dr.
To Solvent Partner’s Capital A/c
(For the cash brought in by the solvent partners equal to their share of realization loss)
k) Solvent Partner’s Capital A/c Dr.
To Insolvent Partner’s Capital A/c
(For transferring the deficiency in the Insolvent Partner’s Capital A/c to
solvent partners capital account according to the rule in Garner Vs. Murray)
l) Transfer the Balance in the Solvent Partners Capital A/c Dr.
To Cash A/c
m) All accounts will close.
Example 2:
The positions of A, B and C on June 30, 2002 was as follows:
Liabilities Rs. Assets Rs.
Creditors
A’s Loan
A’s Capital A/c
B’S Capital A/c
P& L A/c 63,000
40,000
64,000
36,000
70,000 Cash
Assets
C’s Capital A/c 25,000
1,70,000
78,000
2,73,000 2,73,000
Profit and losses are shared-A 18/35; B 7/35; and C 10/35. The firm is dissolved on the above date. Sundry assets realize Rs.1,40,000. Sundry creditors are paid Rs.60,000 in full settlement. Expenses amount to Rs.8,000. C is insolvent. Assume the capital are not fixed. Close the books of the firm.
Solution.
Dr. REALISATION A/c Cr.
Rs. Rs.
To Sundry Assets
To Cash (Sundry creditors)
To Cash (Expenses) 1,70,000
60,000
8,000 By Sundry Creditors
By Cash (Sundry assets)
By Loss transferred to Capital A/cs:
A
B
C 63,000
1,40,000



18,000
7,000
10,000
2,38,000 2,38,000

Dr. CASH A/c Cr.
Rs. Rs.
To Balance b/d
To Realisation (Sundry Assets)
To A’s Capital A/c(Loss on realn.)
To B’s Capital A/c(Loss on realn.) 25,000
1,40,000
18,000

7,000 By Realisation A/c (Creditors)
By A’s Loan Account
By Realisation A/c(Expenses)
By A’s Capital A/c(Settlement)
By B’s Capital A/c(Settlement) 60,000
40,000
8,000
54,670

27,330
1,90,000 1,90,000

Dr. CAPITAL A/cs Cr.
Particulars A
Rs. B
Rs. C
Rs. Particulars A
Rs. B
Rs. C
Rs.
To Balance
To Realisation Loss
To C’s Capital Deficiency
To Cash
18,000
45,330
54,670
7,000
22,670
27,330 78,000
10,000 By Balance b/d
By P&L A/c (Profit)
By Cash (Loss)

By A’s Capital A/c
By B’s Capital A/c 64,000
36,000
18,000 36,000
14,000
7,000
20,000


45,330
22,670
1,18,000 57,000 88,000 1,18,000 57,000 88,000
12.6. PIECEMEAL DISTRIBUTION
At the time of dissolution, all the assets are realised and liabilities are paid. Hence, it is assumed that all the assets are realised on the date of dissolution. But, in reality, it is not possible to realize all the assets at the same time. Depending on the type of assets, whether current or fixed, the realisation of the same takes some time, i.e., the assets are realised gradually and not at once. However, the available cash, as and when the assets are realised, is used in the order of paying the realisation expenses, outsiders’ liabilities, partners’ loan and finally the partners capital.
If a liability is having any charge over any assets, then the cash realised through the sale of such asset is first used for paying of the liability. If the asset is not having any charge, then the cash realised through the sale of such asset is used for paying all the liabilities. While setting the accounts, after paying the outsiders’ liabilities, the internal liabilities (i.e., partners capital)are paid as and when any asset is realised, without waiting for realisation of all assets.
Piecemeal distribution literally means distribution of available cash immediately on realisation without waiting for the realisation of entire assets.
PROCEDURE
When assets realise gradually all the liabilities cannot be paid on one day. The procedure is pay the external liabilities:
First in the ratio of amount outstanding.
The balance must be utilised to pay off internal loans in the ratio of amount outstanding.
Finally, if there is any balance that will be distributed among Partners Capital A/c under:
(a) Proportionate capital method, or
(b) Maximum loss method.
PROPORTIONATE CAPITAL METHOD
The capitals of the partners will be compared with their respective profit-sharing ratio. Any partner who has contributed in excess of his profit-sharing proportion will be paid first. So that the capitals are brought in the profit-sharing ratio. Finally, the balance outstanding will be loss of partners which will be in the profit-sharing ratio. This method is suitable when the following conditions are satisfied:
(a) Partners’ profit-sharing ratio is not as per their capital contribution.
(b) All the partners are solvent and are likely to remain so.
The steps involved are:
(1) Adjust the capital by adding up capital, current account and reserve. Divide adjusted capital of each partner by his profit-sharing ratio. The smallest quotient should be taken as base capital.
(2) Multiply base capital and profit-sharing ratio of each partner to calculate relative capital.
(3) Calculate the surplus capital by deducting relative capital(as per step 2) from adjusted capital of each partner.
(4) Divide the surplus capital in step 3 by profit-sharing ratio of each partner. The smallest quotient should be taken as revised base capital.
(5) Calculate relative by multiplying revised base capital and profit-sharing ratio.
(6) Deduct revised base capital from surplus capital to arrive at absolute surplus.
MAXIMUM LOSS METHOD
After paying external liabilities and partner’s loan find the cash available for distribution among the partners capital. Deduct from the total capital the amount available. The balance will be maximum loss (assuming no more realisation) which will be distributed in the profit- sharing ratio. The amount due minus the maximum loss will be the amount paid to the partners. The same procedure will be continued, every time when a realisation is made. The final balance will be maximum loss of partners, which will be in the profit - sharing ratio.
In maximum loss method the points to be considered are:
(1) Cash in hand is to be considered as the first realisation.
(2) For calculating capital ratio adjustment is to be made by adding capital balance share of reserve and profit when capitals are fluctuating. In case of fixed capital no adjustments is required.
Section – C
Example 3:
Following is the Balance Sheet of M/s Amir, Bakshi and Chander who share profits and losses in the ratio of 2:2:1.
Liabilities Rs. Assets Rs.
Sundry creditors
Capitals:
Amir
Bakshi
Chander 30,000

30,000
24,000
8,000 Cash in Hand
Sundry Debtors
Stock
Furniture
4,000
24,000
44,000
20,000

92,000 92,000

The firm was dissolved and the assets were realised gradually; Rs.20,000 was received once, Rs.30,000 another time and Rs.18,000 finally. Show how each instalments is to be distributed under Proportionate Capital Method.
Solution.
DISTRIBUTION OF CASH UNDER PROPORTIONATE CAPITAL METHOD
Creditors
Rs. Amir
Rs. Bakshi
Rs. Chandar
Rs.
Balance
Cash given to Creditors

I Instalment: Rs.20,000 to creditors

II Instalment: Rs.30,000
(Rs.6,000 to Cr. and Rs.6,000 to Amir)

Rs.8,000 TO Amir and Rs.8,000 to Bakshi
(to make their capital in the profit-sharing ratio)

Balance 2,000 to all partners(2:2:1)

III Instalment:18,000 to all partners(2:2:1)
Loss 30,000
4,000
26,000
20,000
6,000
6,000
NIL


30,000

30,000
______
30,000
6,000
24,000


8,000
16,000
800
15,200

7,200
8,000 24,000

24,000
______
24,000
______
24,000


8,000
16,000
800
15,200

7,200
8,000 8,000

8,000
_____
8,000
_____
8,000


_______
8,000
400
7,600

3,600
4,000
Example 4:
Kamala, Vimala and Kokila were sharing profit and losses in the ratio of 3:2:1. They decided to dissolve
the firm on 30th June 1996. Their balance sheet as on that date was as under:
BALANCE SHEET
Liabilities Rs. Assets Rs.
Creditors
Capital Accounts:
Kamala
Vimala
kokila 35,000

25,000
25,000
15,000 Fixed Assets
Current Assets 60,000
40,000
1,00,000 1,00,000
All the assets were realised Rs.85,000. That amount realised in first instalment Rs.35,000, in second instalment Rs.25,000 and in third instalment Rs.25,000. Prepare the statement showing distribution of cash under maximum loss method.
Solution.
Particulars Total
Rs. Creditors
Rs. Kamala
Rs. Vimala
Rs. Kokila
Rs.
Balance Outstanding
I Instalment Rs.35,000
Balance Outstanding
II Instalment Rs.25,000
(65,000-25,000=40,000)(3:2:1)
Cash Paid
Balance Outstanding 1
Cash paid 2
Balance Outstanding (1-2)
III Instalment Rs.25,000
(40,000-25,000=15,000)(3:2:1)
Cash Paid 3
Balance Outstanding
Cash Paid 3
Balance Outstanding* [(1-2)-3] 1,00,000
35,000
65,000
40,000
______
25,000
65,000
25,000
40,000
15,000

25,000
40,000
25,000
15,000 35,000
35,000
0


______
0 25,000
-
25,000
20,000
______
5,000
25,000
5,000
20,000
7,500

12,500
20,000
12,500
7,500 25,000
-
25,000
13,333
______
11,667
25,000
11,667
13,333
5000

8,333
13,333
8,333
5,000 15,000
-
15,000
6,667
_____
8,333
15,000
8,333
6,667
2,500

4,167
6,667
4,167
2,500
Balance unpaid (loss on realisation)

Example
Ram, Shyam and Madan share profits and losses in the ratio of 4:2:1. They decide to dissolve the partnership their balance sheet on the date of dissolution being as follows:
BALANCE SHEET
Liabilities Rs. Assets Rs.
Creditors
Bank Overdraft
General Reserve
Capital Accounts:
Ram
Shyam
Madan 5,700
16,250
9,450

40,000
80,000
65,000 Land and Building
Plant and Machinery
Furniture
Investments
Stock
Debtors
Cash 95,720
16,300
2,460
15,000
64,150
22,700
70
2,16,400 2,16,400
The partners also decide that after the creditors have all been paid and providing a sum of Rs.1,200 to meet probable expenses of realisation, all cash should immediately be divided among them. The assets realised as follows:
Realisation 1-15,360; 2-18,400;3-96,399;4-56,300. Expenses of realisation amounted to Rs.1,132. Prepare a statement showing in detail how cash should be distributed among the partners.
Solution:
Particulars Creditors
Rs. Bank loan
Rs. Ram
Rs. Shyam
Rs. Madan
Rs.
Amount due
I Realisation 15,360+70-1,200=14,230
(ratio 5,700:16,250)
Balance Due
II Realisation Rs.18,400
Balance in II Realisation
(18,400-7,720)Rs.10,680
Max. loss=1,94,450-10,680=1,83,770
(in the ratio of 4:2:1)

Deficiency of Ram tfr to others in the ratio of 82,700:66,350

Deficiency of Shyam tfr to Madan
Cash Paid
Balance outstanding
III Realisation Rs.96,366(ratio 4:2:1)
Max. loss=1,83,770-96,399=87,371

Deficiency tfr to other partners-4,526 in
capital ratio
Cash paid
Balance outstanding
IV Realisation 56,300+62=56,362
Max. loss=87,371-56,362=31,003
(ratio 4:2:1)
Cash paid
Unpaid amount 5,700
3,695
2,005
2,005
0 16,250
10,535
5,715
5,715
0 45,100*




45,400
1,05,011
-59,611

+59,611
0
0
0
45,400
-49,926

-4,526
+4,526
0
45,400
-17,716


27,684
17,716 82,700




82,700
52,506
30,194

-33,075
-2,881
+2,881
0
82,700
-24,963

57,737
-2,511
55,226
27,474
-8,858


18,616
8,858 66,350




66,350
26,253
40,097

-26,536
13,561
-2,881
10,680
55,670
-12,482

43,188
-2,015
41,173
14,497
-4,429


10,068
4,429

Unit Questions:
1. What is dissolution of a firm? Distinguish between dissolution of partnership and dissolution of a firm.
2. Discuss the circumstances in which partnership is dissolved and a firm is dissolved.
3. The following was the balance sheet of A and B as at Dec. 31st 2001:
Liabilities Rs. Assets Rs.
Creditors
A’s Loan
General Reserve
Capitals:
A 30,000
B 25,000 20,000
10,000
10,000



55,000 Plant
Patent
Stock
Debtors 19,000
Less: Provision for Bad Debts 1,000

Cash 40,000
6,000
25,000


18,000
6,000
95,000 95,000
A and B shared profits in the ratio of 3:2. On 1st January, 2002, the firm was dissolved. A took over the patents at a valuation of Rs.5,000. The other assets realised as under:
Goodwill – Rs.15,000; Plant – Rs.30,000; Stock – Rs.22,000; Debtors – Rs.18,500.
The sundry creditors were paid off at a discount of 5%. The expenses of realisation came to Rs,3,500. Prepare the necessary Ledger Accounts to close the books of the firm.
4. Aki, Bki and Cki were partners in a firm. They shared profits and losses: Aki 40% Bki 30% and Cki 30%. The firm was dissolved and Bki was appointed to realise the assets and distribute the proceeds. Bki is to receive 5% commission on the amounts realised from sale of assets and to bear all expenses of realisation.
The balance sheet on the date of dissolution was as under:
Liabilities Rs. Assets Rs.
Creditors
Aki’s Capital A/c
Bki’s Capital A/c 59,000
30,000
20,000 Cash
Debtors 45,000
Less: Provision 2,500

Stock
Cki’s Capital o/d 1,500


43,000
60,000
4,500
1,09,000 1,09,000
Debtors realised Rs.35,000. Stock Rs. 45,000. Goodwill Rs.2,000. Creditors were paid Rs.57,500 in full settlement. In addition, outstanding creditors, Rs.500 were also paid. The expenses amounted to Rs.600. Aki and Bki agreed to receive Rs.3,000 in full settlement from Cki.
Show the Realisation A/c, Cash A/c and Capital A/cs of the partners.
5. Mani, Ramu and Sethu are partners sharing profits and losses in the ratio of 3:4:5. They decided to dissolve the firm on 1-7-1989. They decided to realise the assets gradually. Payments to be made as and when assets are realised.
The Balance sheet of the firm on 1-7-1989 is given below:
Liabilities Rs. Assets Rs.
Creditors
Ramu’s Loan A/c
Capitals:
Ramu
Mani
Sethu 10,000
2,000

8,000
12,000
4,000 Sundry Assets 36,000
36,000 36,000
The realisation of assets was as follows:
I instalment Rs.5,000, II instalment Rs.10,000, III instalment Rs,5,100, IV instalment Rs.6,300, V instalment Rs.5,700.
Prepare a detailed statement showing distribution of cash.
[Ans. II instalment Mani gets Rs.3,000; III instalment mani gets Rs.3,450, Ramu gets Rs. 1,650; IV instalment both Mani and Ramu gets Rs.3150 each; V instalment Mani gets Rs.1,425; Ramu gets Rs.1,900, Sethu gets Rs.2,375]






SUGGESTED READINGS:
1. FINANCIAL ACCOUNTING – R.L. GUPTA & V.K. GUPTA
2. FINANCIAL ACCOUNTING – T.S. REDDY & A. MURTHY
3. FINANCIAL ACCOUNTING – S. SANTHANA GOPALAN & P. PARTHASARATHY
4. FINANCIAL ACCOUNTING – Dr. S. GANESAN & S.R. KALAVATHI