Accounting Questions

Identify the true statement in respect of the Fixed Capital Method for a Partnership Firm:

Under the fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners.Which among the following is NOT a feature of the fixed capital method?

J and K are partners sharing profits and losses in the ratio of $3:1$. Their capitals at the end of the financial year 2024-2025 were Rs. $1,50,000$ and Rs. $75,000$ respectively. During the year 2024-2025, J’s drawings were Rs. $20,000$ and the drawings of K were Rs. $5,000$, which had been duly debited to partner’s capital accounts. Profit before charging interest on capital for the year was Rs. $16,000$. The same had also been credited in their profit sharing ratio. K had brought additional capital of Rs. $16,000$ on October 1, 2024. Calculate interest on capital @ $12\%$ p.a. for the year 2024-2025 for J.

In the case of dissolution of a partnership firm, unrecorded liabilities when paid are shown in:

Identify the true statement in respect of a partnership firm:

Match List-I with List-IIList-IList-II(A) Bank (fresh capital introduced)(I) Debit side of Partner's Current Account(B) Interest on drawings(II) Debit side of Partner's Capital Account(C) Bank (permanent withdrawal of capital)(III) Credit side of Partner's Current Account(D) Commission(IV) Credit side of Partner's Capital AccountChoose the correct answer from the options given below:

Which of the following statements relates to the Fixed Capital Method?(A) The capitals of the partners shall remain fixed unless additional capital is introduced or capital is withdrawn.(B) All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in Partner's Current Account.(C) The partners' capital accounts will always show a debit balance.(D) The partners' current account may show a debit or a credit balance.Choose the correct answer from the options given below:

Which Act empowers the Central Government to prescribe a maximum number of partners in a partnership firm?

Identify the steps involved in the accounting treatment in the case of dissolution of a firm:(A) Capital accounts of partners are prepared and their final settlement is done.(B) The balance of realisation account (profit or loss on realization) is transferred to partners' capital accounts in the profit sharing ratio.(C) All assets and all external liabilities are transferred to the realisation account.(D) Realisation account is prepared.(E) Bank account is prepared.Choose the correct answer from the options given below:

Anubha looked after the dissolution work for a remuneration of Rs. $8,500$ and agreed to bear dissolution expenses up to Rs. $6,000$. Actual expenses paid by her were Rs. $7,600$. In this case:(A) Realisation A/c is debited by Rs. $10,100$ (B) Anubha's Capital A/c is credited by Rs. $9,600$.(C) Realisation A/c is debited by Rs. $13,600$.(D) Anubha's Capital is credited by Rs. $10,100$.Choose the correct answer from the options given below:

At the time of dissolution of a firm, the Loan from a Partner Account should be:

The order to be followed in preparation of a realization account is:(A) Realization of the assets.(B) Transfer assets and liabilities to realization account.(C) Ascertainment of profit or loss on realization.(D) Payment of liabilities.Choose the correct answer from the options given below:

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm.Which among the following is NOT shown in the Profit and Loss Appropriation Account?