Partnership Questions

Identify that account to which share of profit of a deceased partner is debited from the date of the last Balance Sheet to the date of his/her death (assuming no change in profit sharing ratio of remaining partners).

Which combination of the given statements is correct regarding the dissolution of a partnership and a firm?(A) Dissolution of a partnership is fundamentally different from the dissolution of a firm.(B) A partnership is dissolved when a partner dies.(C) A firm is dissolved when all partners give their consent to dissolve it.(D) A firm is compulsorily dissolved when any single partner decides to retire.Choose the correct answer from the options given below:

Case StudyRead the following information to answer.Arun and Ram are partners in a restaurant business sharing profits and losses in capital ratio. Their fixed capital from the beginning of the firm was Rs. $2,00,000$ and Rs. $1,50,000$ respectively.The profit for the year ended 31 March 2022 before the appropriation of Salary and Interest on Capital was Rs. $2,20,000$. Ram is allowed a salary of Rs. $2,000$ per quarter and interest on capital @ $10\%$ p.a.Due to the further expansion of the business, they decided to enter Sanjeev as a new partner for $\frac{1}{5}$ share in profits. It was agreed that Sanjeev will bring Rs. $1,00,000$ as capital and Rs. $50,000$ as his share of Goodwill. It was decided that he will give Rs. $1,00,000$ as loan to the firm for 3 years.The amount of distributed profits of both the partner's will be:

When realization expenses are paid by the firm on behalf of a partner (who was explicitly given the responsibility to bear them), which account must be debited in the firm's books?

Match List I with List II regarding accounting treatments:List IA. Transfer of accumulated profitsB. Unrecorded asset sold on dissolution of firmC. Manager's commissionD. Partner's commissionList III. Realisation AccountII. Profit and Loss AccountIII. Profit and Loss Appropriation AccountIV. Partner's Capital AccountChoose the correct answer from the options given below:

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

If average capital employed in a firm is Rs. 15,00,000 and fair rate of return in the same industry was 10% (Wait, source implies calculation gives specific normal profit, let's use 8%). Fair rate of return was 8%. Goodwill was valued at Rs. 90,000 on the basis of three times of super profit. The Average Profit of the firm is?

A, B and C are partners in a firm. If D is admitted as a new partner, what will be its affect?

Match List I with List II regarding partnership parameters:List IA. Interest on capitalB. Gaining RatioC. Sacrificing ratioD. Revaluation of Assets and LiabilitiesList III. Admission of partnerII. Profit/Loss in the old profit sharing ratioIII. Continuing partnersIV. When partnership deed specifically provides for itChoose the correct answer from the options given below:

The sum due to the retiring partner includes :(A) His share of profits up to the date of retirement.(B) His share of goodwill;(C) His share of accumulated profits ;(D) His share in the gain of revaluation of assets and liabilities;Choose the correct answer from the options given below:

Journal entry to be passed for unrecorded assets for preparing Revaluation A/C at the time of Retirement of a partner will be ____

A and B are partners sharing profits in the ratio of 2:1. C is admitted into the firm for 1/4 share of profits. C brings in Rs. 20,000 in respect of his capital. The capitals of old partners A and B, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Determine the new profit sharing ratio

Based on the following passage, answer questions from 46 to 50:Meena and Tina are partners in a firm sharing profits in the ratio $3:2$. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows:Balance Sheet of Meena and Tina as on March 31, 2017LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital Accounts:Machinery$70,000$ Meena: $90,000$ Investments$50,000$ Tina: $80,000$$1,70,000$ Stock$22,000$ Sundry Creditors$60,000$ Sundry Debtors$1,03,000$ Bills Payable$20,000$ Cash at bank$5,000$ Total$2,50,000$ Total$2,50,000$ The assets and liabilities were disposed of as follows:a. Machinery was given to creditors in full settlement of their account and stock was given to bills payable in full settlement.b. Investments were taken over by Tina at book value. Sundry debtors of book value $\text{Rs. }50,000$ were taken over by Meena at $10\%$ less and remaining debtors realized $\text{Rs. }51,000$.c. Realisation expenses amounted to $\text{Rs. }2,000$.Question: When a creditor accepts an asset whose value is more than the amount due to him in full settlement, he will _______ the excess amount which will be credited to _______ Account.

Which of the following is correct?The important provision affecting partnership accounting, in the absence of a partnership deed is:

From the following information, identify when goodwill is required to be calculated.(a) Admission of a Partner(b) Amalgamation of partnership firms(c) Dissolution of partnership firm(d) Retirement and Death of any partner(e) Preparation of Balance sheetChoose the correct answer from the options given below:

Hemant and Naman are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Samrat on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Samrat brought Rs. 60,000 as his capital. Calculate the value of goodwill of the firm?

Based on the passage given for Meena and Tina, answer the question:Identify the exact final total amount realized in cash from Sundry Debtors.

Match List-I with List-IIList-IList-II(A) Payment of loans due to partners(I) Realisation A/c Dr To Bank A/c(B) For settlement of partners' accounts, in case their capital account shows a debit balance(II) Bank A/c Dr. To loan to partners(C) For settlement of loan by a firm to a partner(III) Bank A/c Dr. To Partner's Capital A/c(D) For settlement of any unrecorded liability(IV) Partner's Loan A/c Dr. To Bank A/cChoose the correct answer from the options given below:

Calculate the amount of adjusted profit for the year ended 31 March 2021 for the purpose of valuation of Goodwill from the following information:Profit for the year ended 31 March 2021: Rs. $80,000$ On 1 July, 2020, a major plant repair was undertaken for Rs. $10,000$ which was charged to Revenue. The said sum is to be capitalised for Goodwill valuation subject to adjustment of depreciation @ $10\%$ p.a. on reducing balance method.

Match List-I with List-IIList-IList-II(A) Compulsory Dissolution(I) Partner becomes insane(B) Dissolution by notice(II) Death of a partner(C) Dissolution by Court(III) Business become illegal(D) Dissolution on certain contingencies(IV) Partnership at willChoose the correct answer from the options given below:

Based on the passage given for Meena and Tina, answer the question:State the correct Journal entry when investments are taken over by partner Tina at their book value of $\text{Rs. }50,000$.

The steps involved in calculation of Goodwill under Super Profit method are:(A) Calculate the super profits by deducting normal profit from the average profits.(B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.(C) Calculate the average profit.(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase.Choose the correct sequence of steps from the options given below:

In the absence of a Partnership deed, partners share profits and losses in:

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.What is the amount of A's deficiency of annual fee?

__________ is/are not true with regard to Limited liability partnership.(A) Separate Legal entity(B) Unlimited liability for one partner(C) Indian Partnership Act, 1932 is applicable(D) Perpetual Succession(E) Unlimited liability of partnersChoose the correct answer from the options given below:

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.What is the amount of T's deficiency in profits?

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.What would be the effect of the line "All Debtors are good".

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.In which ratio the deficiency of T will be borne by A & V.

At the time of admission, credit balance of Profit and Loss account appearing in books will be transferred to:

In which of the following cases can a court order the dissolution of a partnership firm?

Anand, Bahadur, and Chander are partners sharing profits equally ($\frac{1}{3}$ each). On Chander's retirement, his entire share is acquired by Anand alone. The gaining percentage of Anand will be:

Match List-I with List-II if the partnership deed is silent regarding the items provided in List-I:List-IList-II(A) Interest on Capital(I) to be shared equally(B) Interest on Loan(II) not charged(C) Interest on Drawings(III) not payable(D) Sharing of Profits(IV) @6% p.a.Choose the correct answer from the options given below:

Select the entry that is to be made when a creditor accepts an asset in full and final settlement of his account.

Which of the following will lead to the dissolution of a partnership firm?

How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet, on the same date : Donation for the Pavilion construction Rs. $12,25,000$, Expenditure incurred Rs. $10,80,000$, Total estimate Rs. $25,00,000$.

Which of the following is NOT one of the recognized methods for the valuation of goodwill?

Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closed at the time of firm's dissolution.

Which of the following entries correctly records the withdrawal of excess capital by a partner?

Match List I with List II:List IList IIA. Mutual AgencyI. It can be oral or writtenB. AgreementII. Written agreementC. Liability of partnersIII. Partnership concern carried by all or any of them acting for all.D. Partnership deedIV. Joint and unlimitedChoose the correct answer from the options given below:

If a new partner does not bring his share of goodwill in cash, which of the following adjustment treatments must be carried out?

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I}& \text{List - II}\\ \text{(A) Increase in Furniture Value}& \text{(I) Credit side of Partner’s Capital A/c}\\ \text{(B) Depreciation on Machinery}& \text{(II) Debit side of Partner’s Capital A/c}\\ \text{(C) General Reserve}& \text{(III) Credit side of Revaluation A/c}\\ \text{(D) Goodwill appearing in Books}& \text{(IV) Debit side of Revaluation A/c}\end{array}$$
Choose the correct answer from the options given below:

Which of the following events takes place in the case of the dissolution of a partnership firm?

At the time of admission of partner if goodwill exist in the books of account it will be written off among:

Match List-I with List-II:List-IList-II(A) Profit and Loss adjustment A/c(I) Changes in amount of capital(B) Profit and loss appropriation A/c(II) Generally no change in amount of capital(C) Fixed capital A/c(III) Errors and omissions found after preparation of final A/c(D) Fluctuating capital method(IV) Extension of Profit & loss A/cChoose the correct answer from the options given below:

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I}& \text{List - II}\\ \text{(A) Profits of firm after admission of partner}& \text{(I) Sacrificing Ratio}\\ \text{(B) Goodwill brought in by new partner}& \text{(II) Old Ratio}\\ \text{(C) Profit on revaluation}& \text{(III) Gaining Ratio}\\ \text{(D) Retiring Partner’s Share of Goodwill}& \text{(IV) New Ratio}\end{array}$$
Choose the correct answer from the options given below:

The dues of Kabir are to be paid in 4 yearly installments. The principal amount of each installment will be:

Find the right chronological sequence of the appropriation of profits in a partnership firm:A. Profits transferred to P and L appropriation A/c.B. Interest on capitalC. Profits distributed to partners after appropriationD. Interest on partner's loan A/cChoose the correct answer from the options given below:

The net total amount (Principal + Interest) payable to Kabir at the end of the 2nd year is:

Deepali, Nimisha and Sonam were partners in a firm sharing profits in the ratio of $5:3:2$. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was $2:3$. On Nimisha's retirement, the goodwill of the firm was valued at Rs. $1,20,000$. From the above information, calculate share of Deepali's sacrifice or gain:

What is the gaining ratio between the remaining partners, Preeti and Shershah, upon Kabir's retirement?

Case StudyRead the following information to answer.Arun and Ram are partners in a restaurant business sharing profits and losses in capital ratio. Their fixed capital from the beginning of the firm was Rs. $2,00,000$ and Rs. $1,50,000$ respectively.The profit for the year ended 31 March 2022 before the appropriation of Salary and Interest on Capital was Rs. $2,20,000$. Ram is allowed a salary of Rs. $2,000$ per quarter and interest on capital @ $10\%$ p.a.Due to the further expansion of the business, they decided to enter Sanjeev as a new partner for $\frac{1}{5}$ share in profits. It was agreed that Sanjeev will bring Rs. $1,00,000$ as capital and Rs. $50,000$ as his share of Goodwill. It was decided that he will give Rs. $1,00,000$ as loan to the firm for 3 years.The new profit sharing ratio of Arun, Ram and Sanjeev will be:

Which of the below-mentioned methods are considered while valuing goodwill?(A) Average Profits Method(B) Super Profits Method(C) Piecemeal Distribution Method(D) Capitalization MethodChoose the correct answer from the options given below:

Deepali, Nimisha and Sonam were partners in a firm sharing profits in the ratio of $5:3:2$. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was $2:3$. On Nimisha's retirement, the goodwill of the firm was valued at Rs. $1,20,000$. Using the information given in the case study, calculate Deepali's amount of sacrifice or gain in Goodwill.

If nothing is specifically mentioned in the partnership deed, the amount due to a retiring partner is transferred to which of the following accounts?

Choose the correct sequence of financial statements prepared for a partnership firm at the end of a financial year:A. Capital AccountsB. Profit and Loss A/cC. Profit and Loss Appropriation A/c (Adjustment A/c)D. Balance SheetChoose the correct answer from the options given below:

$X$ and $Y$ are partners sharing profits in the ratio $3:2$. The capitals introduced by $X$ and $Y$ are ₹ $1,00,000$ and ₹ $5,00,000$ respectively. Interest on capital is allowed to partners $@10\%\text{p.a.}$ The net profit of the firm for the year ending March 31st, 2025 is ₹ $30,000$. Calculate the amount of Interest on Capital to be allowed to each partner.

Deepali, Nimisha and Sonam were partners in a firm sharing profits in the ratio of $5:3:2$. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was $2:3$. On Nimisha's retirement, the goodwill of the firm was valued at Rs. $1,20,000$. If information provided in the case study is used, the sacrifice or gain of Sonam share of goodwill will be:

At the time of a firm's reconstitution, any existing asset balance of Goodwill already appearing in the books of accounts must be immediately written off among partners in their:

A, B and C are partner's sharing profits and losses in the ratio of $\frac{3}{8}:\frac{1}{2}:\frac{1}{8}$.If A dies, then the new ratio of B and C will be :

Identify which of the following expenses/allocations are classified as "Appropriations out of Profits" rather than charges against profits:(A) Rent paid to partners(B) Interest on capital(C) Salary paid to partners(D) Commission allowed to partnersChoose the correct answer from the options given below:

$A$, $B$, and $C$ were partners in a firm with a profit-sharing ratio of $5:3:2$. $B$ retires and the new profit-sharing ratio between $A$ and $C$ is settled at $3:2$. Calculate the gaining ratio of the remaining partners.

If a uniform amount of capital is systematically withdrawn by a partner at the end of each quarter, interest on the total aggregate yearly drawings is computed across an average timeline of:

Revaluation Account is a/an:

Match List-I with List-II:List-IList-II(A) Increase in assets at the time of retirement(I) Debit side of Realisation Account(B) Asset taken over by a partner at the time of dissolution(II) Credit side of Revaluation Account(C) Unrecorded Liability settled at the time of admission(III) Credit side of Realisation Account(D) Remuneration paid for realization of assets(IV) Debit side of Revaluation AccountChoose the correct answer from the options given below:

$A$ and $B$ are partners sharing profits in the ratio of $2:1$. $C$ is admitted for a $\frac{1}{4}\text{th}$ share of profits, bringing $\text{Rs. }20,000$ as capital. After all adjustments related to goodwill, revaluation of assets, and reassessment of liabilities, the adjusted capitals of $A$ and $B$ are $\text{Rs. }45,000$ and $\text{Rs. }15,000$ respectively. It is agreed that the partners' capitals should be arranged in proportion to the new profit-sharing ratio. Determine the required new capital of partner $B$.

There is a practical need for the valuation of a firm's goodwill under which of the following cases?(A) Admission of a new partner(B) Retirement of an existing partner(C) Dissolution of a firm involving the sale of the business as a going concern(D) Amalgamation of partnership firmsChoose the correct answer from the options given below:

On 1/4/22, X and Y decided to dissolve their firm. On that date of dissolution, Goodwill appeared at Rs. $5,00,000$ in the Balance Sheet. Goodwill will be:

Comprehension:Read the following financial details carefully and answer the questions that follow.Following is the Balance Sheet of Ashwani and Bharat on March 31, 2024.Balance Sheet of Ashwani and Bharat as on March 31, 2024LiabilitiesAmount (₹)AssetsAmount (₹)Creditors$76,000$ Cash at bank$17,000$ Mrs. Ashwani's loan$10,000$ Stock$10,000$ Mrs. Bharat's loan$20,000$ Investments$20,000$ Investment Fluctuation Reserve$2,000$ Debtors $40,000$ Less: Provision for Doubtful Debts $4,000$$36,000$ General Reserve$20,000$ Buildings$70,000$ Capitals:Ashwani: $20,000$ Bharat: $20,000$$40,000$ Goodwill$15,000$ Total$1,68,000$ Total$1,68,000$ The firm was dissolved on that date under the following terms:Ashwani promised to pay Mrs. Ashwani’s loan and took away the stock for ₹ $8,000$.Bharat took away half of the investments at $10\%$ less than book value.Debtors realized ₹ $38,000$. Creditors were paid off at a discount of ₹ $380$.Buildings realized ₹ $1,30,000$. Goodwill realized ₹ $12,000$, and the remaining investments were sold for ₹ $9,000$.An old unrecorded typewriter was taken over by Bharat for ₹ $600$.Realization expenses amounted to ₹ $2,000$.If the net realization profit is ₹ $55,980$, how will it be distributed between the partners?

If at the time of a partner's admission, a positive (credit) balance in the Profit and Loss Account appears in the books, it will be transferred directly to the:

Comprehension:Read the financial details from the preceding text carefully.What is the total amount by which the Bank Account will be credited by the Realisation Account (representing cash outflows for liabilities and expenses)?

Match the concepts in List I with the events in List II:List IList IIA. When a new partner joins the partnershipI. Compulsory dissolutionB. When an existing partner leaves the partnershipII. Admission of a partnerC. When the business of a firm becomes illegalIII. Prepared in the case of death of a partnerD. Executor's AccountIV. Retirement of a PartnerChoose the correct answer from the options given below:

Comprehension:Read the financial details from the preceding text carefully.At the time of dissolution, how will the Investment Fluctuation Reserve balance appearing in the liabilities side of the Balance Sheet be treated?

Select the category of partner(s) who will compensate the deceased partner for their share of goodwill at the time of death.

The ratio in which the old partners agree to give their share of profit in favor of the incoming partner is called:

Case study: A and B were partners in a partnership firm. Due to the ill health of B they decided to dissolve the firm. The position of Assets and Liabilities on the date of dissolution was:

It was agreed that following transactions will take place :A. A wanted to start the business in sole proprietorship So he took Building and Furniture at $10\%$ less than book value.B. All the debtors proved good except a person C who did not pay Rs. $10,000$.The accumulated profits and reserve are transferred to:

The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be utilized in which sequence? Arrange the following in proper sequence:(A) In paying the debts of the firm to the third parties
(B) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan)
(C) In paying to each partner proportionately what is due to him on account of capital
(D) The residue, if any, shall be divided among the partners in their profit sharing ratioChoose the correct answer from the options given below:

Profits made on the Revaluation of Assets and Reassessment of Liabilities are distributed among whom?

Which of the following factors affects the value of goodwill?(A) Location of Business
(B) Partners Performance
(C) Nature of Business
(D) Market SituationChoose the correct answer from the options given below:

Sometimes the value of Goodwill is not given directly at the time of admission/retirement of a partner. In such a situation, it has to be inferred from the total capital structure and profit-sharing ratio. Such Goodwill is called:

The reserve fund at the time of admission of a new partner is transferred to:

Select the necessary conditions required for computing interest on drawings using the Average Period Method:A. Equal amount of drawingsB. Fixed intervals between drawingsC. Varying amounts of drawingsD. Different intervals between drawingsE. Presence of an agreed Rate of InterestChoose the correct answer from the options given below:

A new partner can be admitted:

From the following information, calculate interest on Capital of C, a partner for the year ended 31st March, 2022.C's Capital on 31/3/2022: Rs. $12,00,000$ Profit credited to C for the year ended 31/3/2022: Rs. $3,00,000$ Drawings made during the year: Rs. $1,00,000$ Additional Capital introduced on 1/10/21: Rs. $5,00,000$ Rate of Interest = $12\%$ p.a.

Which of the following statement is incorrect?

Match List I with List II:\begin{tabular}{|l|l|}\hline\textbf{LIST I} & \textbf{LIST II} \ \hlineA. Only Capital A/c exists & I. Credited to partner's capital account \ \hlineB. Capital account balance remains unchanged & II. Debited to Partner's Capital Account \ \hlineC. Fresh/additional capital brought in by partner & III. Fixed Capital Account \ \hlineD. Permanent withdrawal of capital & IV. Fluctuating Capital Account \ \hline\end{tabular}Choose the correct answer from the options given below:

Match List-I with List-II:List-IList-II(A) Admission of a New Partner(I) Realisation Account(B) Retirement of a Partner(II) Sacrificing ratio(C) Dissolution of Partnership(III) Executors Account(D) Death of A Partner(IV) Gaining RatioChoose the correct answer from the options given below:

Identify from the following scenarios when the valuation of goodwill is required:A. Change in profit-sharing ratio among existing partnersB. Admission of a new partnerC. Dissolution of a Partnership firm (sale of business as a going concern)D. Amalgamation of partnership firmsE. Regular yearly preparation of a Balance SheetChoose the correct answer from the options given below:

Partner's current accounts are transferred to the respective partners' ________ at the time of dissolution of a partnership.

Arrange the following financial steps in the correct chronological sequence when winding up and dissolving a partnership firm.A. Payment of loans advanced by PartnersB. Settlement of secured outsider liabilitiesC. Realization of assets into cashD. Final settlement of partner capital accountsE. Payment of unsecured outsider liabilitiesChoose the correct answer from the options given below:

Choose the correct statement if a partnership deed does not exist.

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.Calculate the total amount brought in by new partner D including Goodwill share :

Identify the required condition under which the clauses of a partnership deed can be modified or altered.

Match List I with List II in context of not having partnership deed.LIST IA. Interest on loanB. Interest on drawingsC. SalaryD. Profit sharing ratioLIST III. EqualII. Will not be chargedIII. @ $6\%$ p.a.IV. Will not be allowed/providedChoose the correct answer from the options given below:

As per Receipts and Payments Account for the year ended on March 31, 2020, subscriptions received were Rs. $2,50,000$, subscriptions outstanding on 1-04-2019 Rs. $50,000$, Subscriptions received in advance as on 31-3-2020 are Rs. $30,000$. Subscriptions for the year 2019-20 will be:

The capital accounts of partners will always show a ____ balance under fixed capital account method

Case studyA and B were partners in a partnership firm. Due to the ill health of B they decided to dissolve the firm. The position of Assets and Liabilities on the date of dissolution was:

It was agreed that following transactions will take place :A. A wanted to start the business in sole proprietorship So he took Building and Furniture at $10\%$ less than book value.B. All the debtors proved good except a person C who did not pay Rs. $10,000$.The amount recovered from the debtors is:

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.From the above calculate amount of Goodwill :

A provision for doubtful debts is to be created at 5% of debtors. Debtors in the balance sheet are Rs. 60,000. Provision for Doubtful debts to be shown in Revaluation Account:

When unrecorded liabilities are settled and paid at the time of dissolution of a partnership firm, they are recorded on the:

Match List-I with List-II:List-IList-II(A) Gaining Ratio(I) An advantage of good name, reputation and wide business connections.(B) New Profit Sharing Ratio(II) The ratio in which the continuing partners have acquired the share from the retiring/deceased partner.(C) Sacrificing Ratio(III) The ratio in which the remaining partners will share future profits after the retirement or death of any partner.(D) Goodwill(IV) The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner.Choose the correct answer from the options given below: