Partnership Questions

Gaining share of Continuing Partner =

A firm earns a profit in last three years as follows:2020 - 21 Rs. 75,0002019 - 20 Rs. 1,20,0002018 - 19 Rs. 50,000Additional Information:Closing stock of 2020 - 21 was undervalued by Rs. 10,000.Calculate the Average Profit.

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm are transferred to the capital account of:

A and B are partners sharing profits in the ratio of $3:2$. They admit C for a $\frac{1}{5}\text{th}$ share in future profits, which he acquires equally from both A and B. What will be the new profit-sharing ratio?

Which combination of statements are false about partnership?(A) Interest on partner's loan is to be given @ 12% p.a. if the deed is silent about the rate.(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.(C) Methods of settlement of dispute among the partners can't be part of the partnership deed.(D) Each partner carrying on the business is the principal as well as the agent for all the other partners.Choose the correct answer from the options given below:

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.

Dissolution of a firm cannot take place in which of the situation:

Identify the steps involved in calculating goodwill under the capitalization of super profits method:(A) Calculate capital of the firm, which is equal to total assets (excluding goodwill and fictitious assets) minus outside liabilities(B) Multiply the super profits by the required rate of return multiplier(C) Calculate normal profits on capital employed(D) Calculate super profits by deducting normal profits from average profits(E) Calculate average profit for past yearsChoose the correct answer from the options given below:

Which of the following is NOT a method of valuation of goodwill?

Which of the following is the feature of fluctuating capital:

Interest on drawings of a partner has been calculated Rs. 3,000 @ 8% p.a. who has drawn equal amount in each quarter; commencing from end of the first quarter throughout the year. The amount of drawing of partner per quarter would be:

Under which condition can the dissolution of a Partnership Firm by a Court take place?

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively.The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. A will bring in cash as capital after adjustment amount:

When a new partner is admitted, the undistributed profits that appear in the balance sheet of the old firm are transferred to the capital account of:

A, B and C are partners in a firm. If C retires/dies, his capital account is credited with:

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively.C will withdraw the capital amount after capital are adjusted in the ratio of their respective shares in profits. The amount 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.What would be the effect of the line "All Debtors are good".

On dissolution of a firm, bank overdraft is transferred to:

The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called:

Which of the following combination of statements are true about dissolution-(A) A firm is compulsorily dissolved when a partner decide to retire.(B) Dissolution of a partnership is different from dissolution of a firm.(C) A partnership is dissolved when there is a death of a partner.(D) Dissolution of a firm necessarily involves dissolution of partnership.Choose the correct answer from the options given below:

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:

"The business of a partnership concern may be carried on by all the partners or any one of them acting for all." Which core feature of partnership does this statement indicate?

Gobind, Hari and Pratap are partners. On the retirement of Gobind, goodwill already appears in the Balance Sheet at $\text{Rs. }24,000$. This existing goodwill will be written-off by:

Match List-I with List-IIList-I (Events)List-II (Result)(A) Termination of business(I) Not possible in the dissolution of partnership(B) Continuation of business(II) Not possible in the dissolution of a firm(C) Intervention of court(III) Dissolution of firm(D) Continuation of books of accounts(IV) Dissolution of partnershipChoose the correct answer from the options given below:

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively.The New Profit Sharing Ratio in this case is:

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?

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:

Amitabh and Babul are partners sharing profits in the ratio of $3:2$, with capitals of $\text{Rs. }50,000$ and $\text{Rs. }30,000$ respectively. Interest on capital is agreed @ $6\%\text{ p.a.}$ Babul is to be allowed an annual salary of $\text{Rs. }2,500$. Manager is to be allowed commission $\text{Rs. }5,000$. Amitabh has also given a loan on April 01, 2019 of $\text{Rs. }50,000$ to the firm without any agreement. During the year 2019-20, the profits earned is $\text{Rs. }22,250$. What amount of profit will be transferred to Profit and Loss Appropriation account :

Which Journal Entry will be recorded for realization of an unrecorded asset at the time of dissolution of a Partnership Firm?

Dissolution by Court happens when:

Which combination of statements are correct about Death of a partner-(A) Ascertainment of new profit sharing ratio and gaining ratio(B) Preparation of Realization Account(C) Revaluation of assets and liabilities(D) Adjustment of capital, if requiredChoose the correct answer from the options given below:

Arrange the steps in the correct accounting sequence at the time of admission of a partner:(A) Adjustments of capital accounts.(B) Valuation of goodwill(C) Calculation of new profit sharing ratio and sacrificing ratio.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?

Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of $4:3:2$. Nirmal retires and the goodwill is valued at $\text{Rs. }72,000$. Keshav and Pankaj decided to share future profits and losses in the ratio of $5:3$. Gaining Ratio of Keshav and Pankaj is:

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. $10,000$.Following items appear on the Debit side of Realisation A/C except :A. Transfer of AssetsB. Payment of liabilitiesC. ProvisionsD. Realisation expensesE. Asset taken over by partnerChoose the correct answer from the options given below:

In which of the following case court can order dissolution of a partnership firm.

Match List-I with List-II regarding the core accounting metrics and concepts across various partnership events:List-I (Accounting Metrics)List-II (Partnership Event)(A) Sacrificing ratio(I) Dissolution of Partnership(B) Gaining Ratio(II) Admission of a New Partner(C) Executors Account(III) Retirement of a Partner(D) Realisation Account(IV) Death of a PartnerChoose the correct answer from the choices given below:

The steps followed for calculating interest on drawing in the product method are:(A) Calculate number of month for which interest is due on each drawing(B) List down amount of drawing in decending order in a table..(C) find the total of product and apply the formula to calculate interest on drawing.(D) Calculate product for each drawing by multiplying amount and number of month.Choose the correct answer from the options given below:

When goodwill has to be inferred from the arrangement of capital and profit sharing ratio, it is called:

Arrange the following accounting procedures involved in handling the retirement or death of a partner in the correct logical sequence:(A) Settlement of the amounts due to the retired/deceased partner(B) Ascertainment of the new profit-sharing ratio and gaining ratio(C) Adjustment of capitals, if required(D) Revaluation of assets and liabilitiesChoose the correct answer from the options given below:

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:

The profit or loss on revaluation of assets and liabilities are distributed in:

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

Arrange the steps for valuing goodwill via the Capitalisation of Super Profits Method in the correct logical sequence:(A) Calculate the average profit for the past years, as specified.(B) Calculate the capital employed of the firm.(C) Calculate normal profits on the capital employed.(D) Multiply the super profits with the required rate of return multiplier $(\text{i.e., }\frac{100}{\text{Normal Rate of Return}})$.(E) Calculate super profits by deducting normal profits from average profits.Choose the correct answer from the options given below:

Dissolution of a partnership firm may be ordered by the court on the following grounds:(A) when a partner becomes insane.(B) when a partner becomes permanently incapable of performing his duties as partner.(C) when a partner acts in good faith(D) when it is regarded just and equitable by the court.Choose the correct answer from the options given below:

$A$ and $B$ are partners in a firm sharing profits in the ratio of $5:3$. They admit $C$ as a new partner for $\frac{1}{7}$ th share in the profits. The new profit sharing ratio will be $4:2:1$. The sacrificing ratio of $A$ and $B$ is

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:

At the time of dissolution, a firm transferred Rs.100,000 Assets to the realization account and 50% of the assets were taken over by Kiran at 20% discount. How much net assets were taken over by Kiran?

The Court may order a partnership firm to be dissolved under Section 44 of the Act in which of the following scenarios?

Which among the following are the modes of dissolution?A. Dissolution by NatureB. Compulsory DissolutionC. Dissolution by AgreementD. Dissolution by NoticeChoose the correct answer from the options given below:

At the time of death of a partner, undistributed Losses appearing in the balance sheet of the old firm is transferred to the capital account of:

Aashish withdrew $\text{Rs. }10,000$ per month from the firm for his personal use during the year ending March 31, 2017. Calculate the interest on drawings charged @ $8\%$ p.a., when the amount is withdrawn regularly at the beginning of each month.

The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.

According to Section 31 of the Indian Partnership Act, 1932, a new partner can be admitted into an existing partnership firm:

Which of the following will lead to dissolution of partnership firm by agreement?

The profits for the five years of a firm are as follows:Year 2013: $\text{Rs. }4,00,000$ Year 2014: $\text{Rs. }3,98,000$ Year 2015: $\text{Rs. }4,50,000$ Year 2016: $\text{Rs. }4,45,000$ Year 2017: $\text{Rs. }5,00,000$ The goodwill of the firm on the basis of $4$ years' purchase of $5$ years' average profits is:

Identify which statement is FALSE-

A, B and C were partners sharing profits and losses in the ratio of $3:2:1$. C died on 1st August, 2022 and his share of profit from the beginning of the accounting year upto the date of death amounted to Rs. 70,000. C's share of profit will be debited to:

Stock at the time of dissolution was appearing in books at Rs 50,000. Half of the stock was sold at a discount of 20% and the remaining was taken over by one of the partners at a 10% discount. What amount was received in cash at the time of realization of stock.

A partnership comes into existence as a result of an agreement among the partners. This written agreement is legally called the:

Kim and Sim are partners in a firm sharing profits in $4:3$ ratio. They admitted Pim as a new partner for $\frac{1}{4}$ share in the profits, which he acquired in the ratio of $3:2$ from Kim and Sim. Determine the new profit sharing ratio of the partners.

Amrita and Kalyani are partners sharing profits in the ratio of $3:2$. They decide to expand the business by admitting Suraj as a new partner for a $\frac{1}{4}\text{th}$ share. Suraj's share of premium for goodwill is valued at $\text{Rs. }90,000$, which he pays to compensate Amrita and Kalyani in an agreed ratio of $1:4$.The firm's books provide the following information on that date:
$$\begin{array}{lrr}\text{Particulars}& \text{Book Value (Rs.)}& \text{Revalued Figure (Rs.)}\\ \text{Machinery}& 25,00,000& 27,00,000\\ \text{Land}& 10,00,000& 50,00,000\\ \text{Computers}& 2,50,000& 50,000\\ \text{Workmen Compensation Fund}& 5,00,000& -\end{array}$$
The claim against the Workmen Compensation Fund is determined to be $\text{Rs. }2,00,000$, and an existing goodwill balance appears in the books at $\text{Rs. }60,000$.What is Amrita's share in the unallocated balance of the Workmen Compensation Fund?

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

Identify the INCORRECT journal entry configuration related to the Revaluation of Assets and Liabilities of a partnership firm:

Which among the following is NOT true about a Partnership?

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

At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to:

The books of a business showed that the firm's capital employed on December 31, 2015, is $\text{Rs. }5,00,000$. The profits for the last five years were:2011: $\text{Rs. }40,000$ 2012: $\text{Rs. }50,000$ 2013: $\text{Rs. }55,000$ 2014: $\text{Rs. }70,000$ 2015: $\text{Rs. }85,000$ Find out the normal profits of the business, given that the normal rate of return is $10\%$.

If the premium for goodwill is paid to the old partners directly / privately by the new partner, what journal entry will be recorded in the books of Partnership Firm :-

Amrita and Kalyani are partners sharing profits in the ratio of $3:2$. They decide to expand the business by admitting Suraj as a new partner for a $\frac{1}{4}\text{th}$ share. Suraj's share of premium for goodwill is valued at $\text{Rs. }90,000$, which he pays to compensate Amrita and Kalyani in an agreed ratio of $1:4$.The firm's books provide the following information on that date:
$$\begin{array}{lrr}\text{Particulars}& \text{Book Value (Rs.)}& \text{Revalued Figure (Rs.)}\\ \text{Machinery}& 25,00,000& 27,00,000\\ \text{Land}& 10,00,000& 50,00,000\\ \text{Computers}& 2,50,000& 50,000\\ \text{Workmen Compensation Fund}& 5,00,000& -\end{array}$$
The claim against the Workmen Compensation Fund is determined to be $\text{Rs. }2,00,000$, and an existing goodwill balance appears in the books at $\text{Rs. }60,000$.Calculate the respective shares of Amrita and Kalyani in the revaluation profit.

Himanshu withdrew $\text{Rs. }2,500$ at the end of each month. The partnership deed provides for charging of interest on drawings $@12\%\text{ p.a.}$ Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

Which combination of the given statements is correct regarding partnership regulations and structures?(A) A valid partnership can be formulated even without a written agreement between the partners.(B) Methods of settlement of disputes among the partners cannot be a part of the partnership deed.(C) If the deed is silent, interest at the rate of $6\%$ p.a. would be charged on the drawings made by a partner.(D) Each partner carrying on the business acts as a principal as well as an agent for all the other partners.Choose the correct answer from the options given below:

Rohit and Mohit are partners in a firm sharing profits in the ratio $5:3$. They admitted Bijoy as a new partner for $\frac{1}{7}$ share in the profit. The new profit sharing ratio will be $4:2:1$. Calculate the sacrificing ratio of Rohit and Mohit:

Monu, Sonu and Golu are partners in a firm sharing profits in the ratio of $2:2:1$. Golu died on 5th November 2021. Under the partnership deed, the executors of the deceased partner are entitled to his share of profit to the date of death, calculated on the basis of last year's profit. Profit for the year ended 31st March 2022 was Rs. 3,00,000. (Assuming this means profit for the previous year or estimated profit basis). Golu's share of profit will be:

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Arrange the following steps in the correct statutory sequence according to Section 48 of the Indian Partnership Act, 1932:(A) In paying to each partner proportionately what is due to him on account of capital(B) In paying the debts of the firm to the third parties(C) 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)(D) The residue, if any, shall be divided among the partners in their profit sharing ratioChoose the correct answer from the options given below:

On the ultimate dissolution of a partnership firm, partners' capital accounts are closed finally through which account?

When a firm is dissolved, Provision for Bad and Doubtful Debt Account :-

Out of the following, when will the need for valuation of goodwill does not arise?

The Partnership agreement between Maneesh and Girish provides that:(A) Profits will be shared equally(B) Maneesh will be allowed a salary of $\text{Rs. }400\text{ pm}$ (C) Girish who manages the sales department will be allowed a commission of $10\%$ of the net profits after deducting Maneesh's salary(D) $7\%\text{ p.a.}$ interest will be allowed on Partner's fixed capital(E) $5\%\text{ p.a.}$ interest will be charged on partner's annual drawings(F) The fixed capitals of Maneesh and Girish are $\text{Rs. }1,00,000$ and $\text{Rs. }80,000$ respectively. Their annual drawings were $\text{Rs. }16,000$ and $\text{Rs. }14,000$ respectively.The net profit for the year ended March 31, 2018 amounted to $\text{Rs. }40,000$. Calculate the profit allocated to each partner after all adjustments.

Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Deepa retires. After making all adjustments relating to revaluation, goodwill, Payment to Deepa and accumulated profit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners i.e Asha and Lata.

Identify the correct sequence for finding out divisible Profit & Loss for a Partnership Firm manufacturing Steel pipes:(A) Transfer amount to general reserve, as per requirement.(B) Allow interest on capital and charge interest on drawing.(C) Transfer of the balance of profit and loss account to profit and loss appropriation A/c(D) Find out the balance amount to be distributed among partners.Choose the correct answer from the options given below:

Extract of Receipt and Payment Account for the year ended on March 31, 2021 is given.Calculate the amount of Stationery to be shown in Income and Expenditure A/c.Payments for Stationery: Rs. $23,000$
Additional Information:

If there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm. It should be transferred to:

Arrange the following regarding admission procedure in the correct sequence.(A) Giving share to the new partner.(B) Treatment of Goodwill(C) Calculating new profit sharing ratio & sacrificing ratio(D) Preparation of Revaluation A/c(E) Preparing Partner's Capital A/c and Balance SheetChoose the correct answer from the options given below:

Unrecorded liabilities when paid are recorded in:

Arrange following in a sequence in which amount realised from Assets will be utilised to pay as per Section 48 of the Indian Partnership Act, 1932.A. Partner's LoanB. Partner's CapitalC. Secured debts of the firmD. Unsecured debts of the firmE. Residue to partnersChoose the correct answer from the options given below:

By virtue of which Section of the Companies Act 2013, the Central Government is empowered to prescribe the maximum number of partners in a firm, but the number of partners can not be more than 100?

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 profit to be credited to V's Capital account?

When a firm is dissolved, the Balance of Investment Account and Balance of Investment Fluctuation Fund Account, shown by Firm's Balance Sheet are transferred into _________ and into _________ respectively:-

In the balance sheet Total Debtors appear at Rs. 1,50,000 and provision for doubtful debts appear at Rs. 1,500. How much amount will be realised from debtors, if bad debts amounted to Rs. 20,000 and remaining debtors realised at a discount of 15%?

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:

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:

On retirement of a partner, the retiring partner's capital account will be credited with _____

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:

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.What would be the new Profit Sharing Ratio :

Identify the right combination of type of Account in making Final Accounts of Partnership Firm.(a) Profit and Loss A/C(b) Profit and Loss Suspense A/C(c) Profit and Loss Appropriation A/C(d) Profit and Loss Adjustment A/C(e) Partners' Capital A/CsChoose the correct answer from the options given below:

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?

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. } 30,000 respectively.Required capitals of all partners is:

The profit for the five years of a firm are as follows:YearProfit (Rs.)20134,00,00020143,98,00020154,50,00020164,45,00020175,00,000Calculate the goodwill of the firm on the basis of 4 years purchase of 5 years average profits.