Partnership Questions

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:

The profits for 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: $\text{Rs. }5,00,000$ Calculate the goodwill of the firm on the basis of a 4-year purchase of 5 years average profits:

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:

Ranjana, Sadhna and Kamana are partners, sharing profits in the ratio $4:3:2$. Ranjana retires; Sadhna and Kamana decide to share profits in the future at the ratio of $5:3$. Calculate the Gaining Ratio:

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:

The following are features of the fluctuating capital method by which capital accounts of partners are maintained:(A) Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner.(B) All adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, etc. are recorded directly in the capital accounts of the partners.(C) The capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners.(D) The capital account may sometimes show a debit balance.Choose the correct answer from the options given below:

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%?

Arrange the steps of the method "Capitalization of Average Profits" for the calculation of goodwill in the correct sequence:(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows: $\text{Average Profits}\times \frac{100}{\text{Normal Rate of Return}}$ (B) Ascertain the average profits based on the past few years' performance.(C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).(D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits.Choose the correct answer from the options given below:

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

On the dissolution of a firm, the Creditors are transferred to :

Match List I with List II regarding accounting adjustments during reconstitution/death:List IA. Loss on RevaluationB. Profit on RevaluationC. Premium brought by new partnerD. On the death of a partner, profit till the date of death is $\text{Rs. }2,000$ List III. Credited to old partners in old ratioII. Debited to profit and loss suspense A/CIII. Credited to old partners in sacrificing ratioIV. Debited to old partners in the old ratioChoose the correct answer from the options given below:

A, B and C are partners in a firm. If B is being retired from the firm, what would be its effect?

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.

In the Proforma of Partner's Capital Account under the Fluctuating Capital Method, the Credit side includes which of the following items?(A) Balance b/d (in case of credit opening balance)(B) Salaries(C) Interest on drawings(D) Profit and Loss Appropriation (for share of profit)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:

Match List-I with List-II:List-IList-II(A) On dissolution of a firm, creditors is transferred to:(I) Bank account is credited(B) Unrecorded liabilities when paid:(II) Realization Account(C) When realization expenses are paid by the firm on behalf of a partner, such expenses are(III) Bank account is debited.(D) When unrecorded assets are sold(IV) Partner's Capital AccountChoose the correct answer from the options given below:

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:

A firm is dissolved compulsorily under Section 41 of the Indian Partnership Act in the following cases:(A) When all the partners or all but one partner, become insolvent.(B) When the business of the firm becomes illegal.(C) Change in existing profit sharing ratio among partners.(D) When some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership.Choose 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 for the payment of realization expenses of $\text{Rs. }2,000$.

Which item among the following is NOT listed on the credit side of a Realization Account?

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

On dissolution of the firm, partner's capital accounts are closed through:

On the dissolution of the partnership firm the amount realised from sale of assets shall be applied in following order:(a) Distributing the amount left among the partners in their profit sharing ratio(b) Paying amount due to partner on account of loan advanced by him(c) Paying amount due to the creditors(d) Paying partners' capital account balancesChoose the correct answer from the options given below:

All assets (except cash/bank and fictitious assets) are transferred to the ................... side of ................... Account.

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

Anupam and Abhishek are partners. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01, 2019. Show the interest on capital for the year ending March 31, 2020 allowed, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year:

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:

Which of the following is not a feature of partnership?

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 $10\%$.

The minimum guaranteed amount shall be paid to the new partner when his share of profit as per the profit sharing ratio:

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

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

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:

When realisation expenses are paid by the firm on behalf of a partner, which account will be debited?

On $R$ 's retirement, the amount payable to him after all adjustments works out to be $\text{Rs. }60,000$ but the remaining partners $P$ and $Q$ agreed to pay him $\text{Rs. }75,000$ in full settlement of his claim. Identify the term which represents the $\text{Rs. }15,000$ extra that is paid to $R$.

Which combination of statements is true about dissolution?(A). Dissolution of a partnership is different from dissolution of a firm.(B). A partnership is dissolved when there is a death of a partner.(C). A firm is dissolved when all partners give consent to it.(D). A firm is compulsorily dissolved when a partner decides to retire.Choose 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?

Mohan and Shyam are partners in a firm. Which statement among the below can be claimed valid if the Partnership Agreement is silent regarding the same?

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:

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return for a similar business is 10%. Ascertain the value of goodwill by capitalization of average profits method, given that the value of net assets of the business is Rs. 8,20,000.

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.

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

Complete the sequence where interest on capital has to be provided as per partnership deed, but available profits are not sufficient to provide full amount of Interest on capital.A. If it is appropriation, calculate interest on capital for all partners at given rateB. Divide the available amount in the capital ratio among the partnersC. Calculate ratio between capital of partnersD. Consider the partnership deed and decide whether interest on capital is a charge or an appropriationE. Consider the available profit Choose the correct answer from the options given below:

Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if the amount is withdrawn at the beginning of each month and rate of interest on drawings is 8% per annum?

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:

Which among the following is not a feature of the fixed capital method by which the capital accounts of partners can be maintained?

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:

Select the factors affecting the value of goodwill-(A) Nature of business.(B) Efficiency of management.(C) Location.(D) Prices.Choose 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 profit to be credited to V's Capital account?

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 $\frac{1}{4}\text{th}$ share in profits, which he gets $\frac{1}{8}\text{th}$ 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 $\frac{1}{4}\text{th}$ 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. Calculate the new capital of A

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.

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

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:

Which combination of statements is true about dissolution-(A). Dissolution of a partnership is different from dissolution of a firm.(B). A partnership is dissolved when there is a death of a partner.(C). A firm is dissolved when all partners give consent to it.(D). A firm is compulsorily dissolved when a partner decides to retire.Choose the correct answer from the options given below:

Plant and Machinery in the balance sheet is Rs. 1,00,000. Plant is to be appreciated to Rs. 1,20,000. Amount to be shown in Revaluation Account:

A business has earned average profits of $\text{Rs. }1,00,000$ during the last few years and the normal rate of return in a similar business is $10\%$. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is $\text{Rs. }8,20,000$.

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

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

In a partnership firm, partners share profit and loss in the ratio of $3:2$. If the firm incurred a loss of $\text{Rs. }10,000$ during the year, then calculate the amount of loss to be shared by partners.

On dissolution of the firm, partner's capital accounts are closed through:

Various accounting aspects involved on death of a partner are as follows:(A) Adjustment in respect of unrecorded assets and liabilities(B) Treatment of goodwill(C) Preparation of Realization A/c(D) Preparation of Executor's loan A/cChoose the correct answer from the options given below:

In the case of dissolution of a partnership firm, the accumulated profits and reserves are transferred to :

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

After transferring liabilities like creditors and bills payables in the Realisation Account, in the absence of any information regarding their payment, such liabilities are treated as:

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?

Match List-I with List-II
$$\begin{array}{ll}\text{List-I}& \text{List-II}\\ \text{(A) Gaining Ratio}& \text{(I) New Share - Old Share.}\\ \text{(B) Sacrificing Ratio}& \text{(II) Old Share - New Share.}\\ \text{(C) Admission of Partner}& \text{(IV) Partner may or may not bring his share of goodwill in cash.}\\ \text{(D) Retirement of Partner}& \text{(III) Partner may be paid amount more than what has actually due to him for hidden goodwill share.}\end{array}$$
Choose the correct answer from the options given below:

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

Which combination of statements is true about partnership-(A) Valid partnership can be formulated even without a written agreement between the partners.(B) Methods of settlement of disputes among the partners can't be 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 the partner.(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:

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?

Vijay and Sanjay are partners in a firm sharing profits and losses in the ratio of $3:2$. They admitted Ajay into partnership with $\frac{1}{4}\text{th}$ share in profits. Ajay brings in $\text{Rs. }30,000$ for capital and the requisite amount of premium in cash for goodwill. The goodwill of the firm is valued at $\text{Rs. }20,000$. The new profit sharing ratio is $2:1:1$. The sacrificing ratio of Vijay and Sanjay is:

$\text{P}$, $\text{Q}$ and $\text{R}$ enter into a partnership by investing their capitals in the ratio of $\frac{2}{5}:\frac{3}{4}:\frac{5}{8}$. After $4$ months, $\text{P}$ increased his capital by $50\%$, but $\text{Q}$ decreased his capital by $20\%$. What is the share of $\text{Q}$ in the total profit of $\text{₹}28,210$ at the end of a year?

Steps involved in various accounting aspects of retirement or death of a partner -(A) Settlement of the amounts due to retired/deceased partner(B) Ascertainment of new profit sharing ratio and gaining ratio(C) Adjustment of capital, if required(D) Revaluation of assets and liabilitiesChoose 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:

Anshu and Nitu are partners sharing profits in the ratio of $3:2$. They admitted Jyoti as a new partner for $\frac{3}{10}$ share which she acquired $\frac{2}{10}$ from Anshu and $\frac{1}{10}$ from Nitu. The new profit sharing ratio of Anshu, Nitu and Jyoti.

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.

At the time of a partner's admission, if the actual Workmen Compensation Claim exceeds the existing Workmen Compensation Reserve, the excess amount is transferred to the:

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 A's Capital account?

Anubha looked after the dissolution work for a remuneration of $\text{Rs. }8,500$ and agreed to bear dissolution expenses up to $\text{Rs. }6,00,0$. Actual expenses paid by her were $\text{Rs. }7,600$. What is the correct journal entry to record the remuneration payable to Anubha?(A) Realisation A/c is debited by $8,500$ (B) Anubha's Capital A/c is credited by $8,500$ (C) Realisation A/c is debited by $13,600$ (D) Anubha's Capital is credited by $13,600$ Choose the correct answer from the options given below:

If the total income earned by Saket Club, a Not-for-Profit organisation is Rs. $2,60,000$ and surplus earned is Rs. $85,000$, then total expenditure incurred will be:

When capital accounts are maintained under the Fixed Capital method, additional capital introduced by a partner is recorded as a:

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?

Match List-I with List-II:List-I (Accounting standards / Section of Act)List-II (Issues)(A) AS-3(I) Settlement Of Accounts.(B) AS-26(II) Firm's debt and private debt(C) Section 48 of the Indian partnership Act(III) Cash flow statement.(D) Section 49 of the Indian partnership Act(IV) Treatment of goodwill.Choose the correct answer from the options given below:

Realisation A/c is debited with __________ on the dissolution of firm.

The liability of partners in a general partnership firm is:

If at the time of Kabir's retirement, his individual share of goodwill is valued at Rs. 15,000, and assuming partners share profits equally ($1:1:1$) unless specified otherwise, what will be the total valuation of the firm's goodwill?

Abhiram and Ragini are partners sharing profits in the ratio of $3:2$. They admit Arun as a new partner for a $\frac{1}{5}\text{th}$ share in the future profits of the firm. Arun acquires this share equally from Abhiram and Ragini. Calculate the new profit-sharing ratio of Abhiram, Ragini, and Arun.

Amit, Dinesh, and Gagan are partners sharing profits in the ratio of $5:3:2$. Dinesh retires. Amit and Gagan decide to share the profits of the new firm in the ratio of $3:2$. The gaining ratio between Amit and Gagan will be:

Naveen, Suresh, and Tarun are partners sharing profits and losses in the ratio of $5:3:2$. Tarun retires from the firm, and his share is taken over by Naveen and Suresh in the ratio of $2:1$. Calculate the new profit-sharing ratio.

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:

Which of the following statements is true regarding a Revaluation Account?

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

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?

For distributing profits made during a financial year among partners, which account is debited?

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

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

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

If a partner retires in the middle of the year his/her share of profit from the date of last balance sheet till the date of retirement will be transferred to : ____

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. $10,000$.Due to the ill health of B, they decided to dissolve the firm. It comes under ____ form of dissolution.

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 :

In case of retirement or death of a partner, all accumulated profit and losses are transferred in capital account of partners in the: