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Ans – a) The written agreement among the partners is called a Partnership Deed. The Partnership Deed is also called Partnership Agreement.

The partnership is defined by Indian Partnership Act, 1932, Section 4, as follows: “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.”…

Ans – d) Interest on Partner’s drawing is charged from partners by the firm. Thus it is the revenue to the firm and is recorded at the credit side of the Profit and Loss Appropriation Account.

Ans – c) The interest on capital is an expense of the firm towards the partners. It is not paid in cash to the partners. But in order to provide benefits to the partners. The capital of the partners is…

Ans – b) Average Month = 11 + 0/2 = 5.5 Month

Ans – d) The following are transferred to the Profit and Loss Appropriation Account At debit side 1. Interest on partner’s capital 2. Partner’s Salary 3. Partner’s Commission At Credit side 1. Interest on Drawing 2. net Profit. Note:- Salary…

Ans – c) 1. The first profit is transferred to P & L Appropriation Account. 2. It is raised by the guarantee given by the partner to the firm. 3. Then guarantee given by the firm to the partner is…

Ans – c) The actual share of Profit received by Chris is ₹ 5000 – ₹ 1000 = ₹ 4000 Thus Profit earned by the firm is 4000 * reciprocal of Chris share 4000 * 10/1 = ₹ 40,000

Ans – d)

Ans – d) Detailed Solution