Archives Answers

Ans – d) In the absence of a partnership deed. The profit is divided equally among partners. The salary to the partners is not allowed in the absence of partnership deed.

Ans – d) Explanation:-

Ans – d) The salary paid to the partner is an appropriation. Thus it is debited to Profit and Loss Appropriation Account.

Ans – b) Explanation:- C’s Share in Profit = 4,00,000 * 1/10 = ₹ 40,000 Deficiency in C’s Share in Profit as per guarantee = ₹ 50,000 – ₹ 40,000 = ₹ 10,000 Deficiency of C ₹ 10,000 met by…

Ans – d) Here is the explanation

Ans – d) Explanation:- Vidit’s Interest on capital = 1,20,000 * 10% = ₹ 12,000 Seema’s Interest on capital = 2,40,000 * 10% = ₹ 24,000 Total interest of both the partners = 12,000 + 24,000 = ₹ 36,000 As…

Ans – d) Explanation

Ans – c) Explanation:- Z’s Share in Profit = 99000 * 1/11 = ₹ 9,000 Deficiency of Z borne by X = 15000 – 9000 = ₹ 6,000 X’s Share in profit = 99000 * 6/11 = ₹ 54,000 X’s…

Ans – c) Interest on Drawings as revenue (income) to the firm is recorded at the credit side of the Profit and Loss Appropriation Account.

Ans – a) Explanation:- interest on Partner’s Loan is considered as a charge against profit. Thus it is recorded to the debit side of the Profit and Loss Account.