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Ans – c) Explanation:- in the absence of a partnership deed, The Provisions of Indian Partnership Act 1932 is Applied. The profit is divided equally among the partners.
Ans – a) Explanation:- Current accounts are maintained when Capitals are fixed. In order to maintain fixed capital all transactions or revenue nation such as interest on capital, drawings commission salary to parters and distribution of profits are shown in…
Ans – b) Explanation:- a, c, d items belong to the partners. Only the manager’s commission belongs to other than a partner.
Ans – d) Explanation:- In the case of the Fixed Capital Method. The Capital Account of Partners can either show a credit balance or zero balance. As only ‘additional capital’ and ‘drawings out of capital’ are shown in the capital…
Ans – d) Explanation:- In the absence of a partnership deed. The provisions of the Indian partnership Act 1932 Apply. Thus interest is not allowed on the partner’s capital.
Ans – a) Explanation:- Interest is allowed on the opening capital of the partners.
Ans – d) Explanation:- A partnership, thus, is a business relationship between/among two or more persons to share profits and losses of the business, carried on by all or any of them acting for all.
In the absence of a partnership Deed, the deficiency arising out of guarantee of profit to a partner is borne by other partners in their old profit sharing ratio. For example:- There are 3 partners A, B and C sharing…
In Case of Fixed Capital Method. The interest on drawings are debited to partners current account. In the Fixed Capital Method, All Transactions of Revenue (Current) Nature are recorded in separate account called current account. Note:- Current transactions refers to…
Liability of partners is unlimited, i.e., Firm’s liabilities can be paid from their personal assets. Liability of Partners is unlimited. It means that partners are liable for firm’s debts individually and jointly with other partners. Net Private Assets of a…