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Ans – d) Explanation:- in the absence of a partnership deed, the Indian Partnership Act 1932 Applies. The interest on the partner’s loan to the firm is charged @ 6% p.a.

Ans – a) Explanation:-

Ans – d) Explanation:- When Capitals are Fluctuating:- Partner’s Drawings reduce the capital. Thus Partner’s Drawings account is closed by transferring to the debit side of the Capital account. When Capitals are Fixed:- In the case of fixed capital, the…

Ans – c) Explanation:- Product Method is one of the way to calculate interest on partner’s drawings.

Ans – d) Explanation:- Average Month = 12 + 1/2 = 6.5 Months

Ans – b) Explanation:- Average Month = 11 + 0/2 = 5.5 Months Interest on Mohan’s Drawings = 10000 * 12 * 5% * 5.5/12 = ₹ 2750

Ans – a) Explanation:- Interest on Ram’s Drawings = 60,000 * 6% * 6/12 = ₹ 1800 Interest on Mohan’s Drawings = 40,000 * 6% * 6/12 = ₹ 1200

Ans – b) Explanation:- Partnership Deed is a written agreement between the partners. Interest on the partner’s drawings is charged if the Rate of Interest is agreed upon and mentioned in the partnership deed.

Ans – c) Explanation:- It is not necessary to contribute capital to become a partner in a partnership firm.

Ans – a) Explanation:- In the case of the Fixed Capital Method. The Capital Account would always show a credit balance.