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Ans – c) Explanation:- Profit for the year ₹ 1,50,000 Interest on Young’s Loan = 50,000 * 10% = ₹ 5,000 Profit after interest on Young’s Loan = 1,50,000 – 5000 = ₹ 1,45,000 Distributable Profit = 1,45,000 – old…

Ans – a) Explanation 20% after charging such commission = 20/120 = 1/6

Ans -c) Explanation:- Under the Fluctuating Capital Method, all transactions concerning to partners are recorded in the partners’ capital account. Following transactions are recorded. a) Interest on capital b) Partner’s Salary c) Partner’s Commission d) Interest on Partner’s Drawings e)…

Ans – a) Explanation:- Under the Fixed Capital Method, the current accounts is maintained to record all recurring nature of partners. Such as interest on capital, drawings, salary, commission and share of profits.

Section – 35 of the Indian Partnership Act, of 1932 states that a firm is dissolved on the death of a partner Unless otherwise agreed by the partners

Section – 69 of the Indian Partnership Act, 1932 mentioned that the Registration of the firm under the Indian Partnership Act, 1932 is optional and not compulsory.

Section – 32 of the Indian Partnership Act 1932 allows the retirement of a partner either with the consent of all existing partners or in accordance with an agreement among the partners.

Section – 31 of the Indian Partnership Act, 1932 allows the admission of a new partner with the consent of all the existing partners or in accordance with an agreement among the partners

Section – 30 of the Indian Partnership Act allow to admit a minor as the partner if all the partners are agree.

The fixed Capital method is one of the methods to maintain the capital accounts of partners in a partnership firm. Here are some Key Points:- Fixed Capital means capital invested by each partner remains fixed unless the partner introduces further…