Partnership Firm :Basic Concept Part -3

All transactions relating to partners of the firm are recorded in the books of the firm through their ​​ (a)  

• capital accounts
• goodwill accounts
• purchase accounts

the partners’ capital accounts shall always appear on the liabilities side in the

• Profit and Loss Account

• 
• Trading Account

• 
• Balance sheet

• 

There are method by which the capital accounts of partners can be maintained.

• (i) Fixed capital method

• (ii) Fluctuating capital method

• All of the above

• Only(ii)

Under the fluctuating capital method, only ___ _______ is maintained for each partner.

(a) of the firm are distributed / (b)in an agreed ratio./(c)The profits and losses/(d)among the partners

• c,a,d,b

• b,c,a,d

• a,d,c,b

• a,b,c,d

On the opening balance of the capital accounts of partners, interest is calculated for the _____ ____.

Interest is calculated from the date of introduction of additional capital to the last day of the financial year.

• true

• false

The partnership agreement may also provide for ________ __ ________ on money withdrawn out of the firm by the partners for their personal use.

Charging interest on drawings discourages _________ amounts of drawings by the partners.

Interest on loan from Partner is debited to

• Income statement

• Profit & loss Appropriation Account

• Partner's Capital account

• Statement of Financial Statement