Question : Current Account of the partners should be opened when capital are:

Option 1: fluctuating

Option 2: fixed

Option 3: circulating

Option 4: none of these

Question : A partner, Gaurav, withdrew Rs.12,000 in the beginning of the each quarter during the year. Interest on drawings @ 8% chargeable to him will be:

Option 1: Rs.1,440

Option 2: Rs.2,400

Option 3: Rs.2,080

Option 4: Rs.1,760

Question : What balance does a partner's capital account have, in case of fluctuating capital?

Option 1: Debit balance

Option 2: Credit

Option 3: Both (1) or (2)

Option 4: None of these

Question : Which of the following is an appropriation of profit?

Option 1: Interest on Loan

Option 2: Interest on Partner's Capital

Option 3: Salary to Manager

Option 4: Rent

Question : The balance of partner's Capital Accounts, in case of fixed capital method, are:

Option 1: Always Debit

Option 2: Always Credit

Option 3: Either debit/credit

Option 4: Neither debit nor credit