Question : Capital employed in a firm is calculated from assets side approach as follows:

Option 1: All assets – goodwill – non trade investment – fictious assets – long term outside liabilities 

Option 2: All assets – goodwill – non trade investment – fictious assets – credit balance in cuirrent account – all outside liabilities

Option 3: Partners capital – credit balance in current account + free reserve + credit balance of profit a and loss account – Goodwill – non trade investment – fictious assets – all outside liabilities 

Option 4: All assests – goodwill – Non trade investment – fictious  assets – Debit  balance of profit and loss account – outsiders liabilities 

Question : Capital employed in a firm is calculated from the liabilities approach as follows:

Option 1: Capital Employed = Total Assets (excluding goodwill) – Outside Liabilities

Option 2: Capital Employed = Fixed Assets + Working Capital

Option 3: Capital Employed = Partners capital (including new partner's capital) + Free reserves + Profit & Loss (Cr.) - Existing goodwill - Fictitious Assets - Non trade Investment

Option 4: All of the above

Question : In a Company  Balance Sheet, the credit (profit) balance of the Statement of Profit and Loss is shown under:

Option 1: Reserve and Surplus

Option 2: Current Liabilities

Option 3: Non-current Assets

Option 4: Non-current Liabilities 

Question : In the case of fixed capital, partners will have

Option 1: credit balance for their capital account

Option 2: debit balance of their capital account

Option 3: credit and debit balance in their capital account

Option 4: credit balance or Nil balance in their capital account

Question : In the case of fixed capital, partners will have

Option 1: credit balance for their capital account

Option 2: debit balance of their capital account

Option 3: credit and debit balance in their capital account

Option 4: credit balance or Nil balance in their capital account