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 : For the adjustment of goodwill at the time of retirement , retiring partner’s capital and current account will be ------- by his  share  and remaining partners ‘s capila or current account will be ------ in Gaining ratio.

Option 1: Debit, credit 

Option 2: Credit, debit 

Option 3: Debit, debit

Option 4: Credit, credit 

Question : On dissolution, goodwill account is transferred to :

Option 1: the Capital Accounts of Partners

Option 2: On the credit of Cash Account

Option 3: On the Debit of Realisation Account

Option 4: On the Credit of Realisation Account

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

Option 1: Partner's capital – credit  balance in current account + free reserve + credit balance of profit  and loss account – Goodwill - Non trade investment – fictitious assets – all outside liabilities

Option 2: Partners capital + credit balance in current account (minus Debit balance of current account) + free reserve + credit balance  of profit and loss (if any) – goodwill – non trade investment

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

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

Question : At the time of admission of a partner, the balance of the Investments Fluctuation
Reserve, after meeting the loss on revaluation of investments is transferred to _____________of __________in their_____________.

Option 1: All partners capital account and in their new profit sharing ratio

Option 2: Old partners capital account and in their sacrificing ratio

Option 3: Old partners capital account and in their old profit sharing ratio

Option 4: Only sacrificing partners capital account and their sacrificing ratio