Question : If provided in deed, interest on capital is provided to partners only out of:

Option 1: Accumulated profits

Option 2: Reserves

Option 3: Profit of current year

Option 4: Goodwill

Question : Average of the profit of past agreed years is known as __________.

Option 1: super profit 

Option 2: normal profit 

Option 3: average profit 

Option 4: capital employed 

Question : A and B are Partners in a firm. They are entitled to interest on capital, but if the net profit is not sufficient for this interest, then the net profit will be distributed among partners in

Option 1: Agreed ratio

Option 2: Profit sharing ratio

Option 3: Capital ratio

Option 4: Equally

Question : A and B are Partners in a firm. They are entitled to interest on capital, but if the net profit is not sufficient for this interest, then the net profit will be distributed among partners in

Option 1: Agreed ratio

Option 2: Profit sharing ratio

Option 3: Capital ratio

Option 4: Equally

Question : Profits of last three years are Rs.4,20,000, Rs.3,90,000 and Rs.4,50,000. The value of goodwill on the basis of two years purchase of three year average profit is:

Option 1: Rs.3,60,000

Option 2: Rs.12,60,000

Option 3: Rs.8,40,000

Option 4: Rs.4,20,000