Question : Where is Interest on drawings shown in the final accounts of the firm?

Option 1: Debit side of profit and loss Appropriation Account.

Option 2: Credit side of profit and loss Appropriation Account.

Option 3: Credit side of profit and loss Account.

Option 4: Debit side of capital or current account only.

Question : Partner's Drawings account is closed.

Option 1: By transfer to the credit side of the capital Account.

Option 2: By transfer to the credit side of the current account.

Option 3: either A or B

Option 4: By transfer to the debit side of the Capital or Current account.

Question : Partner's Drawings account is closed.

Option 1: By transfer to the credit side of the capital Account.

Option 2: By transfer to the credit side of the current account.

Option 3: either A or B

Option 4: By transfer to the debit side of the Capital or Current 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 : Which accounts are opened when the capital are fixed?

Option 1: Only capital account 

Option 2: Only current account 

Option 3: Capital account as well as current account

Option 4: Either capital account or current accounts