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
Correct Answer: credit balance or Nil balance in their capital account
Solution : Answer = credit balance or Nil balance in their capital account. If capital is fixed, the partner's capital is always credit balance or Nil balance. All adjustments regarding interest on capital, interest on drawings, and profit are transferred to the current account. This balance represents their initial investment in the partnership and any additional contributions made over time, resulting in a favourable net capital position.
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.
Question : On dissolution, goodwill account is transferred to :
Question : Capital employed in a firm is calculated from the liabilities approach as follows
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_____________.
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