partnership accounts

The minimum number of persons in a partnership firm is

• one

• two

• seven

In a partnership business, agreement is

• compulsory

• optional

• not necessary

In a partnership, partners share their profits and losses in ______ ratio

• their capital

• equal

• agreed

Under fixed capital system, the profits and losses of partners will be transferred to their _______ account

• current

• drawings

• capital

Interest on capital is calculated on the

• Opening Capital

• Closing Capital

• Average Capital

Current accounts for partners will be opened under

• Fixed capital method

• Fluctuating capital method

• Either fixed capital method or fluctuating capital method

In the absence of partnership deed, partners shall

• be paid salaries

• not to be paid salaries

• paid salaries to those who work for the firm

Where a partner is entitled to interest on capital such interest will be payable

• Only out of profits

• Only out of capital

• Out of profits or out of capital

Under fixed capital method salary payable to a partner is recorded

• in Current Account

• in Capital Account

• either in Current Account or Capital Account

Indian Partnership Act was enacted in the year _____

• 1932

• 1942

• 1952