Partnership Fundamentals

In case of fluctuating capitals, interest on capital

• (a) is credited to Partner’s Capital Account.

• (b) is credited to Partner’s Current Account.

• (c) may be credited to Partner’s Capital or Current Account.

• (d) Interest Payable Account

Which of the following items will not be shown in Profit and Loss Appropriation Account?

• (a) Interest on Capital

• (b) Commission to a partner

• (c) Interest on Drawings

• (d) Interest on Partner’s Loan

A,B and C were partner in a firm sharing Profit in the ratio of 3:2:1 during the year the firm earned profit of Rs. 84,000. Calculate the amount of Profit or Loss transferred to the capital A/c of B.

• a. Loss Rs. 87,000

• b. Profit Rs. 87,000

• c. Profit Rs.28,000

• d. Profit Rs.14,000

The relation of the partner with the firm is that of

• a. An owner

• b. An agent and A Principal

• c. An agent

• d. Manager

A and B are partner’s sharing profit equally. A draw regularly Rs. 4,000 at the end of every month for 6 months. Year ended on 30th September 2020.Calculate interest on drawings @ rate 5% p.a.

• a. Rs. 350

• b. Rs. 450

• c. Rs. 150

• d. Rs. 250