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OBJECTIVE TYPE QUESTIONS:

1. When will you record Goodwill in the books, as per Accounting
Standard-26 (AS-26)?
UE

2. Where would you record interest on drawings when capitals are
fluctuating?
UA

3. Define Goodwill.
CA

4. Distinguish Between Average Profit Method and Super Profit Method.
CE

5. When and why rectifying entries are made in the partners’ capital
accounts?
UA

6. Money withdrawn by a partner on 1st July Rs. 20,000 and interest on
drawings is fixed @ 6% (Books are closed on 31st March.) The CA
amount of interest will be Rupees:

7. In the absence of Partnership deed profit sharing ratio will be
UE

8. A, B, and C were partners in a firm having no partnership agreement.
A, B and C contributed ₹2,00,000, ₹3,00,000 and ₹1,00,000
respectively. A and B desire that the profits should be divided in the AE
ratio of capital contribution. C does not agree to this. How will the
dispute be settled? Who is correct?

9. Singh and Gupta decided to start a partnership firm to manufacture
low cost jute bags as plastic bags were creating many environmental
problems. They contributed capitals of Rs 1,00,000 and Rs 50,000 on
1st April, 2012 for this. Singh expressed his willingness to admit Shakti
as a partner without capital, who is specially abled but a very creative
and intelligent friend of his. Gupta agreed to this. The terms of CA
partnership were as follows
!) Singh, Gupta and Shakti will share profits in the ratio of 2: 2: 1.
!!) Interest on capital will be provided @ 6% per annum.