If the incoming partner brings any additional amount in cash other than his capital contribution then it is termed as ________
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Solution
Additional amount is called premium for goodwill.
Fluctuating capital account is credited with
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Solution
Fluctuating capital account is credited with interest on capital, profit of year and remuneration to partners.
As per Section 37 of the Indian Partnership Act, 1932 the executors would be entitled at their choice to the interest calculated from date of death till the date of payment on the final amount due to the dead partner at _______ percent per annum.
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Solution
The rate is 6% p.a. as per Partnership Act.
Inventory is ______
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Solution
Inventory is a current asset (realizable in cash in short period of time).
While preparing a Bank Reconciliation Statement, if you start with overdraft as per Cash Book, then interest debited in pass book but not yet in cash book with in the period is
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Solution
Interest debited in pass book will be added in cash book.
Revaluation account is prepared at the time of _________
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Solution
Revaluation A/c is opened at admission and retirement of a partner.
At the time of death of a partner, firm gets _______ from the insurance company against the joint life policy taken jointly for all the partners
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Solution
Policy amount is received from insurance company against JLP taken jointly for all partners at time of death of a partner.
Interest on capital will be paid to partners if provided for in the agreement but only from
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Solution
Interest on capital will be paid to partners only from current profits.
Mr. X has a Trade receivables of Rs. 1,00,000. Creating a provision for discount @ 2% on Trade receivables is in accordance with
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Solution
Creation of provision for discount is based on conservatism.
Rs. 5,000.00 spent on maintenance of plant and machinery is:
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Solution
Maintenance of capital asset is revenue expense.