Partnership

Accounting

Medium

List-I (Equal amount of drawings made)	List-II (Number of month for which interest calculated)
(A) At the end of each half year	(I) 4.5 months
(B) At the beginning of each quarter	(II) 6.5 months
(C) At the beginning of each month	(III) 7.5 months
(D) At the end of each quarter	(IV) 3 months

Match List-I with List-II

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (IV), (B) - (III), (C) - (I), (D) - (III)

(A) - (IV), (B) - (III), (C) - (II), (D) - (I)

✅ Correct Option: 4

The Average Period Formula is: (Months left after 1st drawing + Months left after last drawing) / 2

Withdrawal Timing	1st Drawing (Months Left)	Last Drawing (Months Left)	Average Period Formula	Average Period (Months)
End of each half year	30 Sept (6)	31 Mar (0)	(6 + 0) / 2	3
Beginning of each quarter	1 Apr (12)	1 Jan (3)	(12 + 3) / 2	7.5
Beginning of each month	1 Apr (12)	1 Mar (1)	(12 + 1) / 2	6.5
End of each quarter	30 Jun (9)	31 Mar (0)	(9 + 0) / 2	4.5

2026: 13 May Shift 2

Arrange the following steps related to valuation of goodwill by Capitalisation of Average Profits method.

(A) Deducting net assets from the capitalised value of average profit.

(B) Ascertain the average profit based on the past few years' performance.

(C) Capitalize the average profit on the basis of the normal rate of return to ascertain the capitalised value of average profits.

(D) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).

Choose the correct answer from the options given below:

2025: 30 May Shift 1

The following are the features of the fluctuating capital method by which the capital accounts of partners can be maintained.

(A) Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner.

(B) All the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, etc. are recorded directly in the capital accounts of the partners.

(C) the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners.

(D) The capital account may sometimes show a debit balance.

Choose the correct answer from the options given below:

2023: 29 May Shift 2

Complete the sequence where interest on capital has to be provided as per partnership deed, but available profits are not sufficient to provide full amount of Interest on capital.

A. If it is appropriation, calculate interest on capital for all partners at given rate

B. Divide the available amount in the capital ratio among the partners

C. Calculate ratio between capital of partners

D. Consider the partnership deed and decide whether interest on capital is a charge or an appropriation

E. Consider the available profit

Choose the correct answer from the options given below:

2025: 15 May Shift 2

Which of the following entry shows withdrawal of excess capital by partner's ?:

2025: 22 May Shift 1

Ram and Laxman started business on 1st Jan 2020 with a capital of Rs 1,20,000 and Rs 80,000 respectively. Ram introduced Rs. 50,000 to the firm on 1st July 2020 as additional capital. If the rate of interest is 15% p.a. Assuming that accounts are closed as per calender year then the Interest payable to Ram on Capital would be:

2022: 20 Aug Shift 2

If Amit, a partner, withdrew Rs. 10,000 per month in the end, what will be the amount of interest on drawing if it is calculated @ 8 % p.a.?

Match List-I with List-II

Solution

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