Distinguish between firm’s debts and partner’s private debts.

What is Capital Fund? How is it calculated?

What is sacrificing ratio? Why is it calculated?

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?

 Why there is need for the revaluation of assets and liabilities on the admission of a partner? 

What is subscription? How is it calculated?

List the items which may be debited or credited in capital accounts of the partners when:

(i) Capitals are fixed.
(ii) Capital are fluctuating.

Why is Profit and Loss Adjustment Account prepared? Explain.

If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?

 Why it is considered desirable to make the  partnership agreement in writing.

On what occasions sacrificing ratio is used?

On what occasions sacrificing ratio is used?

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

Give two circumstances under which the fixed capitals of partners may change.

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?

What is subscription? How is it calculated?

On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.

 Why there is need for the revaluation of assets and liabilities on the admission of a partner? 

Reproduce the format of Realisation Account.

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?

State the order of settlement of accounts on dissolution.