Question

32 Give four examples for capital receipt of not - for profit organisation.?
33. State the differences between fixed capital method and fluctuating capital method.?
34 State any six factors determining good will.?​

Answer 1

Answer:

32. Life membership fees.

• Legacies.

• Special donations.

• Sale of fixed assets.

33. Difference Between Fixed and Fluctuating Capital Methods

Fixed Capital Method Fluctuating Capital Method

The capital balance remains unchanged Capital balance fluctuates

Both Capital and Current Accounts appears in the Balance sheet. Only Capital Account appears in the Balance Sheet

34. Generally, the following factors determine the value of goodwill of a partnership firm:

(i) Profitability of the firm. ...

(ii) Favourable location of the business enterprise. ...

(iii) Good quality of goods or services offered. ...

(iv) Tenure of the business enterprise. ...

(v) Efficiency of management. ...

(vi) Degree of competition.