Question

Que –(1)  Choose the correct alternatives from the following options : (1 mark each) (5)

(1) What is the interest on drawings of partners for a partner?

(A) An expense (B) Liability (C) Income (D) Loss

(2) What percentage of interest will be paid, when no provision is made pertaining to interest on

capital in the partnership deed?

(A) 6% (B) 9% (C) 12% (D) No Interest

(3) Goodwill is which type of asset?

(A) Tangible asset (B) Intangible asset (C) Current asset (D) Fictitious asset

(4) Which method is appropriate for the computation of goodwill when every year profit is

increasing?

(A) Simple average (B) weighted average (C) Annual growth rate (D) Compound growth rate

(5) Goodwill is __________ where individual skill is important.

(A) more (B) less (C) zero (D) negative​

Answer 1

Answer:

1) Liability

2) 12%

3) Tangible asset

4) Simple average

5) negative