Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board. 

Chapter 1 - Introduction to Partnership and Partnership Final Accounts [Latest edition]

Write the word/phrase/term, which can substitute the following sentence.

Persons who form the partnership firm.

Ans. Partners. 

Amount of cash or goods withdrawn by partners from the business from time to time.

Ans. Drawings

An association of two or more persons according to the Indian partnership Act 1932.

Ans. Partnership Firm

Act under which partnership firms are regulated.

Ans. Indian Partnership Act

Process of entering the name of a partnership firm in the register of Registrar.

Ans. Registration

Partnership agreement in written form.

Ans. Partnership Deed

Under this method capital, balances of partners remain constant.

Ans. Fixed Capital Method

Proportion in which partners share profit.

Ans. Profit Sharing Ratio

Such capital method in which only Capital Account is maintained for each partner.

Ans. Fluctuating Capital Method

The account to which all adjustments are made when capital is fixed.

Ans. Current Account

Expenses which are paid before they are due.

Ans. Prepaid Expenses

The accounts that are prepared at the end of each accounting year.

Ans. Final Accounts

An asset which can be converted into cash easily.

Ans. Current Assets or Liquid Assets

Order in which fixed assets are recorded first in the Balance Sheet.

Ans. Order of liquidation

The account in which selling expenses of the business are recorded.

Ans. Profit and Loss account

Debit balance of Trading Account.

Ans. Gross Loss

Credit balance of Profit and Loss Account.

Ans. Net Profit