Chapter 13, Problem 4E

  $1)$

To determine

Concept introduction

Partnership firm People start their own business and select the form of organisation depending upon their need and kind of their business. Partnership is a one form of organisation. In other words, it is a type of business form in which a group of people share all the profit and losses with each other which are often called as partners who comes together and run a partnership firm.

The best way to measure the capital on which the interest is to be calculated.

  $2)$

To determine

Concept introduction

Partnership firm People start their own business and select the form of organisation depend upon their need and kind of their business. Partnership is a one form of organisation. In other words, it is a type of business form in which a group of people shares all the profit and losses with each other which are often called as partners who cometogether and runs a partnership firm.

The factors to consider in setting interest rate when the interest on invested capital is involved.

  $3)$

To determine

Concept introduction

Partnership firm People start their own business and select the form of organisation depend upon their need and kind of their business. Partnership is a one form of organisation. In other words, it is a type of business form in which a group of people shares all the profit and losses with each other which are often called as partners comes who together and run a partnership firm.

The concerns about the decision of buyout of an existing partner which says that the withdrawing partner will be entitled with an amount equal to $120\%$ of the capital balance as on the end date of month preceding the withdrawal.

  $4)$

To determine

Concept introduction

Partnership firm People start their own business and select the form of organisation depend upon their need and kind of their business. Partnership is a one form of organisation. In other words, it is a type of business form in which a group of people shares all the profit and losses with each other which are often called as partners who cometogether and runa partnership firm.

The time and basis of distributing the salaries if these salaries are used as a component for profit and loss sharing agreement.

  $5)$

To determine

Concept introduction

Partnership firm People start their own business and select the form of organisation depend upon their need and kind of their business. Partnership is a one form of organisation. In other words, it is a type of business form in which a group of people shares all the profit and losses with each other which are often called as partners who cometogether and runa partnership firm.

The reason of taking bonus on the income computed after bonus if the bonus is used as a component for profit and loss sharing agreement.

  $6)$

To determine

Concept introduction

Partnership firm People start their own business and select the form of organisation depend upon their need and kind of their business. Partnership is a one form of organisation. In other words, it is a type of business form in which a group of people shares all the profit and losses with each other which are often called as partners who cometogether and runa partnership firm.

The most equitable approach for allocating the operating losses.