6. Which of the following conditions is not true in case remuneration payable to partners is
allowed as a deduction of a partnership firm under Income tax Act 1961?

(A) Remuneration must be authorized by partnership deed
(B) Remuneration can be paid to all partners

(C) Partnership deed cannot authorize payment of remuneration for any earlier
period

(D) None of these

7. Which of the following is true with respect to Interest on Capital of partners?
(A) It is credited to partner’s capital account
(B) It is credited to partner’s current account
(C) Hither (A) or (8)

(0) ا٤‎ is calculated on average capital of partners

8. At the time of retirement, continuing partners acquire the share of outgoing partners in

ratio.
(A) Gaining ratio (B) Sacrificing ratio
(C) New profit - sharing ratio (D) Old profit - sharing ratio

9. | Which of the following is not true in case of dissolution of a partnership firm?
(A) Business comes to an end
(B) Revaluation account is created
(C) Books of accounts are closed

0) The entire firm including the relation among all partners ceases to exist

10. The proceeds from the sale of assets along with the contribution of partners at the time of
dissolution of a firm are first used to pay off:

(^) Partner’s Capital ൯) Partners additional capital

(C) External Liabilities (D) Partners loan to the firm

11. The firms cost of capital is equal to the opportunity cost of equity capital in a
firm.

(A) ‏الى‎ debt financed firm (B) All equity financed firm
(C) Equity and debt financed firm (D) Preference and equity financed firm

093/2022 4 A