Q1.

Consider the following facts about valuation of Goodwill of a partnership firm:

A. Goodwill valuation is done on change in profit sharing ratio among the existing partners.

B. Goodwill is valued on admission of a partner, to know the amount to be paid by him to compensate sacrificing partner(s).

C. Goodwill valuation is done on the retirement of a partner to know the amount to be paid to him as compensation for his sacrifice.

D. Goodwill valuation is done at the time of dissolution of a firm which involves sale of business as a going concern.

E. Goodwill valuation is done during the distribution of profits of the partnership firm.

Choose the correct answer from the options given below: 

Q2.

If the partner’s capital accounts are fixed, where will you record drawings made by a partner out of his capital during the year?