Entrance fees, unless mentioned clearly, is treated as - (a) A Capital Receipts (b) A Revenue Income (c) A Liability (d) None of these In the absence of agreement partners have the right to receive - (a) Salary (b) Commission III.​

Answers 1

1) (b) Revenue receipts.

In a Not-profit-organization, the entrance fee is the amount that we have to pay when becoming a member of the organization. While accounting, the entrance fee is treated as revenue receipts unless it is stated that the entrance fee is to be capitalized.

2) (c) Interest on loan.

When the partners forming a partnership don't have an agreement, they are not allowed any remuneration such as salary, commission, interest on capital. No interest is charged on drawings as well. Profit-sharing ratios will be equal. However, if a partner has given any loan or advance to the firm, he will be given interest on that amount.

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