It is not charged from partners in the absence of partnership deed or agreement.

It is prepared to ascertain deficit of expenses over income or surplus of income over expenses.

It is paid by members in a not-for-profit organisation like clubs etc. so that their membership is not cancelled.

It is the gaining ratio, suppose A has 3 chocolates and before that he had 2 chocolates, so new - old = 3-2 = 1 chocolate is the gain.

When capital is fixed, because it remains unaltered unless additional capital is introduced or withdrawn, so all the adjustments of interest on drawings, profit or losses etc. are made in the current  A/c.

Nominal A/c is concerned with income and expenses, and interest on capital is an expense because it is to be paid to the partners by the firm.

Since the donation received is incoming of cash and the cash that comes in is, shown in debit side of receipts and payments A/c.

1,00,000 X 12.5  /100 = 1,12,500

On admission of a partner, the assets and liabilities are adjusted and credited to the old partner's capital a/c. So it is also known as P/L adjustment  A/c.

It is directly transferred to the old partner's capital A/c. Since, he has contributed to it.

It is prepared to ascertain surplus income over expenses or deficit expenses over income.

The incoming and outgoing cash (receipts and payments) whether of the current year or previous year is shown in receipts and payments A/c.

It is of non-recurring nature and the members will take advantage of the services provided throughout his life.

It is an appropriation out of profits, because it is a distribution out of the net profit and not paid in case of loss.

Under this method, all adjustments are made in the partner's current A/c.

Their object is to serve the society and the welfare of society.

Since we can see land and buildings, these are not intangible assets.

The excess of actual profits over normal profits is' super profits'. Those who earn excess profits, enjoy goodwill.

It is a charge against profit because it is paid to partner before calculating the profit and has to be paid even if there is a loss.

It is a liability created on admission of a partner, so it is debited to revaluation A/c, because new partner has no concern with this liability.

1,50,000 X  9  X  6 = Rs 6,750 . The interest is provided @  6% p.a. on the loan given in absence of any the partnership deed.                                            12    100                         

It is not affected by number of partners, since even if there are more number of partners, they don't make efforts, goodwill is not earned.

It is used to calculate average profits of a number of  years. For example - the profits in the last three years are Rs 12,000 , Rs 15000, Rs18000. Average Profit = Rs 12,000 + Rs 15,000 + Rs 18,000     = Rs 15,000                                                                                                          3 

Goodwill can be brought both in the form of cash and kind ( in the form of assets)

Under this method, additional capital brought or withdrawn is adjusted in partner's capital A/c.