Under the __________ capital method, two accounts are maintained for each partner, viz., current account and capital account.

Under the _________ capital method, all the transactions are recorded in the capital account only.

Retirement of a partner means that a partner breaks off his relations with all other partners and withdraws himself from the firm.

Admission of a partner means joining of a new person into an existing partnership as a partner.

Goodwill arises when a company acquires another entire business.

If the partnership deed does not mention any method of maintaining capital accounts then the fixed capital account method has to be followed.

If the partnership firm is following the fixed capital account method salary payable to a partner is credited to the partners' current account.

While calculating average profit of previous years, loss incurred in one of those years is to be ignored.

Adjustment for goodwill can be made privately by the partners without passing any entries in books of account.

Calculate Gross profit margin if

• Gross profit = 2500
• Turnover = 5000