Under the Partnership Act, if the partnership deed is silent regarding interest on capital, no interest is allowed to be paid to the partners. Interest on capital is only payable if there is an express agreement between the partners to provide for it.

The correct matches are: (a) A new partner requires consent from all existing partners; (b) Increase in liability is debited to the Revaluation account; (c) Buying and selling is an implied power of partners; (d) The current account of a partner may have either a debit or credit balance.

In the absence of an express agreement or partnership deed, the provisions of the Partnership Act apply. According to these rules, partners are not entitled to interest on capital, nor are they required to pay interest on drawings. This ensures fairness and prevents disputes when specific terms were not formally documented by the partners at the inception of the firm.

Using the average period method for monthly drawings on the 15th, the interest is calculated for 6.5 months. For X: (18,000 * 10% * 6.5/12) = 975. However, based on the provided answer key, the calculation assumes a 6-month average: (18,000 * 10% * 6/12) = 900 and (12,000 * 10% * 6/12) = 600.

In a fixed capital system, the capital account remains unchanged except for permanent additions or withdrawals of capital. Routine transactions like drawings, interest on capital, and salary are recorded in a separate Current Account. Therefore, only the introduction of additional permanent capital is recorded in the fixed capital account, ensuring the original investment balance is clearly distinguished from the partner's share of periodic profits or losses.

Under the Partnership Act, if the partnership agreement is silent regarding profit sharing, the law mandates that all partners share profits and losses equally, regardless of their capital contributions or the amount of time they dedicate to the business.

In a limited partnership, limited partners provide capital but do not participate in the daily management of the firm. Their liability is strictly limited to the amount they have invested in the business, protecting their personal assets from the firm's debts. This structure is commonly used in investment funds and real estate ventures to attract passive investors who seek exposure to business profits without assuming unlimited financial risk.

In accounting and legal terminology, a 'sleeping partner' is synonymous with an 'inactive partner'—someone who contributes capital but does not participate in daily management. Since 'sleeping partner' (B) and 'inactive partner' (D) describe the same role, this question contains a classification ambiguity. We follow the provided answer key.

A partnership firm is a private business entity and does not have the legal status to issue bonds or debentures to the public, as these are debt instruments typically reserved for corporate entities. Partners can contribute capital, take bank loans, or borrow from each other, but they cannot access public capital markets through bond issuance.

The Profit and Loss Appropriation Account starts with the net profit from the P&L account. We add interest on drawings (income for the firm) and subtract interest on capital (expense for the firm). Calculation: 1,50,000 + 2,000 - 18,000 = 1,34,000.