Accountancy CHAPTER-2 Accounting for Partnership Firms — Fundamentals MULTIPLE CHOICE QUESTIONS Topic-1: Features or Characteristics of Partnership 0% 1 votes, 5 avg 13 Please login to participate in the quiz Username or Email Address Password Remember Me Topic-2: Partnership Deed 0% 0 votes, 0 avg 3 All the best for your quiz All the best for your quiz Accounting for Partnership Firms — FundamentalsTopic-2: Partnership DeedMultiple Choice Questions 1 / 24 1. If any loan or advance is provided by partner then, balance of such Loan Account should be transferred to : a) Partner’s Current A/c b) Partner’s Capital A/c c) Balance Sheet Liability Side d) Balance Sheet Assets side 2 / 24 2. A and B are partners in partnership firm without any agreement. A has given a loan of ₹50,000 to the firm. At the end of year loss was incurred in the business. Following interest may be paid to A by the firm : a) @5% Per Annum b) @ 6% Per Annum c) @ 6% Per Month d) As there is a loss in the business, interest can’t be paid 3 / 24 3. A partner introduced additional capital of ₹30,000 and advanced a loan of ₹40,000 to the firm at the beginning of the year. Partner will receive year’s interest: a) ₹2,400 b) Nil c) ₹4,200 d) ₹1,800 4 / 24 4. X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was dispute between the partners. .Profit before interest on partner’s capital was ₹6,000 and Y determined interest @24% p.a. on his loan of ₹80,000. There was no agreement on this point. Calculate the amount payable to X, Y, and Z respectively. a) ₹400 for A, ₹5,200 for Land ₹400 for Z. b) None of the these c) Loss of ₹4,400 for X and Z; Twill take ₹14,800 d) ₹2,000 to each partner. 5 / 24 5. Partnership Deed is also called a) Prospectus b) Principles of Partnership c) Articles of Association d) Articles of Partnership 6 / 24 6. Interest on capital will be paid to the partners if provided for in the partnership deed but only out of: a) Reserves b) Goodwill c) Accumulated Profits d) Profits 7 / 24 7. In the absence of express agreement, interest @ 6% p.a. is provided : a) On loan given by partners to the firm b) On closing balance of partner’s capital accounts c) On opening balance of partner’s current accounts d) On opening balance of partner’s capital accounts 8 / 24 8. A, B and C were Partners with capitals of ₹50,000; ₹40,000 and ? 30,000 respectively carrying on business in partnership. The firm’s reported profit for the year was ₹80,000. As per provision of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of ₹20,000 in addition to his capital contribution. a) ₹30,000 each partner b) ₹33,333 for A ₹26,667 for B and ₹20,000 for C. c) ₹26,667 each partner. d) ₹26,267 for Partner B and C and ₹27,466 for Partner A 9 / 24 9. Forming a Partnership Deed is : a) None of the these b) Mandatory c) Not Mandatory d) Mandatory in Writing 10 / 24 10. On 1st January 2019, a partner advanced a loan of ₹1,00,000 to the firm. In the absence of agreement, interest on loan on 31st March 2019 will be : a) Nil b) ₹6,000 c) ₹3,000 d) ₹1,500 11 / 24 11. Which one of the following items cannot be recorded in the profit and loss appropriation account? a) Partner’s salary b) Interest on drawings c) Interest on capital d) Rent paid to partners 12 / 24 12. In the absence of agreement, partners are not entitled to : a) Salary b) Equal share in profit c) Both (a) and (b) d) Commission 13 / 24 13. In the absence of partnership deed, the following rule will apply: a) No interest on capital b) Profit based salary to working partner c) Profit sharing in capital ratio d) 9% p.a. interest on drawings 14 / 24 14. In the absence of Partnership Deed : a) Interest will be charged @. 5% p.a. on partner’s drawings b) Interest will not be charged on partner’s drawings c) Interest will be charged @ 12% p.a. on partner’s drawings d) Interest will be charged @ 6% p.a. on partner’s drawings 15 / 24 15. In the absence of Partnership Deed, the interest is allowed on partner’s capital: a) No interest is allowed b) @ 5% p.a. c) @ 6% p.a. d) @ 12% p.a. 16 / 24 16. Which of the following is not incorporated in the Partnership Act? a) all drawings are to be charged interest b) all loans are to be charged interest @6% p.a. c) no interest is to be charged on capital d) profit and loss are to be shared equally 17 / 24 17. A and B are partners in a partnership firm without any agreement. A has withdrawn ₹50,000 out of his Capital as drawings. Interest on drawings may be charged from A by the firm : a) @ 5% Per Annum b) @ 6% Per Annum c) @ 6% Per Month d) No interest can be charged 18 / 24 18. When is the Partnership Act enforced? a) when capital contribution by the partners varies b) where there is a partnership deed but there are differences of opinion between the partners c) when the partner’s salary and interest on capital are not incorporated in the partnership deed d) when there is no partnership deed 19 / 24 19. In the absence of partnership deed, partners share profits or losses : a) In the ratio of their Capitals b) In the ratio of time devoted c) In the ratio decided by the court d) Equally 20 / 24 20. A and B are partners in a partnership firm without any agreement. A devotes more time for the firm as compare to B. A will get the following commission in addition to profit in the firm’s profit: a) 6% of profit b) 4% of profit c) 5% of profit d) None of the these 21 / 24 21. In the absence of a partnership deed, the allowable rate of interest on partner’s loan account will be : a) 6% p.a. Simple Interest b) 6% Simple Interest c) 12% Simple Interest d) 12% Compounded Annually 22 / 24 22. Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm? a) All of the above b) Salary to Partner c) Transfer to Reserve d) Interest on Capital 23 / 24 23. On 1st June 2018 a partner introduced in the firm additional capital ₹50,000. In the absence of partnership deed, on 31st March 2019 he will receive interest : a) ₹2,500 b) ₹3,000 c) ₹1,800 d) 0 24 / 24 24. Is rent paid to a partner appropriation of profits? a) If partner is a working partner. b) If partner’s contribution as capital is maximum c) It is appropriation of profit d) It is not appropriation of profit Your score is The average score is 29% LinkedIn Facebook Twitter 0% Restart quiz Send feedback