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 Accounting for Partnership Firms — FundamentalsTopic-2: Partnership DeedMultiple Choice Questions 1 / 24 1. In the absence of express agreement, interest @ 6% p.a. is provided : a) On opening balance of partner’s current accounts b) On opening balance of partner’s capital accounts c) On closing balance of partner’s capital accounts d) On loan given by partners to the firm 2 / 24 2. If any loan or advance is provided by partner then, balance of such Loan Account should be transferred to : a) Balance Sheet Assets side b) Partner’s Capital A/c c) Partner’s Current A/c d) Balance Sheet Liability Side 3 / 24 3. In the absence of a partnership deed, the allowable rate of interest on partner’s loan account will be : a) 12% Simple Interest b) 12% Compounded Annually c) 6% p.a. Simple Interest d) 6% Simple Interest 4 / 24 4. Partnership Deed is also called a) Articles of Association b) Principles of Partnership c) Articles of Partnership d) Prospectus 5 / 24 5. 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) ₹26,267 for Partner B and C and ₹27,466 for Partner A c) ₹33,333 for A ₹26,667 for B and ₹20,000 for C. d) ₹26,667 each partner. 6 / 24 6. In the absence of partnership deed, partners share profits or losses : a) In the ratio of their Capitals b) In the ratio decided by the court c) Equally d) In the ratio of time devoted 7 / 24 7. 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) 0 d) ₹1,800 8 / 24 8. 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 9 / 24 9. Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm? a) Salary to Partner b) Interest on Capital c) All of the above d) Transfer to Reserve 10 / 24 10. 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) ₹2,000 to each partner. b) None of the these c) ₹400 for A, ₹5,200 for Land ₹400 for Z. d) Loss of ₹4,400 for X and Z; Twill take ₹14,800 11 / 24 11. 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) @ 6% Per Annum b) No interest can be charged c) @ 5% Per Annum d) @ 6% Per Month 12 / 24 12. 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) ₹3,000 c) ₹1,500 d) ₹6,000 13 / 24 13. In the absence of agreement, partners are not entitled to : a) Equal share in profit b) Salary c) Commission d) Both (a) and (b) 14 / 24 14. Interest on capital will be paid to the partners if provided for in the partnership deed but only out of: a) Profits b) Reserves c) Accumulated Profits d) Goodwill 15 / 24 15. In the absence of Partnership Deed : a) Interest will be charged @. 5% p.a. on partner’s drawings b) Interest will be charged @ 6% p.a. on partner’s drawings c) Interest will not be charged on partner’s drawings d) Interest will be charged @ 12% p.a. on partner’s drawings 16 / 24 16. 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) None of the these d) 5% of profit 17 / 24 17. When is the Partnership Act enforced? a) when there is no partnership deed b) when capital contribution by the partners varies c) where there is a partnership deed but there are differences of opinion between the partners d) when the partner’s salary and interest on capital are not incorporated in the partnership deed 18 / 24 18. In the absence of Partnership Deed, the interest is allowed on partner’s capital: a) @ 5% p.a. b) No interest is allowed c) @ 6% p.a. d) @ 12% p.a. 19 / 24 19. 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) @ 6% Per Annum b) @5% Per Annum c) @ 6% Per Month d) As there is a loss in the business, interest can’t be paid 20 / 24 20. Which one of the following items cannot be recorded in the profit and loss appropriation account? a) Interest on capital b) Rent paid to partners c) Partner’s salary d) Interest on drawings 21 / 24 21. In the absence of partnership deed, the following rule will apply: a) Profit sharing in capital ratio b) Profit based salary to working partner c) No interest on capital d) 9% p.a. interest on drawings 22 / 24 22. Forming a Partnership Deed is : a) Not Mandatory b) None of the these c) Mandatory d) Mandatory in Writing 23 / 24 23. Which of the following is not incorporated in the Partnership Act? a) no interest is to be charged on capital b) all loans are to be charged interest @6% p.a. c) profit and loss are to be shared equally d) all drawings are to be charged interest 24 / 24 24. Is rent paid to a partner appropriation of profits? a) It is not appropriation of profit b) If partner’s contribution as capital is maximum c) It is appropriation of profit d) If partner is a working partner. Your score is The average score is 29% LinkedIn Facebook Twitter 0% Restart quiz Send feedback