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question_answer1)
Which of the following items is not dealt through profit and loss appropriation account? (CBSE SQP 2020-21)
A)
Interest on Partner's Loan done
clear
B)
Partner's salary done
clear
C)
Interest on Partner's Capital done
clear
D)
Partner's Commission done
clear
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question_answer2)
In the absence of partnership, interest on loan of a partner is allowed: (CBSE 2015)
A)
@ 8% per annum done
clear
B)
@ 6% per annum done
clear
C)
@ 12% per annum done
clear
D)
No interest is allowed done
clear
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question_answer3)
A manager gets 5% commission on net profit after charging such commission, gross profit Rs.2,90,000 and expenses of indirect nature other than managers commission are Rs.80,000. Commission will be:
A)
Rs.10,500 done
clear
B)
Rs. 10,000 done
clear
C)
Rs. 7,500 done
clear
D)
Rs. 11,000 done
clear
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question_answer4)
Interest on capital will be paid to the partner if provided for in the partnership deed but only out of:
A)
profits done
clear
B)
reserves done
clear
C)
accumulated profits done
clear
D)
goodwill done
clear
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question_answer5)
Following are essential elements of a partnership firm except:
A)
atleast two persons done
clear
B)
there is an agreement between all partners done
clear
C)
equal share of profits and losses done
clear
D)
partnership agreement is for some business done
clear
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question_answer6)
In case of partnership, the act of any partner is:
A)
binding on all partners done
clear
B)
binding on that partner only done
clear
C)
binding on all partners except that particular partner done
clear
D)
None of the above done
clear
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question_answer7)
X and Y are partners. X draws fixed amount at the end of every month. Interest on drawings is charged @ 15% p.a At the end of the year, interest on drawings of Y amounts to Rs.4,125. Drawings of X will be:
A)
Rs.6 000 p.m. done
clear
B)
Rs.5,000 p.m. done
clear
C)
Rs.4500 p.m. done
clear
D)
Rs.4,000 p.m. done
clear
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question_answer8)
A and B are partners in a firm. They are entitled to interest on their capitals but the net profit was not sufficient for this interest, then the net profit will be distributed among partners in:
A)
agreed ratio done
clear
B)
profit sharing ratio done
clear
C)
capital ratio done
clear
D)
equally done
clear
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question_answer9)
In the absence of partnership agreement, interest on drawings of a partner is charged at: (CBSE 20I5)
A)
8% p.a. done
clear
B)
9% p.a. done
clear
C)
12% p.a. done
clear
D)
No interest is charged done
clear
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question_answer10)
The liability of the partners in a partnership firm under the Indian Partnership Act is:
A)
limited done
clear
B)
unlimited done
clear
C)
no liability done
clear
D)
depend on the situation done
clear
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question_answer11)
Balance of partner's current accounts are:
A)
debit balance done
clear
B)
credit balance done
clear
C)
debit or credit balances done
clear
D)
neither debit nor credit balance done
clear
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question_answer12)
On 1st June, 2018 a partner introduced in the firm additional capital Rs.5,000. In the absence of partnership deed, on 31st March, 2019 he will receive interest:
A)
Rs.300 done
clear
B)
zero done
clear
C)
Rs.250 done
clear
D)
Rs.180 done
clear
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question_answer13)
A, B and C are partners in the ratio of 5 : 3 : 2. Before B's salary of Rs.1,700 firm's profit is Rs.9,700. How much in total B will receive from the firm?
A)
Rs.1,700 done
clear
B)
Rs.4,000 done
clear
C)
Rs.2,400 done
clear
D)
Rs.4,100 done
clear
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question_answer14)
Interest on capital is allowed on:
A)
the opening capital done
clear
B)
the capital at the year end done
clear
C)
average capital of the year done
clear
D)
the capital in the middle of the year done
clear
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question_answer15)
Excess amount that a firm gets over and above the market value of assets at the time of sale of its business is:
A)
profit done
clear
B)
super profit done
clear
C)
reserve done
clear
D)
goodwill done
clear
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question_answer16)
When a partner is given guarantee by other partners, loss on such guarantee will be borne by:
A)
partnership firm done
clear
B)
all the other partners done
clear
C)
partners who give the guarantee done
clear
D)
partner with highest profit sharing ratio done
clear
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question_answer17)
Where will you record interest on drawings?
A)
Debit side of profit and Loss appropriation account done
clear
B)
Credit side of profit and Loss appropriation account done
clear
C)
Credit side of profit and loss account done
clear
D)
Debit side of capital/current account only done
clear
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question_answer18)
Which of the following statement is true?
A)
Fixed capital account will always have a credit balance done
clear
B)
Current account can have a positive or a negative balance done
clear
C)
Fluctuating capital account can have a positive or a negative' balance done
clear
D)
All of the above done
clear
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question_answer19)
According to profit and loss account, the net profit for the year is Rs.15,000. The total interest on partners capital is Rs.1,800 and interest on partners drawings is Rs.200. The net profit as per profit and loss appropriation account will be:
A)
Rs.16,600 done
clear
B)
Rs.17,000 done
clear
C)
Rs.13,000 done
clear
D)
Rs.13,400 done
clear
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question_answer20)
Which accounts are opened when the capitals are fixed?
A)
Only capital accounts done
clear
B)
Only current accounts done
clear
C)
Capital accounts as well as current accounts done
clear
D)
Either capital accounts or current accounts done
clear
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question_answer21)
Total capital employed in the firm is Rs.8,00,000, reasonable rate of return is 15% and profit for the year is Rs.12,00,000. The value of goodwill of the firm as per capitalisation method would be:
A)
Rs.82,00,000 done
clear
B)
Rs.12,00,000 done
clear
C)
Rs.72,00,000 done
clear
D)
Rs.42,00,000 done
clear
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question_answer22)
What should be the minimum number of persons to form a partnership?
A)
2 done
clear
B)
7 done
clear
C)
10 done
clear
D)
20 done
clear
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question_answer23)
If a fixed amount is withdrawn by a partner on the first day of every month, interest on the total amount is charged for ............ months.
A)
6 done
clear
B)
\[{{6}^{\frac{1}{2}}}\] done
clear
C)
\[{{5}^{\frac{1}{2}}}\] done
clear
D)
12 done
clear
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question_answer24)
On 1st January, 2019, a partner advanced a loan of Rs.10,000 to the firm. In the absence of agreement, interest on loan on 31st March, 2019 will be:
A)
Nil done
clear
B)
Rs.150 done
clear
C)
Rs.300 done
clear
D)
Rs.600 done
clear
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question_answer25)
Features of a partnership firm are:
A)
two or more persons are carrying common business under an agreement. done
clear
B)
they are sharing profits and losses in the fixed ratio. done
clear
C)
business is carried by all or any of them acting for all as an agent. done
clear
D)
All of the above done
clear
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question_answer26)
Number of partners in a partnership firm may be:
A)
maximum two done
clear
B)
maximum ten done
clear
C)
maximum one hundred done
clear
D)
maximum fifty done
clear
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question_answer27)
Which one of the following items cannot be recorded in the profit and loss appropriation account?
A)
Interest on capital done
clear
B)
Interest on drawings done
clear
C)
Rent paid to partners done
clear
D)
Partners salary done
clear
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question_answer28)
Average profit basis, goodwill is calculated by:
A)
no. of years purchased multiplied with average profits done
clear
B)
no. of years purchased multiplied with super profits done
clear
C)
summation of the discounted value of expected future benefits done
clear
D)
super profit divided with expected rate of return done
clear
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question_answer29)
Which of the following statement is true?
A)
A minor cannot be admitted as a partner done
clear
B)
A minor can be admitted as a partner, only into the benefits of the partnership done
clear
C)
A minor can be admitted as a partner but his rights and liabilities are same of adult partner done
clear
D)
None of the above done
clear
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question_answer30)
Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta was manager who received the salary of Rs.4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profit for the year is Rs.6,78,000 before charging salary. Find the total remuneration of Meeta.
A)
Rs.78,000 done
clear
B)
Rs.88,000 done
clear
C)
Rs.87,000 done
clear
D)
Rs.76,000 done
clear
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question_answer31)
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 firms profit:
A)
6% of profit done
clear
B)
4% of profit done
clear
C)
5% of profit done
clear
D)
None of these done
clear
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question_answer32)
In which of the following situation(s) need for valuation of goodwill arises for a partnership firm?
A)
At the time of change in profit sharing ratio done
clear
B)
At the time of death/retirement of a partner done
clear
C)
At the time of admission of a partner done
clear
D)
All of the above done
clear
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question_answer33)
When partners capital accounts are fixed, which one of the following items will be written in the partners capital account?
A)
Partners drawings done
clear
B)
Additional capital introduced by the partner in the firm done
clear
C)
Loan taken by partner from the firm done
clear
D)
Loan advanced by partner to the firm done
clear
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question_answer34)
X is a partner in a firm. He withdrew regularly Rs.100 at the beginning of every month for the six months ending 31st March, 2019. If interest on drawings is charged @ 8% p.a. the interest charged will be:
A)
Rs.24 done
clear
B)
Rs.14 done
clear
C)
Rs.10 done
clear
D)
Rs.12 done
clear
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question_answer35)
X and Y are partners in the ratio of 3 : 2. Their capitals are Rs.20,000 and Rs.10,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of Rs.6,000 for the year ended 31st March, 2019. Interest on capital will be:
A)
X Rs.1,600 ; Y Rs.800 done
clear
B)
X Rs.800 ; Y Rs.400 done
clear
C)
X Rs.1,440 ; Y Rs.960 done
clear
D)
No interest will be allowed done
clear
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question_answer36)
If equal amount is withdrawn by a partner in the end of each month during a period of 6 months, interest on the total amount will be charged for............ months.
A)
2.5 done
clear
B)
3 done
clear
C)
3.5 done
clear
D)
6 done
clear
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question_answer37)
A firm earns Rs. 110,000.The normal rate of return is 10%.The assets of the firm amounted to Rs.11,00,000 and liabilities Rs.1,00,000. Value of goodwill by capitalisation of average actual profits will be:
A)
Rs.2,00,000 done
clear
B)
Rs.10,000 done
clear
C)
Rs.5,000 done
clear
D)
Rs.1,00,000 done
clear
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question_answer38)
X and Y are partners in the ratio of 3 : 2. Their capitals are Rs.20,000 and Rs.10,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of Rs.1,500 for the year ( ended 31st March, 2019. Interest on capital will be:
A)
X Rs.1,600 ; Y Rs.800 done
clear
B)
X Rs.900 ; Y Rs.600 done
clear
C)
X Rs.1,000 ; Y Rs.500 done
clear
D)
No interest will be allowed done
clear
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question_answer39)
Which accounts are opened when the capitals are fluctuating?
A)
Only capital accounts done
clear
B)
Only current accounts done
clear
C)
Capital accounts as well as current accounts done
clear
D)
Either capital accounts or current accounts done
clear
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question_answer40)
The relation of partner with the firm is that of:
A)
an owner done
clear
B)
an agent done
clear
C)
an owner and an agent done
clear
D)
a manager done
clear
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question_answer41)
If date of drawings of the partners is not given in the question, interest is charged for how much time?
A)
1 month done
clear
B)
3 months done
clear
C)
6 months done
clear
D)
12 months done
clear
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question_answer42)
Which of the following is/are method(s) of valuation of goodwill?
A)
Average Profit Method done
clear
B)
Super Profit Method done
clear
C)
Capitalisation Method done
clear
D)
All of these done
clear
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question_answer43)
A, B and C are partners in a firm without any agreement. They have contributed Rs.5,000, Rs.3,000 and Rs.2,000 by way of capital in the firm. A was unable to work for six months in a year due to illness. At the end of year, firm earned a profit of Rs.1,500. As share in the profit will be:
A)
Rs.750 done
clear
B)
Rs.375 done
clear
C)
Rs.500 done
clear
D)
Rs.250 done
clear
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question_answer44)
A partner withdraws Rs.800 each on 1st April and 1st Oct. Interest on his drawings @6% p.a. on 31st March will be:
A)
Rs.48 done
clear
B)
Rs.72 done
clear
C)
Rs.24 done
clear
D)
Rs.96 done
clear
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question_answer45)
In the absence of partnership deed, the interest is allowed on partners capital:
A)
@5%p.a. done
clear
B)
@6%p.a. done
clear
C)
@12% p.a. done
clear
D)
No interest is allowed done
clear
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question_answer46)
In the absence of partnership deed, the partners share profits or losses:
A)
in the ratio of their capitals done
clear
B)
in the ratio decided by the court done
clear
C)
equally done
clear
D)
in the ratio of time devoted done
clear
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question_answer47)
Weight average method of calculating goodwill is used when:
A)
profit are not equal done
clear
B)
profits show a trend done
clear
C)
profits are fluctuating done
clear
D)
None of these done
clear
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question_answer48)
On 1st April, 2018, Xs capital was Rs.20,000. On 1st October, 2018, he introduces additional capital of Rs.10,000. Interest on capital @6% p.a. on 31st March, 2019 will be:
A)
Rs.900 done
clear
B)
Rs.1,800 done
clear
C)
Rs.1,050 done
clear
D)
Rs.1,500 done
clear
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question_answer49)
There are two partners in a firm A and B, C is admitted into the firm for 1/3rd share of profit with the guaranteed profit of Rs.1,800 p.a. The firms total profit is Rs.4,200. If A stood as guarantor of guaranteed profit to C, how much profit would be given to A?
A)
Rs.2,000 done
clear
B)
Rs.1,500 done
clear
C)
Rs.1,000 done
clear
D)
Rs.1,800 done
clear
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question_answer50)
If equal amount is withdrawn by a partner in the beginning of each month during a period of 6 months, interest on the total amount will be charged for............... months.
A)
2.5 done
clear
B)
3 done
clear
C)
3.5 done
clear
D)
6 done
clear
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question_answer51)
Pick odd one out.
A)
Goodwill is a fictitious asset done
clear
B)
Goodwill is an intangible asset done
clear
C)
Goodwill is a current asset done
clear
D)
Goodwill is a wasting asset done
clear
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question_answer52)
A partner introduced additional capital of Rs.3,000 and advanced a loan of Rs.4,000 to the firm at the beginning of the year. Partner will receive year's interest:
A)
Rs.420 done
clear
B)
Rs.240 done
clear
C)
Nil done
clear
D)
Rs.180 done
clear
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question_answer53)
Net profit of a firm is Rs.4,950. Manager is entitled to a commission of 10% on profits before charging his commission. Managers commission will be:
A)
Rs.495 done
clear
B)
Rs.450 done
clear
C)
Rs.550 done
clear
D)
Rs.485 done
clear
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question_answer54)
Find out that goodwill which is accounted for, as per Accounting Standard 26.
A)
Purchased goodwill only done
clear
B)
Self-generated goodwill done
clear
C)
Both a and b done
clear
D)
Goodwill brought in by a partner done
clear
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question_answer55)
The goodwill of the firm is not affected by:
A)
location of the firm done
clear
B)
reputation of firm done
clear
C)
better customer service done
clear
D)
None of these done
clear
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question_answer56)
A and B are partners in partnership firm without any agreement. A has given a loan of Rs.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 done
clear
B)
@6% per annum done
clear
C)
@6% per month done
clear
D)
as there is a loss in the business, interest cant be paid done
clear
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question_answer57)
Every partner is bound to attend diligently to his............... in the conduct of the business.
A)
rights done
clear
B)
meetings done
clear
C)
capital done
clear
D)
duties done
clear
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question_answer58)
Interest on partners drawings will be credited to:
A)
profit and loss account done
clear
B)
profit and loss appropriation account done
clear
C)
partners capital accounts done
clear
D)
None of the above done
clear
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question_answer59)
In case of fixed capitals, partners will have:
A)
credit balance in their capital accounts done
clear
B)
debit balance in their capital accounts done
clear
C)
may have credit or debit balances in their capital accounts done
clear
D)
credit balance or nil balance in their capital accounts done
clear
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question_answer60)
Which item is recorded on the credit side of partners current accounts?
A)
Interest on Partners Capitals done
clear
B)
Salaries of Partners done
clear
C)
Share of Profits of Partners done
clear
D)
All of these done
clear
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question_answer61)
Current accounts of partners are maintained if:
A)
capitals are fixed done
clear
B)
capitals are fluctuating done
clear
C)
whether capitals are fixed or fluctuating done
clear
D)
as is decided by the partners done
clear
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question_answer62)
Oustensible partners are those who:
A)
do not contribute any capital but get some share of profit for lending their name to the business done
clear
B)
contribute very less capital but get equal profit done
clear
C)
do not contribute any capital and without having any interest in the business, lend their name to the business done
clear
D)
contribute maximum capital of the business done
clear
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question_answer63)
In case of fixed capitals, interest on capital:
A)
is credited to partners capital account done
clear
B)
is credited to partners current account done
clear
C)
may be credited to partners capital or current account done
clear
D)
is debited to partners capital account done
clear
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question_answer64)
Under the capitalisation method of valuation of goodwill, the formula for calculating goodwill is:
A)
super profits multiplied by the rate of return done
clear
B)
average profits multiplied by the rate of return done
clear
C)
super profits divided by the rate of return done
clear
D)
average profits divided by the rate of return done
clear
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question_answer65)
Z is a partner in a firm. He withdraw regularly Rs.2,000 every month for the six months ending 31st March, 2019. If interest on drawings is charged @8% p.a. the interest charged will be:
A)
Rs.480 done
clear
B)
Rs.280 done
clear
C)
Rs.200 done
clear
D)
Rs.240 done
clear
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question_answer66)
Sleeping partners are those who:
A)
take active part in the conduct of the business but provide no capital. However, salary is paid to them. done
clear
B)
do not take any part in the conduct of the business but provide capital and share profits and losses in the agreed ratio. done
clear
C)
take active part in the conduct of the business but provide no capital. However, share profits and losses in the agreed ratio. done
clear
D)
do not take any part in the conduct of the business and contribute no capital. However, share profits and losses in the agreed ratio. done
clear
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question_answer67)
In case of fluctuating capitals, interest on capital:
A)
is credited to partners capital account done
clear
B)
is credited to partners current account done
clear
C)
may be credited to partners capital or current account done
clear
D)
interest payable account done
clear
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question_answer68)
Interest on partners capitals will be debited to:
A)
profit and loss account done
clear
B)
profit and loss appropriation account done
clear
C)
partners capital accounts done
clear
D)
None of the above done
clear
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question_answer69)
If a fixed amount is withdrawn by a partner on the last day of every month, interest on the total amount is charged for ............ months.
A)
12 done
clear
B)
\[{{6}^{\frac{1}{2}}}\] done
clear
C)
\[{{5}^{\frac{1}{2}}}\] done
clear
D)
6 done
clear
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question_answer70)
Interest on partners drawings will be debited to:
A)
profit and loss account done
clear
B)
profit and loss appropriation account done
clear
C)
partner's current account done
clear
D)
interest account done
clear
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question_answer71)
Forming a partnership deed is:
A)
mandatory done
clear
B)
mandatory in writing done
clear
C)
not mandatory done
clear
D)
None of these done
clear
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question_answer72)
When goodwill is not a purchased goodwill, goodwill:
A)
is not shown in the balance sheet done
clear
B)
is shown in the balance sheet done
clear
C)
may or may not in the balance sheet. done
clear
D)
is partly shown in the balance sheet done
clear
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question_answer73)
In the absence of an agreement to the contrary, the partners are:
A)
entitled to 6% interest on their capitals, only when there are profits done
clear
B)
entitled to 9% interest on their capitals only when there are profits done
clear
C)
entitled to interest on their capitals at the bank rate, only when there are profits done
clear
D)
not entitled to interest on their capitals done
clear
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question_answer74)
Partnership deed is also called............
A)
Prospectus done
clear
B)
Articles of Association done
clear
C)
Principles of Partnership done
clear
D)
Articles of Partner done
clear
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question_answer75)
For the firm, interest on capital is:
A)
capital payment done
clear
B)
capital receipt done
clear
C)
loss done
clear
D)
income done
clear
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question_answer76)
Which of the following items will not be shown in the debit of profit and loss appropriation account?
A)
Interest on Capital done
clear
B)
Commission to a partner done
clear
C)
Interest on Drawings done
clear
D)
Salary to partners done
clear
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question_answer77)
Interest on partners capitals will be credited to:
A)
profit and loss account done
clear
B)
profit and loss appropriation account done
clear
C)
interest account done
clear
D)
partners capital accounts done
clear
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question_answer78)
Capital employed by a partnership firm is Rs.5,00,000. Its average profit is Rs.60,000. The normal rate of return is similar type of business is 10%. The amount of super profit is:
A)
Rs.50,000 done
clear
B)
Rs.10,000 done
clear
C)
Rs.6,000 done
clear
D)
Rs.56,000 done
clear
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question_answer79)
How would you close the partners drawings account?
A)
By transfer to capital or current account debit side done
clear
B)
By transfer to capital account credit side done
clear
C)
By transfer to current account credit side done
clear
D)
Either b. or c. done
clear
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question_answer80)
When partners capital accounts are floating, which one of the following items will be written on the credit side of the partners capital accounts?
A)
Interest on drawings done
clear
B)
Loan advanced by partner to the firm done
clear
C)
Partners share in the firms loss done
clear
D)
Salary to the active partners done
clear
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question_answer81)
For the firm. interest on drawings is:
A)
capital payment done
clear
B)
expenses done
clear
C)
capital receipt done
clear
D)
income done
clear
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question_answer82)
X and Y are partners in the ratio of 3 : 2. Their capitals are Rs.2,00,000 and Rs.1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of Rs.15,000 for the year ended 31st March, 2019. As per partnership agreement, interest on capital is treated a charge on profits. Interest on capital will be:
A)
X Rs.16,000; Y Rs.8,000 done
clear
B)
X Rs.9000; Y Rs.6,000 done
clear
C)
X Rs.10,000; Y Rs.5,000 done
clear
D)
No interest will be allowed done
clear
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question_answer83)
Which of the following items are recorded in the profit & loss appropriation account of a partnership firm?
A)
Interest on Capital done
clear
B)
Salary to Partner done
clear
C)
Transfer to Reserve done
clear
D)
All of these done
clear
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question_answer84)
The written agreement among the partners is called:
A)
Partnership Deed done
clear
B)
Partnership by Laws done
clear
C)
Partnership Constitution done
clear
D)
A Contract done
clear
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question_answer85)
Interest on capitals of partners under the fluctuating capital accounts method is credited to:
A)
payable account done
clear
B)
profit and loss account done
clear
C)
partners capital accounts done
clear
D)
partners current accounts done
clear
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question_answer86)
Following are the factors affecting goodwill except:
A)
Nature of Business done
clear
B)
Location of the customers done
clear
C)
Technical Know-how done
clear
D)
Efficiency of Management done
clear
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question_answer87)
Average profit of a business over the last five years was Rs.60,000. The normal yield on capital invested in such a business is estimated at 10% p.a. The net capital invested in the business is Rs.5,00,000. Amount of goodwill, if it is based on 3 years purchase of last 5 years super profits will be:
A)
Rs.1,00,000 done
clear
B)
Rs.1,80,000 done
clear
C)
Rs.30,000 done
clear
D)
Rs.1,50,000 done
clear
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question_answer88)
If a fixed amount is withdrawn by a partner in the middle of every month, interest on the total amount is charged for............ months.
A)
6 done
clear
B)
\[{{6}^{\frac{1}{2}}}\] done
clear
C)
\[{{5}^{\frac{1}{2}}}\] done
clear
D)
12 done
clear
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question_answer89)
If equal amount is withdrawn by a partner in each month during a period of 6 months, interest on the total amount will be charged for............... months.
A)
6 done
clear
B)
3 done
clear
C)
2.5 done
clear
D)
3.5 done
clear
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question_answer90)
In the absence of agreement, partners are not entitled to:
A)
salary done
clear
B)
commission done
clear
C)
equal share in profit done
clear
D)
Both a and b done
clear
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question_answer91)
Y is a partner in a firm. He withdraw regularly Rs.3,000 at the end of every month for the six months ending 31st March, 2019. If interest on drawings is charged @ 10% p.a. the interest charged will be:
A)
Rs.375 done
clear
B)
Rs.450 done
clear
C)
Rs.525 done
clear
D)
Rs.900 done
clear
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question_answer92)
According to profit and loss account, the net profit for the year is Rs.4,20,000. Salary of a partner is Rs.5,000 per month and the commission of another partner is Rs.10,000. The interest on drawings of partners is Rs.4,000. The net profit as per profit and Loss appropriation account will be:
A)
Rs.3,54,000 done
clear
B)
Rs.3,46,000 done
clear
C)
Rs.4,09,000 done
clear
D)
Rs.4,01,000 done
clear
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question_answer93)
Vikas is a partner in a firm. His drawings during the year ended 31st March, 2019 were Rs.72,000. If interest on drawings is charged @ 9% p.the interest charged will be:
A)
Rs.324 done
clear
B)
Rs.6,480 done
clear
C)
Rs.3,240 done
clear
D)
Rs.648 done
clear
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question_answer94)
A partner draws Rs.2,000 each in 1st April 2018, 1st July 2018, 1st October 2018 and 1st January 2019. For the year ended 31st March, 2019 interest on drawings @ 8% per annum will be:
A)
Rs.540 done
clear
B)
Rs.320 done
clear
C)
Rs.960 done
clear
D)
Rs.400 done
clear
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question_answer95)
A and B contribute Rs.1,00,000 and Rs.60,000 respectively in a partnership firm by way of capital on which they agree to allow interest @ 8% p.a. Their profit or Loss sharing ratio is 3 : 2. The profit at the end of the year was Rs.2,800 before allowing interest on capital. If there is a clear agreement that interest on capital will be paid even in case of Loss, then Bs share will be:
A)
Profit Rs.6,000 done
clear
B)
Profit Rs.4,000 done
clear
C)
Loss Rs.6,000 done
clear
D)
Loss Rs.4,000 done
clear
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question_answer96)
Under what circumstances, a partner can get exemption from sharing losses in a firm?
A)
If he is a senior citizen done
clear
B)
If he is a minor done
clear
C)
If he is retiring partner done
clear
D)
All of these done
clear
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question_answer97)
Why a partnership firm needs partnership deed?
A)
It acts as a proof in any dispute done
clear
B)
It regulates rights of partners done
clear
C)
It represents duties and Liabilities of partners done
clear
D)
All of the above done
clear
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question_answer98)
Need of profit and loss adjustment account is for:
A)
appropriation of profits done
clear
B)
charge against profits done
clear
C)
rectification of errors of omissions done
clear
D)
None of the above done
clear
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question_answer99)
Which of the following factors help in generation of self-generated goodwill?
A)
Hardwork of organisation done
clear
B)
Better quality products done
clear
C)
Better customer services done
clear
D)
All of the above done
clear
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question_answer100)
Rights of a partner consists which of the following?
A)
Right to inspect book of accounts done
clear
B)
Right to not allow the admission of new partner done
clear
C)
Right of conducts affairs of business done
clear
D)
All of the above done
clear
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question_answer101)
If firm gives guarantee to a partner then who will sacrifice for this guarantee?
A)
All partners equally done
clear
B)
Only that partner who has maximum profit done
clear
C)
All partners in profit or Loss sharing ratio done
clear
D)
All of the above done
clear
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question_answer102)
Loan has been given by wife of a partner to the firm. Now partner wants interest @ 6% per annum as per Partnership Act, 1932 while partnership deed is silent. Solve this issue.
A)
Provide 6% per annum interest as Partnership Act says done
clear
B)
Provision of interest on loan @ 6% per annum of the Partnership Art does not apply done
clear
C)
Provide 10% interest to solve the issue done
clear
D)
None of the above done
clear
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question_answer103)
A partner withdrew Rs.4,000 per month from 1st July, 2016, on beginning of every month. Accounts are closed at 31st March, 2017. Calculate interest on drawings while rate of interest is 10% per annum.
A)
Rs.1,600 done
clear
B)
Rs.1,800 done
clear
C)
Rs.1,500 done
clear
D)
Rs.2,200 done
clear
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question_answer104)
A has given guarantee to C for minimum Rs.10,000 profit At year end, the firm suffered loss and Cs share in the loss was Rs.2,000. Calculate amount of deficiency to be borne by
A)
Rs.2,000 done
clear
B)
Rs.10,000 done
clear
C)
Rs.12,000 done
clear
D)
None of these done
clear
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question_answer105)
In a firm, 10% of net profit after deducting all adjustments, including reserve is transferred to general reserve. The net profit after all adjustments but before transfer to general reserve is Rs.44,000. Calculate the amount which is to be transferred to reserve:
A)
Rs.2,500 done
clear
B)
Rs.4,000 done
clear
C)
Rs.4,400 done
clear
D)
Rs.2,200 done
clear
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question_answer106)
Where a partner is entitled to interest on capital conteributed by him, such interest will be payable:
A)
only out of profit done
clear
B)
only out of capital done
clear
C)
Both a and b done
clear
D)
None of these done
clear
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question_answer107)
A charitable dispensary is run by 8 members. A new member wants to join them. The new member is of the opinion that partnership deed must be written while other members refused to do that. They said this is not a partnership. Give reason(s) in favour of other members.
A)
There is no business done
clear
B)
There is no sharing of profits done
clear
C)
There is no motive of profit making done
clear
D)
All of the above done
clear
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question_answer108)
In a partnership, managers commission is shown in:
A)
profit and loss account done
clear
B)
profit and loss appropriation account done
clear
C)
balance sheet done
clear
D)
None of the above done
clear
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question_answer109)
If partnership deed is silent or has not been formulated, then partners are entitled for:
A)
salary done
clear
B)
commission done
clear
C)
interest on loan done
clear
D)
profit share in capital ratio done
clear
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question_answer110)
If a partner individually carries on any business of the same nature as competing with that of firm, he shall account for
A)
retire from partnership done
clear
B)
all profits made by him done
clear
C)
dissolve the firm done
clear
D)
None of these done
clear
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question_answer111)
A and B were partners in a firm. They share their profits in the ratio of 2:1. A withdraws an amount of Rs.2,000 on 1st July, 2017. Journalise it:
A)
Profit and Loss Appropriation A/c Dr. 2000 To As capital A/c 2000 done
clear
B)
A’s Capital A/c Dr. 2,000 To Profit and Loss A/c 2,000 done
clear
C)
A’s Drawings A/c Dr. 2,000 To Cash/Bank A/c 2,000 done
clear
D)
A’s Capital A/c Dr. 2,000 To As Drawings A/c 2,000 done
clear
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question_answer112)
G and B are partners in a firm, G withdraw Rs.800 per month at the beginning of every month for 6 months ending on 31st December, 2017.B withdraw Rs.800 per month at the end of every month for 6 months ending on 31st December, 2017. Calculate interest on drawings @ 15% per annum on 31st December, 2017.
A)
G= Rs.320, B = Rs.280 done
clear
B)
G= Rs.180, B = Rs.220 done
clear
C)
G= Rs.720, B = Rs.720 done
clear
D)
G= Rs.210, B = Rs.150 done
clear
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question_answer113)
When fluctuating capital method is used, which of the following items are shown in debit side of partners capital account?
A)
Opening debit balance of capital account done
clear
B)
Drawings done
clear
C)
Interest on drawings done
clear
D)
All of the above done
clear
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question_answer114)
A and B were partners in a firm. They share profits in the ratio of 2:3.Their capital account balance as on 1st April, 2017 was Rs.10,00,000 and Rs.20,00,000. Additional capital introduced by them, A = Rs.3,00,000, B = Rs.2,00,000. Journalise it.
A)
Bank A/c Dr. 5,00,000 To As Capital A/c 3,00,000 To Bs Capital A/c 2,00,000 done
clear
B)
As Capital A/c Dr. 3,00,000 Bs Capital A/c Dr. 2,00,000 To Bank A/c 5,00,000 done
clear
C)
As Capital A/c Dr. 3,00,000 To Bank A/c 3,30,000 done
clear
D)
Bs Capital A/c Dr. 2,00,000 To Bank A/c 2,00,000 done
clear
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question_answer115)
A and B are partners in a firm. They share profits in the ratio of 1:1. In this year, they suffered a loss. They maintain capital accounts under fluctuating account method Pass journal entry to transfer the loss to the capital accounts of A and B.
A)
Profit and Loss Appropriation A/c Dr. To As Capital A/c To Bs Capital A/c done
clear
B)
As Capital A/c Dr. To Bs Capital A/c done
clear
C)
As Capital A/c Dr. Bs Capital A/c Dr. To Profit and Loss A/c done
clear
D)
None of the above done
clear
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question_answer116)
R and S were partners in a firm. They share their profits and losses in 1:2 ratio. R is hard working and dedicated to the affairs of the firm. As per contract or deed he is to receive Rs.500 per month as salary. Journalise it if capital account is maintained under fixed capital method.
A)
Profit and Loss A/c Dr. 6,000 To Rs Capital A/c 6,000 done
clear
B)
Profit and Loss Appropriation A/c Dr. 6.000 To Rs Current A/c 6,000 done
clear
C)
Salary A/c Dr. 6,000 To Profit and Loss A/c 6,000 done
clear
D)
Salary A/c Dr. 6,000 To Rs Current A/c 6,000 done
clear
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question_answer117)
Pass the journal entry to record salary of partner:
A)
Profit and Loss Appropriation A/c Dr. To Partners Capital A/c done
clear
B)
Profit and Loss A/c Dr. To Salary A/c done
clear
C)
Partners Capital A/c Dr. To Salary A/c done
clear
D)
Salary A/c Dr. To Profit and Loss Appropriation A/c done
clear
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question_answer118)
X and Y are partners in a firm sharing profits in the ratio of 3:2.As per their agreement, X will receive 5% per annum interest on his loan of Rs.1,00,000 and Y will receive 2% commission on sales affected by him, which were Rs.1,00,000. Calculate Xs share of profit when net profit as per profit and loss account is Rs.1,00,000.
A)
Rs.58,800 done
clear
B)
Rs.58,000 done
clear
C)
Rs.60,000 done
clear
D)
Rs.48,200 done
clear
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question_answer119)
Which of the following items is not recorded in profit and Loss appropriation account?
A)
Interest on Partners Capital done
clear
B)
Amount of Partners Drawings done
clear
C)
Profit as per Profit and Loss done
clear
D)
Commission to a Partner done
clear
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question_answer120)
If a firm gives guarantee to partner and in same way partner give guarantee to firm. So, these are two guarantees in same year. This guarantee, given by firm to partner and partner to firm is called:
A)
guarantee by firm done
clear
B)
guarantee by partner done
clear
C)
simultaneous guarantee done
clear
D)
None of the above done
clear
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question_answer121)
The capital balance of a partner at the end of the year (after adjusting for this drawings Rs.3,500 and his share in the profit Rs.2,300) is Rs.12,000. Interest on capital is payable to him at 5% per annum. What will be the amount of interest on capital?
A)
Rs.660 done
clear
B)
Rs.600 done
clear
C)
Rs.5,400 done
clear
D)
None of these done
clear
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