CBSE Questions for Class 12 Commerce Accountancy Accounting For Partnership: Basic Concepts Quiz 3 - MCQExams.com

If the number of partners exceed the maximum number specified in section 11 of the Companies Act, the firm becomes ______.
  • un-recognised firm
  • illegal association
  • banned firm
  • privileged firm
Inter se relations of partners between themselves is that of a _________.
  • Close relatives
  • Close friends
  • Agents of each other
  • Junior-senior relationship
In a partnership firm engaged in banking business the number of partners cannot exceed _____.
  • 10
  • 50
  • 30
  • 20
The liability of partners is ______.
  • Limited
  • Unlimited
  • Restricted
  • Undefined
In a normal partnership firm the number of partners cannot exceed _____.
  • 10
  • 50
  • 30
  • 20
______ is not a feature of a partnership.
  • Unlimited liability
  • Perpetual existence
  • Sharing profit
  • Association of two or more persons
The members of a partnership firm are collectively called _______.
  • Firm
  • Partners
  • Directors
  • Types of partners
In the absence of specific provision on the partnership deed at what rate salary and remuneration would be paid to the partners?
  • Rs. 10,000 PM
  • Rs. 200,000 PA
  • Nil
  • Rs. 10,000 once in two months
X and Y are two partners with a capital of Rs. 35,000 and Rs. 30,000 respectively. They are allowed interest @10% on the total capital. Find the interest allowed to $$X$$ and $$Y$$.
  • Rs. 3500, 3000
  • Rs. 2500, 2890
  • Rs. 3200, 3100
  • Rs. 3700, 3500
Current Account of the partners are opened when the capital is _________.
  • Fluctuating
  • Fixed
  • Either fixed or fluctuating
  • None of the above
The difference between the guaranteed profit and actual share of profit is borne by ________.
  • All the partners equally
  • All the partners in their profit sharing ratio
  • The partner who gave guarantee
  • Central government
As per Partnership Act, which of the following rights are available to the partner?
  • Salary
  • Interest on capital
  • Bonus
  • Equal profit and loss
X and Y are two partners with a capital of Rs. 30,000 and Rs. 20,000 respectively. They are allowed interest @10% on the total capital. If the profit before interest on capital is Rs. 4000, how much interest will be paid to the partners?
  • Nil
  • Rs. 1500, 1000
  • Rs. 2000, 3000
  • Rs. 1000, 1500
Partnership created for a particular adventure or a particular undertaking is called __________.
  • Particular partnership
  • Limited partnership
  • Partnership at will
  • Fixed partnership
Product method is used for __________.
  • distribution of profit and loss A/c
  • distribution of revaluation results
  • interest on drawing
  • interest on capital
In case the partners are having fixed capital, then interest on capital will be allowed on ___________.
  • current capital
  • current plan fixed capital
  • fixed capital only
  • none of the above
If the partnership agreement provides payment of interest on capital of the partners, then interest can be paid only out of ___________.
  • accumulated profits
  • current profits only
  • past profits plus current profits
  • capital also
Which of these statements is true?
  • Partners current account can show debit or credit balance
  • Partners current account shows only credit balance
  • Partners current account shows only debit balance
  • None of these
There are three partners in a firm P, Q and R. X is admitted into the firm with 1/4th share of profit with a guaranteed profit of Rs. 25,000 p.a The firm;s total profit is Rs. 80,If the firm stood as a guarantor of guaranteed profit to X, how much profit would be given to remaining partners in the instant case?
  • Rs. 20,000
  • Rs. 21,667
  • Rs. 18,333,33
  • Rs. 22,500
In India, laws relating to partnership are embodied in ___________.
  • Partnership Act, 1932
  • Indian Partnership Act, 1932
  • English partnership Act, 1872
  • Indian Contract Act, 1872
Adjustment of past mistake in calculation of profit and loss in previous years is done through ________.
  • profit and loss A/c
  • profit and loss appropriation A/c
  • profit and loss adjustment A/c
  • revaluation A/c
The Partnership Act, 1932 came into force with effect from ________.
  • 1st October 1933
  • 1st October 1932
  • 1st November 1934
  • 1st April 1933
Prior to enactment of Indian Partnership Act, 1932, the laws relating to Partnership were embodies in ___________.
  • English Partnership Act, 1890.
  • Section 239 to 266 of Indian Contract Act, 1872.
  • Companies Act.
  • Hindu law.
___________ distinguish a company from a partnership firm.
  • Type of business
  • Size of capital investment
  • Limited liability
  • Restriction on scale of operation
There are three partners in a firm P, Q and R. X is admitted into the firm with 1/4th share of profit with a guaranteed profit of Rs. 25,000 p.a The firm;s total profit is Rs. 80,What amount would be given to X as his share of profit by the firm?
  • Rs, 25,000
  • Rs, 20,000
  • Rs, 15,000
  • Rs, 22,500
Rent paid to a partner is charged to ______.
  • Profit and loss adjustment A/c
  • Revaluation A/c
  • Profit and loss appropriation A/c
  • Profit and loss A/c
X, a partner of X and Y Associates draw Rs, 4000 every month at the mid of the month for six months. Calculate interest on drawing at 5%.
  • Rs. 300
  • Rs. 295
  • Rs. 285
  • Rs. 310
Partnership  is created by __________.
  • Statute.
  • Agreement.
  • Position.
  • Any of the above three.
Indian Partnership Act, 1932 is substantially based on __________.
  • Hindu law.
  • English law.
  • Muslim law.
  • Company law.
Which of these types of business organization is /are outside the ambit of Indian Partnership Act ?
  • Sole trader
  • Corporate body
  • Registered society
  • All the three
___________ is not an essential requirement of a valid partnership.
  • Sharing of loss
  • Carrying business
  • Association of two or more person
  • Agreement
A partner is a /an ___________ of the firm so far his dealing with outside world for the purpose of business of the firm are concerned.
  • Principal
  • Officer in default
  • Manager
  • Agent
As per section 11 of the Companies Act, a partnership firm consisting of more than 20 persons (10 in case of a banking company) unless registered a company or formed in pursuance of some other law become _______.
  • Illegal Association.
  • Defunct firm.
  • Banned firm.
  • Offender firm.
Indian Partnership Act,1932 is not applicable to which of these states?
  • Jammu & Kashmir
  • Jharkhand
  • Uttarakhand
  • Punjab
A partnership firm should have at least ______ partners.
  • Two
  • Three
  • Twenty
  • Ten
If an expression is not defined under the Partnership Act, 1932, recourse may be made to ___________.
  • Indian Contract Act.
  • Webster's Dictionary
  • English law.
  • Company law.
Which of these is/are essentials of a valid partnership?
  • Carry on business
  • At least two persons
  • Agreement
  • All the three
Application for registration of the firm is to be delivered to the Registrar of firms of the area in which __________ is situated or proposed to be situated.
  • Any place of business
  • Registered office
  • Corporate office
  • Office of Chartered Accountant of the firm
A partnership is created for which of these purposes?
  • Business
  • Religious
  • Social
  • Charitable
Registration of a partnership can be effected ________________.
  • Before commencement of business
  • Any time during its continuance
  • At the time of signing of partnership deed
  • Any time after 2 years from the registration of partnership deed
A person not being a partner but represents himself to be a partner is called a __________.
  • Sub-partner
  • Partner by estoppels
  • Sleeping partner
  • Dormant partner
X is a partner in XYZ Associates. He agrees to share his profile with P, an outsider. This agreement is called ________.
  • Extended partnership
  • Sub-partnership
  • Unlimited partnership
  • Joint venture
Select the odd one ______________.
  • Unlimited liability
  • Perpetual existence
  • Registration not compulsory
  • Association of persons
X and Y formed a partnership firm to undertake construction of a Railway Bridge for Northern Railways at a Patna.This partnership is __________.
  • Limited Partnership
  • Partnership at will
  • Particular partnership
  • Joint venture
Section $$4$$ of the Indian Partnership Act, $$1932$$ defines partnership as ____________.
  • Relation between persons who have agreed to share the profits of business carried on by all or any of them
  • An association for profits only
  • An association of persons sharing the loss of business
  • Relation between persons carrying business on behalf of active partners only
Which of these particulars are not required to be mentioned in the application for registration of a firm :
  • Name and address of Chartered Accountant of the firm
  • Date of joining of firm by each partner
  • Duration of the firm
  • Name of the places where the firm carries its business
Which of these particulars are required to be mentioned in the application for registration of a firm :
  • Name of the firm
  • Place or Principle place of business of the firm
  • Full name and permanent address of the partners
  • All the above
To hold a person a partner by holding out under section 28 of the Partnership Act ___________________________.
  • The person must have by his conduct or words represented him or knowingly permitted him to be represented as a partner
  • Credit must been given to the firm on the faith of represented made by the person
  • Both
  • None
The expression 'third party' used in the Indian Partnership Act means ___________.
  • A person who is not a partner in a firm
  • A person other than a close relative of a partner
  • A person other than close business associates of the firm
  • All the three
_________ formed either to carry out a particular venture or for a fixed period.
  • Limited Partnership
  • Partnership at will
  • Particular partnership
  • Joint venture
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Accountancy Quiz Questions and Answers