MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 12 Commerce Accountancy Accounting For Partnership: Basic Concepts Quiz 4 - MCQExams.com
CBSE
Class 12 Commerce Accountancy
Accounting For Partnership: Basic Concepts
Quiz 4
If the partner of a partnership for fixed duration carries on business after the expiry of the term, the rights and duties of the partners__________.
Report Question
0%
remains same.
0%
are redefined.
0%
are put in suspension until redefined.
0%
are decided by court on application of any partner.
A particular partnership continued after the completion of that adventure for which it was entered into become ________.
Report Question
0%
Particular partnership.
0%
Partnership at will.
0%
Partnership for fixed term.
0%
Partnership in emergency.
As per the Indian Partnership Act, the term Business does not include _____________.
Report Question
0%
Trade
0%
Occupation
0%
Profession
0%
Vocation
Partnership Act, 1932 is not applicable to which of these type of prtnerships ______________.
Report Question
0%
At will
0%
Fixed term
0%
Particular
0%
Limited liabilty
State in which of the following circumstances a valid partnership is constituted.
Report Question
0%
X lend money to Y to start a new business wherein he is allowed $$20\%$$ profit in addition to $$16\%$$ interest on the amount lent
0%
Y sells his goodwill to P and agreed for $$10\%$$ share of profit to the firm
0%
A & B undertook to construct a Railway Bridge each sharing profit and loss equally
0%
A is working as marketing executive in ABC Ltd. wherein he is entitled to $$2\%$$ profit in addition to his monthly remuneration
The name in which the partner of a firm carries on business is called ___________.
Report Question
0%
Firm name
0%
Firm
0%
Partnership
0%
Association of persons
Explanation
Persons who have entered into
partnership
with one another are
called
individually, "
partners
" and collectively "a
firm
", and the
name
under which their
business
is carried on is
called
the "
firm
-
name
".
Where no provision is made by contract between the partner for duration of partnership or determination of their partnership is called ____________ .
Report Question
0%
Partnership at will
0%
Partnership for fix term
0%
Particular partnership
0%
None
Explanation
In case of Partnership at will, it can be dissolved at any time by any partner without any liability.There is no fixed term/duration of the partnership.
As per the given question, when no provision is made by contract for duration, it clearly refers to Partnership at will.
The liability of a partner in profit is ________.
Report Question
0%
limited.
0%
unlimited.
0%
limited to his capital.
0%
limited to his share of interest in the firm assets.
Partnership is a contract of _________.
Report Question
0%
uberrimae fidei
0%
fidelity
0%
infidelity
0%
none of these
Partnership is an extension of law of agency, hence _________.
Report Question
0%
No consideration is required to form a partnership
0%
Capacity of partners is not an essential requirement
0%
Partnership agreement can be for social purpose also
0%
Partnership can be for limited purpose only
Explanation
In partnership, every partner is working on behalf of other partners, So we can say it is an extension of the law of agency.
_________ is a valid partnership.
Report Question
0%
XY agreed to form a NGO to raise fund for upliftment of children's of OBC categories
0%
A and B agreed to form a partnership two years hence after
0%
X and Y agreed to form a group of persons to raise fund for construction of temple in their colony
0%
A, B and C formed a partnership firm to develop township in Faridabad
Explanation
Valid partnership require carrying the business to earn profit. A, B, C formed a partnership firm to develop township is example of valid partnership.
Which of these is required to be mentioned in the application for Registration of a firm _________________.
Report Question
0%
PAN number
0%
Academic qualification of the partners
0%
Date of admission of each partner
0%
Marital status of partners
____________ cannot create a valid partnership.
Report Question
0%
Members of Joint Hindu family
0%
A Burmese Buddhist Husband and wife carrying on business as such
0%
Both a and b
0%
None
Expulsion of a partner is justified only when __________.
Report Question
0%
The power is conferred by contract
0%
Power is exercised in good faith
0%
By the majority of partners
0%
A and B.
Explanation
Partners
can
be removed or
expelled
only in exercise of good faith of powers conferred by contract between partners. The above proposition that the relationship between the partners in a
partnership
is that of principal to agent for one another is confirmed by a plethora of cases decided by various High Courts.
Expulsion of a partner otherwise than in good faith is treated __________.
Report Question
0%
Illegal
0%
Null and void
0%
Voidable
0%
Perfectly valid
Which of these statements is true in respect of an unregistered firm?
Report Question
0%
It is an illegal association
0%
It is not permitted to carry on business
0%
It can sue for the enforcement of its rights arising out of contract
0%
It suffers from certain disqualifications as regards enforcement of the rights of the firm or partner
Explanation
Partners of an unregistered firm can not enforce legal right in name of the firm against third person unless it is registered.
In case of a partnership at will, notice to dissolve their partnership can be tendered by _________.
Report Question
0%
Any partner to all other partners
0%
Senior partner to junior partner only
0%
Any partner to the court
0%
Active partner to the court
Explanation
In case of a partnership at will notice to dissolve their partnrtship can be tendered by any partner to all other partner.
Which of the following is not a mode of giving public notice?
Report Question
0%
Publication in Official Gazette
0%
Publication in one vernacular newspaper circulating in the district where the firms principal place of business is situated
0%
Notice is to be sent to the Registrar of firms
0%
Pasting notice in public place
If no notice of expulsion of partner is given _________.
Report Question
0%
He remains a partner
0%
He and other partners remains liable to third party for the act done before his expulsion
0%
He is personally liable for all the acts of the firm to third party
0%
He stands discharged from future liability
Explanation
If no notice of expulsion of a partner is given, he and other partner continuous to remain liable to a third party for the act done before his expulsion.
Expulsion means
the mandatory exclusion of a partner from the partnership on the grounds that the remaining partners consider it is inappropriate for him to remain.
A company is governed by ___________.
Report Question
0%
Indian Partnership Act
0%
Indian Contract Act
0%
The Companies Act, $$1956$$ as amended from time to time
0%
Societies Registration Act
Explanation
A company is governed by the companies act, 1956 as amended from time to time.'
Right to manage the affairs of a firm vest with _______________.
Report Question
0%
Senior most partner
0%
Managing partner
0%
Every partner
0%
Partner having BBA/MBA degree
A partner is _________ of his co partner.
Report Question
0%
agent
0%
master
0%
friend
0%
colleague
AB Associates is an unregistered firm. C a local bad element of the area caused damaged to the property of the firm to the extent of $$Rs. 1000$$. Which of these action are advice to the firm?
Report Question
0%
Get the firm registered
0%
File a suit for damages
0%
Bear the loss as being unregistered firm no suit can be filed
0%
Settle the case amicably
Which of these is/are point of difference between a partnership firm and a Hindu Undivided Family.
Report Question
0%
Right to manage business
0%
Mode of creation
0%
Manner of dissolution
0%
All the three
Explanation
Partnership Firm
Tow or more person come together for some business activity and agree to share profit and loss is called partnership firm. Partnership firm emerge out of contact between two persons.
Hindu Undivided Family
HUF conducts business inherited as per Hindu law, called Hindu undivided family. HUF firm created by the operation of Hindu law.
'
In order that a notice to a partner operate as a notice to the whole firm, the same should be given to __________.
Report Question
0%
Sleeping partner
0%
Active partner
0%
Minor
0%
All
Explanation
A notice to a partner operate as a notice to the whole firm, the same should not be given to sleeping and minor partner. Active partner act as a manager of firm.
A firm consists of three partners $$A, B, C$$ and $$B$$ dies. Under the above circumstances which of these statement is true?
Report Question
0%
Firm stand dissolved on the date of death of B
0%
A and C can continue the partnership firm business if the agreement between the partners provide so
0%
Only after settlement of B's claim the firm can continue its business
0%
Firm become an illegal association
A notice given to a __________ tantamount to notice given to the firm itself __________.
Report Question
0%
Active partner
0%
Sleeping partner
0%
Minor partner
0%
Retire partner
Explanation
Option A is right. He takes active participation in the business of the firm. He contributes to the capital, has a share in the profit and also participate in the daily activities of the firm.'
An act of a partner is binding upon the firm provided ___________________.
Report Question
0%
it is within his scope of authority
0%
it is done in the name of the firm
0%
it is done for the purpose of the business of the firm
0%
all the three to be satisfied
Explanation
Partnership is an extension of agency relationship, where an act done by one partner is deemed to be done on behalf of the firm.
Prior to the Indian Partnership Act, 1932 which came into force from 1 October, 1932 except section 69 which came into force from 1 October, 1933, the law of partnership was provided in ____________.
Report Question
0%
Sale of Goods Act, 1930
0%
Indian Contract Act, 1872
0%
Transfer of Property Act, 1908
0%
English Partnership Act, 1890
Which of these rights is not available to a partner under the Partnership Act ?
Report Question
0%
To take part in business
0%
To have access to the books of account
0%
To claim interest on capital and bonus
0%
Interest on advance given to the firm
Which of these rights are not conferred upon a partner under the Partnership Act _________________.
Report Question
0%
Right to take part in the business
0%
Right to be consulted
0%
Right to indemnity
0%
Right to take remuneration
How the profit and loss of the firms are shared by the partners under the Partnership Act _________________.
Report Question
0%
Equally
0%
According to the partnership deed
0%
According to capital ratio
0%
According to qualifications and seniority
An act, to be called an 'act of a firm', within the meaning of section 2(a) of the Indian Partnership Act, 1932 is__________________.
Report Question
0%
every act of the partners
0%
only such acts which give rise to a right enforceable by or agairist the firm
0%
such acts which do not give rise to a right enforceable by or against the firm
0%
either (a) or (b) or (c)
State which of the following, statement is true?
Report Question
0%
Audit of partnership firm is mandatory under the Indian Partnership Act, 1932
0%
Liability of a partner is limited
0%
Registration of a partnership firm is mandatory for the purpose of taking PAN number
0%
Mutual agency is the essence of partnership
Profit and losses of the firm are to be shared equally ____________________.
Report Question
0%
When the partnership deed is silent about it
0%
As per Partnership Act in the absence of anything in the partnership deed to the contrary
0%
Both the circumstances
0%
None of the situations
Explanation
b'P&L of the firm are to be shared equally as per the partnership act and also in the absence of anything in the partnership deed to the contrary.'
Under section 4 of the Indian Partnership Act, partnership is a __________.
Report Question
0%
Compulsory legal relation
0%
Creation of the choice and voluntary agreement between the concerned parties
0%
Relation arising from status
0%
Creation of act of God
Explanation
Partnership is a creation of the choice and voluntary agreement between the concerned parties, as per the section 4 of the Indian Partnership Act.'
_______ provides for no duration or determination of partnership.
Report Question
0%
Partnership in undertaking
0%
General partnership
0%
Partnership at will
0%
All the above
Explanation
When a partnership firm is formed to carry on business without specifying any period of time, it is known as partnership at will
For the purpose of income-tax, a partnership firm ____________________.
Report Question
0%
Can be assessed as an entity distinct and separate from its partners
0%
Cannot be assessed as an entity separate and distinct from its partners
0%
Can be assessed as an entity distinct and separate from its partners only with the permission of the court
0%
Can be assessed as an entity distinct and separate from its partners only if all the partners agree for the same
Explanation
In the eye of tax law Partnership firm is different than its partner. It has separate PAN number under which it assessed.
Which of these duties is not covered under the general duty of a partner under the Partnership Act ?
Report Question
0%
To carry on business to the greatest common advantage of the firm
0%
To render true account
0%
To take care of day-to-day needs of the senior partner
0%
To act diligently
Explanation
To take care of day to day needs of the senior partners is not covered under the general duty of a partner under the partnership act.
Which of these duties a partner can be varied by an agreement between the partners?
Report Question
0%
Duty to take part in business
0%
Duty to attend duty diligently
0%
Duty to account for profit on competitive business
0%
All the three
__________is not an essential element of a valid partnership.
Report Question
0%
an, agreement to carry on a business
0%
sharing of profits
0%
sharing of losses
0%
business to be carried by all or any of them acting for all
Which of the following is an exception to the partnership at will, as provided under section 7 of the Indian Partnership Act, 1932 ?
Report Question
0%
Where there is a provision for the duration of the partnership
0%
where there is a provision for determination of the partnership
0%
both (a) and (b)
0%
only (a) and not (b)
For constituting a partnership within the meaning of section 4 of the Indian Partnership Act, 1932 __________________.
Report Question
0%
The business has to be of permanent nature
0%
The business can be of temporary nature
0%
It is immaterial whether the business is of temporary or permanent nature
0%
Only (a) and not (b)
Explanation
For constituting a partnership with in the meaning of section4 of the Indian partnership,1932 it is immaterial whether the business is of temporary or permanent nature.
In partnership at will ______________________________.
Report Question
0%
a partner of a firm can retire from the firth at any time by giving a notice of his intention to retire to his co-partners
0%
a partner of a firm can dissolve the firm at any time by giving a notice of his intention to dissolve the firm to his copartners
0%
either (a) or (b)
0%
only (b) and not (a)
In case a partnership is rescinded on account of fraud and misrepresentation, the aggrieved partner has right to ________________.
Report Question
0%
Lien on surplus assets
0%
Right to rank as a creditor
0%
Be indemnified
0%
All the three
Explanation
In case a partnership is rescinded i.e. cancel, on account of fraud and misrepresentation, the aggrieved partner has right to lien on surplus assets, right to rank as a creditor and to indemnified against any loss due to cancellation of partnership.
A partnership for which no period or duration is fixed, under the Indian Partnership Act, 1932 is known as ________.
Report Question
0%
General partnership
0%
Partnership at will
0%
Particular partnership
0%
Co-ownership
Explanation
A partnership for which no period or duration is fixed, under the Indian partnership act 1932 is known as partnership at will.
Which of the following in itself is not sufficient to constitute a partnership ?
Report Question
0%
the sharing of profits by persons having a joint or common interest
0%
the receipt by a person of a share of the profits
0%
the receipt by a person of a payment varying with the profits earned by business
0%
all the above
Select the odd one ____________________.
Report Question
0%
To submit a dispute to arbitration
0%
To open a bank account on behalf of the firm in his own name
0%
To acquire immovable property
0%
To receive payment on behalf of the firm after giving proper receipt
Which of these is not an implied authority of a partner in the absence of any specific provisions in the partnership deed _____________________.
Report Question
0%
To buy or sell goods on behalf of the firm
0%
To receive payment on behalf of the firm
0%
To sue on behalf of the firm and defend suit in the name of the firm
0%
to submit a dispute relating to the firm for arbitration
Partner share profit or loss _______________.
Report Question
0%
Equally
0%
Proportionate to their capital
0%
As agreed in the partnership deed
0%
Based on qualification and experience
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 12 Commerce Accountancy Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page