CBSE Questions for Class 12 Commerce Accountancy Accounting For Partnership: Basic Concepts Quiz 5 - MCQExams.com

The authority of a partner to bind the firm under the Indian Partnership Act is known as _____________.
  • Implied authority
  • Inferred authoity
  • Statutory authority
  • Delegated authority
All expect ___________ are statutory exception to implied Authority of a partner.
  • To open a bank account in his name on behalf of the firm
  • To enter into a partnership on behalf of the firm
  • To acquire immovable property on behalf of the firm
  • To employ or engage staff for the firm
Which of the act is / are not included in the implied authority of a partner ___________________________________.
  • Set off his own separate debt against the debt due the firm
  • Bind the firm bu giving guarantee
  • Acknowledging the debts due from the firm so as to save limitation
  • All
A partner has the authority to bind the other partners for his act if _________________________.
  • The act is done in the ordinary way
  • The act done by him is in the firm's name
  • The act relates to the business of the firm
  • All the above 
Which of the following Acts are outside the implied authority of a partner?
  • To transfer immovable property belonging to the firm
  • To hire an advocate to defend a case against the firm
  • Pledge goods of the firm
  • Settlement of accounts with third party
In the case of loss caused to the firm by fraud or misrepresentation made by a partner, the same shall be borne by ______________.
  • All the partners in their capital ratio
  • All the partners in their profit sharing ratio
  • Defaulting partner only
  • Managing partner only
In the case of loss to any party caused by a partner due to negligence or tort the loss shall be borne by ___________________.
  • All the partners in their capital ratio
  • All the partners in their profit sharing ratio
  • By defaulting partner only
  • Managing partner only
A minor partner can sue the partners for accounts or for payment of his share ___________________.
  • all time
  • after obtaining age of majority
  • only when he wants to serve his connection with the firm
  • after continuous 3 years
As per section 14 of the Partnership Act,property and rights and interest in property acquired with the money belonging to the firm are deemed to have been acquired to the firm.Are three any exception to this rule ___________________.
  • Not at all
  • Yes, if contrary intention appears from the contract between the partners
  • If partner unanimously decides otherwise
  • If permitted by Registrar of firms
XYZ Associates a partnership firm intends to apply a part of its property for benevolent purpose.Is it permissible under the partnership Act.
  • Not at all
  • Permissible without any restriction
  • Yes subject to contract between the partners to this effect
  • Yes with the approval of Registrar of firms
Subject to the contract between the partners, the property of the firm can be held or used ______________________.
  • For the common benefit of the partners
  • Exclusively for the purpose of firms business
  • For payment of liability of the firm
  • All the above
The option to elect to become partner or not to become partner after becoming major can be exercised by a minor partner ______________________.
  • within six month of attaining majority
  • within six month of his obtaining knowledge that he had been admitted to the benefit of partnership
  • a or b whichever is later
  • any of the above
Partnership firm is not liable for the acts of the firm done ____________________.
  • in individual/personal capacity by a partner
  • without concurrence of all the partners
  • without concurrence of majority partners
  • not mentioned in partnership deed
State which statement is true _______________________.
  • On death of partner, his heirs automatically become partners
  • A partner is not entitled to claim a share in partnership property in specie
  • A partner has no lien over partnership property for expense incurred by him
  • Business is not necessary for existence of a partnership
A minor person can be admitted as a partner for benefit of partnership ___________________.
  • With the consent of all the partners
  • With majority decision
  • With the approval of managing partner
  • With approval of ROC
Can a partner's right to have access, inspect and have a copy of books of account be curtailed/restricted _______________.
  • not at all
  • yes in all circumstances
  • yes only subject to contract between the partners
  • yes invariable by majority decision
A minor person __________________.
  • Can be admitted into the firm for benefit in an existing firm
  • Can be the initial member of a new partnership firm
  • Cannot be a partner
  • Can be a partner for sharing profits and losses also
________________ is available to a minor partner?
  • Right to inspect confidential books
  • Right to File suit for accounts or demand his share of property when he leaves the firm
  • Right to participate in the business
  • Right to apply for dissolution of the firm
When a minor person opts not to become partner after ceasing to be a minor _________________________.
  • He continues to be liable until the date of notice
  • He shall not be liable for any acts of the firm done after the ate of notice
  • He shall be entitled to sue the partner for his share of profit and his share of property
  • All the three
______________ is not available to a minor partner.
  • Right to share the profit
  • Right to have access to books of account
  • Right to exercise option on attaining the age of majority
  • Right to inspect books containing confidential matters
Chotu a minor partner after attaining age of majority elects to become a partner after attaining majority.What are the consequences ___________________.
  • He becomes personally liable to the third party for all acts of the firm retrospectively from the date of his admission to the benefit of the partnership as a minor partner
  • His share in the profits of the firm shall be the same to which he wants entitled as a minor
  • Both
  • None
A is a partner of ABC associates,as er the agreement any partner can retire from the firm by giving 30 days advance notice.A intends to retire from the firm.What obligations are cast upon A to retire from the firm _________________.
  • take consent of all the partners
  • take consent of majority of partners
  • just leave the firm by giving verbal notice to the managing partner
  • give thirty days notice and give public notice thereof
Which of these would increase the net profit of a partnership firm
  • Charging interest on drawing of the partners
  • Allowing interest on capital of the partners
  • distribution of goodwill
  • accounting an unrecorded liability
The provisions regarding retirement of a partner are contained in section of the partnership Act ___________.
  • 32(1)
  • 33(6)
  • 30(10)
  • 36
A and B are two partners in a partnership firm having capital Rs.10,000 and Rs.15,The firm intends to value its goodwill by capitalizing super profit of Rs. 12,500 @ 8%. Find the goodwill of the firm
  • 156250
  • 125000
  • 100,000
  • 115000
On admission of a new partner he does not become automatically, liable for the acts of the firm _________.
  • done without his knowledge
  • done before his joining the firm
  • done where he has some reservations
  • done after his expressed disagreement
Rs.1250 paid for the residential telephone bill of the proprietor which of these accounts will be debited 
  • Household A/c
  • Drawing A/c
  • Telephone A/c
  • none
$$A$$ and $$B$$ are two partners in a firm, as per the terms of agreement partners drawing will carry interest @$$10$$%. If $$B$$ has drawn funds from the business as per the details given below. Find the interest for the year ending 31.12.08.
1.04.08  Rs. $$10,000$$
1.09.08  Rs. $$20,000$$
  • Rs. $$2500$$
  • Rs. $$2750$$
  • Rs. $$1417$$
  • Rs. $$2000$$
Public notice in respect of partnership firm is required to be published in at least ______
  • one vernacular newspaper
  • one Hindi newpaper
  • one Hindi and one English newspaper
  • one local newspaper and one English newspaper
A firm purchase goods costing $$1,00,000$$. He sold goods costing Rs. $$50,000$$ at Rs. $$75,000$$ and the remaining were sold to a consumer co-operative society at the same GP as in the case of direct sales less 20%. Find the total sales of the firm.
  • Rs. $$135,000$$
  • Rs. $$90,000$$
  • Rs. $$150,000$$
  • Rs. $$140,000$$
$$ABC$$ are three partners sharing profit and loss in the ratio $$2:2:1$$, $$B$$ recently obtained MBA degree from Oxford University, accordingly the partner decided to give him a guaranteed profit of Rs. $$60,000$$. Find the share of profit of $$A$$ if the firm made a net profit of Rs. $$120,000$$ during 2013-14
  • Rs. $$60,000$$
  • Rs. $$50,000$$
  • Rs. $$20,000$$
  • Rs. $$40,000$$
XYZ are three partners sharing profit and loss in the ratio of 5:3:X retires and value of the goodwill of the firm is valued at Rs.YZ decides to share profit and loss equally. What is the gaining ratio at the time of retirement of X?
  • (1:2)
  • (2:1)
  • (2:3)
  • (3:2)
In partnership form of business, the business must be carried by _____
  • all or any of them acting for all
  • the senior partner or any of them acting for senior partner
  • all or any of them acting for senior partner
  • one nominated for all
XYZ associates purchased a new plant for Rs.500000 and spent Rs.40,000 on its erection and commissioning. However the amount of Rs.40,000 being erection commissioning expenses was debited to profit and loss A/c as a part of miscellaneous expenses. The plant is subject to depreciation at 15% p.a. What is the net effect of this transaction on profit and loss  of the firm?
  • profit overstated by Rs.6,000
  • profit understand by Rs.34,000
  • no effect on profit
  • profit reduced by Rs.40,000
The restriction on the maximum number of partners in a partnership firm are prescribed in _____
  • Partnership Act
  • Companies Act
  • Law of contracts
  • Law of limitations
XYZ send goods worth Rs. 1,00,000 to Y on consignment basis at 20% above the cost price. The goods are sold by the consignee on a mark of 15% on invoice price. Find the total mark up % over the cost price of the goods ......
  • 30%
  • 38%
  • 35%
  • 25%
A notice to a partner is equivalent to notice to ______
  • senior partner
  • creditor of the firm
  • rest of the partners of the firm
  • majority of the partner
XY are two partners in a firm having share cap of Rs. 10,000 and Rs. 15,000 respectively, admitted for 1 /3 share of profit for which he is to bring Rs. 15,000 for his share of capital. What is for goodwill of the firm.
  • Rs. 10,000
  • Rs. 9000
  • Rs. 5000
  • Rs. 11000
ABC are three partners sharing profit and loss in the ratio of 2:2:1,B recently obtained MBA degree from Oxford University, accordingly the partner decided to give him a guaranteed profit of Rs.60,Find the share of profit of C if the firm made a net profit of Rs.120,000 during 2008-09
  • Rs.60,000
  • Rs.50,000
  • Rs.20,000
  • Rs.40,000
A suit for dissolution of the firm on the ground of a partner becoming of unsound mind can be filed by________.
  • any partner only
  • next friend of the partner only
  • (a) or (b)
  • Senior partner only
As per Partnership Act, a partner shall indemnify the firm for the losses caused to it by his _______ in the conduct of the business of the firm
  • wilful neglect
  • bona fide mistake
  • act of fraud or omission
  • all the three
Which of these rights are available to transferee under the partnership Act
  • to inspect books of account
  • to interfere in firms day to day business
  • to transfer immovable property of the firm
  • to receive share of assets to which the transferor is entitled at the time of dissolution of the firm
The partners selling goodwill of the firm can ________.
  • carry on a similar business
  • also complete with the business sold by them to the purchaser
  • advertise his business
  • all the three
In Partnership the agreement must be to share ___________ of the business
  • profit
  • profit and loss
  • loss
  • all the revenue
A second truck was purchased for Rs. 75,000, Rs. 10,000 was spent on its repair and 2000 to get the truck registered in the name of the firm and Rs. 1000 as dealers commission. The capitalized value of truck will be..........
  • Rs. 88,000
  • Rs. 87,000
  • Rs. 85,000
  • Rs. 75,000
A person is said to be insolvent when he.........
  • Is unable to pay his liabilities
  • Has run into heavy business losses
  • Is short of necessary cash in hand
  • All the three
Which of the following cannot be a ground for dissolution of a firm by court at the suit of any partner
  • A partner getting elected to local body
  • A partner has become in any way permanently in capable of performing of duties as partner
  • A partner has transferred whole of his interest in the firm to a third party
  • A partner has become of unsound mind
Which of these rights are not available to a transferee under the Partnership Act.
  • To inspect books of account
  • To interfere in firms day to day business
  • To transfer immovable property of the firm
  • All the three
AB are two partners in a firm, as per terms of agreement partners drawing will carry interest @10%. IF A has drawn funds from the business as per the details given below. Find the interest for the year ending 31.12.2010.
1.04.10 Rs. 20,000
1.06.10 Rs. 10,000
1.09.10 Rs. 20,000
  • Rs. 2500
  • Rs. 2750
  • Rs. 1417
  • Rs. 2000
Partners share profit or loss..........
  • Equally
  • In capital ratio
  • As per agreement
  • As per qualification
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