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CBSE Questions for Class 12 Commerce Accountancy Accounting For Partnership: Basic Concepts Quiz 6 - MCQExams.com
CBSE
Class 12 Commerce Accountancy
Accounting For Partnership: Basic Concepts
Quiz 6
Public Notice to Registrar of firm is not required if it relates to the situation other than.........
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0%
Expulsion of a partner
0%
Retirement of a partner
0%
Minor partner electing to become or not to become partner after attaining age of majority.
0%
All the three
A agree to bring B's Grand father back who died five years ago if he pay his Rs.The agreement is _____________.
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void due to inadequacy of consideration
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void due to uncertainty of the time period
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void due to impossibility of act to be done
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void due to unreasonable of consideration
As regard 3rd parties, a partner is ............. of the firm for all purpose within the scope of the Partners for all purposes within the scope of the partners Act.
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Agent
0%
principle
0%
employee
0%
Manager
Explanation
.
A party with whom a partner has agreed to i profit is called...
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Sub-partner
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Co-partner
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Extra partner
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Partner for profit only
Explanation
A Sub-partner is a partner in a partnership firm who agrees to share his profits in a partnership firm with an outsider to the firm. A sub-partner does not hold any right against the firm nor is liable to any debts caused by the firm.
Therefore, A is the correct option.
The persons who have entered into a partnership are called....................
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Firm
0%
Partners
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Co-ventures
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Members
Explanation
Individuals who have formed a partnership with one another are referred to as "partners."
Partnership of one and two persons collectively is called as firm.
Hence b is the correct answer.
The name in which the partners of a firm carry business is called..........
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Firm name
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Association name
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Registered name
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Combined name
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".
Hence a is the correct answer.
A partner can be admitted a new partner without the consent of existing partner in which of the following circumstances.
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If there is an agreement between the partners to this effect
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A minor partner electing to become partner after attaining the age of majority.
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Both (a) and (b)
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None
............discloses venturer's balance in the Joint Venture.
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Joint Venture A/c
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Memorandum JV A/c
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Joint Bank A/c
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Co-venturer's A/c
Which of these rights is not available to a partner under the Partnership Act
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to take part in the conduct of the business of the firm
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to take retirement from the firm
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to enter into partnership on behalf of the firm
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to engage staff for the firm
Joint Venture is a partnership.........
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With no firm name
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For indefinite period
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Formed for five years
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All the three
A, B and C are partners in the firm. C is passing through a bad financial crisis. He applies for his insolvency on 14.08, his case is heard on 1.06.08 and he is finally declared insolvent on 15.08.08 which was received by the firm on 17.08.C ceases to be a partner with effect from
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1.04.08
0%
1.06.08
0%
15.08.08
0%
17.08.08
A court may dissolve a partnership firm in which of the following circumstances
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A partner becoming unsound mind
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When it becomes impossible to continue the business because of loss
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Misconduct of any partner
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In any of the above three situations
Revaluation A/c is prepared for the purpose of ..........
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Dissolution of a firm
0%
Reconstitution of a firm
0%
Both
0%
Either (a) 0r (b)
Explanation
Revaluation account is a nominal account prepared for the purpose of distributing and transferring the profit or loss arising out of an increase or decrease in the book value of assets and liabilities of the partnership firm at the time of change in profit sharing ratio, admission of a partner, the retirement of a partner.
Hence b is the correct answer.
A retiring partner is not liable to any 3rd party in which of the following circumstances
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Who deals with the firm without knowing that he was a partner
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who deals with the firm fully knowing that he was not a partner
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who does not know about the partners particulars
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who is strange to the contract
A partnership is not created when share of payment is received by
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servant or agent as a remuneration
0%
a widower or child of a decreased partner as annuity
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Previous owner or part owner of business as a consideration for sale of goodwill or share of profit
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All the three
Registration of a partnership firm is deemed to be complete ..........
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when a certificate to the effect is signed by the Registrar of firms
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When a certificate to the effect of registration of firm is issued by the registrar of firms.
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As soon as an application in the prescribed form with the prescribed fee and prescribed details concerning the particulars of the partnership are delivered to the Registrar
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Three months after receipt of the letter confirming registration of the firm
........ comes into existence when one of the partner agree to share his profit from the firm with a stranger
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A sub-partnership
0%
Contracted partnership
0%
Partnership at will
0%
limited partnership
Explanation
A Sub-partner is a partner in a partnership firm who agrees to share his profits in a partnership firm with an outsider to the firm. A sub-partner does not hold any right against the firm nor is liable to any debts caused by the firm.
Therefore, A is the correct option.
ABC are three partners sharing profit and loss equally. B retires from the firm and his share of profit was purchased by A and C in the ratio 2:Find the gaining ratio of A and C.
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5:4
0%
4:5
0%
2:1
0%
1:1
Explanation
B retires from the firm and his share was purchased by A and C, hence the gaining ratio = 2:1. Hence, the correct option is C.
At what rate interest is allowed on the outstanding loan of a deceased or retiring partner as per Partnership Act,1932
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5%
0%
6%
0%
8%
0%
12%
Explanation
According to the provisions of Partnership Act 1932, any amount which is over and above the retiring or deceased partner's fixed capital, in the form loan or advances shall be entitled to interest at the rate of 6% per annum.
Therefore, B is the correct option.
Which of the following is not a method of valuation of goodwill?
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Capitalization
0%
Super profit
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Discounting Method
0%
Weighted average
Explanation
There are several methods which can be implemented for valuation of goodwill which is as follows:
1. Average profit method
2. Super profit method
3. Capitalisation method.
Therefore, C is the correct option.
Joint venture is a _________ business.
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long-term
0%
type of partnership
0%
temporary business
0%
short-term
Explanation
Rather than tying the two businesses together for the foreseeable future, a joint venture generally is a short-term arrangement that sets out to accomplish a goal.
Therefore, D is the correct option.
A a trader by mistake left goods at B's house. B treat the same as his own and appropriate them. Which of the following line of action is advisable in the above situation.
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A to forgo the payment
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B is bound to pay A the reasonable price of the goods under section 70 of the Indian Contract Act
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B to return the like goods
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B to tender apology for his act
AB are two partners in a firm C is admitted for 1/3 shares of profit with a minimum guaranteed profit of Rs. 30,000 given by A and B in the ratio of 2:During 2013-14 the firm reported net profit of Rs.63,Find the share of profit of B.
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0%
Rs. 22,000
0%
Rs. 15,000
0%
Rs. 20,000
0%
Rs. 18,000
As per Indian Partnership Act,public notice is required in the event of ___________.
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0%
dissolution of firm
0%
admission of any partner
0%
death of any partner
0%
retirement of any partner
Explanation
As per the Indian partnership act, public notice is required in the event where it relates to the retirement or expulsion of a partner from a registered firm, or to the dissolution of a registered firm, or the election.
It is also needed when a minor partner is to become or not to become a partner on attaining majority.
Hence d is the correct answer.
A and B are two partners sharing profit and loss in the ratio of 2:C is admitted as a third partner for which he brings Rs.6000 in cash as his share of the goodwill. The partners decided to share profit and loss in the ratio of 4:5:6 in future. How the goodwill be distributed at the time of admission of C?
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Credit A's Capital A/c by Rs.2000, credit B's capital A/c by Rs.4000
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Credit A's Capital A/c by Rs.6000
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Credit B's Capital A/c by Rs.6000
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Credit A's Capital A/c by Rs. 4000 and Credit B's Capital A/c by Rs.2000
Tick the correct statement
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upon transfer of his interest by a partner to stranger, the transferee does not become partner of the firm
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the transferee has all the rights of a partner
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transferee can take part in business
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transferee can sent notice for dissolution of the firm
A and B are partner in a firm with profit sharing ratio of 3:4, they admit C as a partner for $$\dfrac {1}{4}$$ share of profit. What would be the sacrificing ratio of A and B
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0%
3:1
0%
4:3
0%
3:4
0%
5:2
The rights and duties of a partner contained in section 12 of the Indian Partnership Act, 1932 are _________________.
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subject to the provision of the Indian Partnership Act, 1932
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subject to a contrary.arrangement between the partneis
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subject to the provisions of the Indian Contract Act, 1872
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Subject to the provisions of the Indian Trusts Act, 1882
If there is no agreement between the partners, a partner is entitled to have............
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0%
Salary
0%
Intrest on capital
0%
Commission on sales
0%
interest on loan or advance given to the firm
Explanation
In case the partnership deed is silent, partner will be entitled to the interest of 6% per annum on the amount of loan given by him to the firm.
Therefore, D is the correct option.
Notice for dissolution of a Partnership firm, when the partnership firm is at will can be............
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Withdrawn with the consent of others
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Not be withdrawn
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Withdrawn with the approval of registrar of firms
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Withdrawn with the approval of senior partner only
ABC are three partners sharing profit and loss equally. C retires and his share is purchased by A anb B in the ratio of 2:What is the new profit sharing ratio of A and B after retirement of C?
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0%
1:1
0%
2:1
0%
1:2
0%
7:4
The general duty of a partner under section 9 covers which of these things _______________________.
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to be just and faithful to each other
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to carry on business of the firm to the greatest common advantage
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to render true account and full information
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all the three
An agreement in restraint of trade in a partnership under section 11 of the Act is _______.
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valid
0%
voidable
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void
0%
invalid
Under section 10 of the Indian Partnership Act, every partner is under a duty _________________________________.
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to indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm
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to render true accounts and full inforniation
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not to carry on any business other than that of the firm
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to be just and faithful to each other
XY are two partners in a partnership firm. As per the terms of partnership deed partnership deed partners are charged 6% interest on the drawing made by them during the year. For the year ending 31st. Dec 14 draws money from the firm as per the details given below.
31st March Rs. 3000
31st May Rs. 2000
31st August Rs. 2000
30th November Rs. 1000
Calculate the interest on drawing to be charged from X.
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0%
Rs. 195
0%
Rs. 175
0%
Rs. 250
0%
Rs.225
ABC are the three partners. C retires from the firm. At the time of his retirement the partners decides to revalue the assets and liabilities as under, stock up by Rs. 5000, sundry creditors reduced by Rs. 3000, provision for doubtful debts increased by Rs. 2000, building up by Rs. 1000, stock reduced byWhat is the profit or loss on revaluation of assets and liabilities.
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0%
Rs. 6000
0%
Rs. 7000
0%
Rs.8000
0%
Rs. 5000
The general duty of a partner under section 9 does not cover ___________________.
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to be just and faithful to each other
0%
to carry on business of the firm to the greatest common advantage
0%
to render true account and full information
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to be obedient to Managing Partner
For a banking business, the maximum number of partner in a partnership, under section 11 of the Companies Act, 1956, can be _______.
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ten
0%
fifteen
0%
twenty
0%
twenty-five
A property belonging to a partners on entering into a partnership and used for the purposes of partnership ________________.
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becomes the property of the firm
0%
remains the property of that partner
0%
becomes the property of the partner having highest share of capital contribution
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becomes the property of the partners in their profit sharing ratio
A partner's right to examine books of account does not include ________________________.
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right to carry them any place other than the registered office without consent other partners
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get the inspection through an agent
0%
right to inspect them personally
0%
none of the above
Under section 14 of the Indian Partnership Act, 1932, the property thrown into the common stock at the commencement of the business ______.
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becomes the property of the firm
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remains the individual property of the partners in the shares contributed by them
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becomes the individual property of the partners in equal shares irrespective of their contributions and rofit sharin ratio
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either (a) or (c).
A partner is agent of the firm ________.
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for the business of the firm only
0%
for all purpose during his continuance as partner of the firm
0%
for all purpose even after his retirement
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for the acts done during emergency
Which of these provisions are found in Partnership Act regarding sharing of profit and loss by partners ?
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share the profits and losses in the ratio of their capital contributions
0%
share the profits and losses equally irrespective of any agreement between them to the contrary
0%
share the profits and losses equally in the absence of any agreement to the contrary between them
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share the profits and losses in the ratio of their personal effoks input
The right to indemnity is lost on ___________________.
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0%
the dissolution of the partnership
0%
the death of the partner
0%
the retirement of the partner
0%
neither (a) nor (b) nor (c)
Interest on advance money provided by the Partner can be paid from ____________.
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0%
profits
0%
out of capital
0%
both (a) and (b)
0%
from the money provided by Central Government
Under section 11 of th 6 Companies Act, 1956 for a non-banking business, the maximum number of partners can be __________.
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0%
ten
0%
twenty
0%
twenty-five
0%
thirty
Interest on capital can be paid __________.
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0%
Out of profits
0%
Put of capital if no profits
0%
Out of capital if losses
0%
Either (a) or (b) or (c)
Explanation
Interest can
be allowed when it is expressly agreed
to
by the partners. Thus, no
interest on capital is payable
if the partnership deed is silent on the issue. Further the
interest is payable
only
out
of the
profits
of the business and not if the firm incurs losses during the period.
ABC purchased an office equipment for Rs.$$25,000$$ on $$1-4-2012$$ and spent Rs.$$5000$$ on its installation. The office equipment is being depreciated at the rate of $$10\%$$ p.a. under SLM. On $$30$$th September $$2014$$ the firm decided to sell the office equipment for Rs. $$15,000$$. Find out the book value of the office equipment on the date of sale
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0%
Rs.$$23085$$
0%
Rs.$$22500$$
0%
Rs.$$20725$$
0%
Rs.$$21500$$
Which of these is a point of difference between consignment and Joint Venture?
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Principal agent relationship versus equal ownership relationship
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Commission
versus
profit sharing
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No capital contribution
versus
Capital contribution
0%
All the three
Explanation
Following are the
points of difference between consignment and Joint Venture:
Principal agent relationship versus equal ownership relationship,
Commission versus profit sharing, and
No capital contribution versus Capital contribution.
Hence, the correct option is D.
Going run concern concept is not followed in __
Report Question
0%
Bank accounts
0%
Joint venture accounting
0%
Partnership accounting
0%
Proprietorship concerns
Explanation
Joint venture is created by two firms for completing a particular project, or for a definite period of time. Hence, going concern concept is not followed in such case.
Therefore, B is the correct option.
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