CBSE Questions for Class 12 Commerce Accountancy Accounting For Partnership: Basic Concepts Quiz 9 - MCQExams.com

In the absence of specific provision in the partnership deed at what rate interest on drawing of the partners would be allowed ______ .
  • 8%
  • 10%
  • 6%
  • Nil
In the absence of specific provision in the partnership deed rate interest on capital of the partners would be allowed ______ .
  • 8%
  • 10%
  • 6%
  • Nil
Which of the following statements is true ?
  • When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.
  • When separate set of books is maintained, expenses paid by venturer will be credited to venturer's capital account.
  • When separate set of books is maintained, expenses paid by venturer will be credited to Jt. Venture account.
  • When separate set of book is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.
A and B entered into a joint venture contract. They opened a joint bank account by contributing Rs. 1,00,000 each. The expenses incurred on contract were Rs. 1,00,Contract money received by cheque was Rs. 2,00.000 and in shares Rs. 50,The shares are sold for Rs. 40,What will be the profit on venture ?
  • Rs. 1,50,000
  • Rs. 1,40,000
  • Rs. 2,40,000
  • Rs. 2,00,000
A and B enter into a joint venture sharing profit and losses in the ratio 2:Goods were purchased by A for Rs. 55,Expenses incurred by A Rs. 3,500 and by B Rs. 5.B sold the goods for Rs. 80,Remaining stock was taken over by B at Rs. 12,What will be the final remittance to be made by B to A?
  • Rs. 69,900
  • Rs. 92 200
  • Rs. 28,500
  • None
In the absence of specific provision in the partnership deed at what rate interest on advances given by the partners would be allowed _______ .
  • 8% p.a.
  • 10 % p.a.
  • 6% p.a.
  • Nil
Interest on capital will be paid to the partners if provided for in the agreement but only from following _______________.
  • Profits
  • Reserves
  • Accumulated Profits
  • Goodwill
Bill and Monica are partners sharing profits and losses in the ratio of $$3:2$$ having the capital of Rs. $$80,000$$ and Rs. $$50,000$$ respectively. They are entitled to $$9\%$$ p.a. interest on capital before distributing the profits. During the year firm earned Rs. $$7,800$$ before allowing any interest on capital. Profits apportioned among Bill and Monica is?
  • $$4,680$$ and $$3,120$$
  • $$4,800$$ and $$3,000$$
  • $$5,000$$ and $$2,800$$
  • None of these
A partner acts as _________ for a firm.
  • Agent
  • Third Party
  • Employee
  • None of these
X, Y and Z are partners in a firm.At the time of division of profit for the year there was dispute between the partners.Profits before interest on partner's capital was Rs.15,000 and Y demands interest at 24%p.a. on his loan of Rs.80,There was no agreement on this point.Calculate the amount payable to X, Y and Z respectively.
  • Rs. 5,000 to each partner
  • Loss of Rs. 4,200 for X and Z & Y will take home Rs.15,000
  • Rs.3,400 for X, Rs. 8,200 for Y and Rs. 3,400 for Z
  • Rs. 5,000 to each partner.
What time would be taken into consideration for calculation of interest on drawings if equal monthly amount is drawn as drawing at the beginning of each month ?
  • 7 months
  • 6 months
  • 5 months
  • 6.5 months
A is drawing Rs.1,000 p.m. on the last day of every month. If the rate of interest is 5% p.a., then the total interest chargeable from him in the accounting year will be ____________.
  • Rs.325
  • Rs.275
  • Rs.300
  • Rs.350
Capital of A, B and C in the beginning was Rs. $$80,000$$, Rs. $$60,000$$ and Rs. $$40,000$$. Profit sharing ratio being $$2:2:1$$. Interest on Capital @$$10$$% p.a to be provided. Net Profit before allowing interest to partners was Rs. $$38,000$$. What will be capital of A at the end of year?
  • Rs. $$90,000$$
  • Rs. $$74,000$$
  • Rs. $$96,000$$
  • Rs. $$95,000$$
X, Y and Z are partners sharing profits and losses in the ratio $$5:3:2$$. They decide to share the future profits in the ratio $$2:3:5$$. What will be the treatment for workmen compensation fund appearing in the balance sheet on the date if no information is available for the same?
  • Distributed to the partners in old sharing ratio
  • Distributed to the partners in new sharing ratio
  • Distributed to the partners in capital ratio
  • Carried forward to new balance sheet without any adjustment
A, B and C are the partners sharing in the ratio $$2:2:1$$. They have taken a Joint Life Policy of 10 years for Rs. $$3,00,000$$. Annual premium is Rs. $$20,000$$. They have been charging annual premium to profit and loss account. At the end of 4 years, when surrender value of Policy is Rs. $$90,000$$, they want to raise policy account in the books. Joint life policy account will be ______________.
  • Debited by Rs. $$3,00,000$$
  • Debited by Rs. $$80,000$$
  • Debited by Rs. $$90,000$$
  • Credited by Rs. $$90,000$$
A is drawing Rs.500 regularly on the 16th of every month.He will have to pay interest in a year on Rs.6,000 (at the given rate of interest) for a total period of _________________.
  • 5 months
  • 6 months
  • 7 months
  • $$6\dfrac{1}{2}$$ months
A, B and C were partners in a firm sharing profits and losses in theratio of 2 : 2 : 1 respectively with the capital balance of 50,000 for A and B, for C 25,B declared to retire from the firm and balance in reserve on the date was 15,000 if goodwill of the firm was valued as 30,000 and profit on revaluation was 7,050, then what amount will be transferred to the loan account of B?
  • 70,820
  • 50,820
  • 25,820
  • 58,820
L and M invest Rs 2,00,000 and Rs 1,00,000 respectively in a partnership, and agree to divide profit/loss equally after providing for interest @ 10% per annum on original capital and salaries of Rs 24,000 and Rs 48,000 respectively. How much total amount L would get if the period's net income (before interest and salaries) is Rs 1,78,000 ______________.
  • Rs 96,000
  • Rs 89,000
  • Rs 82,000
  • Nil
On the admission of a new partner, the balance of the profit and loss adjustment account should be transferred to the capital account of_________. 
  • all partners in their new profit-sharing ratio
  • old partners in their old profit-sharing ratio
  • old partners in their new profit-sharing ratio
  • old partners in their sacrificing ratio
A retiring partner continues to be liable for obligations incurred after his retirement if:
  • Unpaid amount is transferred to his loan account.
  • He does not give public notice.
  • He starts a similar business elsewhere.
  • None of the above
Joint life policy amount received from insurance company in excess of its surrender value is credited to the capital account of the partners.
  • In profit-sharing ratio
  • Equally
  • In capital ratio
  • All of these
In the absence of a Partnership deed or agreement, a partner is entitled to interest on loans or advances__________. 
  • @ $$6$$% p.a.
  • @ $$9$$% p.a.
  • at the bank rate
  • @ $$12$$% p.a.
Where a partner is entitled to interest on capital contributed by him, such interest will be payable: 
  • Only out of profits
  • Only out of capital
  • Either (a) or (b)
  • None of these
In the absence of an agreement to the contrary, the partners are_________. 
  • entitled to $$6$$% interest on their capitals, only when there are profits
  • entitled to $$9$$% interest on their capitals, only when there are profits
  • entitled to interest on capital at the bank rate, only when there are profits
  • not entitled to any interest on their capitals
If a firm prefers Partners Capital A/c be shown at the amount introduced by the partners capital in firm then entries for salary, interest, drawings, interest on capital and drawings and profits are made in ____________.
  • Trading A/c
  • Profit & Loss A/c
  • Balance Sheet
  • Partners Current A/c
Interest on drawing is ________ for the business.
  • expenses
  • gain
  • neither expenses nor gain
  • expense or gain depending on the situation
Retiring or outgoing partner _________.
  • is liable for firm's liabilities
  • not liable for any liabilities of the firm
  • is liable for obligations incurred before his retirement
  • is liable for obligations incurred before and after his retirement
Persons who have entered into partnership with one another are collectively a called as ___________.
  • Firm
  • Firm name
  • Partnership
  • Partner
Before a partner retires, reserves created out of profits or balances in profit and loss account must be transferred to the capital accounts of all the partners in ________.
  • new profit sharing ratio
  • old profit sharing ratio
  • sacrificing ratio
  • gain ratio
How would you close the Partner's Drawings Account? 
  • By transfer to Capital or Current A/c debit side. 
  • By transfer to Capital A/c credit side. 
  • By transfer to Current A/c credit side. 
  • Either (B) or (C). 
Following are the differences between partnership & joint venture except __________. 
  • a joint venture is essentially planned for short-term mainly for one contract. However, partnerships are normally undertaken as going concerns and are excepted to last for a very long period.
  • the persons involved in a joint venture are called co-ventures whereas persons involved in a partnership are called partners.
  • any specific statute of the government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.
  • memorandum of understanding is mandatory to be drafted to spell the relationship between the co-ventures whereas the basic relationship between the partners is defined by the partnership deed.
Following are the essential elements of a partnership firm except _____________.
  • At least two persons.
  • There is an agreement between all partners.
  • Equal share of profits and losses.
  • Partnership agreement is for some business.
Balance in revaluation account is transferred to old partners in ________________.
  • New profit sharing ratio
  • Old profit sharing ratio
  • Sacrificing ratio
  • Gain ratio
The name under which the business of partnership is carried on is called _________.
  • Firm
  • Firm name
  • Partnership
  • Partner
R & S are partners with the capital of Rs. 37,500 and Rs. 22,500 respectively. Interest payable on capital is 10% p.a. Find the interest on capital for both the partners when the profits earned by the firm is Rs. 3,600.
  • Rs. 3,750 and Rs.2,250
  • Rs. 1,800 and Rs. 1,800
  • Rs. 2,250 and Rs. 1,350
  • None of the above
Is rent paid to a partner an appropriation of profits?
  • Yes.
  • No. 
  • If partner's contribution as capital is maximum. 
  • If partner is a working partner. 
To avoid misunderstanding between the partners, the partners need  _________________.
  • clear mutual understanding
  • clear communication between partners
  • clear agreement of terms and conditions
  • clear objectives
A partner was supposed to contribute Rs.50,000 in a partnership firm. He gave Rs.80,000 to the firm. How much interest he will get on the extra money he contributed to the firm above his agreed share in the firm.
  • Nil
  • 6% of 30,000
  • 6% of 80,000
  • 6% of 50,000
One of the partner contributed Rs.30,000 in the firm. How much interest he will get on the capital contributed?
  • Nil
  • 6% of 30,000
  • 5% of 30,000
  • Income of the above
Partnership business in India is governed by India Partnership Act of ____________.
  • $$1913$$
  • $$1932$$
  • $$1984$$
  • $$1928$$
Joint Life Policy is taken by the firm on the life(s) of ________.
  • All the partners jointly
  • All the partners severely
  • On the life of all the partners and employees of the firm
  • Both (A) and (B)
All the agreements are contracts _____________.
  • if they are on stamp paper
  • if they are made by the free consent of parties
  • if they are registered
  • all of these
Under fixed capital methods, profit will be credited to:
  • Capital Account
  • Drawings
  • Current capital A/c
  • Profit & Loss
Which of the following are included in a partnership deed?
  • Duties and obligations of the partners
  • Distribution of profits and losses
  • Terms governing admission,retirement and expulsion of a partner
  • All of the Above
__________ constitutes as an evidence of agreement.
  • Oral agreement
  • Written agreement
  • Mutual understanding
  • Similar objectives
It is UNCOMMON in a partnership firm.
  • Partnership deed
  • An agreement between partners
  • Some partners are major and some are minor
  • Carried on for doing business.
Which of the following would not be found in a partnership appropriation account?
  • Interest on capital
  • Interest on loan by partner to partnership
  • Interest on drawings
  • Salaries
If partners maintain both fixed capital and current accounts, which of the following would normally be credited to a partner's fixed capital account?
  • New capital addition
  • Losses on revaluation
  • Interest on capital
  • Goodwill being written off
At the time of dissolution, which payment will be made in priority ?
  • Capital to partners
  • Loan provided by partner
  • Fluctuating capital account
  • None of the above
Partners can share profits or losses in their Capital ratio, when there is no agreement.
  • True
  • False
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