Practice Test

Q1) Partnership is defined "the relation between persons who have agreed to share the profits of a business carried on by________acting for all" Show Answer

Q2) Persons who have entered into partnership with one another are individually known as_____ Show Answer

Q3) Persons who have entered into partnership with one another are collectively a called as_____ Show Answer

Q4) The name under which the business of partnership is carried on is called______ Show Answer

Q5) To form partnership there must be agreement between at least________ Show Answer

Q6) Maximum number of persons for a valid partnership for banking business is________ Show Answer

Q7) The maximum number of persons permissible for a valid partnership for doing any business other than banking business is______ Show Answer

Q8) Partnership can be formed for the purpose of carrying______ Show Answer

Q9) Which of the following is conclusive evidence of partnership______ Show Answer

Q10) The capital account of a partner may be a_______ Show Answer

Q11) If there is no partnership deed or if there is no provision in it indicating a contrary intention_______has a right to take part in the conduct of the business of the firm and also the right of free access to all records,books and accounts of the firm Show Answer

Q12) If there is no partnership deed or if there is no provision in it indicating a contrary intention,partners share profits and losses______ Show Answer

Q13) If there is no partnership deed pr if there is no provision in it indicating a contrary intention and where a partner has advanced any loan to the firm and the agreement provides for interest,but does not specify any rate,the rate shall be______ Show Answer

Q14) If ther is no partnership deed or if there is no provision in it indicating a contrary intention_____is to be charged on drawings Show Answer

Q15) In absence of specific provision in the partnership deed_______salary would be paid to the partners Show Answer

Q16) ______is a very short duration special purpose partnership entered into by two or more persons jointly to carry out business with a view to earn profit and loss in an agreed ratio. Show Answer

Q17) _____is limited to a specific venture. Show Answer

Q18) The doctrine of implied authority is______to coventures whereas it_______to partnership. Show Answer

Q19) _______may be described as the aggregate of those intangible attributes of a business which contribute to its superior earning capacity over a normal return on investment Show Answer

Q20) Interest on partners capital is chargeable_____ Show Answer

Q21) When partner draws a fixed sum at the beginning of each month,interest on total drawings will be equal to interest of______at an agreed rate Show Answer

Q22) When partner draws a fixed sum at the middle of each month,interest on total drawings will be equal to interest of______at an agreed rate Show Answer

Q23) When partner draws a fixed sum at the end of each month,interest on total drawings will be equal to interest of______at an agreed rate Show Answer

Q24) Z a partner withdraws the following sums during the year ended 31St March,2011On 1st May,2010 Rs.1,000On 1st August,2010 Rs.3,000On 1st January,2011 Rs.2,000On 1st March,2011 Rs.1,000Calculate interest on his drawing @ 6% P.a Show Answer

Q25) On 1st April,2010 A's capital account showed a balance of Rs.1,75,000 while B's capital account showed a balnce of Rs.35,000.In 2010-2011 the firm earned a proft of Rs.52,500 before adjustment for salary to B amounting to Rs.10,500 for the year and interest on capital @ 7% P.a.on final distribution of profit in profit sharing ratio of Rs.3:2 A an B will be get share of profit_____ Show Answer

Q26) N,S and Z are partners.They withdrawal fixed sum of Rs.2,000 per month as follows N draws at the beginning of each month,S withdraws at the middle of each month and Z withdraws at the end of each month.Rate of interest on drawings is 8% P.a interest on drawing for the three partners respectively will be_______ Show Answer

Q27) N and Z are two partners.During the year N withdraws Rs.37,000 on 1-05-2012 & Z withdraws Rs.45,000 on 15-08-2012.Accounts are closed on 31-12-2012.Rate of interest on drawings is 10% p.a. Interest on drawings fo two partners respectively will be____ Show Answer

Q28) N,S and Z are three partners.They withdraw fixed sum of Rs.15,000 per quarter as follows:N draws at the beginning of each quarter,S with draws at the middle of each quarter and Z with draws at the end of each quarter.Rate of interest on drawings is 12% P.a.Interest on drawings for three partners respectively will be_____ Show Answer

Q29) X & Y are two partners with a capital of Rs.60,000 & 40,000 respectively.They are allowed interest @ 10% P.a on capital.Find the interest allowed to X and Y. Show Answer

Q30) A has Rs.30,000 capital in the beginning of the year and introduces Rs.10,000 during the year.If rate of interest on capital is 20% P.a,interest on A's capital is Rs._____ Show Answer

Q31) 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 Show Answer

Q32) X,Y and Z are partners in a firm.Profits before interest on partner's capital was Rs.12,000.Y demanded interest @ 15% p.a.on his loan of Rs.1,60,000.Partnership deed is silent on this point.Calculate the amount of interest payable to Y on his loan Show Answer

Q33) R & S are partners with the capital of Rs.2,40,000 and Rs.1,20,000 respectively.Interest payable on capital is 10% p.a Profit before interest on partner's capital was Rs.12,000.Calculate the interest on capital for both the partners. Show Answer

Q34) Accounting to the partnership deed of A & B, B is entitled to a salary of Rs.500 per month.Profit sharing ratio is 5:3.During the year the firm earned a profit,before charging salary to B Rs.25,000. Calculate share of profit of A & B. Show Answer

Q35) A and B start business on 1st January,2009,with capitals of Rs.30,000 and Rs.20,000.According to the partnership deed,B is entitled to a salary of Rs.500 per month and interest is to be allowed on capitals at 6% p.a.profit sharing ratio is 5:3.during the year the firm earned a profit,before charging salary to B and interest on capital amounting to Rs.25,000.During the year A withdrew Rs.8,000 and B withdrew Rs.10,000 for domestic purpose.Closing balance of partners capital account for A= ? & B = ? Show Answer

Q36) P & Q started business with capital of Rs.70,000 and Rs.42,000 on 1st january,2012.Q is entitled to a salary of Rs.560 P.m.Interest is allowed on capitals and is charged on drawings at 6% p.a.profits are to be in ratio of 3:2.During the middle of the year.P withdrew Rs.11,200 and Q withdrew Rs.14,000.The profits for the year before appropriation came to Rs.42,000.Calculate share of profit of P & Q. Show Answer

Q37) B and M are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs.40,000 and Rs.25,000 respectively.They are entitled to 9% p.a interest on capital before distribution the profits.During the year firm earned Rs.3,900 after allowing interest on capital.Profits apportioned among B and M is______ Show Answer

Q38) S and G are partners sharing profits and losses in the ratio of 4:1.M was manager who received the salary of Rs.1,000 p.m. in addition to a commission of 5% on net profits after charging such commission.Profits for the year is Rs.1,69,500 before charging salary.Find the total remuneration of M. Show Answer

Q39) A,B and C had capitals of Rs.50,000,Rs.40,000 and Rs.30,000 respectively for carrying on business in partnership.The firm's reported profit for the year was Rs.80,000.Find out the share of profit of each partner after providing interest on an advance by A of Rs.20.000 Show Answer

Q40) Which of the following is/are essential feature of partnership ?
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Q41) In partnership under fixed capital account method,which of the following account is opened ?
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Q42) In partnership under fixed capital account method,recording the transaction relating to drawings interest on capital,commission,salary,share of profit or loss are made in_______
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Q43) In partnership under fluctuating capital account method,recording the transaction relating to drawings interest on capital,commission,salary,share of profit or loss are made in_______
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Q44) The private property of a partner should be used to_______
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Q45) Firm's asset's should be first used to pay______
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Q46) In the absence of any agreement, partners are entitled to receive interest on their loans at the rate of: Show Answer

Q47) Following is the difference between partnership deed and partnership agreement. Show Answer

Q48) Is rent paid to a partner appropriation of profits? Show Answer

Q49) 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 : Show Answer

Q50) 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 to accounting year will be: Show Answer

Q51) 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: Show Answer

Q52) Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs 6,78,000 before charging salary. Find the total remuneration of Meeta. Show Answer

Q53) Firm has earned exceptionally high profits from a contract which will not be renewed. In such a case, the profit from this contract will not be included in ________ Show Answer

Q54) Interest on capital will be paid to the partners if provided for in the agreement but only from _________. Show Answer

Q55) Partners are suppose to pay interest on drawing only when ______ by the _____ . Show Answer

Q56) When a partner is given guarantee by other partners, loss on such guarantee will be borne by: Show Answer

Q57) What would be the profit sharing ratio, if the partnership act is complied with: Show Answer

Q58) Where will you record interest on drawings: Show Answer

Q59) What balance does a Partner's Current Account has: Show Answer

Q60) How would you close the Partner's Drawings Account: Show Answer

Q61) Every partner is bound to attend diligently to his ______ in the conduct of the business. Show Answer

Q62) In the absence of agreement, partners are not entitled to: Show Answer

Q63) Profit on Profit/Loss Appropriation Account should be transferred to: Show Answer

Q64) If any loan or advance is provided by partner then, balance of such Loan Account should be transferred to: Show Answer

Q65) Out of the following which item is not shown in Partners Capital A/c : Show Answer

Q66) Loss in P/L App. A/c will: Show Answer

Q67) Partner's Current A/c are opened in case there Capital A/c are: Show Answer

Q68) Partnership is defined under which section of the Partnership Act, 1932? Show Answer

Q69) Which one of the following is NOT an essential feature of a partnership? Show Answer

Q70) Which of the following is NOT a feature of Joint Venture? Show Answer

Q71) Which of the following is a type of capital A/c? Show Answer

Q72) Partners Capital A/c and Partners Current A/c are prepared in the case of Show Answer

Q73) In the case of fixed capital method, adjustments in respect of profit, loss, drawings etc. are made in Show Answer

Q74) Which of the following statements is true? Show Answer

Q75) Goodwill is valued when: Show Answer

Q76) If a firm makes exceptional profits which are not routine in nature, then such profits will not be included in: Show Answer

Q77) A draws 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 on drawings will be: Show Answer