Practice Test

Q1) Partnership deed is an ______ of partnership. Show Answer

Q2) Partnership deed may be ______. Show Answer

Q3) Partnership deed contains rules & regulations relating to ______ working of a firm. Show Answer

Q4) In case there is no deed, interest is allowed on partner's loan at ______ p.a. Show Answer

Q5) Registration of Partnership is _____. Show Answer

Q6) Liability of partnership is ______. Show Answer

Q7) _______ is the base of partnership. Show Answer

Q8) Partner's share profits & losses in _______ ratio. Show Answer

Q9) Minimum ______ members are required to form a partnership. Show Answer

Q10) Maximum number of members shallnot exceed _____ in case of ordinary business. Show Answer

Q11) Maximum number of members shall not exceed ______ in case of banking business. Show Answer

Q12) A partner who does not take active part in the business is called as ______ partner. Show Answer

Q13) Commission to partners is ______ to firm. Show Answer

Q14) Partner ______ transfer his interest to others without the consent of other partners. Show Answer

Q15) The balance of Drawing Account of a partner is transferred to his ______ account under the fixed capital method. Show Answer

Q16) When all adjustments regarding salary, commission, interest on capital, etc. are made to Capital Account only, this method is known as _______ capital method. Show Answer

Q17) The Interest on capital of a partner is debited to ______ Account. Show Answer

Q18) The liability of a partner is _____. Show Answer

Q19) In the absence of partnership deed,profits are shares _______. Show Answer

Q20) Debit balance on Current Account will be shown on the _____ side of the balance sheet. Show Answer

Q21) When the balances of partners in a partnership change every year, it is known as ___________ capital method. Show Answer

Q22) Goodwill is a _________ asset. Show Answer

Q23) The interest on drawings of a partner is credited to __________. Show Answer

Q24) Debit balance of current account of a partner will appear on the _______side of the balance sheet. Show Answer

Q25) _____________is an intangible asset. Show Answer

Q26) Gross profit is transferred to _____account. Show Answer

Q27) Income received in advance is shown on ____________ side of balance sheet. Show Answer

Q28) Closing balance of fixed capital account is transferred and shown to ____________side of the balance sheet. Show Answer

Q29) Interest on capital account of the partners is credited to _______ account. Show Answer

Q30) The withdrawal by a partner for personal use from the firm is ______ to his account. Show Answer

Q31) The net profit of a partnership firm is brought forward on the ______ side of P/L appropriation account. Show Answer

Q32) Salaries and interest on capital payable are debited to ________ account and _________ to partner's capital account. Show Answer

Q33) When partner's capital is fixed, interest on capital is credited to ___________ accounts Show Answer

Q34) If fixed capital method is adopted, Net profit transferred to ________ account. Show Answer

Q35) The persons who form the partnership firm are individually called ______ and collectively called _________. Show Answer

Q36) All indirect expenses are debited to _____________ account. Show Answer

Q37) The interest on drawings of a partner is ________ to profit and loss account. Show Answer

Q38) Partners are ___________ liable for the debts of the firm. Show Answer

Q39) Prepaid expenses are shown on the ______________ side of the balance sheet. Show Answer

Q40) Payment made in advance is shown on ____________ side of the balance sheet. Show Answer

Q41) Debit balance of profit and loss suspense account is shown on _________side. Show Answer

Q42) The partnership agreement, which is written and signed by the partners, is called _________. Show Answer

Q43) The relation between partners is that of _______ and ________. Show Answer

Q44) Commission payable to partner is ________ to the firm. Show Answer

Q45) The Indian partnership Act is in force since_________. Show Answer

Q46) The partner who contributes and takes active parts in the management of the partnership business is called ___________. Show Answer

Q47) The person who permits the partnership firm to use his name for increasing goodwill of the firm is called ________. Show Answer

Q48) Liability of every partner is ________ and _______. Show Answer

Q49) Capital balance of partners goes on changing, when capital accounts are maintained on _______ method basis. Show Answer

Q50) The balance of capital account remains constant under ________capital method. Show Answer

Q51) When a partner takes over an asset, his capital account is _____________. Show Answer

Q52) Current account is opened in _______ capital method. Show Answer

Q53) The interest on capital is ______ to P/L account. Show Answer

Q54) If deed is silent, partners share profit or losses in _______ ratio. Show Answer

Q55) The interest on partner's drawings is transferred to __________ account. Show Answer

Q56) Every person below the age group of 18 years is called _________ partner. Show Answer

Q57) The Partner who is unable to pay his liabilities is called as _______ partner. Show Answer

Q58) Bad debts is a _______. Show Answer

Q59) Trading Account shows either gross profit or ______. Show Answer

Q60) Net profit is divided between the partners in their ______ ratio. Show Answer

Q61) Carriage Inward is debited to _______ Account. Show Answer

Q62) Royalty on Production is debited to ______ Account. Show Answer

Q63) Interest on capital is added to _______. Show Answer

Q64) There is no maximum limit to the number of partners in a firm. Show Answer

Q65) Each partner has a right to take part in the conduct of the business of firm. Show Answer

Q66) Sleeping partner is one who takes active part in the conduct of the business. Show Answer

Q67) Interest allowed on partner's capital is debited to profit and loss account and credited to partner's capital accounts. Show Answer

Q68) Adjustments to partner's capital are passed through current accounts when the capitals are fluctuating. Show Answer

Q69) According to Indian partnership Act, the partners are entitled to earn interest @ 6 %p.a. on their respective capitals. Show Answer

Q70) Interest on drawings is an income to the partnership firm. Show Answer

Q71) Bad debts appearing in the trial balance are deducted from the amount of sundry debtors in the balance sheet. Show Answer

Q72) Balance sheet is a statement showing financial position of the concern on a particular date. Show Answer

Q73) The agreement among the partners must be to do lawful business. Show Answer

Q74) Balance sheet is an account of business result. Show Answer

Q75) According to partnership Act partners are entitled to earn interest on capital. Show Answer

Q76) Pre-paid expenses is a liability. Show Answer

Q77) The capital accounts always show a credit balance. Show Answer

Q78) Every adjustment is to be recorded at two places. Show Answer

Q79) Registration of partnership firm is compulsory. Show Answer

Q80) Total amount of cash contributed by the partners towards capital is debited to capital account of partners. Show Answer

Q81) A Partnership firm has perpetual existence. Show Answer

Q82) When partnership deed is silent partners share profits of the firm according to capital ratio. Show Answer

Q83) Under fixed capital method separate capital accounts and current account are opened for each partner. Show Answer

Q84) Partnership is non trading concern. Show Answer

Q85) The liability of a partner is not restricted to the capital contributed by him. Show Answer

Q86) Partnership deed sets rules and regulations for internal management of partnership firm. Show Answer

Q87) Partnership deed must be written. Show Answer

Q88) Under Fixed capital method, the amount of capital remains constant. Show Answer

Q89) Liability of partners is limited. Show Answer

Q90) No interest is to be paid on any loan given by a partner. Show Answer

Q91) Partners must share profits and losses equally. Show Answer

Q92) Minimum 7 members are required to form a partnership. Show Answer

Q93) Profits are shared by the partners in the ratio of their capitals. Show Answer

Q94) Each partner acts as an agent and also as a principal. Show Answer

Q95) Current account is maintained under fluctuating capital method. Show Answer

Q96) No interest is allowed on partner's capital in absence of deed. Show Answer

Q97) A partner must be paid additional salary for the extra work done by him for the firm. Show Answer

Q98) Interest on capital is calculated on the opening balance. Show Answer

Q99) A partner can transfer his interest to other without the consent of the other partner. Show Answer

Q100) Maximum members of partners in any type of business is twenty. Show Answer

Q101) A partner can use the assets of the firm for his personal use. Show Answer

Q102) Income earned but not received is a liability. Show Answer

Q103) Interest on capital is not allowed as per partnership Act, 1932. Show Answer

Q104) In absence of an agreement to the contrary partners share profits in proportion to capitals. Show Answer

Q105) Partners are entitled to salary. Show Answer

Q106) When a balance of capital account goes on changing every year, it is called fixed capital method. Show Answer

Q107) Closing stock is valued at cost price or market price whichever is more. Show Answer

Q108) Partner's current account always shows a debit balance. Show Answer

Q109) In the fluctuating capital account method the balance in the capital account always remains the same. Show Answer

Q110) Goodwill is the fixed asset. Show Answer

Q111) Interest on drawing calculated with the help of Average due date. Show Answer

Q112) Interest on capital is debited to profit and loss account. Show Answer

Q113) The Indian Partnership Act is in force since 1932. Show Answer

Q114) In the fixed capital account method the capital account of the partner will always show a credit balance. Show Answer

Q115) The capital account of a partner is required to be opened in both the fixed capital account method and fluctuating capital account method. Show Answer

Q116) Drawings made by partners are never entered in the profit and loss account. Show Answer

Q117) Drawing account always shows credit balance. Show Answer

Q118) Prepaid expenses are debited to profit and loss account. Show Answer

Q119) There is restriction to the maximum number of parents in a firm. Show Answer

Q120) The liability of partners is limited to the extent of their capital contributions. Show Answer

Q121) The balance sheet is an account. Show Answer

Q122) Z a partner withdraws the following sums during the year ended 31St March,2011 On 1st May,2010 Rs.1,000 On 1st August,2010 Rs.3,000 On 1st January,2011 Rs.2,000 On 1st March,2011 Rs.1,000 Calculate interest on his drawing @ 6% P.a Show Answer

Q123) 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

Q124) 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

Q125) 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 for two partners respectively will be____ Show Answer

Q126) 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

Q127) 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

Q128) 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

Q129) 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

Q130) 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

Q131) 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

Q132) 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

Q133) 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

Q134) 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

Q135) 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

Q136) 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

Q137) 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