Partnership and Profit Sharing Flashcard

Front

Rani and Shyam are partners in a firm. They are entitled to interest on their capital, but the net profit was not sufficient for paying this interest. How will the net profit be distributed among the partners?

Back

Capital Ratio

Front

Which one of the following items is recorded in the Profit and Loss appropriation account: Interest on Loan, Partner Salary, Rent paid to Partner's, Managers Commission?

Back

Partner Salary

Front

Salary to a partner under fixed capital account is credited to

Back

Partner's current A/c

Front

In the absence of partnership deed partner share profit and loss in

Back

Equal Ratio

Front

As per section a minor may be admitted for the benefit of the partnership if:- One partner agree, More than one agree, All partners agree, Both (a) or (b)

Back

All partners agree

Front

If the partner carries on the business that is similar to firm competition with the firm and profit earned from it, the profit

Back

Shall be paid to firm

Front

The relation of the partner with the firm is that of

Back

An agent and A Principal

Front

A, B, and C are partners sharing profits in the ratio of 5:3:2. According to the partnership agreement, C is to get a minimum amount of Rs. 10,000 as his share of profits every year. The net profit for the year ended 31st March, 2019 amounted to Rs. 40,000. How much amount contributed by A?

Back

Rs. 1,250

Front

Which one of the following item cannot be recorded in Profit and Loss Appropriation Account?
Interest on Capital,
Manager's Commission,
Interest on Drawings,
Partner's Salary

Back

Manager's Commission

Front

A and B are partners sharing profit equally. A draws regularly Rs. 4,000 at the end of every month for 6 months. Year ended on 30th September 2018, calculate interest on drawings @ rate 5% p.a.

Back

Rs. 250