partnership

partnership

Multiple Choice

State the collective term used for the partners

• Partnership

• Firm

• Partnership deed

• Corporation

Multiple Choice

Rs. 700 is divided among A, B and C so that A receives half as much as B and B receives half as much as

C. Then C’s share is :

• Rs. 200

• Rs. 300

• Rs. 400

• Rs. 500

Multiple Choice

In a business, A and B invested amounts in the ratio of 2 : 1, whereas the ratio between and B was 3 : 2. If

the firm earned a profit of Rs. 1,20,000, how much amount did B receive?

• 48000

• 24000

• 12000

• 96000

Multiple Choice

In which year was the Partnership Act passed?

• 1932

• 1956

• 1947

• 1956

Multiple Choice

Which of the following is an appropriation of profit?

• Interest on loan

• Interest on Capital

• Employees’ salary

• Rent

Multiple Choice

The written agreement of partnership is most commonly referred to as :

• Agreement

• Partnership Deed

• Partnership contract

• Partnership Act

Multiple Select

Provisions of Partnership Act, 1932 in the absence of Partnership Deed

• profits and losses of the firm are to be shared equally by partners

• No interest on capital is payable

• Interest is to be charged on drawings @ 6% p.a

• No partner is entitled to get salary or other remuneration

  for taking part in the conduct of the business of the firm

• No interest on loan payable to partners

Multiple Select

Features of partnership are

• Agreement

• Legal Business

• Agency relationship

• Limited liability of all partners

• Maximum number of members is 500

Multiple Choice

Interest on partner’s drawing under a fluctuating capital account is debited to

• Partner’s Capital Account

• Profit and Loss Account

• Drawing Account

• None of the above

Multiple Choice

Interest payable on the capitals of the partners is changed to

• Profit and Loss Account

• Profit and Loss Adjustment Account

• Realization Account

• Profit and Loss Appropriation Account

Multiple Choice

The current account of a partner

• Will always have a credit balance

• Will always have a debit balance

• May have a debit or credit balance

• Can never have a debit balance

Multiple Choice

In the absence of an agreement to the contrary, the partners are

• Entitled for 6% interest on their capitals, only when there are profits

• Entitled for 9% interest on their capitals, only when there are profits

• Entitled for interest on capital on the bank rate, only when there are profits

• Not entitled for any interest in their capitals

Multiple Choice

In the absence of an agreement to the contrary, partners share profits and losses in the

• Ratio of their capitals at the beginning of the year

• Ratio of their capitals at the end of the year

• Ratio of average capital

• Equal ratio

Multiple Choice

The interest on capital accounts of partners under the fluctuating capital account method is credited to

• Interest Account

• Profit and Loss Account

• Partners’ Capital Accounts

• Partners’ Current Accounts

Multiple Choice

Partners’ Current Accounts are opened when their capital accounts are

• Fixed

• Fixed and Fluctuating both

• Fluctuating

• None of these