Accounting for Partnership Firms – Fundamentals

Super profit can be calculated:-

• a. Average profit – Normal profit

• b. Net profit – Average profit

• c. Capital Employed –Net Profit

• d. Net Profit – Capital Employed

If Goodwill is Rs. 1,20,000, Average Profit is Rs. 60,000 Normal. Rate of Return is10% on Capital Employed Rs. 4,80,000. Calculate capitalized value of the firm:-

• a. Rs. 6,00,000

• b. Rs. 5,00,000

• c. Rs. 4,00,000

• d. Rs. 7,00,000

Rani and Shyam is partner in a firm. They are entitled to interest on their capital but the net profit was not sufficient for paying his interest, then the net profit will be disturbed among partner in

• a. 1 : 2

• b. Profit Sharing Ratio

• c. Capital Ratio

• d. Equally

Which one of the following items is recorded in the Profit and Loss appropriation account

• a. Interest on Loan

• b. Partner Salary

• c. Rent paid to Partner’s

• d. Managers Commission

A,B and C were partner in a firm sharing Profit in the ratio of 3:2:1 during the year the firm earned profit of Rs. 84,000.

Calculate the amount of Profit or Loss transferred to the capital A/c of B.

• a. Loss Rs. 87,000

• b. Profit Rs. 87,000

• c. Profit Rs.28,000

• d. Profit Rs.14,000

Salary to a partner under fixed capital account is credited to

• a. Partner’s Capital A/c

• b. Partner’s current A/c

• c. Profit & Loss A/c

• d. Partner’s Loan A/c

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

• a. Ratio of capital Employed

• b. Equal Ratio

• c. 2 : 1

• d. 1 : 2

As per section a minor may be admitted for the benefit of the partnership if:-

• a. One partner agree

• b. More than one agree

• c. All partners agree

• d. Both (a) or (b)

The relation of the partner with the firm is that of

• a. An owner

• b. An agent and A Principal

• c. An agent

• d. Manager

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

• a. Rs. 350

• b. Rs. 450

• c. Rs. 150

• d. Rs. 250