accounting for partnership fundamentals

If equal amount is withdrawn by partner in the beginning of each month during a month of 6 months interest on the total amount will be charged for......month

• 3.5

• 2.5

• 3

• 6

By virtue of Section 464 of the Companies Act, 2013 the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than ___________.

• 50

• 100

• 20

• 10

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

In the absence of partnership deed, interest on loan of a partner is allowed :

• @8% per annum

• @6% per annum

• no interest is allowed

• @12% per annum

Which of the following transactions is always recorded in the partner's capital account irrespective of whether the partners capitals are fixed or fluctuating?

Additional capital introduced by a partner

Permanent withdrawal of capital by a partner

both (b) and (c)

• Additional capital introduced by a partner

• Permanent withdrawal of capital by a partner

• both (a) and (b)

• Interest on partner's loan

Partners current accounts are opened when their capital accounts are:

• Fixed and Fluctuating both

• Fixed

• None of these

• Fluctuating

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

• Interest Account

• Profit and Loss Account

• Partners' Capital Account

• Partners' Current Account

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

• ratio of their capitals in the beginning of the year.

• ratio of their capitals at the end of the year.

• ratio of average capital

• equal ratio

Current Account of a partner

• Will always have a credit balance.

• Will always have a debit balance

• May have a debit balance or a credit balance.

• May have a debit balance or a credit balance.

When the partners capitals are fixed, the drawings made by a partner will be recorded in _____.

• Partner's Capital account

• Partner's Current account

• Profit and Loss Account

• None of these.