Accounting for Partnership- Fundamental

If equal amount is withdrawn by partner in the beginning of each month during a month of 6 months interest on the total amount will be charged for......month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

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

Partners current accounts are opened when their capital accounts are:

• Fixed and Fluctuating both

• Fixed

• None of these

• Fluctuating

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.

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.

• Loss Rs. 87,000

• Profit Rs.28,000

• profit Rs. 87,000

• Profit Rs.14,000

Y is a partner in a Firm. He withdrew regularly 3,000 rupees at the end every month for six months ending 31st March 2016 if interest on drawing is charged @ 10% per annum, the interest charged will be

• 375

• 450

• 525

• 900

A partner withdraws rupees 8000 each 1st April and 1st October .interest on his drawing is drawing @ 6% per annum on 31st March will be

• 480

• 720

• 240

• 960

A is a partner in a firm .He withdrew rupees 10000 at the end of each quarter during the year ended 31st March 2017. His interest on drawings @ 9% will be

• 1350

• 2250

• 900

• 1800

"The liability of a partner for acts of the firm is unlimited." Which of the following statement best describes the unlimited liability of a partner?

• Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner.

• A partner's private assets can also be used for paying off the firm's debts.

• A partner is declared insolvent on his failure to pay the firm's debts.

• All of the above.