Number of partners in a partnership firm may be :

• Maximum Two

• Maximum Ten

• Maximum One Hundred

• Maximum Fifty

In the absence of Partnership Deed, the interest is allowed on partner’s capital:

• @ 5% p.a.

• @ 6% p.a.

• @ 12% p.a.

• No interest is allowed

In the absence of agreement, partners are not entitled to :

• Salary

• Commission

• Equal share in profit

• Both (a) and (b)

Which one of the following items cannot be recorded in the profit and loss appropriation account?

• Interest on capital

• Interest on drawings

• Rent paid to partners

• Partner’s salary

According to Profit and Loss Account, the net profit for the year is 4,20,000. Salary of a partner is 5,000 per month and the commission of another partner is 10,000. The interest on drawings of partners is 4,000. The net profit as per Profit and Loss Appropriation Account will be :

• 3,54,000

• 3,46,000

• 4,09,000

• 4,01,000

On the admission of a new partner :

• Old firm is dissolved

• Old partnership is dissolved

• Both old partnership and firm are dissolved

• Neither partnership nor firm is dissolved

A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. C is admitted for 1/5 share in the profits of the firm. If C gets it wholly from A, the new profit sharing ratio after C’s admission will be :

• 1 : 3 : 3

• 3 : 1 : 1

• 2 : 2 : 1

• 1 : 3 : 1

The formula for calculating the sacrificing ratio is :

• New share – Old share

• Old share – New share

• Giaining Ratio – Old Ratio

• Old Ratio – Gaining Ratio

A and B are partners sharing profits and losses as 2 : 1. C and D are admitted and profit sharing ratio becomes 3 : 2 : 4 : 1. Goodwill is valued at 90,000. C and D bring required goodwill in Cash. Credit will be given to :

• A 30,000; B 15,000

• A 66,000; B 24,000

• A 33,000; B 12,000

• A 27,000; B 18,000

When a new partner does not bring his share of goodwill in cash, the amount is debited to :

• Cash A/c

• Premium A/c

• Current A/c of the new partner

• Capital A/c of the old partners