Partnership Firm Quiz

Features of a partnership firm are :

• Two or more persons are carrying common business under an agreement

• They are sharing profits and losses in the fixed ratio

• Business is carried by all or any of them acting tor all as an agent

• All of the above

Following are essential elements of a partnership firm except:

• At least two persons

• There is an agreement between all partners

• Equal share of profits and losses

• Partnership agreement is for some business

Which of the following statement is true?

• a minor cannot be admitted as a partner

• a minor can be admitted as a partner, only into the benefits of the partnership

• a minor can be admitted as a partner but his rights and liabilities are same of adult partner

• none of the above

What should be the minimum number of persons to form a Partnership

• 2

• 7

• 10

• 20

Number of partners in a partnership firm may be :

• Maximum Two

• Maximum Ten

• Maximum One Hundred

• Maximum Fifty

Which one of the following is NOT an essential feature of a partnership

• There must be an agreement

• There must be a business

• The business must be carried on for profits

• The business must be carried on by all the partners

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 a partnership deed, the allowable rate of interest on partner’s loan account will be :

• 6% Simple Interest

• 6% p.a. Simple Interest

• 12% Simple Interest

• 12% Compounded Annually

In the absence of partnership deed, the following rule will apply :

• No interest on capital

• Profit sharing in capital ratio

• Profit based salary to working partner

• 9% p.a. interest on drawings

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