Fundamentals of partnership Quiz

If a partner withdraws an equal amount in the beginning of each month for a period of 10 months, what will be the average period for calculation of Interest on Drawings?

• 6.5 months

• 7.5 months

• 6 months

• 5.5 months.

Manager is entitled to a commission of 10% of the net profits after charging such commission. The net profit for the year is ₹1,32,000. What will be the amount of manager's commission?

• ₹13,200

• ₹12,000

• ₹10,000

• None of the above.

Mohit and Rohit were partners in a firm with capitals of ₹80,000 and ₹40,000 respectively. The firm earned a profit of ₹30,000 during the year. Mohit's share in the profit will be:

• ₹ 20,000

• ₹ 15,000

• ₹ 18,000

• ₹ 10,000

X and Y are partners sharing profits and losses in the ratio of 3:2 with capitals ₹5,00,000 each. According to partnership deed, interest on capital is allowed @ 10% p.a. The profit for the year is ₹ 50,000. What amount will be credited to X and Y in such condition?

• ₹50,000 to A and B each

• ₹25,000 to A and B each

• ₹30,000 to A and ₹20,000 to B

• None of the above.

R and S are partners sharing profits in the ratio of 2:1. S has advanced a loan of ₹1,00,000 to the firm on 1st October, 2020. The net profit earned by the firm for the year ending 31st March, 2021 is ₹ 90,000. What amount will be credited to S's capital account?

• ₹60,000

• ₹30,000

• ₹29,000

• ₹32,000

Answer explanation

Net Profit "bole to" All the expenses (Charge) already deducted. that means IOL needs not to be deducted

Akhil and Ravi are partners sharing profits and losses in the ratio of 7:3 with capitals of ₹8,00,000 and ₹6,00,000 respectively. According to partnership deed interest on capital is to be provided @ 8% p.a. and is to be treated as a charge. Profit for the year is ₹80,000.

Choose the correct effect of the above case on Partner's Capital.

• Akhil will be credited by ₹ 64,000 and Ravi will be credited by ₹ 48,000.

• Akhil will be credited by ₹ 56,000 and Ravi will be credited by ₹ 24,000.

• Akhil will be credited by ₹ 22,400 and Ravi will be credited by ₹ 9,600.

• Akhil will be credited by ₹ 41,600 and Ravi will be credited by ₹ 38,400.

Answer explanation

Correct effect of above has to be net effect of Interest on capital and divisible loss

A and B are partners. B draws a fixed amount at the end of every month. Interest on drawings is charged @15% p.a. At the end of the year interest on B’s drawings amounted to ₹8,250. Drawings of B were:

• ₹12,000 p.m.

• ₹10,000 p.m.

• ₹9,000 p.m.

• ₹8,000 p.m.

Match the following

• I-A

  II-B

  III-C

• I-B

  II-A

  III-C

• I-C

  II-A

  III-B

• I-A

  II-C

  III-B

Match the following

• I-C

  II-A

  III-B

• I-C

  II-B

  III-A

• I-B

  II-A

  III-C

• I-A

  II-C

  III-B

What is the amount of Interest on capitals of X and Y:

• ₹12,000 each

• ₹12,000 X and ₹13,000 Y

• ₹13,000 X and ₹12,000 Y

• None of these