Partnership Revision

Which of the following is debited on partner's current account?

• Interest on Loan

• Interest on Capital

• Interest on Drawings

• Partner's Salary

If there is no agreement between the partners, what Act is enforced?

What is the maximum number of partners in a Partnership?

• 2

• 10

• 20

• Unlimited

Which of the following should not be included in partnership appropriation account?

• Interest on Drawings

• Interest on Loan

• Interest on Capital

• Partner's Salary

Where there is no partnership agreement, what will be the profit sharing ratio between partners?

• Equal

• Unequal

• According to Capital Invested

• According to Drawings

What does a debit balance on a partner's current account indicates?

• They are bankrupt

• They have withdrawn more than they earned in the partnership

• They made a profit

• Positive balance in Statement of Financial Position

Aina and Aida are in a partnership, where Aina contributed $30,000 and Aida contributed $50,000 into the business. If the profit sharing ratio is according to the capital contributed, what is the profit sharing ratio between Aina and Aida?

Which of the following is NOT an advantage of being in a partnership?

• Shared Profits

• Joint Responsibility

• Unlimited Liability

• Shared Knowledge