Test Comms

1. Partners’ Current Account has ______.

• a) Credit Balance.
• b) Debit Balance or Credit Balance.
• c) Neither Debit Balance nor Credit Balance.
• d) Debit Balance.

2. In the absence of a partnership deed, partners are entitled to receive ______.

• a) Interest on loan.
• b) Salary.
• c) Commission.
• d) Interest on capital.

3. Current Accounts are opened if capital is _____.

• a) Fluctuating.
• b) Not contributed.
• c) Fixed or fluctuating.
• d) Fixed.

4. In the absence of any provision in interest on capital will be calculated for _____.

• a) One year.
• b) One month.
• c) No interest.
• d) Six Months.

5. Ostensible partners are those who _____.

• a) Contribute very little capital but get equal profit.
• b) Do not contribute any capital and without having any interest in the business, lend their name to the business.
• c) Contribute maximum capital of the business.
• d) Do not contribute any capital but get some share of profit for lending their name to the business.

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

• a) There must be a business.
• b) The business must be carried on for profits.
• c) The business must be carried on by all the partners.
• d) There must be an agreement.

7. When is the Partnership Act enforced?

• a) Where there is a partnership deed, but there are differences of opinion between the partners.
• b) When capital contribution by the partners varies.
• c) When the partner’s salary and interest on capital are not incorporated in the partnership deed.
• d) When there is no partnership deed.

8. When a Goodwill Account is raised, the credit is given to the old partner’s capital account in _____.

• a) Old profit sharing ratio.
• b) Gaining ratio.
• c) New profit sharing ratio.
• d) None of the options are correct.

9. What do you mean by super profit?

• a) Total profit by the number of years.
• b) Average profit plus normal profit.
• c) Average profit minus normal profit.
• d) None of the options are correct.

10The liability of partners in a partnership firm is:

• • a) Limited
• • b) Unlimited
• • c) Limited to the extent of their capital
• • d) None of these