Partnership Quiz-1

  If a firm prefers Partners’ Capital Accounts to be shown at the amount introduced by the partners as capital in firm then entries for salary, interest, drawings, interest on capital and drawings and profits are made in

•    Partners’ Current Account

• Profit and Loss Account

•       Trading Account

• Revaluation A/c

  In the absence of any agreement, partners are liable to receive interest on their Loans @

• 10% p.a

• 12% p.a

• 7.5% p.a

• 6% p.a

The relationship between persons who have agreed to share the profit of a business carried on by all or any of them acting for all is known as ………

• Partnership

• Joint Venture

• Association

• Company

Firm has earned exceptionally high profits from a contract which will not be renewed. In such a case the profit from this contract will not be included in ………

• Calculation of the goodwill.

• Profit sharing of the partners.

• Both

In the absence of an agreement, partners are entitled to

• Interest on Loan and Advances.

• Salary

• Commission

• Interest on Capital

Partners are supposed to pay interest on drawings only when ……… by the ………

• Provided, Agreement.

• Agreed , Partners

• Both

  When a partner is given a guarantee by the other partner, loss on such guarantee will be borne by

• Partner who gave the guarantee

•    Partnership firm.

• All the other partners

A, B and C had capitals of Rs.50,000; Rs.40,000 and Rs.30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs.80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs. 20,000, in addition to his capital contribution

• Rs.26,267 for Partner B and C & Rs.27,466 for partner A.

• Rs.26,667 each partner

• Rs.33,333 for A, Rs.26,667 for B and Rs.20,000 for C.

X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs.6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs.1,00,000 as compared to that of Y and Z which was Rs.75,000 and Rs.50,000 respectively

• Profits of Rs.6,000 will be distributed equally with no interest on either Capital.

• Profits of Rs.6,000 will be distributed equally with no interest on either Capital.

• All the partners will get interest on capital and the loss of Rs.39,000 will be shared equally.

X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was ` 6,000 and Y determined interest @ 24% p.a. on his loan of ` 80,000. There was no agreement on this point.

Calculate the amount payable to X, Y and Z respectively

• Rs.400 for X, Rs.5,200 for Y and Rs.400 for Z.

• Loss of Rs. 4,400 for X and Z & Y will take home Rs. 14,800.

• RS.2,000 to each partner