Accounting for Partnership Firm - Fundamentals

As per the Indian Contract Act. 1872 every person except the __________ are competent to contract.

• Minor

• Person with unsound mind

• Person with disqualified by any law

• All of the above

Section (a)   of the Indian Partnership Act, 1992 defines the partnership.

Partnership is the relationship between persons who have agreed to share ______ of the business carried on by ________ or ___________ them ___________

(a)  

Which one from the below is not a right of a partner?

• Right to inspect the books of the firm

• Right to take part in the management of the firm
  

• Right to share the profit/losses with other partners in agreed ratio

• Right to receive salary at the end of every year

Rakesh and Suresh are equal partners Rakesh is a sleeping partner and who believes that he is not liable for the act of his other partner.

• Rakesh is right because he is not an active partner
  

• Rakesh will be liable to the extent of his profit sharing ratio

• Rakesh is wrong he is liable for the act of his other partner

• None of the above

Registration of partnership firm is (a)  

If there is absence of partnership deed or partnership deed remains silent regarding profit/losses of partners then profit sharing ratio among partners will be (a)  

A and B are partners A advances a loan of Rs 25000 to the Firm don’t have any partnership deed. At the end of the year, A will be allowed

• More share in profits
  

• Interest on loan @6% pa

• Interest on loan @12% pa

• None of the above

Appropriation of profit means

• Deduction of profit for creating reserve

• Capital profit of the partners

• Distribution of available net profit left out after providing all the appropriations.

• None of the above

What is a charge against/ on profits?

• It means set a side some portion of profit for reserve

• It means deduction of expenses from the profits for computing net profit/loss for the appropriation

• It means capital profit earned by the

• None of the above