WorksheetsAccounting for Partnership Firms - Fundamentals
Total questions: 20
Worksheet time: 40mins
By virtue of Section 464 of the Companies Act, 2013 the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than ___________.
50
100
20
10
Which of the following elements of the nature of partnership is so important that there would be no partnership, if this element is absent?
Agreement
Sharing of Profit
Lawful Business
Mutual Agency
"The liability of a partner for acts of the firm is unlimited." Which of the following statement best describes the unlimited liability of a partner?
Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner.
A partner's private assets can also be used for paying off the firm's debts.
A partner is declared insolvent on his failure to pay the firm's debts.
All of the above.
Ram and Mohan are childhood friends. Ram is a consultant whereas Mohan is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the equally. Are they doing the business in partnership?
Yes
No
In the absence of partnership deed, interest on loan of a partner is allowed :
@ 8% per annum
@ 6% per annum
no interest is allowed
@ 12% per annum
Which of the following transactions is always recorded in the partner's capital account irrespective of whether the partners capitals are fixed or fluctuating?
Interest on partner's loan
Additional capital introduced by a partner
Permanent withdrawal of capital by a partner
both (b) and (c)
If the drawings are made at regular intervals, as on the first day of each month, interest on drawings is calculated for an average period of _____.
6.5 months
6 months
5.5 months
7.5 months
Yash, a partner withdraws a fixed amount in the beginning of every month for the first six months of the year 2019-20. What will be the average period for calculation of interest on drawings?
6.5 months
5.5 months
3.5 months
2.5 months
Ram and Shyam are partners sharing profits and losses equally. Ram withdrew Rs. 1,000 p.m regularly on the first day of every month during the year 2019-20 for personal expenses. If interest on drawings is charged @ 5%p.a What will be interest on the drawings of Ram?
Rs. 50
Rs. 27
Rs. 600
Rs. 325
Partners current accounts are opened when their capital accounts are:
Fixed and Fluctuating both
Fluctuating
None of these
Fixed
The interest on capital accounts of partners under fluctuating capital account method is credited to :
Interest Account
Profit and Loss Account
Partners' Capital Account
Partners' Current Account
Current Account of a partner
Will always have a credit balance.
Will always have a debit balance.
May have a debit balance or a credit balance.
Can never have a debit balance.
Does partnership firm has a separate legal entity?
Yes
No
To which account salary and commission to partners and interest on capital be debited?
Current Account
Capital Account
Profit and Loss Account
Profit and Loss Appropriation Account
In the absence of an agreement to the contrary, partners share profits and losses in the
ratio of their capitals in the beginning of the year.
ratio of their capitals at the end of the year.
ratio of average capital
equal ratio
Interest payable on the capitals of the partners is charged to
Profit and Loss Account
Profit and Loss Adjustment Account
Realisation Account
Profit and Loss Appropriation Account
Amit, a partner in a partnership firm withdrew Rs. 7,000 in the beginning of each quarter. For how many months would interest on drawings be charged?
7.5 months
6.5 months
5.5 months
3.5 months
A partnership firm has 50 members. All the partners have agreed to admit Riya and Priya as new partners. Can Riya and Priya be admitted?
Yes
No
Each partner carrying on the business is the principal as well as agent for all the other partners.
True
False
Partially True
When the partners capitals are fixed, the drawings made by a partner will be recorded in _____.
Partner'sCapital account
Partner's current account
Profit and Loss Account
None of these.
