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Partnership Accounts

Total questions: 15

Worksheet time: 12mins

Name
Class
Date
1.

In the absence of partnership deed interest on loan will be given at rate of ?

a)

5%

b)

6%

c)

7%

d)

8%

2.

Accounting rules for partnership are governed by the partnership act of

a)

1933

b)

1956

c)

1932

d)

2013

3.

In the absence of a partnership deed the partners are entitles to interest on capital at the rate of

a)

6%

b)

9%

c)

12%

d)

nil

4.

A and B are Partners .A drew Rs 20000 .If the rate of Interest on Drawing is 5% per annum then (a)   will amount of interest on drawing.

5.

What do you mean by Partnership?

4 lines
6.

According to the Garner Vs. Murray rule Capital deficiency of insolvent partner will have to borne by remaining solvent partner--------.

(a)  

7.

Tick the situations in which a partnership firm comes to an end

a)

Retirement

b)

Death

c)

Insolvency

d)

Fulfillment of the object

8.

Tick the Provisions of Partnership Act, 1932 in the absence of Partnership Deed

a)

profits and losses of the firm are to be shared equally by partners

b)

No interest on capital is payable

c)

Interest is to be charged on drawings @ 6% p.a

d)

No partner is entitled to get salary or other remuneration

for taking part in the conduct of the business of the firm

e)

No interest on loan payable to partners

9.

The written agreement of partnership is most commonly referred to as :

a)

Agreement

b)

Partnership Deed

c)

Partnership contract

d)

Partnership Act

10.

Ram , a partner in a partnership firm withdrew Rs. 7,000 in the beginning of each month.Interest on drawing would be charged for------.

(a)  

11.

When the partners capitals are fixed, the drawings made by a partner will be recorded in _____.

a)

Partner'sCapital account

b)

Partner's current account

c)

Profit and Loss Account

d)

None of these.

12.

Interest payable on the capitals of the partners is charged to

a)

Profit and Loss Account

b)

Profit and Loss Adjustment Account

c)

Realisation Account

d)

Profit and Loss Appropriation Account

13.

Which of the following is an appropriation of profit?

a)

Interest on loan

b)

Salary to partner

c)

Employees’ salary

d)

Rent

14.

A and B agree to admit C into partnership, the premium for goodwill is paid directly to A and B. How do you treat the premium for goodwill ?

a)

No entry is required.

b)

It is to be entered in Cash Book.

c)

It is to be retained for business use.

d)

It is to be recorded in the partnership’s books.

15.

It is mandatory to have a written partnership aggreement.

a)

True

b)

False