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fundamentals of partnership

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

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

a)

There must be an agreement

b)

There must be a business

c)

The business must be carried on for profits

d)

The business must be carried on by all the partners

2.

In the absence of Partnership Deed, the interest is allowed on partner’s capital:

a)

@ 5% p.a.

b)

@ 6% p.a

c)

@ 12% p.a.

d)

No interest is allowed

3.

A and B are partners in partnership firm without any agreement. A has given a loan of ₹50,000 to the firm. At the end of year loss was incurred in the business. Following interest may be paid to A by the firm :

a)

@5% Per Annum

b)

@6% Per Annum

c)

@ 6% Per Month

d)

As there is a loss in the business, interest can’t be paid

4.

In the absence of partnership deed, the following rule will apply :

a)

No interest on capital

b)

Profit sharing in capital ratio

c)

Profit based salary to working partner

d)

9% p.a. interest on drawings

5.

Interest on capital will be paid to the partners if provided for in the partnership deed but only out of:

a)

Profits

b)

Reserves

c)

Accumulated Profits

d)

Goodwill

6.

Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:


Mohan is an active partner. He wants a salary of Rs. 10,000 per year;

a)

valid

b)

invalid

7.

Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:


Shyam had advanced a loan to the firm. He claims interest @ 10% per

annum;

a)

Valid

b)

Invalid

8.

Rani and Suman are in partnership with fixed capitals of Rs, 80,000 and Rs. 60,000, respectively. During the year 2015-16, Rani withdrew Rs. 10,000 from her capital and Suman Rs. 15,000. Profits before charging interest on capital was Rs. 50,000. Rani and Suman shared profits in the ratio of 3:2. Calculate the amounts of interest on their capitals @ 12% p.a. for the year ended March 31, 2016.

a)

Rani, Rs. 6,000; Suman, Rs. 9,300

b)

Rani, Rs. 9,000; Suman, Rs. 6,300

c)

Rani, Rs. 8,000; Suman, Rs. 6,500

d)

Rani, Rs. 19,000; Suman, Rs. 16,300

9.

Himani and Kajal are partners in a firm, sharing profits and losses in the ratio of 5:3. The balance in their fixed capital accounts, on April 1, 2016 were: Himani, Rs. 6,00,000 and Kajal, Rs. 8,00,000. The profit of the firm for the year ended March 31, 2017 was Rs, 1,26,000. Calculate their shares of profits, when there is no agreement in respect of interest on capital

a)

Profit : Priya, Rs. 76,500; Kajal, Rs. 67,250

b)

Profit : Priya, Rs. 78,750; Kajal, Rs. 47,250

c)

Profit : Priya, Rs. 75,780; Kajal, Rs. 74,250

10.

Ram and Syam are partners sharing profits/losses equally. Ram withdrew Rs. 1,000 p.m. regularly on the first day of every month during the year 2015-16 for personal expenses. If interest on drawings is charged @ 5% p.a. Calculate interest on the drawings of Ram.

a)

225

b)

300

c)

325

d)

600

11.

Verma and Kaul are partners in a firm. The partnership agreement provides that interest on drawings should be charged @ 6% p.a. Verma withdraws Rs. 2,000 per month starting from April 01, 2019 to March 31, 2020. Kaul

withdrew Rs, 3,000 per quarter, starting from April 01, 2019. Calculate interest on partner’s drawings.

a)

Verma 780 and Kaul 450

b)

Verma 450 and Kaul 780

c)

Verma 870 and Kaul 540

d)

Verma 540 and Kaul 870

12.

On 1st June 2018 a partner introduced in the firm additional capital ₹50,000. In the absence of partnership deed, on 31st March 2019 he will receive interest :

a)

₹3,000

b)

Zero

c)

2,500

d)

1,800

13.

A partner introduced additional capital of ₹30,000 and advanced a loan of ₹40,000 to the firm at the beginning of the year. Partner will receive year’s interest:

a)

4,200

b)

2,400

c)

Nil

d)

1,800

14.

Is rent paid to a partner appropriation of profits?

a)

It is appropriation of profit

b)

It is not appropriation of profit

c)

If partner’s contribution as capital is maximum

d)

If partner is a working partner.

15.

According to Profit and Loss Account, the net profit for the year is ₹4,20,000. Salary of a partner is ₹5,000 per month and the commission of another partner is ₹10,000. The interest on drawings of partners is ₹4,000. The divisible profit as per Profit and Loss Appropriation Account will be :

a)

3,54,000

b)

3,46,000

c)

4,09,000

d)

4,01,000

16.

Partners’ Current Accounts are opened when their capital accounts are

a)

Fixed

b)

Fixed and Fluctuating both

c)

Fluctuating

d)

None of these

17.

The current account of a partner

a)

Will always have a credit balance

b)

Will always have a debit balance

c)

May have a debit or credit balance

d)

Can never have a debit balance

18.

Features of partnership are

a)

Agreement

b)

Legal Business

c)

Agency relationship

d)

Limited liability of all partners

e)

Maximum number of members is 500

19.

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

20.

In which year was the Partnership Act passed?

a)

1932

b)

1956

c)

1947

d)

1956