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partnership fundamentals

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

Rs. 700 is divided among A, B and C so that A receives half as much as B and B receives half as much as

C. Then C’s share is :

a)

Rs. 200

b)

Rs. 300

c)

Rs. 400

d)

Rs. 500

2.

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?

a)

Yes

b)

No

3.

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?

a)

6.5 months

b)

5.5 months

c)

3.5 months

d)

2.5 months

4.

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?

a)

Rs. 50

b)

Rs. 27

c)

Rs. 600

d)

Rs. 325

5.

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?

a)

7.5 months

b)

6.5 months

c)

5.5 months

d)

3.5 months

6.

If Goodwill is Rs. 1,20,000, Average Profit is Rs. 60,000 Normal. Rate of Return is10% on Capital Employed Rs. 4,80,000. Calculate capitalized value of the firm:-

a)

a. Rs. 6,00,000

b)

b. Rs. 5,00,000

c)

c. Rs. 4,00,000

d)

d. Rs. 7,00,000

7.

A,B and C were partner in a firm sharing Profit in the ratio of 3:2:1 during the year the firm earned profit of Rs. 84,000.

Calculate the amount of Profit or Loss transferred to the capital A/c of B.


a)

a. Loss Rs. 87,000

b)

b. Profit Rs. 87,000

c)

c. Profit Rs.28,000

d)

d. Profit Rs.14,000

8.

The relation of the partner with the firm is that of

a)

a. An owner

b)

b. An agent and A Principal

c)

c. An agent

d)

d. Manager

9.

A and B are partners sharing profits and losses in the ratio of 4 : 1. C was a manager who received the salary of ₹ 2,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is ₹ 3,39,000 before charging salary. Find total remuneration of C:

a)

(a) ₹ 39,000

b)

(b) ₹ 44,000

c)

(c) ₹ 43,500

d)

(d) ₹ 38,000

10.

A draws ₹ 1,000 per month on the last day of every month. If the rate of interest is 5% p.a. then the total interest is 5% p.a. then the total interest drawing will be:

a)

(a) ₹ 325

b)

(b) ₹ 275

c)

(c) ₹ 300

d)

(d) ₹ 350

11.

A and B are partners having capital of ₹ 50,000 and 60,000 respectively. Interest on capital is given @ 5% p.a. Profits for the year before appropriation is ₹ 4,600 provide interest on capital out of profits. Increase allocated to partners is:

a)

(a) ₹ 3,000 and ₹ 2,500

b)

(b) ₹ 2,090 and ₹ 2,509

c)

(c) ₹2,500 and ₹ 2,091

d)

(d) ₹ 600 and ₹ 300

12.

A, B, C are partners in a partnership firm. During the F.Y. 2008 – 09 firm earned profit amounting to 18,000. They distributed the profit in the ratio of 2 : 2 : 1. But there is no partnership deed of the firm. Necessary adjustment entry will be:

a)

(a) P&L Adjustment A/c Dr. 18,000

To A’s Capital A/c 7,200

To B’s Capital A/c 7,200

To C’s Capital A/c 3,600

b)

(b) P&L Adjustment A/c Dr. 18,000

To A’s Capital A/c 6,000

To B’s Capital A/c 6,000

To C’s Capital A/c 6,000

c)

(c) A’s Capital A/c Dr. 1,200

B’s Capital A/c Dr. 1,200

To C’s Capital A/c 2,400

d)

(d) None of the above.

13.

A partnership firm consisted of three partners A,B,C. It A pays 10,000 against the liability of the firm from his private funds, then what will be the entry in the books of the firm?

a)

(a) No entry

b)

(b) Liability A/c debit, partner’s Capital credit

c)

(c) Partner’s Capital A/c debit, Liability credit

d)

(d) None of these

14.

Net profit of the firm is ₹ 5,000. Interest on capital and interest on drawings still not charged are ₹ 5,000 and ₹ 2,500 respectively. Net profit available for the distribution among the partners after charging the above will be:

a)

(a) ₹ 7,500

b)

(b) ₹ 5,000

c)

(c) ₹ 2,500

d)

(d) Nil

15.

Ram, Rahim, Singh and John are in partnership sharing profits and losses equally. They mutually agree to change their profit sharing ratio is 2:2:1:1. In this case John’s share would decrease by ________ share of profit and loss.

a)

(a) 1/24

b)

(b) 1/12

c)

(c) 1/10

d)

(d) 1/6

16.

if opening capital of a partner in the firm is ₹ 1,00,000 and closing capital is ₹ 2,00,000. Interest on capital allowed during the year ₹ 10,000 and interest on drawings charged during the year ₹ 2,000. If total drawings were ₹ 20,000, the amount of profit transferred to his capital account by the firm would be:

a)

(a) ₹ 1,00,000

b)

(b) ₹ 1,20,000

c)

(c) ₹ 1,22,000

d)

(d) ₹ 1,12,000

17.

A, B and C are partners sharing profit and losses equally and A paid liability of ₹ 10,000 out of his private funds. How will you record this in the books of the firm?

a)

(a) No entry will be made in the books to the firm.

b)

(b) A’s capital A/c Dr. ₹ 10,000

To Cash A/c ₹ 10,000

c)

(c) Liability A/c Dr. ₹ 10,000

To A’s Capital A/c ₹ 10,000

d)

(d) Liability A/c Dr. ₹ 10,000

To Cash A/c ₹ 10,000

18.

Interest on partner’s drawing under a fluctuating capital account is debited to

a)

Partner’s Capital Account

b)

Profit and Loss Account

c)

Drawing Account

d)

None of the above

19.

In a business, A and B invested amounts in the ratio of 2 : 1, whereas the profit sharing ratio between A and B was 3 : 2. If

the firm earned a profit of Rs. 1,20,000, how much amount did B receive?

a)

48000

b)

24000

c)

12000

d)

96000

20.

A new partner can be admitted -

a)

on the will of any partner

b)

only with the consent of all partners

c)

by paying money to any partner

d)

can not be admitted

21.

Manager's commission is a (a)   against profits.

22.

L, M, and N were partners in firm sharing profit in the ratio of 3 : 4 : 5. Their fixed capitals were L Rs 4,00,000 , M Rs 5,00,000 and N Rs 6,00,000 respectively.


The partnership deed provided for the following:

i. Interest on capital @ 6% p.a.

ii. Salary of Rs 30,000 p.a. to N.

iii. Interest on partner’s drawings will be charged @ 12% p.a.


During the year ended 31.3.2009, the firm earned a profit of Rs 2,70,000. L withdrew Rs 10,000 on 1.4.2008. M withdrew Rs 12,000 on 30.09.2008. and N withdrew Rs 15,000 on 31.12.2008.

Prepare profit and loss appropriation account for the year ended 31.3.2009 and tell What is final profit distributed to each partner ?

a)

L's Current A/c 38,092.50

M's Current A/c 50,790.00

N's Current A/c 63,487.50

b)

L's Current A/c 32,370

M's Current A/c 52000

N's Current A/c 70000

c)

L's Current A/c 27000

M's Current A/c 60000

N's Current A/c 65000

d)

L's Current A/c 38,870

M's Current A/c 50,000

N's Current A/c 63,500

23.

Partnership is the relation which subsists between persons who have agreed to combine their property,

labour or skill in some business and to share the profits there from between them.

a)

True

b)

False

c)

Partly true

d)

None of the above

24.

As per Rule 10 of the Companies Act, what is the number of maximum partners in a firm?

(a)  

25.

Tick all the types of partners in India

a)

Active

b)

Dormant

c)

Still

d)

Sleeping

26.

(a)   is an extension of Profit and Loss Account.