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Pop Quiz - Partnership Accounts

Total questions: 18

Worksheet time: 31mins

Name
Class
Date
1.

The minimum number of persons in a partnership firm is

a)

1

b)

2

c)

3

d)

4

2.

In a partnership, partners share their profits and losses in ______ ratio.

a)

their capital

b)

equal

c)

agreed

3.

Interest on capital is calculated on the ___________.

a)

Opening Capital

b)

Closing Capital

c)

Average Capital

4.

In partnership, partners liabilities are

a)

Limited

b)

Unlimited

c)

Limited to the capital invested

d)

Limited to the amount mentioned

5.

Which of the following items cannot be recorded in the Profit And Loss Appropriation account?

a)

Interest On Capital

b)

Interest On Drawings

c)

Rent paid to partners

d)

Partner's salary

6.

Which is/are the items included in current account?

a)

drawings

b)

interest on loan

c)

interest on capital

d)

capital

7.

"Balance of Loss Shared" should be debited to _______________.

a)

Profit And Loss Appropriation Account

b)

Profit And Loss Account

c)

Current Account

d)

Bank Account

8.

Loans from partners are not part of the capital of the business and are treated the same way as any other loan.

a)

True

b)

False

9.

The double entry of "Interest On Loan From Partner" is _________________________________.

eg. dr__ , cr __ (write only the account names with ',')

(a)  

10.

7. A and B are in partnership and profits and losses were to be shared in the ratio of 3:1. During 2019, the Profit And Loss Appropriation Account shows the balance of net profit shared (after appropriation) among partners is RM11,500. Calculate the share of the net profit for partner A.

a)

RM8,625

b)

RM5,750

c)

RM3,830

d)

RM2,875

11.

Goodwill is not to be considered when _________.

a)

a new partner is admitted

b)

a partner retires or dies

c)

a partner puts in additional capital

d)

the profit and loss sharing ratio is changed

12.

The entry to record 'Goodwill being created / raised in the books' is:

a)

Dr Goodwill

Cr Old Partner's Capital Accounts

b)

Dr Goodwill

Cr Existing Partner's Capital Accounts

c)

Dr Old Partner's Capital Accounts

Cr Goodwill

d)

Dr Existing Partner's Capital Accounts

Cr Goodwill

13.

A and B are in partnership sharing profits and losses in the ratio of 3:2. On 1 January 2004, they agreed to admit C as new partner. Besides capital invested by C, he brought in cash premium of RM 4,000 for his share of the goodwill. The cash was to be retained in the partnership but no goodwill account was raised. Show the entries of the above transaction.

a)

Dr Bank RM 4,000

Cr Capital - C RM 4,000

b)

Dr Bank RM 4,000

Cr Goodwill RM 4,000

c)

Dr Bank RM 4,000

Cr Capital A RM 2,400

Cr Capital B RM 1,600

d)

Dr Goodwill RM 4,000

Cr Capital A RM 2,400

Cr Capital B RM 1,600

14.

All assets including cash are transferred to the Realisation Account.

a)

True

b)

False

15.

At the time of dissolution, all assets are transferred to Realisation Account at their __________.

a)

realised value

b)

market value

c)

book value

d)

none of these

16.

When an asset is sold on dissolution, it is credited to ______________.

a)

realisation account

b)

revaluation account

c)

asset account

d)

none of these

17.

Asset taken over by a Partner at the time of dissolution of the firm is _____________ to his Capital Account.

a)

Debited

b)

Credited

18.

When a partnership is dissolved, what is the double entry for the profit on realisation?

a)

Debit: Realisation

Credit: Profit And Loss

b)

Debit: Profit And Loss

Credit: Realisation

c)

Debit: Realisation 

Credit: Partners’ Capital

d)

Debit: Partners’ Capital

Credit: Realisation