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Partnership Operation

Total questions: 20

Worksheet time: 29mins

Name
Class
Date
1.

S1 -The credit to Income and Expense summary after closing entry is prepared represents profit

S2 - The debit to Income & Expense Summary after closing entry represents loss

a)

Both Statements are correct

b)

Both statements are incorrect

c)

Only S1 is correct

d)

Only S2 is correct

2.

S1 -The partner share in loss is debited to partner's drawing account and credited to income & expense summary

S2 - Bonus is regarded as part of the profit distribution and not as a business expense

a)

Both Statements are correct

b)

Both statements are incorrect

c)

Only S1 is correct

d)

Only S2 is correct

3.

S1 -If no sharing agreement has been provided in the Articles of Co Partnership, profits are equally divided by partners

S2 -The fraction 3/4 and 14 in the division of profits is equal to the ratio of 1:3

a)

Both Statements are correct

b)

Both statements are incorrect

c)

Only S1 is correct

d)

Only S2 is correct

4.

S1 -The amount of loan extended by partners to the partnership can be recorded either as partner's loan payable or trade payable, anyway both signifies partnership obligations

S2 -A partner's share in profit is credited to Partners' drawing account

a)

Both Statements are correct

b)

Both statements are incorrect

c)

Only S1 is correct

d)

Only S2 is correct

5.

S1 -The profit in a partnership business is closed to partners' drawing account and not to capital accounts

S2 -The Statement of changes in partner's equity shows the partner's equity, beginning plus profit and less partner's drawing

a)

Both Statements are correct

b)

Both statements are incorrect

c)

Only S1 is correct

d)

Only S2 is correct

6.

S1 -Partnership follows the same accounting cycle as in sole proprietorship

S2 -Partnership differs from a sole proprietorship in terms of ownership's structure

a)

Both Statements are correct

b)

Both statements are incorrect

c)

Only S1 is correct

d)

Only S2 is correct

7.

The most equitable basis of distributing partnership profit by way of capital contribution is

a)

beginning capital

b)

ending capital

c)

average capital

d)

equally

8.

If the partner incurs personal expense but are paid by the partnership, such expense is chargeable to:

a)

partnership's expense account

b)

partnership's drawing account

c)

partner's expenses account (advances to officers and employees)

d)

partner's receivable account

9.

Failure to stipulate on how profit and losses be divided among partners. It should be

a)

in proportion to what has been contributed

b)

settled in the court of law

c)

equally divided

d)

by other legal means agreeable among partners

10.

In preparing closing entries of the partnership, one is not. Which one?

a)

all nominal accounts are reduced to zero balance

b)

income & expense summary is closed to capital accounts

c)

income & expense summary is closed to drawing account

d)

drawing account is left open

11.

On March 1, 20A, Felipe Opiso formed a partnership with Ferdinand Rodriguez and made the following contributions: Cash - Php 350,000 & Non cash Php 100,000. At the end of the year, Opiso received a share of Php 32,000 of the profit of Php 80,000. What should be the share of Rodriguez on the partnership profit?

(a)  

12.

Divine and Dennis established a partnership business engaged in selling of "dried fish" in Pagadian City aside from their modest accounting practice. Their venture attained a considered success so that at the end of the year 20A, Divine receives Php 75,000 as her share in profit. If the profit and loss ratio is 3:2, how much was Dennis ' share?

(a)  

13.

Divine and Dennis established a partnership business engaged in selling of "dried fish" in Pagadian City aside from their modest accounting practice. Their venture attained a considered success so that at the end of the year 20A, Divine receives Php 75,000 as her share in profit. If the profit and loss ratio is 3:2, how much amount of profit that Divine and Dennis shared?

(a)  

14.

Steve and Raymund are partners sharing profits and losses at the ratio of 3:2, respectively after giving Raymund a bonus of 15% of the net profit of Php 450,000.

The journal entry to close the balance of income & expense account on December 31, 20A includes:

a)

Cr - Income & Expense Summary

b)

Dr - Steve Capital Php 229,500

c)

Dr - Raymund, drawings Php 220,500

d)

Cr-Steve, drawings Php 229,500

15.

Compute for the average capital balance:

January 1 Php 400,000; June 1 - additional investment - Php 100,000; Nov 1 - Withdrawal - Php 200,000.

(a)  

16.

Esperidion Zamora, Perpetua Peras and Ana Marie Aguhob were partners with average capital balances of Php 150,000, Php 180,000 and Php 120,000 respectively. How much was the fractional share of Zamora on the profit distribution of Php 110,000?

a)

33 1/3

b)

40%

c)

26 2/3

d)

no answer give

17.

Lovina, Cherie and Mae are partners of Cotabato Micro-Appliance Center with the following contributions: Lovina - cash Php 1,000,000; Cherie - cash Php 600,000; Mae contributes services for an 8% share in profit. The partners failed to stipulate in their agreement on how profit or loss is distributed. Profit is Php 80,000. How much would be the share of Mae on the Php 80,000 profit?

(a)  

18.

Lovina, Cherie and Mae are partners of Cotabato Micro-Appliance Center with the following contributions: Lovina - cash Php 1,000,000; Cherie - cash Php 600,000; Mae contributes services for an 8% share in profit. The partners failed to stipulate in their agreement on how profit or loss is distributed. Profit is Php 80,000. How much would be the share of Lovinaon the Php 80,000 profit?

(a)  

19.

Lovina, Cherie and Mae are partners of Cotabato Micro-Appliance Center with the following contributions: Lovina - cash Php 1,000,000; Cherie - cash Php 600,000; Mae contributes services for an 8% share in profit. The partners failed to stipulate in their agreement on how profit or loss is distributed. Profit is Php 80,000. How much would be the share of Cherie on the Php 80,000 profit?

(a)  

20.

Under which of the following circumstances that a capital account of a partner is effected by a credit?

a)

when there is additional investment

b)

when there is a share in a profit

c)

when there is an excess amount allowable for withdrawal

d)

when there is a permanent withdrawal