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Fundamentals of Partnership firms

Total questions: 19

Worksheet time: 14mins

Name
Class
Date
1.

Which of the following statement is true?

a)

(A) a minor cannot be admitted as a partner

b)

(B) a minor can be admitted as a partner, only into the benefits of the partnership

c)

C) a minor can be admitted as a partner but his rights and liabilities are same of adult partner

d)

(D) none of the above

2.

Oustensible partners are those who

a)

(A) do not contribute any capital but get some share of profit for lending their name to the business

b)

(B) contribute very less capital but get equal profit

c)

(C) do not contribute any capital and without having any interest in the business, lend their name to the business.

d)

(D) contribute maximum capital of the business

3.

X. Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2021 are ₹80,000, ₹60,000 and ₹40,000 respectively. Their personal assets are worth as follows: X 20,000, Y-\&15.000~and z-*10,000 The extent of their liability in the firm would be

a)

X - 80000 , Y - 60000, Z, - 40000

b)

X - 20000 , Y - 15000, Z, - 10000

c)

X - 100000 , Y - 75000, Z, - 50000

d)

Equal

4.

In the absence of express agreement, interest @ 6% p.a. is provided:

a)

(A) On opening balance of partner's capital accounts

b)

(B) On closing balance of partner's capital accounts

c)

(C) On loan given by partners to the firm

d)

(D) On opening balance of partner's current accounts

5.

In the absence of express agreement, interest @ 6% p.a. is provided:

a)

(A) On opening balance of partner's capital accounts

b)

(B) On closing balance of partner's capital accounts

c)

(C) On loan given by partners to the firm

d)

(D) On opening balance of partner's current accounts

6.

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

7.

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

8.

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

9.

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

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.

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

13.

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.

14.

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

15.

Partners’ Current Accounts are opened when their capital accounts are

a)

Fixed

b)

Fixed and Fluctuating both

c)

Fluctuating

d)

None of these

16.

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

17.

By virtue of Section 464 of the Companies Act, 2013 the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than ___________.

a)

50

b)

100

c)

20

d)

10

18.

Which of the following elements of the nature of partnership is so important that there would be no partnership, if this element is absent?

a)

Agreement

b)

Sharing of Profit

c)

Lawful Business

d)

Mutual Agency

19.

"The liability of a partner for acts of the firm is unlimited." Which of the following statement best describes the unlimited liability of a partner?

a)

Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner.

b)

A partner's private assets can also be used for paying off the firm's debts.

c)

A partner is declared insolvent on his failure to pay the firm's debts.

d)

All of the above.