Free Printable partnership fundamentals

1.

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

2.

Mutual Agency is one of the essential Element of Partnership Agreement

a)

Yes

b)

No

3.

The Written Agreement of Partnership is called as

a)

Partnership Firm

b)

Partnership Deed

c)

Partnership Document

d)

Partnership File

4.

In the absence of Partnership Deed, partners will share the profits and losses in the equal ratio

a)

True

b)

False

5.

In absence of Partnership Deed, partners will get salary, commission etc.

a)

Yes

b)

No

6.

The main purpose of preparing P&L Appropriation A/C of a Partnership concern is to

a)

Calculate & Distribute the Divisible Profit & Loss

b)

Distribute the Dividends

c)

Distribute the Capital

d)

None of the above

7.

Under Fluctuating Capital Method, how many accounts are maintained for each partner?

a)

2

b)

1

c)

3

d)

4

8.

Under Fluctuating Capital Method, Which account is maintained for each partner?

a)

Current Account

b)

P&L Appropriation Account

c)

Capital Account

d)

None of the above

9.

Under Fixed Capital Method, how accounts are maintained for each partner?

a)

1

b)

3

c)

4

d)

2

10.

Which accounts are maintained under Fixed Capital Method?

a)

Capital Account

b)

Current Account

c)

Capital and Current Account

d)

Any One

11.

Under Fixed Capital method, under which account adjustments related to partners are maintained?

a)

Capital Account

b)

Current Account

c)

Both

d)

None

12.

If drawings are made at the beginning of each month, Interest on drawing is calculated at what rate?

a)

6%

b)

6.5%

c)

5%

d)

5.5%

13.

If drawings are made at the end of each month, Interest on drawing is calculated at what rate?

a)

6%

b)

5%

c)

5.5%

d)

6.5%

14.

If drawings are made in middle of each month, Interest on drawing is calculated at what rate?

a)

6%

b)

5%

c)

5.5%

d)

6.5%

15.

Drawings against capital reduces capital

a)

True

b)

False

16.

Current account fluctuates from year to year?

a)

False

b)

True

17.

If equal amount is withdrawn by partner in the beginning of each month during a month of 6 months interest on the total amount will be charged for......month

a)

3.5

b)

2.5

c)

3

d)

6

18.

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

19.

Which one of the following items is recorded in the Profit and Loss appropriation account

a)

Interest on Loan

b)

Partner Salary

c)

Rent paid to Partner’s

d)

Managers Commission

20.

In the absence of partnership deed, interest on loan of a partner is allowed :

a)

@8% per annum

b)

@6% per annum

c)

no interest is allowed

d)

@12% per annum

21.

Which of the following transactions is always recorded in the partner's capital account irrespective of whether the partners capitals are fixed or fluctuating?

Additional capital introduced by a partner

Permanent withdrawal of capital by a partner

both (b) and (c)

a)

Additional capital introduced by a partner

b)

Permanent withdrawal of capital by a partner

c)

both (a) and (b)

d)

Interest on partner's loan

22.

Partners current accounts are opened when their capital accounts are:

a)

Fixed and Fluctuating both

b)

Fixed

c)

None of these

d)

Fluctuating

23.

The interest on capital accounts of partners under fluctuating capital account method is credited to :

a)

Interest Account

b)

Profit and Loss Account

c)

Partners' Capital Account

d)

Partners' Current Account

24.

In the absence of an agreement to the contrary, partners share profits and losses in the

a)

ratio of their capitals in the beginning of the year.

b)

ratio of their capitals at the end of the year.

c)

ratio of average capital

d)

equal ratio

25.

Current Account of a partner

a)

Will always have a credit balance.

b)

Will always have a debit balance

c)

May have a debit balance or a credit balance.

d)

May have a debit balance or a credit balance.

26.

When the partners capitals are fixed, the drawings made by a partner will be recorded in _____.

a)

Partner's Capital account

b)

Partner's Current account

c)

Profit and Loss Account

d)

None of these.

27.

To which account salary and commission to partners and interest on capital be debited?

a)

Current Account

b)

Capital Account

c)

Profit and Loss Account

d)

Profit and Loss Appropriation Account

28.

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)

Loss Rs. 87,000

b)

Profit Rs.28,000

c)

profit Rs. 87,000

d)

Profit Rs.14,000

29.

Y is a partner in a Firm. He withdrew regularly 3,000 rupees at the end every month for six months ending 31st March 2016 if interest on drawing is charged @ 10% per annum, the interest charged will be

a)

375

b)

450

c)

525

d)

900

30.

A partner withdraws rupees 8000 each 1st April and 1st October .interest on his drawing is drawing @ 6% per annum on 31st March will be

a)

480

b)

720

c)

240

d)

960

31.

A is a partner in a firm .He withdrew rupees 10000 at the end of each quarter during the year ended 31st March 2017. His interest on drawings @ 9% will be

a)

1350

b)

2250

c)

900

d)

1800

32.

Rani and Shyam is partner in a firm. They are entitled to interest on their capital but the net profit was not sufficient for paying his interest, then the net profit will be distributed among partner in

a)

1 : 2

b)

Profit Sharing Ratio

c)

Capital Ratio

d)

Equally

33.

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

a)

Agreement

b)

Sharing of Profit

c)

Lawful Business

d)

Mutual Agency

34.

Ram & Shyam are partners with the capital of Rs.25,000 and Rs.15,000 respectively. Interest payable on capital is 10% p.a. Find the profit to be shared by the partners if profit earned by the firm before interest charges is Rs.2,400.

a)

Rs.2500 & RS.1500

b)

Rs.1500 & RS.900

c)

Rs.1200 & RS.1200

d)

None of the above

35.

The P & L Appropriation A/c shows how the profits of the business are being used and shared among its owners

a)

True

b)

False

36.

In the absence of an agreement to the contrary, the partners are

a)

Entitled for 6% interest on their capitals, only when there are profits

b)

Entitled for 9% interest on their capitals, only when there are profits

c)

Entitled for interest on capital on the bank rate, only when there are profits

d)

Not entitled for any interest in their capitals

37.

A Partner Gaurav, withdrew rs. 12,000 in the beginning of each quarter during the year. Interest on drawings @8% chargeable to him will be :

a)

1,440

b)

2,400

c)

2,080

d)

1,760

38.

On which side Partner's drawings out of capital will be recorded, when their capitals are fixed ?

a)

Debit Side of Capital A/C

b)

Credit Side of Current A/C

c)

Debit Side of Current A/C

d)

Credit Side of Current A/C

39.

Which of the following items is not recorded in Profit and Loss Appropriation A/C?

a)

Interest on Partner's Capital

b)

Amount of Partner's drawings

c)

Profit as per Profit and Loss Account

d)

Commission to a Partner

40.

Rent paid to a partner is debited to :

a)

Partner's Capital A/C

b)

Profit and Loss A/C

c)

Profit and Loss Appropriation A/C

d)

Partner's Current A/C

41.

Which accounts are opened when partners have fluctuating capitals?

a)

Capital A/C

b)

Current A/C

c)

Both

42.

The balances of Partner's Current Account can be :

a)

Debit Balance

b)

Credit Balance

c)

Always debit

d)

Either Debit or Credit

43.

What is the foundation of any successful partnership?

a)

Clear roles and responsibilities

b)

Mutual trust and respect

c)

Complementary strengths

d)

Effective communication

44.

Which of the following is a key aspect of partnership fundamentals?

a)

Individual success

b)

Hierarchy of power

c)

Shared risks and rewards

d)

Competitive mindset

45.

Which of the following is not appropriation of profit

a)

Interest on Partners Capital

b)

Interest on Partners Drawings

c)

Interest on Partners Loan

d)

Transfer to Reserves

46.

Profit and loss appropriation A/c is

a)

Personal A/c

b)

Real A/c

c)

Nominal A/c

d)

None of the Above

47.

Partner’s are called ___ of the business

a)

Agents

b)

Owner

c)

Either of the above

d)

None of the above

48.

With respect to credit side of P&L Appropriation account odd one out

a)

Salary to partners

b)

Interest on capital to partners

c)

Transfer to reserves

d)

Rent to partners

49.

Factor Multiplied to find interest on Drawings at the Middle of Every Month

a)

6.5 Months

b)

6 Months

c)

5.5 Months

d)

2.5 Months

50.

Factor Multiplied to find interest on Drawings at the End of Every Quarter

a)

4.5 Months

b)

2 Months

c)

2.5 Months

d)

None of the Above

51.

For which of the following interest on Drawings is twice the amount of interest calculated normally

a)

For End of Every Month

b)

For Middle of Every Quarter

c)

For Middle of Every Half Year

d)

None of the Above

52.

In which of the following case interest on drawings is half of the Interest calculated normally

a)

In case where there is no pattern and no date

b)

In case of drawings are made at the end of each half year

c)

Both

d)

None of the Above

53.

In profit and loss appropriation account net profit is always taken before deducting

a)

Interest on Capital

b)

Salary to Partners

c)

Transfer to Reserves

d)

All of the above

54.

The rate of interest on capital is applied on

a)

Capital Amount

b)

Drawings Amount

c)

Sales Amount

d)

None of the Above

55.

Partners are jointly and severely liable upto the amount of capital contribution in the partnership business is definition of which form of partnership ?

a)

Unlimited Liability

b)

Limited Liability

c)

Both

d)

None

56.

If equal amount is withdrawn by partner in the beginning of each month during a month of 6 months interest on the total amount will be charged for......month

a)

3.5

b)

2.5

c)

3

d)

6

57.

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

58.

Which one of the following items is recorded in the Profit and Loss appropriation account

a)

Interest on Loan

b)

Partner Salary

c)

Rent paid to Partner’s

d)

Managers Commission

59.

In the absence of partnership deed, interest on loan of a partner is allowed :

a)

@8% per annum

b)

@6% per annum

c)

no interest is allowed

d)

@12% per annum

60.

Which of the following transactions is always recorded in the partner's capital account irrespective of whether the partners capitals are fixed or fluctuating?

Additional capital introduced by a partner

Permanent withdrawal of capital by a partner

both (b) and (c)

a)

Additional capital introduced by a partner

b)

Permanent withdrawal of capital by a partner

c)

both (a) and (b)

d)

Interest on partner's loan

61.

Partners current accounts are opened when their capital accounts are:

a)

Fixed and Fluctuating both

b)

Fixed

c)

None of these

d)

Fluctuating

62.

The interest on capital accounts of partners under fluctuating capital account method is credited to :

a)

Interest Account

b)

Profit and Loss Account

c)

Partners' Capital Account

d)

Partners' Current Account

63.

In the absence of an agreement to the contrary, partners share profits and losses in the

a)

ratio of their capitals in the beginning of the year.

b)

ratio of their capitals at the end of the year.

c)

ratio of average capital

d)

equal ratio

64.

Current Account of a partner

a)

Will always have a credit balance.

b)

Will always have a debit balance

c)

May have a debit balance or a credit balance.

d)

May have a debit balance or a credit balance.

65.

When the partners capitals are fixed, the drawings made by a partner will be recorded in _____.

a)

Partner's Capital account

b)

Partner's Current account

c)

Profit and Loss Account

d)

None of these.

66.

To which account salary and commission to partners and interest on capital be debited?

a)

Current Account

b)

Capital Account

c)

Profit and Loss Account

d)

Profit and Loss Appropriation Account

67.

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)

Loss Rs. 87,000

b)

Profit Rs.28,000

c)

profit Rs. 87,000

d)

Profit Rs.14,000

68.

Y is a partner in a Firm. He withdrew regularly 3,000 rupees at the end every month for six months ending 31st March 2016 if interest on drawing is charged @ 10% per annum, the interest charged will be

a)

375

b)

450

c)

525

d)

900

69.

A partner withdraws rupees 8000 each 1st April and 1st October .interest on his drawing is drawing @ 6% per annum on 31st March will be

a)

480

b)

720

c)

240

d)

960

70.

A is a partner in a firm .He withdrew rupees 10000 at the end of each quarter during the year ended 31st March 2017. His interest on drawings @ 9% will be

a)

1350

b)

2250

c)

900

d)

1800

71.

Rani and Shyam is partner in a firm. They are entitled to interest on their capital but the net profit was not sufficient for paying his interest, then the net profit will be distributed among partner in

a)

1 : 2

b)

Profit Sharing Ratio

c)

Capital Ratio

d)

Equally

72.

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

a)

Agreement

b)

Sharing of Profit

c)

Lawful Business

d)

Mutual Agency

73.

Ram & Shyam are partners with the capital of Rs.25,000 and Rs.15,000 respectively. Interest payable on capital is 10% p.a. Find the profit to be shared by the partners if profit earned by the firm before interest charges is Rs.2,400.

a)

Rs.2500 & RS.1500

b)

Rs.1500 & RS.900

c)

Rs.1200 & RS.1200

d)

None of the above

74.

The P & L Appropriation A/c shows how the profits of the business are being used and shared among its owners

a)

True

b)

False

75.

In the absence of an agreement to the contrary, the partners are

a)

Entitled for 6% interest on their capitals, only when there are profits

b)

Entitled for 9% interest on their capitals, only when there are profits

c)

Entitled for interest on capital on the bank rate, only when there are profits

d)

Not entitled for any interest in their capitals

76.

In case of fluctuating capitals, interest on capital

a)

(a) is credited to Partner’s Capital Account.

b)

(b) is credited to Partner’s Current Account.

c)

(c) may be credited to Partner’s Capital or Current Account.

d)

(d) Interest Payable Account

77.

Which of the following items will not be shown in Profit and Loss Appropriation Account?

a)

(a) Interest on Capital

b)

(b) Commission to a partner

c)

(c) Interest on Drawings

d)

(d) Interest on Partner’s Loan

78.

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

79.

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

80.

A and B are partner’s sharing profit equally. A draw regularly Rs. 4,000 at the end of every month for 6 months. Year ended on 30th September 2020.Calculate interest on drawings @ rate 5% p.a.

a)

a. Rs. 350

b)

b. Rs. 450

c)

c. Rs. 150

d)

d. Rs. 250

81.

Partners’ Current Accounts are opened when their capital accounts are

a)

Fixed

b)

Fixed and Fluctuating both

c)

Fluctuating

d)

None of these

82.

The interest on capital accounts of partners under the fluctuating capital account method is credited to

a)

Interest Account

b)

Profit and Loss Account

c)

Partners’ Capital Accounts

d)

Partners’ Current Accounts

83.

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

84.

Interest payable on the capitals of the partners is changed to

a)

Profit and Loss Account

b)

Profit and Loss Adjustment Account

c)

Realization Account

d)

Profit and Loss Appropriation Account

85.

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

86.

Which of the following is an appropriation of profit?

a)

Interest on loan

b)

Interest on Capital

c)

Employees’ salary

d)

Rent

87.

When the partners capitals are fixed, the drawings made by a partner will be recorded in _____.

a)

Partner's Capital account

b)

Partner's Current account

c)

Profit and Loss Account

d)

None of these.

88.

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

89.

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

90.

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

91.

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

92.

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

93.

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

94.

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

95.

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

96.

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

97.

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

98.

Partners’ Current Accounts are opened when their capital accounts are

a)

Fixed

b)

Fixed and Fluctuating both

c)

Fluctuating

d)

None of these

99.

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

100.

In which year was the Partnership Act passed?

a)

1932

b)

1956

c)

1947

d)

1956

101.

Partners’ Current Accounts are opened when their capital accounts are

a)

Fixed

b)

Fixed and Fluctuating both

c)

Fluctuating

d)

None of these

102.

In the absence of an agreement to the contrary, partners share profits and losses in the

a)

Ratio of their capitals at the beginning of the year

b)

Ratio of their capitals at the end of the year

c)

Ratio of average capital

d)

Equal ratio

103.

In the absence of an agreement to the contrary, the partners are

a)

Entitled for 6% interest on their capitals, only when there are profits

b)

Entitled for 9% interest on their capitals, only when there are profits

c)

Entitled for interest on capital on the bank rate, only when there are profits

d)

Not entitled for any interest in their capitals

104.

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

105.

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

106.

If equal amount is withdrawn by partner in the beginning of each month during a month of 6 months interest on the total amount will be charged for......month

a)

3.5

b)

2.5

c)

3

d)

6

107.

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

108.

Which one of the following items is recorded in the Profit and Loss appropriation account

a)

Interest on Loan

b)

Partner Salary

c)

Rent paid to Partner’s

d)

Managers Commission

109.

Partners current accounts are opened when their capital accounts are:

a)

Fixed and Fluctuating both

b)

Fixed

c)

None of these

d)

Fluctuating

110.

The interest on capital accounts of partners under fluctuating capital account method is credited to :

a)

Interest Account

b)

Profit and Loss Account

c)

Partners' Capital Account

d)

Partners' Current Account

111.

In the absence of an agreement to the contrary, partners share profits and losses in the

a)

ratio of their capitals in the beginning of the year.

b)

ratio of their capitals at the end of the year.

c)

ratio of average capital

d)

equal ratio

112.

Current Account of a partner

a)

Will always have a credit balance.

b)

Will always have a debit balance

c)

May have a debit balance or a credit balance.

d)

May have a debit balance or a credit balance.

113.

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)

Loss Rs. 87,000

b)

Profit Rs.28,000

c)

profit Rs. 87,000

d)

Profit Rs.14,000

114.

Y is a partner in a Firm. He withdrew regularly 3,000 rupees at the end every month for six months ending 31st March 2016 if interest on drawing is charged @ 10% per annum, the interest charged will be

a)

375

b)

450

c)

525

d)

900

115.

A partner withdraws rupees 8000 each 1st April and 1st October .interest on his drawing is drawing @ 6% per annum on 31st March will be

a)

480

b)

720

c)

240

d)

960

116.

Rani and Shyam is partner in a firm. They are entitled to interest on their capital but the net profit was not sufficient for paying his interest, then the net profit will be distributed among partner in

a)

1 : 2

b)

Profit Sharing Ratio

c)

Capital Ratio

d)

Equally

117.

Ram & Shyam are partners with the capital of Rs.25,000 and Rs.15,000 respectively. Interest payable on capital is 10% p.a. Find the profit to be shared by the partners if profit earned by the firm before interest charges is Rs.2,400.

a)

Rs.2500 & RS.1500

b)

Rs.1500 & RS.900

c)

Rs.1200 & RS.1200

d)

None of the above

118.

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

119.

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

120.

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

121.

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

122.

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.

123.

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

124.

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

125.

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

partnership fundamentals

Total questions: 125

Worksheet time: 1hrs 22mins

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