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WorksheetsPartnership-Fundamentals, Class-XII, Accountancy
Total questions: 50
Worksheet time: 50mins
Q. Which of the following is not a right of the partners in a partnership firm?
To get an equal share of profit in the absence of any deed.
To assign his/her share to any other person at his/her discretion.
To take part in the management of the business.
To inspect the books of accounts at any time.
Which of the following is not a feature of a partnership?
Agreement among the partners.
Equal share in profit and loss.
Mutual relationship of principal and agent.
Business with profit motive.
In a partnership, the partners maintain a relation of --------.
Employer and employee.
Principal and agent.
Service provider and client.
Co-workers.
The maximum number of partners a partnership firm can have as per Section 464 of the Companies Act, 2013.
200
100
50
Not specified by the Companies Act, 2013.
The maximum number of partners a partnership firm can have, as recommended by the Central Government, is--------.
200
100
50
20
Which among the following statements is correct?
The 'Partnership' and 'Partnership Firm' refer to the same thing.
'Partnership' refers to the relationship among the partners, whereas the 'Partnership Firm' refers to the business run by the partners.
'Partnership Firm' refers to the relationship among the partners, whereas the 'Partnership' refers to the business run by the partners.
None of the above statements are correct.
Which of the following statements is correct?
In a partnership, it is not mandatory for every partner to take part in the operation of the business.
A partnership firm does not have a separate legal existence from the partners.
There must be a written agreement among the partners before commencing a partnership business.
It is not necessary for a partnership to run a business with the intention to earn a profit.
Which among the following is not a right of any partner in a partnership business as per the Partnership Act of 1932 unless otherwise provided by the partnership deed?
Take part in the management of the business.
Inspect the books of accounts.
Restrict the admission of a new partner.
Get interest on capital
Given below are two statements marked as Assertion (A) and Reason (R). Read them and choose the correct option from the given alternatives.
Both the (A) and (R) are true and (R) is the correct explanation of (A).
Both (A) and (R) are true but (R) is not the correct explanation of (A).
(A) is true but (R) is false.
(A) is false but (R) is true.
Which among the following is not a rule to be followed by a partnership firm in the absence of a partnership deed as per the Partnership Act, 1932?
Only (a)
Only (b)
Only (b) and (d)
Only (a) and (d)
In addition to his contribution to the capital, Rahul extended an additional amount of Rs. 1,00,000 as a loan to his partnership business with Amit. At the end of the year, Rahul is demanding interest on that additional amount at 10% per annum, but Amit wants to give the interest at 5% per annum. Their partnership deed is silent in this regard. Which of the following could be a solution to resolve the conflict between Rahul and Amit as per the provisions of the Partnership Act, 1932?
No interest will be paid.
Interest will be paid at 5% per annum.
Interest will be paid at 6% per annum.
Interest will be paid at 10% per annum.
A and B are partners in a partnership firm without any agreement. During the year, A withdrew Rs. 40,000 from the business. Interest on drawings will be charged for -----
6 Months
12 Months
6.5 Months
No interest will be charged.
Which among the following is not an appropriation of profit?
Interest on Capital.
Interest on Drawings
Interest on loan by Partners.
All of the above.
When the partners' capital accounts are fixed, which of the following items will be written in the partners' capital account?
Partners' Drawings
Additional capital introduced by the partners.
Share of profit.
All of the above
If an equal amount is withdrawn by a partner at the beginning of each month during a period of six months, interest on the total amount will be charged for ----- months.
2.5
3
3.5
6
A and B are partners. B draws a fixed amount from the business every month. Interest on the drawing is charged at 10% per annum. At the end of the year, the interest on the drawing debited to B's capital account is Rs. 2400. What was the amount of the monthly drawing made by B?
Rs. 48,000
Rs. 24,000
Rs. 8,000
Rs. 4,000
At which of the following rates is interest charged on drawings in the absence of a partnership deed?
6%
10%
12%
No interest is charged.
According to the profit and loss account, the net profit for the year is Rs. 3,50,000. The total interest paid on capital was Rs. 40,000 and the interest on drawings was Rs. 10,000. The amount of salary paid to staff during the year was Rs. 70,000. What will be the divisible profit for the partner / net profit as per the Profit and Loss Appropriation Account?
2,50,000
2,30,000
3,20,000
3,90,000
In which of the following cases does a partner's capital account never show a debit balance?
When the capital account is fixed.
When the capital is fluctuating.
When the capital account is fixed or fluctuating.
When the capital account is neither fixed nor fluctuating.
Given below are two statements marked as assertion (A) and reason (R). Read them carefully and choose the correct option from the alternatives given below.
Both (A) and (R) are true and (R) is the correct explanation of (A)
Both (A) and (R) are true but (R) is not the correct explanation of (A)
(A) is true but (R) is false.
Both (A) and (R) are false.
Which of the following accounts is maintained when the partners' capital account is fixed?
Partners Capital Account.
Partners Current Account.
Both of the above.
None of the above.
Which among the following accounts is maintained when the Partners' Capital Account is fluctuating?
Partners' Capital Account.
Partners' Current Account.
Both of the above.
None of the above.
Interest on drawings made by the partners is debited to---
Profit and Loss Account.
Profit and Loss Appropriation Account.
Partners' Current Account.
Drawings Account.
If a fixed amount is withdrawn by a partner in the middle of every quarter, interest on the total amount is charged for ----
6 Months
5.5 Months
4.5 Months
3.5 Months
A partner withdrew Rs. 1,000 every month from a firm starting on July 1, 2020. As per the agreement, the partners will be charged interest on drawings at 6% p.a. What will be the amount of interest on drawings on the date of account closure, i.e., March 31, 2021?
Rs. 540
Rs. 270
Rs. 540
Rs. 203
Lina and Bina are partners in a firm sharing profits and losses equally. Their fixed capital in the firm is Rs. 2,00,000 and Rs. 1,00,000 respectively. After closing the books of accounts, it was discovered that the interest on capital at 10% has been omitted. Which of the following will be the correct treatment to adjust the error without altering the accounts?
Debit Lina's Account and Credit Bina's Account by Rs. 10,000
Debit Lina's Account and Credit Bina's Account by Rs. 5,000
Debit Bina's Account and Credit Lina's Account by Rs. 10,000
Debit Bina's Account and Credit Lina's Account by Rs. 5,000
Rita and Gita are partners in a firm sharing profits and losses equally. Their fixed capital in the firm is Rs. 2,00,000 and Rs. 1,00,000 respectively. After closing the books of accounts, it was discovered that the interest on capital was credited to the partners at 10% instead of 8% as per the partnership deed. By what amount will Gita's Current Account be debited or credited in the adjustment entry?
Debit Rs- 1,200
Credit Rs- 1,200
Debit Rs- 1,000
Credit Rs- 1,000
K, L, and M are partners sharing profit in the ratio of 4:3:2. Salary to K Rs. 15,000 and M Rs. 3,000 omitted and profit distributed. For rectification, now K's account will be credited by ------
Rs. 15,000
Rs. 1,000
Rs. 12,000
Rs. 7,000
Remuneration paid to partners is always credited to ----------- account when the partners' capital is fluctuating. (Choose the correct one from the following to fill in the blank.)
Partner's Current Account.
Partner's Capital Account.
Partner's Loan Account.
Partners Executor's Account.
In the absence of a provision in the partnership deed, in which of the following ratios is the deficiency arising out of the guarantee of profit to a partner borne by the other partners?
Original profit sharing ratio.
Gaining ratio.
Sacrificing ratio.
None of the above.
X, Y, and Z are partners in a firm sharing profits and losses in the ratio of 3:2:2. X guaranteed a minimum profit of Rs. 15,000 to Z. The net profit for the year ending on 31st March 2021 amounted to Rs. 56,000. What will be the share of X in the profit of the firm?
Rs. 16,000
Rs. 15,000
Rs. 24,000
Rs. 23,000
When the capital account is fixed, the withdrawals from capital are recorded in ----
Capital Account
Current Account
Drawings Account
None of these.
A rented his house to his business in partnership with B and C. The house rent paid by the firm to A will be considered as a ------------.
Charge against profit.
Appropriation of profit
None of these.
Gita and Rita are partners in a firm with capital contributions of Rs. 2,00,000 and Rs. 3,00,000. As per their deed, they will be paid interest on capital at 10% per annum. The year ended on March 31, 2020, and their net profit was Rs. 30,000. The interest on capital to be paid to Rita and Gita will be:
Rs. 20,000 and Rs. 30,000 respectively.
Rs. 10,000 and Rs. 20,000 respectively.
Rs. 12,000 and Rs. 18,000 respectively.
Rs. 15,000 and Rs. 15,000 respectively.
X and Y are equal partners in a firm with capital contributions of Rs. 2,00,000 and Rs. 3,00,000. As per their deed, they will be paid interest on capital at 10% per annum. For the year ended on March 31, 2020, their net profit was Rs. 50,000. The share of profit to be credited to X and Y will be .............
Rs. 25,000 each.
Rs. 20,000 and Rs. 30,000 respectively.
Rs. 10,000 each.
o (zero), no share of profit will be given.
Which among the following is debited to a partner's capital account?
Interest on drawings.
Asset taken over by partner.
Share of loss in business.
All of the above.
Which among the following items is not recorded in the Profit and Loss Appropriation Account?
Interest on Partners' capital
Net Profit or Net Loss
Amount of partners' drawings
Commission paid to partner.
Without any formal agreement, Brandon, Pinku, and Sahil started a partnership business. Pinku withdrew Rs. 20,000 from the business on 1st July 2019 and Rs. 5,000 on December 31. On 31 March 2020, Brandon and Sahil want Pinku to pay an interest of 5% on drawings, for which Pinku disagrees. What will be the amount of interest on drawings to be charged on Pinku?
Rs. 3250
Rs. 2,250
Rs. 850
Nil
Partners' current account may have --------
Only credit balance
Only debit balance
Both debit or credit balance.
Partners' Capital account is a ...........
Real Account.
Personal Account
Nominal Account
Q. No interest on capital employed by partners is paid in which of the following situations?
If the partnership deed is silent in this regard.
If the partnership deed provides that no interest on capital is to be paid.
If the partners don't have any deed.
All of the above.
Q. What will be the average period for calculating interest on drawings if a partner withdraws an equal amount of money regularly at the beginning of each quarter?
4.5 months
5.5 months
6.5 months
7.5 months
Q. As per the Partnership Act, in the absence of a partnership deed, interest on a partner's loan to the business...
No interest will be paid
@ 6% per annum.
@ 10% per annum
@ 12% per annum.
Q. In case of partnership, the act of one partner is ...
Binding to all partners.
Binding only to the particular partner.
Binding to all partners excluding the partner performing the act.
None of the above.
Q. Raghav is in partnership with Bhargav for a one-third share in the profit. In the year ending 31st March 2020, Raghav's share in the profit was 60,000. Which of the following is the correct net divisible profit of the firm?
Rs. 1,20,000
Rs. 1,80,000
Rs. 2,40,000
None of these.
A partner withdrew Rs 20,000 from the partnership business during the year. As per the partnership deed, the partners will be charged an interest of 5% per annum against drawings. Which of the following will be the amount of interest to be charged against the partner?
Rs. 500
Rs. 1000
Rs. 2000
Rs. 1200
Anjana, Bithika, and Charlee are in a partnership business. Due to their personal problems, Anjana and Bithika could not take an active part in the business for the year ended March 2021. Charlee is now demanding a salary of Rs. 10,000 per month as she had to manage the business alone. Anjana agrees to pay a salary of Rs. 5,000 per month, whereas Bithika is totally against the payment of any salary as it was not mentioned. Whose claim will be entertained as per the provisions of the Partnership Act, 1932?
Anjana's claim will be entertained.
Bithika's claim will be entertained.
Charlee's claim will be entertained.
No one's claim will be entertained.
Net profit after all adjustments but before the commission to the manager was Rs. 2,42,000. As per the partnership deed, the manager is entitled to a commission of 10% on the divisible profit after charging all commissions. The amount of commission payable to the manager is ----.
Rs. 24,200
Rs. 24,000
Rs. 22,400
Rs. 22,000
A, B, and C were in a partnership. A used Rs 5,00,000 of the firm in a personal business without informing B and C and earned a return of Rs 2,00,000 from it. When A and B came to know about it, they demanded A return the entire Rs 7,00,000 to the firm, but A wants to return Rs 5,00,000 along with interest at 10% per annum. How will you resolve their conflict as per the provisions of the Partnership Act, 1932?
A must return Rs. 7,00,000
A must return Rs. 5,00,000
A must return Rs. 5,00,000 along with interest at 10%
A must return Rs. 5,00,000 along with interest at 6%
