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Current and Capital Account

Total questions: 8

Worksheet time: 6mins

Name
Class
Date
1.

Under Fixed Capital method, drawings of each partner is debited in his (a)  

2.

Partners’ Current Accounts are opened when their capital accounts are

a)

Fixed

b)

Fixed and Fluctuating both

c)

Fluctuating

d)

None of these

3.

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

a)

Interest Account

b)

Partners’ Capital Accounts

c)

Profit and Loss Account

d)

Partners’ Current Accounts

4.

The current account of a partner

a)

Will always have a credit balance

b)

Can never have a debit balance

c)

Will always have a debit balance

d)

May have a debit or credit balance

5.

Interest on partner’s drawing under a fluctuating capital account is debited to

(a)  

6.

Which of the following is an appropriation of profit?

a)

Interest on loan

b)

Interest on Capital

c)

Rent

d)

Employees’ salary

7.

In a business, A and B invested amounts in the ratio of 2 : 1, whereas the ratio between and B was 3 : 2. If

the firm earned a profit of Rs. 1,20,000, how much amount did B receive?

(a)  

8.

Commission paid to partners is debited to (a)