CBSE Class 12 Accountancy Accounting For Partnership Firms MCQs Set D

Question. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31,2012 are Rs.80,000, Rs.60,000 and Rs.40,000 respectively. Their personal assets are worth as follows : X — Rs.20,000, Y— Rs. 15,000 and Z— Rs. 10,000. The extent of their liability in the firm would be :

(a) X— Rs. 80,000 : T— Rs.60,000 : and Z— Rs.40,000

(b) X— Rs.20,000 : Y— Rs.15,000 : and Z— Rs.10,000

(c) X— Rs. 1,00,000 : Y— Rs.75,000 : and Z— Rs.50,000

(d) Equal

Answer: B

Question. Sangeeta and Ankita are partners in a firm. Sangeeta’s capital is Rs.70,000 and Ankita’s Capital is Rs.50,000. Firm’s profit is Rs.60,000. Ankita share in profit will be:

(a) Rs.25,000

(b) Rs.30,000

(c) Rs.35,000

(d) Rs.20,000

Answer: B

Question. Net profit of a firm is Rs.49,500. Manager is entitled to a commission of 10% on profits before charging his commission. Manager’s Commission will be:

(a) Rs.4,950

(b) Rs.4,500

(c) Rs.5,500

(d) Rs.495

Answer: A

Question. Guarantee given to partner ‘A’ by the other partners ‘B & C’ means :

(a) In case of loss ‘A’ will not contribute towards that loss.

(b) In case of insufficient profits ‘A’ will receive only the minimum guarantee amount.

(c) In case of loss or insufficient profits ‘A’ will withdraw the minimum guarantee amount.

(d) All of the above.

Answer: C

Question. P, Q and R are partners in a firm in 3 : 2 : 1. R is guaranteed that he will get minimum of Rs.20,000 as his share of profit every year. Firm’s profit was Rs.90,000. Partners will get:

(a) P Rs.40,000; Q Rs.30,000; R Rs.20,000;

(b) P Rs.42,500; Q Rs.27,500; R Rs.20,000;

(c) P Rs.45,000; Q Rs.30,000; R Rs. 15,000;

(d) P Rs.42,000; Q Rs.28,000; R Rs.20,000;

Answer: D

Question.  A and B are partners in a pertnership firm without any agreement. A has withdrawn Rs.50,0()0 out of his Capital as drawings. Interest on drawings may be charged from A by the firm :

(a) @ 5% Per Annum

(b) @ 6% Per Annum

(c) @ 6% Per Month

(d) No interest can be charged

Answer: D

Question. A and B are partners in a partnership firm without any agreement. A devotes more time for the firm as compare to B. A will get the following commission in addition to profit in the firm’s profit:

(a) 6% of profit

(b) 4% of profit

(c) 5% of profit

(d) None of the above

Answer: D

Question. In case of partnership the act of any partner is :

(a) Binding on all partners

(b) Binding on that partner only

(c) Binding on all partners except that particular partner

(d) None of the above

Answer: A

Question. Which of the following statement is true?

(a) a minor cannot be admitted as a partner

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

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

(d) none of the above

Answer: B

Question. The relation of partner with the firm is that of:

(a) An Owner

(b) An Agent

(c) An Owner and an Agent

(d) Manager

Answer: C

Question. According to Profit and Loss Account, the net profit for the year is Rs.4,20,000. Salary of a partner is Rs.5,000 per month and the commission of another partner is Rs. 10,000. The interest on drawings of partners is Rs.4,000. The net profit as per Profit and Loss Appropriation Account will be :

(a) Rs.3,54,000

(b) Rs.3,46,000

(c) Rs.4,09,000

(d) Rs.4,01,000

Answer: A

Question. A and B are partners. According to Profit and Loss Account, the net profit for the year is Rs.2,00,000. The total interest on partner’s drawings is Rs.1,000. A’s salary is Rs.40,000 per year and B’s salary is Rs.3,000 per month. The net profit as per Profit and Loss Appropriation Account will be :

(a) Rs.1,23,000

(b) Rs.1,25,000

(c) Rs.1,56,000

(d) Rs.1,58,000

Answer: B

Question. X and Y are partners in the ratio of 3 : 2. Their capitals are Rs.2,00,000 and Rs. 1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of Rs. 15,000 for the year ended 31st March 2019. Interest on Capital will be :

(a) X Rs. 16,000; Y Rs. 8,000

(b) X Rs.9,000; Y Rs.6,000

(c) X Rs. 10,000; Y Rs.5,000

(d) No Interest will be allowed

Answer: C

Question. A and B contribute Rs. 1,00,000 and Rs.60,000 respectively in a partnership firm by way of capital on which they agree to allow interest @ 8% p.a. Their profit or loss sharing ratio is 3 :2. The profit at the end of the year was Rs.2,800 before allowing interest on capital. If there is a clear agreement that interest on capital will be paid even in case of loss, then B’s share will be:

(a) Profit Rs.6,000

(b) Profit Rs.4,000

(c) Loss Rs.6,000

(d) Loss Rs.4,000

(vi) Interest on Drawings

Answer: D

Question. Partners are supposed to pay interest on drawing only when by the

(a) Provided, Agreement

(b) Permitted, Investors

(c) Agreed, Partners

(d) ‘A’ & ‘C’ above

Answer: D

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

(a) 2.5

(b) 3

(c) 3.5

(d) 6

Answer: C

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

(a) 2.5

(b) 3

(c) 3.5

(d) 6

Answer: A

Question. X, Y and Z are equal partners with fixed capitals of Rs.2,00,000, Rs.3,00,000 and Rs.4,00,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting entry:

(a) Dr. X and Cr. Y by Rs. 8,000

(b) Cr. X and Dr. Z by Rs.8,000

(c) Dr. X and Cr. Z by Rs. 8,000

(d) Cr. X and Dr. Y by Rs.8,000

Answer: C

Question. P, Q and R are equal partners with fixed capitals of Rs.5,00,000, Rs.4,00,000 and Rs.3,00,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals was provided @ 7% instead of 9% p.a. In the adjusting entry:

(a) P will be credited by Rs.2,000 and Q will be debited by Rs.2,000.

(b) P will be debited by Rs.2,000 and Q will be credited by Rs.2,000.

(c) P will be debited by Rs.2,000 and R will be credited by Rs.2,000.

(d) P will be credited by Rs.2,000 and R will be debited by Rs.2,000.

Answer: D

Question. In a partnership firm, a partner withdrew Rs.5,000 per month on the first day of every month during the year for personal expenses. If interest on drawings is charged @ 6% p.a. the interest charged will be:

(a) Rs.3,600

(b) Rs. 1,950

(c) Rs. 1,800

(d) Rs. 1,650

Answer: B

Question. If fixed amount is withdrawn by a partner on the first day of each quarter, interest on the total amount is charged for months

(a) 4.5

(b) 6

(c) 7.5

(d) 3

Answer: C

Question. If a fixed amount is withdrawn by a partner on the last day of each quarter, interest on the total amount is charged for months

(a) 6

(b) 4.5

(c) 7.5

(d) 3

Answer: B

Question. X, Y and Z are partners in the ratio of 5 : 4 : 3. 2fhas given to Z a guarantee of minimum Rs. 10,000 profit. For the year ending 31st March, 2019, firm’s profit is Rs.28,800. X’s share in profit will be :

(a) Rs.9,200

(b) Rs.9,600

(c) Rs.7,200

(d) Rs. 12,000

Answer: A

Question. E, F and G share profits in the ratio of 4 : 3 : 2. G is given a guarantee that his share of profits will not be less than Rs.75,000. Deficiency if any, would be borne by E and F equally Firm’s profit was Rs.2,70,000. F’s share of profit will be :

(a) Rs.90,000

(b) Rs.82,500

(c) Rs.97,500

(d) Rs.75,000

Answer: B

Question. X, Y and Z are partners in 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than Rs. 80,000. Any deficiency will be borne by X and Y in 3 : 2. Firm’s profit was Rs.5,60,000. How much deficiency will be borne by Y :

(a) 1 2,14,400

(b) Rs. 14,400

(c) Rs. 2,09,600

(d) Rs.9,600

Answer: D

Question. Interest on partner’s capitals will be credited to :

(a) Profit and Loss Account

(b) Profit and Loss Appropriation Account

(c) Interest Account

(d) Partner’s Capital Accounts

Answer: D

Question. For the firm interest on drawings is

(a) Capital Payment

(b) Expenses

(c) Capital Receipt

(d) Income

Answer: D

Question. Partnership Deed is also called _____

(a) Prospectus

(b) Articles of Association

(c) Principles of Partnership

(d) Articles of Partnership

Answer: D

Question. Which of the following is not incorporated in the Partnership Act?

(a) profit and loss are to be shared equally

(b) no interest is to be charged on capital

(c) all loans are to be charged interest @6% p.a.

(d) all drawings are to be charged interest

Answer: D

Question. When is the Partnership Act enforced?

(a) when there is no partnership deed

(b) where there is a partnership deed but there are differences of opinion between the partners

(c) when capital contribution by the partners varies

(d) when the partner’s salary and interest on capital are not incorporated in the partnership deed

Answer: A

Question. Which accounts are opened when the capitals are fluctuating?

(a) Only Capital Accounts

(b) Only Current Accounts

(c) Capital Accounts as well as Current Accounts

(d) Either Capital Accounts or Current Accounts

Answer: D

Question. Balance of partner’s current accounts are :

(a) Debit balance

(b) Credit balances

(c) Debit or Credit balances

(d) Neither Debit nor credit balances

Answer: C

Question. X, Y and Z are partners in a firm. At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner’s capital was Rs.6,000 and Y determined interest @24% p.a. on his loan of Rs. 80,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z respectively.

(a) Rs.2,000 to each partner.

(b) Loss of Rs.4,400 for X and Z; Twill take Rs.14,800.

(c) Rs.400 for X, Rs.5,200 for Land Rs.400 for Z.

(d) None of the above.

Answer: C

Question. X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profit before interest on partner’s capital was Rs.6,00,000 and Z demanded minimum profit of Rs.5,00,000 as his financial position was not good. However, there was no written agreement on this point.

(a) Other partners will pay Z the minimum profit and will share the loss equally.

(b) Other partners will pay Z the minimum profit and will share the loss in capital ratio.

(c) X and Y will take Rs.50,000 each and Z will take Rs.5,00,000.

(d) Rs.2,00,000 to each of the partners.

Answer: D

Question.  On 1st January 2019, a partner advanced a loan of Rs. 1,00,000 to the firm. In the absence of agreement, interest on loan on 31st March, 2019 will be :

(a) Nil

(b) Rs. 1,500

(c) Rs.3,000

(d) Rs.6,000

Answer: B

Question. P and Q sharing profits in the ratio of 2: 1 have fixed capitals of Rs.90,000 and Rs.60,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals was provided @ 6% instead of 8% p.a. In the adjusting entry:

(a) P will be credited by Rs. 1,800 and Q will be credited by Rs. 1,200;

(b) P will be debited by Rs.200 and Q will be credited by Rs.200;

(c) P will be credited by Rs.200 and Q will be debited by Rs.200;

(d) P will be debited by Rs. 1,800 and Q will be debited by Rs. 1,200;

Answer: B

Question. A and B sharing profits in the ratio of 7 : 3 have fixed capitals of Rs.2,00,000 and Rs. 1,00,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals was provided @ 12% instead of 10% p.a. In the adjusting entry :

(a) A will be debited by Rs.4,000 and B will be debited by Rs.2,000;

(b) A will be credited by Rs.4,000 and B will be credited by Rs.2,000;

(c) A will be debited by Rs.200 and B will be credited by Rs.200;

(d) A will be credited by Rs.200 and B will be debited by Rs.200;

Answer: D

Question. It the Partner’s Capital Accounts are fixed, interest on capital will be recorded:

(a) On the credit side of Current Account

(b) On the credit side of Capital Account

(c) On the debit side of Current Account

(d) On the debit side of Capital Account

Answer: A

Question. If the Partner’s Capital Accounts are fluctuating, in that case following item/items will be recorded in the credit side of capital accounts:

(a) Interest on capital

(b) Salary of partners

(c) Commission of partners

(d) All of the above

Answer: D

Question. In the absence of partnership deed remuneration or salary to the partners

(a) Not allowed

(b) Allowed

(c) 25% of profit

(d) None of the options

Answer: Not allowed

Question. In which partnership deed, all the liabilities of partners are limited

(a) General Partnership

(b) Limited Partnership

(c) Special Partnership

(d) Legal Partnership

Answer: General Partnership

Question. The partnership that is made for fulfilling a particular task, it is called

(a) Special Partnership

(b) Legal Partnership

(c) General Partnership

(d) None of the options

Answer: Special Partnership

Question. The partnership that is made in accordance with the Act, is called

(a) Legal Partnership

(b) Special Partnership

(c) General Partnership

(d) None of the options

Answer: Legal Partnership

Question. The partner whose liability is limited is called

(a) General Partner

(b) Dormant Partner

(c) Special Partner

(d) None of the options

Answer: General Partner

Question. Partners current account are opened when their capital accounts are

(a) Fixed

(b) Fluctuating

(c) General

(d) None of the options

Answer:  Fixed

Question. In the absence of an agreement in partnership, the partnership act provides for

(a) Interest on Loan

(b) Interest on Capital

(c) Interest on Drawing

(d) None of the options

Answer: Interest on Loan

Question. Interest payable on the capitals of partners is written

(a) In profit & Loss appropriation A/c

(b) In Profit & Loss Account

(c) In Partners Salary Account

(d) None of the options

Answer: in profit & Loss appropriation A/c

Question. No interest is paid on capital unless all partners are not

(a) Agreed

(b) Not Agreed

(c) Some partners agreed

(d) None of the options

Answer: Agreed

Question. Interest on drawings charges to keep control on

(a) Unnecessary Drawings

(b) Unnecessary Exp.

(c) Unnecessary capital

(d) None of the options

Answer: Unnecessary Drawings

Question. In case of partnership business, a separate capital account is maintained for

(a) Each Partner

(b) Special Partner

(c) Sleeping Partner

(d) None of the options

Answer: Each Partner 

Question. The capital accounts of partners may be maintained by following any of the following two methods:

(a) Fixed Capital Accounts

(b) Fluctuating Capital Accounts

(c) Both

(d) None of the options

Answer: Fixed Capital Accounts

Question. How many accounts prepared for partners under Fixed Capital Accounts method

(a) 2

(b) 3

(c) 4

(d) 5

Answer: 2

Question. Under Fixed Capital Accounts method Balance of Capital account will always show

(a) A credit balance

(b) A debit balance

(c) Dr and Cr. Both

(d) None of the options

Answer: A credit balance

Question. Which accounts prepared for partners under Fixed Fluctuating Capital Accounts method

(a) Capital Account

(b) Current Account

(c) Salary A/c

(d) None of the options

Answer: Capital Account

Question. Interest on partners capital will be allowed only when

(a) Mentioned in the partnership deed.

(b) 1 Partner Agreed

(c) Special Partner agreed

(d) None of the options

Answer: Mentioned in the partnership deed.

Question. Interest on Capital is always calculated on the

(a) Opening Capital

(b) Profit of Partners

(c) Drawings on Partners

(d) None of the options

Answer: Opening Capital

Question. When date of Drawings is not given, Interest is calculated for a period of

(a) 6 months

(b) 9 months

(c) 12 months

(d) None of the options

Answer: 6 months

Question. When different amount are withdrawn on different date, Which methods to calculate the amount of Interest on Drawing

(a) Simple Interest Method

(b) Product Method

(c) Both

(d) None of the options

Answer: Simple Interest Method

Question. Direct Method will be used only , when

(a) Amount should be same throughout the period

(b) Date of Drawings should be same throughout the period

(c) Drawings should be made throughout the period regularly without any gap.

(d) All of the options

Answer: Amount should be same throughout the period

Question. Liability of a partner is

(a) Limited to capital

(b) Limited

(c) Unlimited

(d) None of the options

Answer: Limited to capital