CBSE Class 12 Accountancy Accounting For Partnership Firms MCQs Set E

Question. Under Cash Flow from Operating Activities incorporates are
(a) Paid for operating costs
(b) Cash received from customers
(c) Paid to suppliers
(d) All of the options

Answer : D

Question. Cash Credit is concerned with __
(a) Financing Activities
(b) Investing Activities
(c) Operating Activities
(d) Cash and Cash Equivalents

Answer : A

Question. Principal revenue generating activities of an enterprise are called as
(a) Operating activities
(b) Financing activities
(c) Investing activities
(d) All of the options

Answer : A

Question. Anu and Tanu are equal partners with fixed capitals of ?2,00,000 and ?1,00,000 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) Anu will be credited by ₹ 16,000 and Tanu will be credited by ₹ 8,000
(b) Anu will be debited by ₹ 16,000 and Tanu will be debited by ₹ 8,000
(c) Anu will be credited by ₹ 4,000 and Tanu will be debited by ₹ 4,000
(d) Anu will be debited by ₹ 4,000 and Tanu will be credited by ₹ 4,000

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 If equal amount is withdrawn by a partner in the end of each month during a period of 6 months, interest on the total amount will be charged for ………………… months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. Z is a partner in a firm. He withdrew regularly ?2,000 every month for the six months ending 31st March, 2011 If interest on drawings is charged @ 8% p.a. the interest charged will be :
(a) ₹ 480
(b) ₹ 280
(c) ₹ 200
(d) ₹ 240

Answer : D

Question. Asha and Vipasha are equal partners with fixed capitals of ?5,00,000 and ?2,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(a) Asha will be debited by ?1,500 and Vipasha will be credited by ?1,500;
(b) Asha will be credited by ?1,500 and Vipasha will be debited by ?1,500;
(c) Asha will be debited by ?5,000 and Vipasha will be debited by ?2,000;
(d) Asha will be credited by ?5,000 and Vipasha will be credited by ?2,000;

Answer : A

Question. P and Q sharing profits in the ratio of 2 : 1 have fixed capitals of ?90,000 and f60,000 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 ?1,800 and Q will be credited by ?1,200;
(b) P will be debited by ?200 and Q will be credited by ?200;
(c) P will be credited by ?200 and Q will be debited by ?200;
(d) P will be debited by ?1,800 and Q will be debited by ?1,200;

Answer : B

Question. When a partner is given guarantee by other partners, loss on such guarantee will be borne by :
(a) Partnership firm
(b) All the other partners
(c) Partners who give the guarantee
(d) Partner with highest profit sharing ratio.

Answer : C

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 options.

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 ?20,000 as his share of profit every year. Firm’s profit was ?90,000. Partners will get:
(a) P ₹ 40,000; Q ?30,000; R ₹ 20,000;
(b) P ₹ 42,500; Q ?27,500; R ₹ 20,000;
(c) P ₹ 45,000; Q ?30,000; R ₹ 15,000;
(d) P ₹ 42,000; Q ?28,000; R ₹ 20,000;

Answer : D

Question. A, Y and Z are partners in the ratio of 5 : 4 : 1 A has given to Za guarantee of minimum ?10,000 profit. For the year ending 31st March 2019, firm’s profit is ?28,800. Js share in profit will be :
(a) ₹ 9,200
(b) ₹ 9,600
(c) ₹ 7,200
(d) ₹ 12,000

Answer : A

Question. E, Fand 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 ?75,000. Deficiency if any, would be borne by E and F equally Firm’s profit was ?2,70,000. As share of profit will be :
(a) ₹ 90,000
(b) ₹ 82,500
(c) ₹ 97,500
(d) ₹ 75,000

Answer : B

Question. Ram and Shyam are partners sharing profits/losses equally. Ram withdrew ₹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 the interest on the drawings of Ram?
(a) ₹50
(b) ₹27
(c) ₹600
(d) ₹325

Answer : D

Question. One of the partners in a partnership firm has withdrawn ₹9,000 at the end of each quarter, throughout the year. The interest on drawings at the rate of 6% per annum will be:
(a) ₹540
(b) ₹2,160
(c) ₹810
(d) None of these

Answer : C

Question. Verma and Kaul are partners in a firm. The partnership agreement provides that interest on drawings should be charged @ 6% p.a. Kaul withdrew ₹3,000 per quarter, starting from April 01, 2019. What will be the interest on Kaul’s drawings during the year 2019-20?
(a) ₹180
(b) ₹90
(c) ₹270
(d) ₹450

Answer : D

Question. A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. During the year the firm incurred a loss of ₹84,000. The amount of loss transferred to the capital accounts of A, B and C will be:
(a) Loss debited to the capital accounts of A, B and C equally.
(b) Nil
(c) Loss debited to the capital accounts of A, B and C will be ₹42,000, ₹28,000 and ₹14,000 respectively.
(d) None of the above

Answer : C

Question. Reena and Raman are partners with capitals of ₹3,00,000 and ₹1,00,000 respectively. The profit (as per Profit and Loss Account) for the year ended March 31, 2020 was ₹1,20,000. Interest on capital is to be allowed at 6% p.a. Raman was entitled to a salary of ₹30,000 p.a. The drawings of partners were ₹30,000 and 20,000. The interest on drawings to be charged to Reena was Rs. 1,000 and to Raman, ₹500. Their share of profit after necessary appropriations are:
(a) Reena ₹50,625; Raman ₹16,875
(b) Reena ₹33,750; Raman ₹33,750
(c) Reena ₹33,000; Raman ₹33,000
(d) Reena ₹48,750; Raman ₹48,750

Answer : B

Question. A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is ₹1,00,000. C has not invested any amount as capital but he alone manages the whole business. C wants RS30,000 p.a. as salary. Firm earned a profit of ₹1,50,000. How much will be each partner’s share of profit:
(a) A ₹60,000; B ₹60,000; C ₹Nil
(b) A ₹90,000; B ₹30,000; C ₹Nil
(c) A ₹40,000; B ₹40,000 and C ₹40,000
(d) A ₹50,000; B ₹50,000 and C ₹50,000.

Answer : D

Question. If the Partners’ Capital Accounts are fixed ‘salary payable to partner’will be recorded :
(a) On the debit side of Partners’ Current Account
(b) On the debit side of Partners’ Capital Account
(c) On the credit side of Partners’ Current Account
(d) None of the above

Answer : C

Question. Where will you record interest on drawings :
(a) Debit Side of Profit & Loss Appropriation Account
(b) Credit Side of Profit & Loss Appropriation Account
(c) Credit Side of Profit & Loss Account
(d) Debit Side of Capital/Current Account only

Answer : B

Question. If a fixed amount is withdrawn by a partner in each quarter, interest on the total amount is charged for ……………….. months
(a) 3
(b) 6
(c) 4.5
(d) 7.5

Answer : B

Question. In the absence of express agreement, interest @ 6% p.a. is provided :
(a) On opening balance of partner’s capital accounts
(b) On closing balance of partner’s capital accounts
(c) )On loan given by partners to the firm
(d) On opening balance of partner’s current accounts

Answer : C

Question. P, Q, and R sharing profits in the ratio of 2 : 1 : 1 have fixed capitals of f4,00,000, ?3,00,000 and ?2,00,000 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) Cr. P ?1,000; Dr. Q ₹ 1,500 and Cr. R ₹ 500
(b) Dr. P ?500; Cr. Q ₹ 1,500 and Dr. R ₹ 1,000
(c) Cr. P ?500; Dr. Q ₹ 1,500 and Cr. R ₹ 1,000
(d) Dr. P ?1,000; Cr. Q ₹ 1,500 and Dr. R ₹ 500

Answer : D

Question. Anu and Tanu are equal partners with fixed capitals of ?2,00,000 and ?1,00,000 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) Anu will be credited by ?16,000 and Tanu will be credited by ₹ 8,000
(b) Anu will be debited by ?16,000 and Tanu will be debited by ₹ 8,000
(c) Anu will be credited by ?4,000 and Tanu will be debited by ₹ 4,000
(d) Anu will be debited by ?4,000 and Tanu will be credited by ₹4,000

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. Z is a partner in a firm. He withdrew regularly ?2,000 every month for the six months ending 31st March, 2011 If interest on drawings is charged @ 8% p.a. the interest charged will be :
(a) ₹ 480
(b) ₹ 280
(c) ₹ 200
(d) ₹ 240

Answer : D

Question. Asha and Vipasha are equal partners with fixed capitals of ?5,00,000 and ?2,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(a) Asha will be debited by ₹ 1,500 and Vipasha will be credited by ₹ 1,500;
(b) Asha will be credited by ₹ 1,500 and Vipasha will be debited by ₹ 1,500;
(c) Asha will be debited by ₹ 5,000 and Vipasha will be debited by ₹ 2,000;
(d) Asha will be credited by ₹ 5,000 and Vipasha will be credited by ₹ 2,000;

Answer : A

Question. A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of ?3,00,000 and ?2,00,000 respectively. They are allowed 6% p.a. interest on their capitals and are charged 10% p.a. interest on their drawings. Their drawings during the year were A ?60,000 and B ?40,000. B’s share of net profit as per profit and loss appropriation account amounted to ?40,000. Net Profit of the firm before any appropriations was :
(a) ₹ 1,22,000
(b) ₹ 1,13,000
(c) ₹ 1,17,000
(d) ₹ 1,45,000

Answer : D

Question. A and B are partners in a firm. They are entitled to interest on their capitals but the net profit was not sufficient for this interest, then the net profit will be distributed among partners in : 
(a) Agreed Ratio
(b) Profit Sharing Ratio
(c) Capital Ratio
(d) Equally

Answer : C

Question. According to Profit and Loss Account, the net profit for the year is ₹1,40,000. The total interest on partner’s capital is? 8,000 and a partner is to be allowed commission of ₹5,000. The total interest on partner’s drawings is ₹1,200. The net profit as per Profit and Loss Appropriation Account will be :
(a) ₹1,28,200
(b) ₹1,44,200
(c) ₹1,25,800
(d) ₹1,41,800

Answer : A

Question. Sangeeta and Ankita are partners in a firm. Sangeeta’s capital is ₹70,000 and Ankita’s Capital is ₹50.000. Firm’s profit is ₹60,000. Ankita share in profit will be :
(a) ₹25,000
(b) ₹3 0,000
(c) ₹35,000
(d) ₹20,00

Answer : B

Question. A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is ₹1,00,000. C has not invested any amount as capital but he alone manages the whole business. C wants ?30,000 p.a. as salary. Firm earned a profit of ₹1,50,000. How much will be each partner’s share of profit:
(a) A ₹60,000;B ₹60,000; C ₹Nil
(b) A ₹90,000; B ₹30,000; C ₹Nil
(c) A ₹40,000; B ₹40,000 and C ₹40,000
(d) A ₹50,000; B ₹50,000 and C ₹50,000.

Answer : D

Question. Which of the following statement is true?
(a) Fixed capital account will always have a credit balance
(b) Current account can have a positive or a negative balance
(c) Fluctuating capital account can have a positive or a negative balance
(d) All of the options

Answer : D

Question. Which item is recorded on the credit side of partner’s current accounts :
(a) Interest on Fanner’s Capitals
(b) Salaries of Partners
(c) Share of profits of Partners
(d) All of the options

Answer : D

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 options

Answer : D

Question. Interest on partner’s capitals will be debited to :
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) Partner’s Capital Accounts
(d) None of the Above

Answer : B

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. How would you close the Partner’s Drawing Account:
(a) By transfer to Capital or Current Account Debit Side.
(b) By transfer to Capital Account Credit Side.
(c) By transfer to Current Account Credit Side.
(d) Either ‘B‘ or ‘C’.

Answer : A

Question. If date of drawings of the partner’s is not given in the 1, interest is charged for how much time
(a) 1 month
(b) 3 months
(c) 6 months
(d) 12 months

Answer : C

Question. X and Y are partners in the ratio of 3 : 2. Their capitals are ?2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹60,000 for the year ended 31st March 2011 Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) A ₹8,000; Y ₹4,000
(c) X ₹14,400; Y ₹9,600
(d) No Interest will be allowed

Answer : D

Question. X and Y are partners in the ratio of 3 : 2. Their capitals are ₹2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ₹15,000 for the year ended 31st March 2011 As per partnership agreement, interest on capital is treated a charge on profits. Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) X ₹9,000; Y ₹6,000
(c) X ₹10,000; Y ₹5,000
(d) No Interest will be allowed

Answer : A

Question. X is a partner in a firm. He withdrew regularly ₹1,000 at the beginning of every month for the six months ending 31st March, 2019. If interest on drawings is charged @ 8% p.a. the interest charged will be :
(a) ₹240
(b) ₹140
(c) ₹100
(d) ₹120

Answer : B