CBSE Class 12 Accountancy Accounting For Partnership Firms MCQs Set F

Question. Which of the following is an example of not-profit-organisation:
(a) Public hospitals
(b) Corporations
(c) Audit firm
(d) Insurance companies

Answer : A 

Question. Subscription received in cash during the year amounted to Rs.5,00,000; subscription outstanding at the end of previous year was Rs.20,000 and outstanding at the end of current year was Rs.25,000. Subscription received in advance for next year was Rs. 8,000 and received in advance during previous year was Rs.7,000. The amount credited to Income & Expenditure Account will be :
(a) Rs.5,04,000
(b) Rs.5,06,000
(c) Rs.4,96,000
(d) Rs.4,94,000

Answer : A 

Question. If a General Donation of huge amount is received by a school, that donation is treated as :
(a) Revenue Receipt (Income)
(b) Capital Receipt (Liability)
(c) Assets
(d) Earned Income

Answer : B

Question. A non-profit organization received ₹10,000 as the entrance fee of a new member. If 20% of the fee has to be capitalised, what is the amount of fee needs to be shown in the income and expenditure account?
(a) ₹9000
(b) ₹8000
(c) ₹2000
(d) ₹5000

Answer : B

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 : (CPT, Dec. 2012)
(a) Agreed Ratio
(b) Profit Sharing Ratio
(c) Capital Ratio
(d) Equally

Answer : C

Question. A and B are partners having fixed capitals of ₹2,00,000 and ₹1,00,000 respectively. At the end of the year 2019-20, their current accounts showed balances: A ₹1,00,000 (Cr.) B ₹5,000 (Dr.). Where will B’s current account balance be shown in the books of A and B?
(a) On the liabilities side of the Balance Sheet.
(b) On the assets side of the Balance Sheet.
(c) On the debit side of Profit and Loss Appropriation A/c.
(d) On the credit side of Profit and Loss Appropriation A/c.

Answer : B

Question. A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is ₹2,50,000. The total interest on partner’s drawing is ₹4,000. A’s salary is ₹4,000 per quarter and B’s salary is ₹40,000 per annum. The net profit/loss earned during this year was:
(a) ₹3,02,000
(b) ₹1,98,000
(c) ₹3,06,000
(d) ₹2,50,000

Answer : A 

Question. Abha and Bharat were partners. They shared profits and losses equally. On April 1st, 2019 their capital accounts showed balances of ₹3,00,000 and ₹2,00,000 respectively. Calculate the share of divisible profit of the partners if the partnership deed provided for interest on capital @10% p.a. and the firm earned a profit of ₹50,000 for the year ended 31st March, 2020.
(a) Abha ₹30,000; Bharat ₹20,000
(b) Abha ₹25,000; Bharat ₹25,000
(c) Abha ‘Nil’; Bharat ‘Nil’
(d) None of the above

Answer : C

Question. X and Y are partners sharing profits and losses in the ratio of 3 : 2 having fixed capitals of ₹1,50,000 and ₹2,00,000 respectively. The partnership deed provides for interest on capital @ 8% p.a. The Net Profit of the firm during 2019-20 was ₹21,000. In what ratio the appropriation of profit will be made?
(a) 3 : 2
(b) 1 : 1
(c) 3 : 4
(d) 4 : 3

Answer : C

Question. Under which of the following situation interest on partners’ capitals shall not be provided?
(a) If the firm has incurred net loss during the year.
(b) If partners’ capitals are equal and their profit sharing ratio is also equal.
(c) Both (a) and (b)
(d) If the net profit is less than the total amount payable to partners as interest on capitals.

Answer : C

Question. X, 7and Z are equal partners with fixed capitals of ?5,00,000, ?3,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(a) Dr. X and Cr. Z by ₹ 2,000
(b) Cr. X and Dr. Z by ₹ 2,000
(c) Dr. X and Cr. Y by ₹ 2,000
(d) Cr. X and Dr. Y 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 ? ₹ 00;
(d) P will be debited by ₹ 1,800 and Q will be debited by ₹ 1,200;

Answer : B

Question. A and B sharing profits in the ratio of 7 : 3 have 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 was provided @ 12% instead of 10% p.a. In the adjusting entry :
(a) A will be debited by ?4,000 and B will be debited by ₹ 2,000;
(b) A will be credited by ?4,000 and B will be credited by ₹ 2,000;
(c) A will be debited by ?200 and B will be credited by ₹ 200;
(d) A will be credited by ?200 and B will be debited by ₹ 200;

Answer : D

Question. X and Y are partners. X draws a fixed amount at the beginning of every month. Interest on drawings is charged @8% p.a. At the end of the year interest on X’s drawings amounts to *?2,600. Drawings of A’were :
(a) ₹ 8,000 p.m.
(b) ₹ 7,000 p.m.
(c) ₹ 6,000 p.m.
(d) ₹ 5,000 p.m.

Answer : D

Question. A and B are partners. B draws a fixed amount at the end of every month. Interest on drawings is charged @15% p.a. At the end of the year interest on B’s drawings amounts to ?8,250. Drawings of B were :
(a) ₹ 12,000 p.m.
(b) ₹ 10,000 p.m.
(c) ₹ 9,000 p.m.
(d) ₹ 8,000 p.m.

Answer : B

Question. Net profit of a firm is ₹49,500. Manager is entitled to a commission of 10% on profits before charging his commission. Manager’s Commission will be :
(a) ₹4,950
(b) ₹4,500
(c) ₹5,500
(d) ₹495

Answer : A 

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. 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. A, B and C are partners in the ratio of 5 : 3 : 2. Before B’s salary of ₹17,000 firm’s profit is ₹97,000. How much in total B will receive from the firm?
(a) ₹17,000
(b) ₹40,000
(c) ₹24,000
(d) ₹41,000

Answer : D

Question. A, B and C are partners in a firm without any agreement. They have contributed 750,000, 730,000 and 720,000 by way of capital in the firm. A was unable to work for six months in a year due to illness. At the end of year, firm earned a pro lit of 7 15,000. A’s share in the profit will be :
(a) 71,500
(b) 73,750
(c) 75,000
(d) 72,500

Answer : C

Question. In the absence of Partnership Deed, interest on loan of a partner is allowed:
(a) at 8% per annum
(b) at 6% per annum
(c) no interest is allowed
(d) at 12% per annum

Answer : B

Question.What should be the amount of Jay’s interest on Capital (Blank A)?
(a) ₹4,000
(b) ₹4,500
(c) ₹4,800
(d) ₹7,200

Answer : C

Question. Where would you record ‘Interest on Drawings’ when Capitals are fluctuating?
(a) Debit side of Partner’s Capital A/c
(b) Debit side of Partner’s Current A/c
(c) Credit side of Partner’s Current A/c
(d) Credit side of Partner’s Capital A/c

Answer : A 

Question.The Partnership Deed is silent on payment of salary to partners. Amita, a partner, claimed that since shemanages the business, she should get a monthly salary of ₹10,000. Is she entitled for the salary?
(a) No
(b) Yes
(c) Half of the salary
(d) Defined salary by law

Answer : A 

Question. In the absence of Partnership Deed the profits are divided among the partners:
(a) in the ratio of their capital
(b) equally
(c) in the ratio of time devoted for the firm’s business
(d) according to their managerial abilities

Answer : B

Question. How is interest on drawings calculated, if the drawings are made at regular intervals, as on the last dayof each month?
(a) Total Drawings × Rate/100 x 6.5 months/12months
(b) Total Drawings × Rate /100 x 6 months/12months
(c) Total Drawings × Rate/100 x months5.5/12months
(d) None of the above

Answer : C

Question. Identify the best definition of planning.
(a) A process in which plans are formulated, carried out and controlled
(b) The core activity of planners and planning departments
(c) Devising ways of achieving objectives
(d) Setting an organization’s objectives and means of reaching them.

Answer : D

Question. Ostensible partners are those who
(a) do not contribute any capital but get some share of profit for lending their name to the business
(b) contribute very less capital but get equal profit
(c) do not contribute any capital and without having any interest in the business, lend their name to the business
(d) contribute maximum capital of the business

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. X, Y, and Z are partners in the ratio of 6 : 4 : 1. In the firm, A has guaranteed Z for his minimum profit of ?15,000. Firm’s profit was ?99,000. In the firm profit As share will be :
(a) ₹ 30,000
(b) ₹ 15,000
(c) ₹ 48,000
(d) ₹ 45,000

Answer : C

Question. X, Y, and Z are partners in the ratio of 4 : 3 : 2. Salary to X ?15,000 and to Z ?3,000 omitted and profits distributed. For rectification, now X will be credited :
(a) ₹ 15,000
(b) ₹ 1,000
(c) ₹ 12,000
(d) ₹ 7,000

Answer : D

Question. Sony and Romy are equal partners with fixed capitals of ?4,00,000 and ?3,00,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals was provided @ 8% instead of 10% p.a. In the adjusting entry :
(a) Sony will be credited by ₹ 8,000 and Romy will be credited by ₹ 6,000.
(b) Sony will be debited by ₹ 8,000 and Romy will be debited by ₹ 6,000.
(c) Sony will be debited by ₹ 1,000 and Romy will be credited by ₹ 1,000.
(d) Sony will be credited by ₹ 1,000 and Romy will be debited by ₹ 1,000.

Answer : D

Question. X, Y and Z are equal partners with fixed capitals of ?2,00,000, ?3,00,000 and ?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 ?8,000
(b) Cr. X and Dr. Z by ?8,000
(c) Dr. X and Cr. Z by ?8000
(d) Cr. X and Dr. Y by ?8,000

Answer : D

Question. A partner withdraws from firm ₹7,000 at the end of each month. At the rate of 6% per annum total interest will be :
(a) ₹5,040
(b) ₹2,310
(c) ₹3,570
(d) ₹1,370

Answer : B

Question. X and 7are partners in the ratio of 3 : 2. Their fixed capitals are ₹2,00,000 and ₹1,00,000 respectively. After clsoing the accounts for the year ending 31st March 2019, it was discovered that interest on capital was allowed @ 12% instead of 10% per annum. By how much amount A will be debited/credited in the adjustment entry :
(a) ₹600 (Debit)
(b) ₹400 (Credit)
(c) ₹400 (Debit)
(d) ₹600 (Credit)

Answer : C

Question. For the firm interest on capital is :
(a) Capital Payment
(b) Capital Receipt
(c) Loss
(d) Income

Answer : C

Question. Where will you record interest on drawings : (CPT; June 2011)
(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. A, B and C sharing profits in the ratio of 2 : 2 : 1 have fixed capitals of ?3,00,000, ?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 was provided @ 12% instead of 10% p.a. In the adjusting entry :
(a) Cr. A ?1,200; Dr. B ?800 and Dr. C ?400
(b) Dr. A ?1,200; Cr. B ?800 and Cr. C ?400
(c) Cr. A ?800; Cr. B ?400 and Dr. C ?1,200
(d) Dr. A ?800; Dr. B ?400 and Cr. C ?1,200

Answer : B

Question. P, Q, and R are partners in 3 : 2 : 1. R is guaranteed that his share of profit will not be less than ?70,000. Any deficiency will be borne by P and Q in the ratio of 2 : 1. Firm’s profit was ? 2,40,000. Share of P will be :
(a) ₹ 1,00,000
(b) ₹ 1,10,000
(c) ₹ 1,20,000
(d) ₹ 1,02,000

Answer : A 

Question. A Y and Z are partners in 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than ?80,000. Any deficiency will be borne by A and Y in 3 : 2. Firm’s profit was ?5,60,000. How much deficiency will be borne by Y :
(a) ₹ 2,14,400
(b) ₹ 14,400
(c) ₹ 2,09,600
(d) ₹ 9,600

Answer : D

Question. P and Q are partners sharing profits in the ratio of 1 : 2. R was manager who received the salary of ?10,000 p.m. in addition to commission of 10% on net profits after charging such commission. Total remuneration to R amounted to ?1,80,000. Profit for the year before charging salary and commission was :
(a) ₹ 7,20,000
(b) ₹ 6,00,000
(c) ₹ 7,80,000
(d) ₹ 6,60,000

Answer : C

Question. What is each partner’s interest on drawings?
(a) ₹3300, ₹1800, ₹2400
(b) ₹1800, ₹3300, ₹2400
(c) ₹2400, ₹3600, ₹4800
(d) None of the above

Answer : B

Question. In a partnership firm, a partner withdrew ₹5,000 per month on the first day of every month during theyear for personal expenses. If interest on drawings is charged @ 6% p.a. the intereinterest charged will be:
(a) ₹3,600
(b) ₹1,950
(c) ₹1,800
(d) ₹1,650

Answer : B

Question. Aakriti and Bindu entered into partnership for making garments on April 01, 2019 without any partnership agreement. They introduced Capitals of ₹5,00,000 and ₹3,00,000 respectively. On October 01, 2019, Aakriti advanced ₹20,000 by way of loan to the firm without any agreement as to interest. Profit and Loss account for the year ended March 31 2020 showed profit of ₹43,000 before charging interest on Aakriti’s loan. Their share of profit for the year 2019-20 are:
(a) ₹21,200 each
(b) ₹21,500 each
(c) ₹26,875 and ₹16,125 respectively
(d) ₹26,500 and ₹15,900 respectively

Answer : A 

Question. A and B are partners in a firm having capitals ₹5,00,000 and ₹10,00,000 respectively. The partnership deed provides for charging interest on drawings @ 5% p.a. A withdrew ₹40,000 for his personal use during the year 2019-20. B withdrew ₹2,00,000 from his capital 1.1.2020. The amount of interests that will be charged on partners’ drawings are:
(a) A ₹1,000; B ₹5,000
(b) A ₹2,000; B ₹10,000
(c) A ₹1,000; B Nil
(d) A ₹2,000; B Nil

Answer : C

Question. Ajay is a partner in a firm. He withdrew ₹2,000 per month on the last day of every month during the year ended 31st March, 2019. If interest on drawings is charged @ 9% p.a. the interest charged will be :
(a) ₹990
(b) ₹1,080
(c) ₹1,170
(d) ₹2,160

Answer : A 

Question. P, Q and R arc equal partners with fixed capitals of ?5,00,000, ?4,00,000 and ?3,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discoveredthat interest on capitals was provided @ 7% instead of 9% p.a. In the adjusting entry :
(a) P will be credited by ₹ 2,000 and Q will be debited by ₹ 2,000.
(b) P will be debited by ₹ 2,000 and Q will be credited by ₹ 2,000.
(c) P will be debited by ₹ 2,000 and R will be credited by ₹ 2,000.
(d) P will be credited by ₹ 2,000 and R will be debited by ₹ 2,000.

Answer : D

Question. M and N are partners having capitals of ₹50,000 and ₹1,00,000 respectively. On 1 April 2020, P was admitted with a capital of ₹2,00,000. At the end of the year 2020, the firm earned a profit of ₹30,000. How should the profits be distributed among partners, if there is no partnership deed?
(a) Equally
(b) In the ratio of 1:2:4
(c) In the ratio of 1:2:3
(d) None of the above

Answer : A 

Question. Bipasa is a partner in a firm. She withdrew ₹6,000 at the end of each quarter during the year ended 31st March, 2019. Interest on her drawings @ 10% p.a. will be :
(a) ₹900
(b) ₹600
(c) ₹1,500
(d) ₹1,200

Answer : A