CBSE Class 12 Accountancy Accounting For Partnership Firms MCQs Set G

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. 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 ?1000
(d) Cr. X and Dr. Y by ?8,000

Answer : C

Question. Himanshu withdrew ₹2,500 at the end of each month. The Partnership deed provides for charging the interest on drawings @ 12% p.a. What will be the interest on Himanshu’s drawings for the year ending 31st December, 2017?
(a) ₹300
(b) ₹137.50
(c) ₹1,650
(d) ₹1,800

Answer : C

Question. Dev withdrew ₹10,000 on 15th day of every month. Interest on drawings was to be charged @ 12% per annum. Interest on Dev’s drawings will be:
(a) ₹14,400
(b) ₹7,200
(c) ₹1,200
(d) None of these

Answer : B

Question. Interest on capital will be paid to the partners if provided for in the partnership deed but only out of:
(a) Profits
(b) Reserves
(c) Accumulated Profits
(d) Goodwill

Answer : A

Question. A and B are partners. According to Profit and Loss Account, the net profit for the year is ₹2,00,000. The total interest on partner’s drawings is ₹1,000. As salary is ₹40,000 per year and B’s salary is ₹3,000 per month. The net profit as per Profit and Loss Appropriation Account will be :
(a) ₹1,23,000
(b) ₹1,25,000
(c) ₹1,56,000
(d) ₹1,58,000

Answer : B

Question. Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta was manager who received the salary of ₹4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profit for the year is ₹6,78,000 before charging salary. Find the total remuneration of Meeta.
(a) ₹78,000
(b) ₹88,000
(c) ₹87,000
(d) ₹76,000

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. 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. Which accounts are opened when the capitals are fixed?
(a) Only Capital Accounts
(b) Only Current Accounts
(c) Capital Accounts as well as Current Accounts
(d) Either Capital Accounts or Current Accounts

Answer : C

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 : A

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. For the firm interest on drawings is
(a) Capital Payment
(b) Expenses
(c) Capital Receipt
(d) Income

Answer : D

Question. Interest on Partner’s drawings will be debited to :
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) Partner’s Current Account
(d) Interest Account

Answer : C

Question. On 1st April 2018, 2fs Capital was ₹2,00,000. On 1st October 2018, he introduces additional capital of ₹1,00,000. Interest on capital @ 6% p.a. on 31st March, 2019 will be :
(a) ₹9,000
(b) ₹18,000
(c) ₹10,500
(d) ₹15,000

Answer : D

Question. Xand 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 ?60,000 for the year ended 31st March 2011 Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) V ₹1000; Y ₹4,000
(c) X ₹14,400; Y ₹9,600
(d) No Interest will be allowed

Answer : A

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 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 : C

Question. A and B contribute ₹1,00,000 and ?₹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 ₹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 S’s share will be:
(a) Profit ₹6,000
(b) Profit ₹4,000
(c) Loss ₹6,000
(d) Loss ₹4,000

Answer : D

Question. Partners are suppose 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. Interest on capital can only be calculated using ……….. .
(a) Opening Capital
(b) Closing Capital
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Answer : A

Question.What adjustment entry should be passed to rectify the above mentioned errors?
(a) A’s Capital A/c Dr. To B’s Capital A/c140140
(b) B’s Capital A/c Dr. To A’s Capital A/c100100
(c) A’s Capital A/c Dr. To B’s Capital A/c280280
(d) B’s Capital A/c Dr. To A’s Capital A/c300300

Answer : A

Question. What is the amount of Net Profit?
(a) ₹3,06,000
(b) ₹3,00,000
(c) ₹2,00,000
(d) None of the above

Answer : B

Question. Calculate the amount of Ajay’s deficiency?
(a) ₹75,400
(b) ₹74,600
(c) ₹85,000
(d) ₹56,550

Answer : B

Question. What was the balance in their capital accounts on 1st April, 2021?
(a) ₹1,65,500 and ₹1,27,600
(b) ₹2,00,000 and ₹1,50,000
(c) ₹1,50,000 and ₹2,00,000
(d) None of the above

Answer : B

Question. Partners’ amount of interest on capital are:
(a) ₹10,000 and ₹7,500
(b) ₹15,000 and ₹7,500
(c) ₹16,000 and ₹6,000
(d) None of the above

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. 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. Anna and Bobby were partners sharing profits and losses in the ratio of 5 : 3. On 1st April, 2019 their capital accounts showed balances of ₹3,00,000 and ₹2,00,000 respectively. The partnership deed provided for interest on capital @10% p.a. and the firm earned a profit of ₹45,000 for the year ended 31st March, 2020. The interest on partners’ capitals will be:
(a) ₹30,000 and ₹20,000 respectively
(b) ₹27,000 and ₹18,000 respectively
(c) ₹22,500 and ₹22,500 respectively
(d) None of the above

Answer : B

Question. When partners’ capital accounts are floating, which one of the following items will be written on the credit side of the partners’ capital accounts? :
(a) Interest on drawings
(b) Loan advanced by partner to the firm
(c) Partner’s share in the firm’s loss
(d) Salary to the active partners

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 ₹60,000 for the year ended 31st March 2019. Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) V ₹8.000; Y ₹4,000
(c) X ₹14,400; Y ₹9,600
(d) No Interest will be allowed

Answer : A

Question. A and B contribute ₹1,00,000 and ₹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 ₹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 S’s share will be:
(a) Profit ₹6,000
(b) Profit ₹4,000
(c) Loss ₹6,000
(d) Loss ₹4,000

Answer : D

Question. Vikas is a partner in a firm. His drawings during the year ended 31st March, 2019 were ₹72,000. If interest on drawings is charged @ 9% p.a. the interest charged will be :
(a) ₹324
(b) ₹6,480
(c) ₹3,240
(d) ₹648

Answer : C

Question. In a partnership lirm, partner A is entitled a monthly salary of ₹7,500. At the end of the year, firm earned a profit of ₹75,000 after charging T’s salary. If the manager is entitled a commission of 10% on the net profit after charging his commission, Manager’s commission will be :
(a) ₹7,500
(b) ₹16,500
(c) ₹8,250
(d) ₹15,000

Answer : D

Question. Net profit of a firm is ₹79,800. Manager is entitled to a commission of 5% of profits after charging his commission. Manager’s Commission will be :
(a) ₹4,200
(b) ₹380
(c) ₹3,990
(d) ₹3,800

Answer : D

Question. Ram and Shyam are partners in the ratio of 3 : 2. Before profit distribution, ‘ Ram is entitled to 5% commission of the net profit (after charging such commission). Before charging commission, firm’s profit was ₹42,000. Shyam’s share in profit will be :
(a) ₹16,000
(b) ₹24,000
(c) ₹26,000
(d) ₹16,400

Answer : A

Question.If the date of drawings of the partners 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. What was the amount of interest on Drawings that was charged from A and B?
(a) ₹7,200 and ₹2,400
(b) ₹2,400 and ₹4,500
(c) ₹4,500 and ₹2,400
(d) ₹4,000 and ₹6,000

Answer : C

Question. What should be the amount of Vijay’s interest on Capital (Blank B)?
(a) ₹4,500
(b) ₹4,000
(c) ₹7,200
(d) ₹3,000

Answer : D

Question. What should be the amount of profit after adjustments?
(a) ₹1,88,500
(b) ₹2,10,500
(c) ₹3,00,000
(d) None of the above

Answer : A

Question. When partners’ capital accounts are fixed, which one of the following items will be written in the partner’s capital account? :
(a) Partner’s Drawings
(b) Additional capital introduced by the partner in the firm
(c) Loan taken by partner from the firm
(d) Loan Advanced by partner to the firm

Answer : B

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

Answer : C

Question. If their is a provision for the interest on capital in the partnership deed, it will be allowed only whenthere is ………….. .
(a) Loss
(b) Profit
(c) Profit of atleast ₹10,000
(d) Profit of at least ₹50,000

Answer : B

Question. When the profit is less than the amount of interest on capitals, the available profit will be distributed…………..
(a) equally
(b) in the ratio of their capital
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Answer : B