CBSE Class 12 Accountancy Accounting For Partnership Firms MCQs Set J

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

Interest on Capital

Question. On 1st April 2018, 2fs Capital was \( Rs2,00,000 \). On 1st October 2018, he introduces additional capital of \( Rs1,00,000 \). Interest on capital @ 6% p.a. on 31st March, 2019 will be :
(a) \( Rs9,000 \)
(b) \( Rs18,000 \)
(c) \( Rs10,500 \)
(d) \( Rs15,000 \)
Answer: (d)

Question. X and Y are partners in the ratio of 3 : 2. Their capitals are \( Rs2,00,000 \) and \( Rs1,00,000 \) respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of \( Rs60,000 \) for the year ended 31st March 2019. Interest on Capital will be :
(a) X \( Rs16,000 \); Y \( Rs8,000 \)
(b) V \( Rs8,000 \); Y \( Rs4,000 \)
(c) X \( Rs14,400 \); Y \( Rs9,600 \)
(d) No Interest will be allowed
Answer: (a)

Question. X and Y are partners in the ratio of 3 : 2. Their capitals are \( Rs2,00,000 \) and \( Rs1,00,000 \) respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of \( Rs15,000 \) for the year ended 31st March 2019. Interest on Capital will be :
(a) X \( Rs16,000 \); Y \( Rs8,000 \)
(b) X \( Rs9,000 \); Y \( Rs6,000 \)
(c) X \( Rs10,000 \); Y \( Rs5,000 \)
(d) No Interest will be allowed
Answer: (c)

Question. X and Y are partners in the ratio of 3 : 2. Their capitals are \( Rs2,00,000 \) and \( Rs1,00,000 \) respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of \( Rs60,000 \) for the year ended 31st March 2019. Interest on Capital will be :
(a) X \( Rs16,000 \); Y \( Rs8,000 \)
(b) A \( Rs8,000 \); Y \( Rs4,000 \)
(c) X \( Rs14,400 \); Y \( Rs9,600 \)
(d) No Interest will be allowed
Answer: (d)

Question. X and Y are partners in the ratio of 3 : 2. Their capitals are \( Rs2,00,000 \) and \( Rs1,00,000 \) respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of \( Rs15,000 \) for the year ended 31st March 2019. As per partnership agreement, interest on capital is treated a charge on profits. Interest on Capital will be :
(a) X \( Rs16,000 \); Y \( Rs8,000 \)
(b) X \( Rs9,000 \); Y \( Rs6,000 \)
(c) X \( Rs10,000 \); Y \( Rs5,000 \)
(d) No Interest will be allowed
Answer: (a)

Question. A and B contribute \( Rs1,00,000 \) and \( Rs60,000 \) 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 \( Rs2,800 \) 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 \( Rs6,000 \)
(b) Profit \( Rs4,000 \)
(c) Loss \( Rs6,000 \)
(d) Loss \( Rs4,000 \)
Answer: (d)

Interest on Drawings

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. 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. 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 question, interest is charged for how much time
(a) 1 month
(b) 3 months
(c) 6 months
(d) 12 months
Answer: (c)

Question. Vikas is a partner in a firm. His drawings during the year ended 31st March, 2019 were \( Rs72,000 \). If interest on drawings is charged @ 9% p.a. the interest charged will be :
(a) \( Rs324 \)
(b) \( Rs6,480 \)
(c) \( Rs3,240 \)
(d) \( Rs648 \)
Answer: (c)

Question. If a fixed amount is withdrawn by a partner on the first day of every month, interest on the total amount is charged for …………… months :
(a) 6
(b) \( 6 \frac{1}{2} \)
(c) \( 5 \frac{1}{2} \)
(d) 12
Answer: (b)

Question. If a fixed amount is withdrawn by a partner on the last day of every month, interest on the total amount is charged for …………… months :
(a) 12
(b) \( 6 \frac{1}{2} \)
(c) \( 5 \frac{1}{2} \)
(d) 6
Answer: (c)

Question. If a fixed amount is withdrawn by a partner in the middle of every month, interest on the total amount is charged for …………… months
(a) 6
(b) \( 6 \frac{1}{2} \)
(c) \( 5 \frac{1}{2} \)
(d) 12
Answer: (a)

Question. In a partnership firm, a partner withdrew \( Rs5,000 \) 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 : (C.S. Foundation, Dec. 2012)
(a) \( Rs3,600 \)
(b) \( Rs1,950 \)
(c) \( Rs1,800 \)
(d) \( Rs1,650 \)
Answer: (b)

Question. Ajay is a partner in a firm. He withdrew \( Rs2,000 \) 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) \( Rs990 \)
(b) \( Rs1,080 \)
(c) \( Rs1,170 \)
(d) \( Rs2,160 \)
Answer: (a)

Question. Sushil is a partner in a firm. He withdrew \( Rs4,000 \) per month in the middle of every month during the year ended 31st March, 2019. If interest on drawings is charged @ 8% p.a. the interest charged will be :
(a) \( Rs2,080 \)
(b) \( Rs1,760 \)
(c) \( Rs3,840 \)
(d) \( Rs1,920 \)
Answer: (d)

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. 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. Anuradha is a partner in a firm. She withdrew \( Rs6,000 \) in the beginning of each quarter during the year ended 31st March, 2019. Interest on her drawings @ 10% p.a. will be :
(a) \( Rs900 \)
(b) \( Rs1,200 \)
(c) \( Rs1,500 \)
(d) \( Rs600 \)
Answer: (c)

Question. Bipasa is a partner in a firm. She withdrew \( Rs6,000 \) at the end of each quarter during the year ended 31st March, 2019. Interest on her drawings @ 10% p.a. will be :
(a) \( Rs900 \)
(b) \( Rs600 \)
(c) \( Rs1,500 \)
(d) \( Rs1,200 \)
Answer: (a)

Question. Charulata is a partner in a firm. She withdrew \( Rs10,000 \) in each quarter during the year ended 31st March, 2019. Interest on her drawings @ 9% p.a. will be:
(a) \( Rs1,350 \)
(b) \( Rs2,250 \)
(c) \( Rs900 \)
(d) \( Rs1,800 \)
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. If equal amount is withdrawn by a partner in each month during a period of 6 months, interest on the total amount will be charged for …………… months
(a) 6
(b) 3
(c) 2.5
(d) 3.5
Answer: (b)

Question. X is a partner in a firm. He withdrew regularly \( Rs1,000 \) 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) \( Rs240 \)
(b) \( Rs140 \)
(c) \( Rs100 \)
(d) \( Rs120 \)
Answer: (b)

Question. Y is a partner in a firm. He withdrew regularly \( Rs3,000 \) at the end of every month for the six months ending 31st March, 2019. If interest on drawings is charged @ 10% p.a. the interest charged will be :
(a) \( Rs375 \)
(b) \( Rs450 \)
(c) \( Rs525 \)
(d) \( Rs900 \)
Answer: (a)

Question. Z is a partner in a firm. He withdrew regularly \( Rs2,000 \) 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) \( Rs480 \)
(b) \( Rs280 \)
(c) \( Rs200 \)
(d) \( Rs240 \)
Answer: (d)

Question. A partner withdraws \( Rs8,000 \) each on 1st April and 1st Oct. Interest on his drawings @ 6% p.a. on 31 st March will be :
(a) \( Rs480 \)
(b) \( Rs720 \)
(c) \( Rs240 \)
(d) \( Rs960 \)
Answer: (b)

Question. A partner draws \( Rs2,000 \) each on 1st April 2018, 1st July 2018, 1st October, 2018 and 1st January 2019. For the year ended 31st March, 2019 interest on drawings @ 8% per annum will be :
(a) \( Rs540 \)
(b) \( Rs320 \)
(c) \( Rs960 \)
(d) \( Rs400 \)
Answer: (d)

Question. A partner withdraws from firm \( Rs7,000 \) at the end of each month. At the rate of 6% per annum total interest will be :
(a) \( Rs5,040 \)
(b) \( Rs2,310 \)
(c) \( Rs3,570 \)
(d) \( Rs1,370 \)
Answer: (b)

Adjustments in the Closed Accounts

Question. Anu and Tanu are equal partners with fixed capitals of \( Rs2,00,000 \) and \( Rs1,00,000 \) 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 \( Rs16,000 \) and Tanu will be credited by \( Rs8,000 \)
(b) Anu will be debited by \( Rs16,000 \) and Tanu will be debited by \( Rs8,000 \)
(c) Anu will be credited by \( Rs4,000 \) and Tanu will be debited by \( Rs4,000 \)
(d) Anu will be debited by \( Rs4,000 \) and Tanu will be credited by \( Rs4,000 \)
Answer: (c)

Question. Sony and Romy are equal partners with fixed capitals of \( Rs4,00,000 \) and \( Rs3,00,000 \) 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 \( Rs8,000 \) and Romy will be credited by \( Rs6,000 \).
(b) Sony will be debited by \( Rs8,000 \) and Romy will be debited by \( Rs6,000 \).
(c) Sony will be debited by \( Rs1,000 \) and Romy will be credited by \( Rs1,000 \).
(d) Sony will be credited by \( Rs1,000 \) and Romy will be debited by \( Rs1,000 \).
Answer: (d)

Question. Asha and Vipasha are equal partners with fixed capitals of \( Rs5,00,000 \) and \( Rs2,00,000 \) 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 \( Rs1,500 \) and Vipasha will be credited by \( Rs1,500 \);
(b) Asha will be credited by \( Rs1,500 \) and Vipasha will be debited by \( Rs1,500 \);
(c) Asha will be debited by \( Rs5,000 \) and Vipasha will be debited by \( Rs2,000 \);
(d) Asha will be credited by \( Rs5,000 \) and Vipasha will be credited by \( Rs2,000 \);
Answer: (a)

Question. P and Q sharing profits in the ratio of 2 : 1 have fixed capitals of \( Rs90,000 \) and \( Rs60,000 \) 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 \( Rs1,800 \) and Q will be credited by \( Rs1,200 \);
(b) P will be debited by \( Rs200 \) and Q will be credited by \( Rs200 \);
(c) P will be credited by \( Rs200 \) and Q will be debited by \( Rs200 \);
(d) P will be debited by \( Rs1,800 \) and Q will be debited by \( Rs1,200 \);
Answer: (b)

Question. A and B sharing profits in the ratio of 7 : 3 have fixed capitals of \( Rs2,00,000 \) and \( Rs1,00,000 \) 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 \( Rs4,000 \) and B will be debited by \( Rs2,000 \);
(b) A will be credited by \( Rs4,000 \) and B will be credited by \( Rs2,000 \);
(c) A will be debited by \( Rs200 \) and B will be credited by \( Rs200 \);
(d) A will be credited by \( Rs200 \) and B will be debited by \( Rs200 \);
Answer: (d)

Question. X and Y are partners in the ratio of 3 : 2. Their fixed capitals are \( Rs2,00,000 \) and \( Rs1,00,000 \) respectively. After closing 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) \( Rs600 \) (Debit)
(b) \( Rs400 \) (Credit)
(c) \( Rs400 \) (Debit)
(d) \( Rs600 \) (Credit)
Answer: (c)

Question. X, Y and Z are equal partners with fixed capitals of \( Rs2,00,000 \), \( Rs3,00,000 \) and \( Rs4,00,000 \) 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 \( Rs8,000 \)
(b) Cr. X and Dr. Z by \( Rs8,000 \)
(c) Dr. X and Cr. Z by \( Rs8,000 \)
(d) Cr. X and Dr. Y by \( Rs8,000 \)
Answer: (c)

Question. P, Q and R are equal partners with fixed capitals of \( Rs5,00,000 \), \( Rs4,00,000 \) and \( Rs3,00,000 \) 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 \( Rs2,000 \) and Q will be debited by \( Rs2,000 \).
(b) P will be debited by \( Rs2,000 \) and Q will be credited by \( Rs2,000 \).
(c) P will be debited by \( Rs2,000 \) and R will be credited by \( Rs2,000 \).
(d) P will be credited by \( Rs2,000 \) and R will be debited by \( Rs2,000 \).
Answer: (d)

Question. X, Y and Z are equal partners with fixed capitals of \( Rs5,00,000 \), \( Rs3,00,000 \) and \( Rs1,00,000 \) 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 \( Rs2,000 \)
(b) Cr. X and Dr. Z by \( Rs2,000 \)
(c) Dr. X and Cr. Y by \( Rs2,000 \)
(d) Cr. X and Dr. Y by \( Rs2,000 \)
Answer: (a)

Question. P, Q, and R sharing profits in the ratio of 2 : 1 : 1 have fixed capitals of \( Rs4,00,000 \), \( Rs3,00,000 \) and \( Rs2,00,000 \) 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 \( Rs1,000 \); Dr. Q \( Rs1,500 \) and Cr. R \( Rs500 \)
(b) Dr. P \( Rs500 \); Cr. Q \( Rs1,500 \) and Dr. R \( Rs1,000 \)
(c) Cr. P \( Rs500 \); Dr. Q \( Rs1,500 \) and Cr. R \( Rs1,000 \)
(d) Dr. P \( Rs1,000 \); Cr. Q \( Rs1,500 \) and Dr. R \( Rs500 \)
Answer: (d)

Question. A, B and C sharing profits in the ratio of 2 : 2 : 1 have fixed capitals of \( Rs3,00,000 \), \( Rs2,00,000 \) and \( Rs1,00,000 \) 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 \( Rs1,200 \); Dr. B \( Rs800 \) and Dr. C \( Rs400 \)
(b) Dr. A \( Rs1,200 \); Cr. B \( Rs800 \) and Cr. C \( Rs400 \)
(c) Cr. A \( Rs800 \); Cr. B \( Rs400 \) and Dr. C \( Rs1,200 \)
(d) Dr. A \( Rs800 \); Dr. B \( Rs400 \) and Cr. C \( Rs1,200 \)
Answer: (b)

Question. X, Y, and Z are partners in the ratio of 4 : 3 : 2. Salary to X \( Rs15,000 \) and to Z \( Rs3,00,000 \) omitted and profits distributed. For rectification, now X will be credited :
(a) \( Rs15,000 \)
(b) \( Rs1,000 \)
(c) \( Rs12,000 \)
(d) \( Rs7,000 \)
Answer: (d)

Guarantee of Profit to a Partner

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 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 \( Rs20,000 \) as his share of profit every year. Firm’s profit was \( Rs90,000 \). Partners will get:
(a) P \( Rs40,000 \); Q \( Rs30,000 \); R \( Rs20,000 \);
(b) P \( Rs42,500 \); Q \( Rs27,500 \); R \( Rs20,000 \);
(c) P \( Rs45,000 \); Q \( Rs30,000 \); R \( Rs15,000 \);
(d) P \( Rs42,000 \); Q \( Rs28,000 \); R \( Rs20,000 \);
Answer: (d)

Question. A, Y and Z are partners in the ratio of 5 : 4 : 3. A has given to Z a guarantee of minimum \( Rs10,000 \) profit. For the year ending 31st March 2019, firm’s profit is \( Rs28,800 \). Z’s share in profit will be :
(a) \( Rs9,200 \)
(b) \( Rs9,600 \)
(c) \( Rs7,200 \)
(d) \( Rs12,000 \)
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 \( Rs75,000 \). Deficiency if any, would be borne by E and F equally. Firm’s profit was \( Rs2,70,000 \). As share of profit will be :
(a) \( Rs90,000 \)
(b) \( Rs82,500 \)
(c) \( Rs97,500 \)
(d) \( Rs75,000 \)
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 \( Rs15,000 \). Firm’s profit was \( Rs99,000 \). In the firm profit A's share will be :
(a) \( Rs30,000 \)
(b) \( Rs15,000 \)
(c) \( Rs48,000 \)
(d) \( Rs45,000 \)
Answer: (c)

Question. P, Q, and R are partners in 3 : 2 : 1. R is guaranteed that his share of profit will not be less than \( Rs70,000 \). Any deficiency will be borne by P and Q in the ratio of 2 : 1. Firm’s profit was \( Rs2,40,000 \). Share of P will be :
(a) \( Rs1,00,000 \)
(b) \( Rs1,10,000 \)
(c) \( Rs1,20,000 \)
(d) \( Rs1,02,000 \)
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 \( Rs80,000 \). Any deficiency will be borne by A and Y in 3 : 2. Firm’s profit was \( Rs5,60,000 \). How much deficiency will be borne by Y :
(a) \( Rs2,14,400 \)
(b) \( Rs14,400 \)
(c) \( Rs2,09,600 \)
(d) \( Rs9,600 \)
Answer: (d)

Question. P and Q are partners sharing profits in the ratio of 1 : 2. R was manager who received the salary of \( Rs10,000 \) p.m. in addition to commission of 10% on net profits after charging such commission. Total remuneration to R amounted to \( Rs1,80,000 \). Profit for the year before charging salary and commission was :
(a) \( Rs7,20,000 \)
(b) \( Rs6,00,000 \)
(c) \( Rs7,80,000 \)
(d) \( Rs6,60,000 \)
Answer: (c)

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 \( Rs2,600 \). Drawings of X were :
(a) \( Rs8,000 \) p.m.
(b) \( Rs7,000 \) p.m.
(c) \( Rs6,000 \) p.m.
(d) \( Rs5,000 \) 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 \( Rs8,250 \). Drawings of B were :
(a) \( Rs12,000 \) p.m.
(b) \( Rs10,000 \) p.m.
(c) \( Rs9,000 \) p.m.
(d) \( Rs8,000 \) p.m.
Answer: (b)

Question. A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of \( Rs3,00,000 \) and \( Rs2,00,000 \) 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 \( Rs60,000 \) and B \( Rs40,000 \). B’s share of net profit as per profit and loss appropriation account amounted to \( Rs40,000 \). Net Profit of the firm before any appropriations was :
(a) \( Rs1,22,000 \)
(b) \( Rs1,13,000 \)
(c) \( Rs1,17,000 \)
(d) \( Rs1,45,000 \)
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)