CBSE Class 12 Accountancy Fundamentals Partnership Worksheet Set 01

ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

CBSE Class 12 Accountancy Chapter 2 Fundamentals Partnership MCQs

Question. In the absence of partnership deed, interest on capital is allowed at the rate of:
a) 6% p.a. simple interest
b) 6% p.a. compound interest
c) 12% simple interest
d) None of the above.
Answer. D

Question. Rent to a partner is shown in:
a) Dr. side of Profit And Loss Appropriation A/c
b) Cr. side of Profit And Loss Appropriation A/c
c) Dr. side of Profit And Loss A/c
d) Cr. side of Profit And Loss A/c.
Answer. C

Question. Which of the following items will be shown in Partner’s Capital A/c under Fixed Capital method?
a) Drawings from profits
b) Drawings from capital
c) Interest on drawings
d) All of the above.
Answer. B

Question. Interest on Partner’s Loan will be credited to:
a) Partner’s Loan A/c
b) Partner’s Capital A/c
c) Profit and Loss A/c
d) None of the above.
Answer. A

Question. Which one of the following items is not an appropriation out of profits?
a) Interest on capital
b) Salary to a partner
c) Commission to a partner
d) Interest on partner’s loan.
Answer. D

Question. Following are essential elements of a partnership firm except:
a) At least two persons
b) There is an agreement between all partners
c) Equal share of profits and losses
d) Partnership agreement is for some lawful business activity.
Answer. C

Question. Which one of the following is not a right of a partner?
a) Right to inspect the books of the firm
b) Right to take part in the affairs of the company
c) Right to share the profits/losses of the firm
d) Right to receive salary at the end of each month.
Answer. D

Question. The relation of partner with the firm is that of:
a) An owner
b) An agent
c) An owner and agent both
d) A manager.
Answer. C

Question. Pick the odd one out:
a) Rent to a partner
b) Manager’s commission
c) Interest on partner’s loan
d) Interest on partner’s capital.
Answer. D

Question. Can a partner be exempted to share the losses of the firm?
a) Yes
b) No
c) Yes, if partnership deed provides so
d) Never.
Answer. C

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. 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. What is the minimum number of partners in a partnership firm?
a) 50
b) 100
c) 2
d) None of the above.
Answer. C

Question. Current accounts of partners are maintained under which method?
a) Fluctuating Capital method
b) Fixed Capital method
c) Both of the above
d) None of the above. 
Answer. B

Question. Limited Liability Partnerships came into existence in India after the enactment of:
a) Indian Partnership Act, 1932
b) Limited Liability Partnership Act, 1932
c) Limited Liability partnership Act, 2008
d) Indian Companies Act, 2013.
Answer. C

CBSE Class 12 Accountancy Chapter 2 Fundamentals Partnership CCT Based MCQs

Question. A and B are partners sharing profits and losses equally. They admitted C as a partner with an equal share giving him a guarantee of minimum Rs.50,000 profit p.a. The profit for the year after C’s admission was Rs.1,20,000. What will be the net amount that will be credited to A’s Capital A/c?
a) Rs.50,000
b) Rs.40,000
c) Rs.35,000
d) Rs.80,000.
Answer. C

Question. If a partner withdraws an equal amount in the beginning of each month for a period of 10 months, what will be the average period for calculation of Interest on Drawings?
a) 6.5 months
b) 7.5 months
c) 6 months
d) 5.5 months.
Answer. D

Question. X and Y are partners sharing profits and losses in the ratio of 3:2 with capitals Rs.5,00,000 each. According to the partnership deed, interest on capital is allowed @ 10% p.a. The profit for the year is Rs. 50,000. What amount will be credited to X and Y in such a condition?
a) Rs.50,000 to A and B each
b) Rs.25,000 to A and B each
c) Rs.30,000 to A and Rs.20,000 to B
d) None of the above.
Answer. B

Question. Manager is entitled to a commission of 10% of the net profits after charging such commission. The net profit for the year is Rs.1,32,000. What will be the amount of the manager's commission?
a) Rs.13,200
b) Rs.12,000
c) Rs.10,000
d) None of the above.
Answer. B

Question. P and Q are partners sharing profits and losses in the ratio of 2:1 with capitals Rs.1,00,000 and Rs.80,000 respectively. The interest on capital has been provided to them @ 8% instead of 10%. In the rectifying adjustment entry, Q will be:
a) Debited by Rs.400
b) Credited by Rs.400
c) Debited by Rs.1600
d) Credited by Rs.1600.
Answer. B

Question. Akhil and Ravi are partners sharing profits and losses in the ratio of 7:3 with capitals of Rs.8,00,000 and Rs.6,00,000 respectively. According to partnership deed interest on capital is to be provided @ 8% p.a. and is to be treated as a charge. Profit for the year is Rs.80,000. Choose the correct option:
a) A will be credited by Rs. 64,000 and B will be credited by Rs. 48,000.
b) A will be credited by Rs. 56,000 and B will be credited by Rs. 24,000.
c) A will be credited by Rs. 22,400 and B will be credited by Rs. 9,600.
d) A will be credited by Rs. 41,600 and B will be credited by Rs. 38,400.
Answer. D

Question. X, Y and Z are partners sharing profits and losses equally. Their capitals on March 31, 2021 are
Rs.80,000; Rs.60,000; 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; Y- 60,000; Z- Rs.40,000
b) X- Rs.20,000; Y- 15,000; Z- Rs.10,000
c) X- Rs.1,00,000; Y- 75,000; Z- Rs.50,000
d) Equal.
Answer. B

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 amounted to Rs.8,250. Drawings of B were:
a) Rs.12,000 p.m.
b) Rs.10,000 p.m.
c) Rs.9,000 p.m.
d) Rs.8,000 p.m.
Answer. B

Question. Mohit and Rohit were partners in a firm with capitals of Rs.80,000 and Rs.40,000 respectively. The firm earned a profit of Rs.30,000 during the year. Mohit's share in the profit will be:
a) Rs 20000
b) Rs 15000
c) Rs 10000
d) Rs 18000.
Answer. B

Question. R and S are partners sharing profits in the ratio of 2:1. S has advanced a loan of Rs.1,00,000 to the firm on 1st October, 2020. The net profit earned by the firm for the year ending 31st March, 2021 is Rs. 90,000. What amount will be credited to S’s capital account? a) Rs.60,000
b) Rs.30,000
c) Rs.29,000
d) Rs.32,000. 
Answer. C

CBSE Class 12 Accountancy Chapter 2 Fundamentals Partnership Match the Following Based MCQs

Question.
I Interest on Capital                   A Cr. Side of Profit and Loss Appropriation A/c
II Interest on Drawings              B Dr. side of Profit and Loss Appropriation A/c
III Interest on Partner’s Loan    C Dr. side of Profit and Loss A/c
a) I-A; II-B; III-C
b) I-B; II-A; III-C
c) I-C; II-B; III-A
d) I-B; II-C; III-A
Answer. B

Question.
I Rent paid to a partner        A Charge against profits
II Salary paid to a partner    B Appropriations out of profits.
III Partner’s Commission
a) I-A; II-B; III-B
b) I-A; II-A; III-B
c) I-A; II-B; III-A
d) I-B; II-A; III-B
Answer. A

Question.
I Maximum number of partners    A 6% p.a.
II Partnership Deed                     B 50
III Interest on partner’s loan        C Written agreement
a) I-A; II-B; III-C
b) I-B; II-A; III-C
c) I-C; II-B; III-A
d) I-B; II-C; III-A
Answer. D

Question.
I Drawings in the beginning of each quarter     A 4.5
II Drawings in the beginning of each month     B 6.5
III Drawings in the end of each quarter            C 7.5
a) I-A; II-B; III-C
b) I-B; II-A; III-C
c) I-C; II-B; III-A
d) I-B; II-C; III-A
Answer. C

Question.
I One who takes part in business activities                 A Dormant partner
II One who does not take part in business activities    B Nominal partner
III One who lends his name to a partnership firm       C Active partner
but actually is not a partner of the firm.
a) I-A; II-B; III-C
b) I-B; II-A; III-C
c) I-C; II-B; III-A
d) I-C; II-A; III-B
Answer. D

CBSE Class 12 Accountancy Chapter 2 Fundamentals Partnership Case Study Based Questions

Read the following information carefully and answer the questions that follow:

X and Y are partners in 3:2. Their capital balances as on 1st April 2020 amounting to Rs.2,00,000 each. On 1st February, 2021, X contributed an additional capital of Rs.1,00,000. Following are the terms of deed:
a) Interest on capital @ 6% per annum
b) Interest on drawings @ 8% per annum
c) Salary to X Rs.1500 per month
d) Commission to Y @10% on net profit after charging interest on capital, salary and his commission.
Drawings of the partners were Rs.20,000 and Rs.30,000 respectively during the year. Net profit earned by the firm was Rs.2,08,000.
Choose the correct option based on the above information:

Question. What is the amount of Interest on capitals of X and Y:
a) Rs.12,000 each
b) Rs.12,000 to X and Rs. Rs.13,000 to Y
c) Rs.13,000 to X and Rs.12,000 to Y
d) None of the above.
Answer. C

Question. What is the amount of interest on drawings of X and Y:
a) Rs. 1200 and Rs. 1800 respectively
b) Rs. 800 and Rs. 1200 respectively
c) Rs. 1200 and Rs. 800 respectively
d) Rs. 1600 Rs. 2400 respectively
Answer. B

Question. What is the amount of commission payable to Y?
a) Rs. 15000
b) Rs. 16500
c) Rs. 20800
d) None of these
Answer. A

Question. What is X's share in the net divisible profit?
a) Rs. 124400
b) Rs. 83600
c) Rs. 91200
d) Rs. 60800
Answer. C

Question. What will be the closing capital of X after all adjustments?
a) Rs. 422200
b) Rs. 401400
c) Rs. 300000
d) Rs. 423000
Answer. B

Read the following information carefully and answer the questions that follow:

A, B and C were partners sharing profits in the ratio of 1:2:3. Their fixed capitals on 1st April, 2020 were: A Rs.3,00,000; B Rs.4,50,000 and C Rs.10,00,000. Their partnership deed provided the following:
i. A provides his personal office to the firm for business use charging yearly rent of Rs.1,50,000.
ii. Interest on capitals @8% p.a. and interest on drawings @ 10% p.a.
iii. A was allowed a salary @ 10,000 per month.
iv. B was allowed a commission of 10% of net profit as shown by Profit and Loss account, after charging such commission.
v. C was guaranteed a profit of Rs.3,00,000 after making all adjustments.
The net profit for the year ended 31st march, 2021 was Rs.10,30,000 before making above adjustments.
You are informed that A has withdrawn Rs.5,000 in the beginning of each month, B has withdrawn
Rs.5,000 at the end of each month and C has withdrawn Rs. 24,000 in the beginning of each quarter.

Choose the correct option based on the above information:

Question. A’s rent will be shown in:
a) Profit and loss account
b) Profit and Loss Appropriation account
c) A’s Capital account
d) None of the above.
Answer. A

Question. Net profit for the year is:
a) Rs.10,30,000
b) Rs.11,80,000
c) Rs.7,30,000
d) Rs.8,80,000
Answer. D

Question. What will be the divisible profit?
a) Rs.5,56,000
b) Rs.5,50,000
c) Rs.5,52,000
d) Rs.5,53,000.
Answer. B

Question. What will be the total interest in drawings?
a) Rs.24,000
b) Rs.12,000
c) Rs.36,000
d) 48,000.
Answer. C

Question. What will be the commission of B?
a) Rs.8,00,000
b) Rs.96,000
c) Rs.80,000
d) Rs.72,000.
Answer. C

CBSE Class 12 Accountancy Chapter 2 Fundamentals Partnership Assertion-Reasoning Based questions

Question. Assertion (A): In the absence of Partnership deed profits and losses are divided equally among the partners.
Reason(R): This rule is applicable according to Indian partnership Act, 1932.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, bur (R) is false
d) (A) is false, but (R) is true.
Answer. A

Question. Assertion (A): Personal properties of a partner may also be used to pay off the firm’s debts.
Reason(R): All partners have limited liability in the firm.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is fals
d) (A) is false, but (R) is true.
Answer. C

Question. Assertion (A): Partnership firm is a form of organisation where two or more persons carry on business activity on the basis of agreement among them.
Reason(R): The profit or loss arising from the partnership business is shared by the partners in the agreed ratio.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. B

Question. Assertion (A): Maximum number of partners in a partnership firm is 50.
Reason(R): Maximum number of partners in a partnership firm is prescribed in Companies Act, 2013.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. C

Question. Assertion (A): A partnership deed covers all matters relating to mutual relationship among the partners.
Reason(R): But in the absence of partnership deed, provisions of the Indian partnership Act, 1932 shall apply for accounting purposes.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. B

Question. Assertion (A): Rent to partner is not shown in Profit and Loss Appropriation Account.
Reason(R): Rent to a partner is a charge against profit..
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. A

Question. Assertion (A): Interest on Partner’s capital may be shown in Profit and Loss Account.
Reason(R): If Partners treat interest on capital as a charge.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. A

Question. Assertion (A): Rent payable to partner is credited to Partner’s Capital account.
Reason(R): Rent is payable to partner for letting the firm use his personal property for business.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. D

Question. Assertion (A): For calculating Interest on Drawings, product method is used.
Reason(R): Partners withdraw different amounts of money at different intervals of time.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. A

Question. Assertion (A): Guarantee of minimum profit may be given to a partner.
Reason(R): It is compulsory as per Indian Partnership Act, 1932.
a) Both (A) and (R) are true and (R) is the correct explanation of (A)
b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true.
Answer. C

Please click on below link to download CBSE Class 12 Accountancy Fundamentals Partnership Worksheet Set A