CBSE Class 12 Accountancy Accounting For Partnership Firms Worksheet Set B

MCQ Questions for NCERT Class 12 Accountancy Accounting For Partnership

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. X, Y and Z are partners in a firm, sharing profits and losses in the ratio of 3:2:1. Before Y’s salary of Rs. 20,000, firm’s profit is Rs. 1,10,000. How much in total Y will receive from the firm?
(a) Rs. 50,000
(b) Rs. 55,000
(c) Rs. 36,067
(d) Rs. 36,667

Answer : A

Question. Nishant and Niharika are partners in a firm, sharing profits and losses in the ratio of 3:2. Before profit distribution, Nishant is entitled to 4% of the net profit (after charging such commission). Before charging commission, firm’s profit was Rs. 52,000. Niharika’s share in profit will be ___________.
(a) Rs.2,080
(b) Rs. 25,000
(c) Rs. 20,000
(d) Rs. 26,000

Answer : C

Question. Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm?
(a) Interest on Drawings
(b) Salary to the partner
(c) Interest on Capital
(d) All of the above

Answer : D

Question. According to Profit and Loss Account, the net profit for the year is Rs. 3,00,000. The total interest on Partners’ Capital is Rs. 30,000 and partners’ salaries Rs. 20,000. The net profit as per Profit and Loss Appropriation Account will be :
(a) Rs. 3,50,000
(b) Rs. 2,90,000
(c) Rs. 2,50,000
(d) Rs. 3,10,000

Answer : C

Question. Sagrika and Niharika are partners are partners in a firm. Sagrika’s capital is Rs. 2,00,000 and Niharika’s capital is Rs. 3,00,000. Firm’s profit is Rs. 1,00,000. Niharika’s share in profit will be:
(a) Rs. 50,000
(b) Rs. 35,000
(c) Rs. 40,000
(d) Rs. 46,000

Answer : A

Question. If a partner withdraws fixed amount in the beginning of every month, how much interest is charged on the whole amount?
(a) 6.5 months
(b) 6 months
(c) 5.5 months
(d) None of the above

Answer : A

Question. Ram and Sohan are partners in a firm, having no partnership deed. Sohan has given a loan of Rs. 5,00,000 to the firm. At the end of the year, loss was incurred in the business. How much interest will be paid to Sohan by the firm?
(a) @5% p.a.
(b) @5% p.m.
(c) @6% p.a.
(d) No interest is to be charged.

Answer : C

Question. J, K and L are partners in 5:3:2. J is guaranteed that his share of profit will not be less than Rs. 50,000. Any deficiency will be borne by K and L in the ratio of 3:1. Firm’s profit was Rs. 90,000. Share of K(in Rs.) will be –
(a) 27,000
(b) 22,000
(c) 23,250
(d) 16,750

Answer : C

Question. A and B are partners in a firm having no partnership deed. How much amount of interest on capital will be allowed to them, if they have invested Rs. 5,00,000 and Rs. 4,00,000 respectively into the business?
(a) 6% p.a.
(b) 10% p.a.
(c) No interest on capital
(d) None of these

Answer : C

Question. X, Y and Z are equal partners with fixed capitals of Rs. 5 lacs, Rs. 3 lacs and Rs. 1 lac respectively. After closing the accounts for the year ended 31st March 2021, it was discovered that interest on capitals was provided at the rate of 6% instead of 5% p.a. In the adjusting entry,
(a) Debit X and Credit Z by Rs. 2000
(b) Credit X and debit Z by Rs. 2000
(c) Debit X and credit Y by Rs. 2000
(d) Credit X and debit Y by Rs. 2000

Answer : A

Question. X is a manager in a firm, who is entitled to get a commission of 10% of the net profit after charging such commission. The net profit of the firm before charging any commission was Rs. 5,50,000. Calculate the amount of commission payable to X.
(a) Rs. 55,000
(b) Rs. 50,000
(c) Rs. 45,000
(d) None of these

Answer : B

Question. If the date of drawing of the partners is not given in the question, interest is charged for how much time?
(a) 2 months
(b) 3 months
(c) 8 months
(d) 6 months

Answer : D

Question. Rohan is a partner in a firm. He withdrew Rs. 5,000 per month on the last day of every month during the year ended 31st March 2021. If interest on drawings is charged at the rate of 8% p.a., the interest charged(in Rs) will be
(a) 2200
(b) 2400
(c) 2600
(d) 2800

Answer : A

Question. Radha is a partner in a firm. She withdrew Rs. 10,000 in the beginning of each quarter during the year ended 31st March 2021. Interest on her drawings(in Rs.) at the rate of 9% p.a. will be –
(a) 2250
(b) 1800
(c) 1350
(d) None of these

Answer : A

Question. When a partner is given guarantee by the 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. On 1st April, 2020, X’s capital was Rs. 3 lacs. On 1st Jan 2021, he introduces additional capital of Rs. 2 lacs. Interest on capital at the rate of 5% p.a. on 31st March 2021 will be –
(a) Rs. 15,000
(b) Rs. 16,250
(c) Rs. 17,500
(d) None of these

Answer : C

Question. X and Y are partners in a firm sharing profits and losses in the ratio of 2:1. Their capitals are Rs. 5 lacs and Rs. 3 lacs respectively. Interest on capital is allowed at the rate of 7% p.a. Firm earned a profit of Rs. 80,000 for the year ended 31st March 2021. Interest on capital will be –
(a) X – 35,000 , Y – 21,000
(b) X – 17,500 , Y – 10,500
(c) X – 25,000 , Y – 18,000
(d) No interest on capital will be allowed

Answer : A

Question. X, Y and Z are partners in the ratio of 2:2:1. X has given to Z a guarantee of minimum Rs. 20,000 profit. For the year ending 31st March 2021, firm’s profit is Rs. 80,000. X’s share in profit(in Rs.) will be –
(a) 28,000
(b) 32,000
(c) 36,000
(d) None of these

Answer : A

Question. X, Y, Z are partners in a firm sharing profits and losses in the ratio of 3:2:1, having capital balances of Rs. 1,00,000, Rs. 80,000 and Rs. 60,000 respectively. For the year 2021, they omitted interest on capital at the rate of 6% p.a. What will be the adjusting journal entry?
(a) Debit X Rs. 1200, Credit Y by Rs. 1200
(b) Debit X Rs. 1200, Credit Z by Rs. 1200
(c) Debit Z Rs. 1200, Credit X by Rs. 1200
(d) No adjustment entry to be passed

Answer : B

1 MARK Questions

Question : What do you understand by ‘Partner’, ‘firm’ and ‘firm’s name’?
Answer : The persons who have entered into a Partnership with one another are individually called ‘Partners’ and collectively ‘a firm’ and the name under which the business carried is called ‘the firm’s name’.

Question : What is the minimum and maximum number of partners in all partnership?
Answer : Minimum 2 and Maxi 20 (In banking 10) 

Question : What is the status of partnership from an accounting viewpoint?
Answer : From an accounting viewpoint, partnership is a separate business entity. From the legal viewpoint, however, a Partnership , is not separate from the owners.

Question : In the absence of Partnership deed , how are mutual relations of partners governed?
Answer : Through Partnership Act, 1932.

Question : Give two circumstances in which the fixed capital of partners may change.
Answer : (i) When additional capital is introduced by the partners.
(ii) When a part of the capital is permanently withdrawn by the Partners.

Question : List the items that may appear on the debit side and credit side of a Partners’ Fluctuating capital account.
Answer : On debit side: Drawing, interest on drawing, share of loss, closing credit balance of capital. On credit side: Opening credit balance of capital, additional capital introduced, share of profit, interest on capital, salary to a Partner, commission to a Partner.

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