CBSE Class 12 Accountancy Accounting for Partnership Basic Concepts Advanced Questions

1. Select the Best Alternate Answer.

i) Features or Characteristics of Partnership

Question: Features of a partnership firm are :
a) Two or more persons are carrying common business under an agreement.
b) They are sharing profits and losses in the fixed ratio.
c) Business is carried by all or any of them acting tor all as an agent.
d) All of the above.

Answer: d

Question: X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was dispute between the partners. .Profit before interest on partner’s capital was ₹6,000 and Y determined interest @24% p.a. on his loan of ₹80,000. There was no agreement on this point. Calculate the amount payable to X, Y, and Z respectively.
a) ₹2,000 to each partner.
b) Loss of ₹4,400 for X and Z; Twill take ₹14,800.
c) ₹400 for A, ₹5,200 for Land ₹400 for Z.
d) None of the above.

Answer: c

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: Charulata is a partner in a firm. She withdrew ₹10,000 in each quarter during the year ended 31st March, 2019. Interest on her drawings @ 9% p.a. will be:
a) ₹1,350
b) ₹2,250
c) ₹900
d) ₹1,800

Answer: d

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: 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: 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: 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: 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: Which one of the following is NOT an essential feature of a partnership
a) There must be an agreement
b) There must be a business
c) The business must be carried on for profits
d) The business must be carried on by all the partners

Answer: d

Question: A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is ₹1,00,000. C has not invested any amount as capital but he alone manages the whole business. C wants RS30,000 p.a. as salary. Firm earned a profit of ₹1,50,000. How much will be each partner’s share of profit:
a) A ₹60,000; B ₹60,000; C ₹Nil
b) A ₹90,000; B ₹30,000; C ₹Nil
c) A ₹40,000; B ₹40,000 and C ₹40,000
d) A ₹50,000; B ₹50,000 and C ₹50,000.

Answer: d

Question: In the absence of express agreement, interest @ 6% p.a. is provided :
a) On opening balance of partner’s capital accounts
b) On closing balance of partner’s capital accounts
c) On loan given by partners to the firm
d) On opening balance of partner’s current accounts

Answer: c

Question: When is the Partnership Act enforced
a) when there is no partnership deed
b) where there is a partnership deed but there are differences of opinion between the partners
c) when capital contribution by the partners varies
d) when the partner’s salary and interest on capital are not incorporated in the partnership deed

Answer: a

Question: Where will you record interest on drawings :
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: On 1st January 2019, a partner advanced a loan of ₹1,00,000 to the firm. In the absence of agreement, interest on loan on 31st March 2019 will be :
a) Nil
b) ₹1,500
c) ₹3,000
d) ₹6,000

Answer: b

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 1/2
c) 5 1/2
d) 12

Answer: a

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