MCQ of Accounting for Partnership Firm Fundamentals | Accountancy |

MCQ of Accounting for Partnership Firm, Fundamentals, Accountancy, Class 12 

 

Q1. Main features of partnership do not include
a. Result of an agreement
b. Separate existence from its members
c. Sharing of profits
d. Two or more persons
Answer : Separate existence from its members

Q2. Every partner has the right to share profits or losses with other partners in the …… ratio.
a. Equal
b. Capital
c. Agreed
d. Loss
Answer : Agreed

Q3. LLP stands for
a. Legal Liability Partnership
b. Liability Legal Partnership
c. Legal Limited Partnership
d. Limited Liability Partnership
Answer : Limited Liability Partnership

Q3. Number of minimum and maximum partners in a partnership is 
a. 2 and 49
b. 3 and 50
c. 2 and 50
d. 2 and 100
Answer : 2 and 50

Q4. …… is a written document which contains the term of partnership agreement.
a. Article of memorandum
b. Partnership Deed
c. LLP
d. Journal
Answer : Partnership Deed

Q5. Profit & loss appropriation account is …… account
a. Real
b. Nominal
c. Personal
d. Human
Answer : Nominal

You may also read MCQ of Accounting RatiosMCQ of Change in Profit Sharing Ratio, MCQ of Admission of a Partner, MCQ of Financial Statements of Companies for better score and understanding of Accountancy

Q6. The partner has relationship of….. With the firm :
a. An agent
b. Seller and Buyer
c. An owner and an agent
d. Manager
Answer : An owner and an agent

Q7. …… partners don’t take any part in the conduct of the business but provide capital and share profits and losses in agreed ratio.
a. New
b. Ostensible
c. Retiring
d. Sleeping
Answer : Sleeping

Q8. …… partners do not contribute any capital and without having any interest in the business, lend their name to the business.
a. New
b. Ostensible
c. Retiring
d. Sleeping
Answer: Ostensible

Q9. Ram & Sham are partners sharing profits & losses in ratio of 3:2. Ram being non-working partner contributes Rs. 20,00,000 as his capital & Shyam being a working party, gets a salary of Rs. 8000 per month. As per partnership deed interest is paid @ 8% p.a. & salary is allowed. Profits before providing that for year ending 31st March 2015 were Rs. 80,000. Show the distribution of profits.
Profit divided should be :
a. Ram 40000and Shyam 40000
b. Ram 50000 and Shyam 30000
c. Ram 30000 and Shyam 50000
d. Ram 60000 and Shyam 20000
Answer: Ram 50000 and Shyam 30000

Q10. Calculate interest on drawings of Mr. X @ 10% p.a. if he withdrawn Rs. 1000 per month (i) in the beginning of each Month (ii) In the middle each of month (iii) at end of each month.
Total Amount with withdrawn Rs 12000
a. Rs 400 : Rs 550 : Rs 600
b. Rs. 750 : Rs 700 : Rs 600
c. Rs. 650 : Rs. 600 : Rs 550
d. Rs. 450 : Rs 650 : Rs 600
Answer : Rs. 650 : Rs. 600 : Rs 550

Q11. In the absence of an agreement to the contrary, partners share profits and losses in the
a. Ratio of their capitals at the beginning of the year
b. Ratio of their capitals at the end of the year
c. Ratio of average capital
d. Equal ratio
Answer: Equal ratio

Q12. Partners’ Current Accounts are opened when their capital accounts are
a. Fixed
b. Fixed and Fluctuating both
c. Fluctuating
d. None of these
Answer: Fixed

Q13. The interest on capital accounts of partners under the fluctuating capital account method is credited to
a. Interest Account
b. Profit and Loss Account
c. Partners’ Capital Accounts
d. None of these
Answer: Partners’ Capital Accounts

Q14. In the absence of an agreement to the contrary, the partners are
a. Entitled for 6% interest on their capitals, only when there are profits
b. Entitled for 9% interest on their capitals, only when there are profits
c. Entitled for interest on capital on the bank rate, only when there are profits
d. Not entitled for any interest in their capitals
Answer: Not entitled for any interest in their capitals

Q15. The current account of a partner
a. Will always have a credit balance
b. Will always have a debit balance
c. May have a debit or credit balance
d. Can never have a debit balance
Answer: May have a debit or credit balance

Q16. Interest payable on the capitals of the partners is changed to
a. Profit and Loss Account
b. Profit and Loss Adjustment Account
c. Realisation Account
d. Profit and Loss Appropriation Account
Answer: Profit and Loss Appropriation Account

Q17. Interest on partner’s drawing under a fluctuating capital account is debited to
a. Partner’s Capital Account
b. Profit and Loss Account
c. Drawing Account
d. None of the above
Answer: Partner’s Capital Account

Q18. On March 31, 2017 after the close of accounts, the capitals of Mishika , Harshita and kavya stood in the books of the firm at Rs 4,00,000, Rs 3,00,000 and Rs 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to Rs 1,50,000 and the partner’s drawings had been Mishika : Rs 20,000, Harshita Rs 15,000 and kavya Rs 10,000. Calculate interest on capital.
Their interest on capital should be:
a. 37030 : 26980 : 16600
b. 34000 : 23410 : 14000
c. 37000 : 26500 : 16000
d. 34600 : 24521 : 15600
Answer : 37000 : 26500 : 16000

Q19. Bharam is a partner in a firm. He withdraws Rs 3,000 at the starting of each month for 12 months. The books of the firm closes on March 31 every year. Calculate interest on drawings if the rate of interest is 10% p.a.
a. Rs. 2950
b. Rs. 1950
c. Rs. 1900
d. Rs. 2000
Answer: Rs. 1950

Q 20.Raj and Neeraj are partners in a firm. Their capitals as on April 01, 2017 were Rs 2,50,000 and Rs 1,50,000, respectively. They share profits equally. On July 01, 2017, they decided that their capitals should be Rs 1,00,000 each. The necessary adjustment in the capitals were made by introducing or withdrawing cash by the partners’. Interest on capital is allowed @ 8% p.a. Compute interest on capital for both the partners for the year ending on March 31, 2018.
a. Raj 11000, Neeraj 9000
b. Raj 12000, Neeraj 10000
c. Raj 11500, Neeraj 8000
d. Raj 10500, Neeraj 9000
Answer : Raj 11000, Neeraj 9000

Q21. Amit, Sumit and Samiksha are in partnership sharing profits in the ratio of 3:2:1. Samiksha’ share in profit has been guaranteed by Amit and Sumit to be a minimum sum of Rs 8,000. Profits for the year ended March 31, 2017 was Rs 36,000. Divide profit among the partners.
Profit among Amit , Sumit, Samiksha respectively is :
a. 12000, 12000,  12000
b. 10000, 20000, 6000
c. 20000, 10000, 6000
d. 16800, 11200, 8000
Answer : 16800; 11200; 8000

Q22. Pinki, Deepati and Kaku are partner’s sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than Rs 5,000. Deficiency, if any, would be borne by Pinki and Deepti equally. Profits for the year amounted to Rs 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.
a. 19500 : 15500 : 5000
b. 10000 :  20000 : 10000
c. 15000 : 10000 : 15000
d. 20000 : 10000 : 10000
Answer : 19500 : 15500 : 5000

Q23. Himanshu withdrews Rs 2,500 at the end Month of each month. The Partnership deed provides for charging the interest on drawings @ 12% p.a. Calculate interest on Himanshu’s drawings for the year ending 31st December, 2017.
a. Rs. 1450
b. Rs. 2000
c. Rs. 1340
d. Rs. 1650
Answer: Rs. 1650

Q24. Rishika is a partner in a firm. She withdrew the following amounts during the year ended March 31, 2018.
May 01, 2017 : 12000
July 31, 2017 : 6000
September 30, 2017 : 9000
November 30, 2017 : 12000
January 01, 2018 : 8000
March 31, 2018 : 7000
Interest on drawings is charged @ 9% p.a. Calculate interest on drawings.
a. Rs. 2290
b. Rs. 2200
c. Rs. 2295
d. Rs. 3000
Answer : Rs. 2295

Q25. Rahul, Rohit and Karan started partnership business on April 1, 2016 with capitals of Rs 20,00,000, Rs 18,00,000 and Rs 16,00,000, respectively. The profit for the year ended March 2017 amounted to Rs 1,35,000 and the partner’s drawings had been Rahul Rs 50,000, Rohit Rs 50,000 and Karan Rs 40,000. The profits are distributed among partner’s in the ratio of 3:2:1. Calculate the interest on capital @ 5% p.a.
a. 100000; 80000 ; 70000
b. 100000; 90000 ; 80000
c. 150000; 100000; 90000
d. 150000;90000 ; 80000
Answer : 100000; 90000 ; 80000

Q26. On March 31, 2017, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed balance of Rs 24,000 Rs 18,000 and Rs 12,000, respectively. It was later discovered that interest on capital @ 5% had been omitted. The profit for the year ended March 31, 2017, amounted to Rs 36,000 and the partner’s drawings had been Ram, Rs 3,600; Shyam, Rs 4,500 and Mohan, Rs 2,700. The profit sharing ratio of Ram, Shyam and Mohan was 3:2:1. Calculate interest on capital.
a. Rs. 480; Rs. 525 ; Rs. 435
b. Rs. 345 ; Rs. 456; Rs 430
c. Rs. 450 ; Rs 530 ; Rs 436
d. Rs. 450 ; Rs.450 ; Rs. 560
Answer : Rs. 480; Rs. 525 ; Rs. 435

Q27. Harish is a partner in a firm. He withdrew the following amounts during the year 2017 :
February 01 : 4000
May 01 : 10000
June 30 : 4000
October 31 : 12000
December 31 : 4000
Interest on drawings is to be charged @ 7.5 % p.a.
Calculate the amount of interest to be charged on Harish’s drawings for the year ending December 31, 2017.
a. Rs. 1000
b. Rs. 2050
c. Rs. 1075
d. Rs. 1095
Answer : Rs. 1075

Q28. The agreement of partnership may be
a. Oral
b. Written
c. Both a and b
d. None of these
Answer : Both a and b

Q29. Interest on capital will be paid to the partner if provided for in the partnership deed but only out of
a. Profits
b. Reserve
c. Accumulated profits
d. Goodwill
Answer: Profits

Q30. Goodwill is a/an… asset
a. Tangible
b. Intangible
c. Not an asset
d. None of these
Answer: Intangible

Q31. When only partner’s capital account is maintained all the adjustments are made
a. Partners’ capital Account
b. Partners’ current account
c. Cash account
d. None of these
Answer: Partners’ capital Account

Q32. The persons who have entered into the partnership are individually known as
a. Partners
b. Firm
c. Association
d. None of these
Answer: Partners

Q33. On 1st January 2019, a partner advanced a loan of Rs. 100000 to the firm. In the absence of agreement, interest on loan 31st march 2019 will be
a. Nil
b. Rs. 1500
c. Rs. 3000
d. Rs. 6000
Answer: Rs. 1500

Q34. Intangible assets (goodwill) has been defined in :
a. AS 16
b. AS 20
c. AS 26
d. AS 21
Answer: AS 26

Q35. Charulata is a partner in a firm . She withdrew Rs 10000 in each quarter during the year ended 31st march 2019.Interest on her [email protected] 9% per annum will be :
a. Rs. 1350
b. Rs. 2250
c. Rs. 900
d. Rs. 1800
Answer: Rs. 1800

Q36. 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: 6

Q37. Interest on partner drawing will be debited to
a. Profit & loss account
b. Profit & loss appropriation account
c. Partner current account
d. Interest account
Answer: Partner current account

Q38. Rights, duties and liabilities of each partner is regulated by
a. Any one of all partner
b. New partner
c. Retiring partner
d. Partnership deed
Answer: Partnership deed

Q39. Profit & loss account has
a. Opening balance only
b. Closing balance only
c. Neither opening balance nor closing balance
d. Either opening balance or closing balance
Answer : Neither opening balance nor closing balance

Q40. Manager’s commission is a charge
a. Against the profits
b. As an appropriation of profit
c. Against capital Account of partners
d. Against current account of partners
Answer : Against the profits

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