Table of Contents
Fundamentals of partnership MCQs and Answer
Fundamentals of partnership MCQs and Answer Question 1 to 10
1. Partnership Agreement can be:
(A) Oral
(B) Written
(C) Oral or Written
D) None of these
Answer- Oral or Written
2. The interest on Partner’s Capital Accounts is to be credited to….
(A). Profit and Loss A/c
(B) Interest A/c
C) Partner’s Capital A/c
(D) None of these
Answer- Partner’s Capital A/c
3. In the absence or of any Partnership Agreement, the profits or losses of the firm are divided
(A) In Capital Ratio
(B). In Equal Ratio
(C) In any of these two ratios
(D) None of these
Answer- In Equal Ratio
4. In the absence of partnership deed, the partner will be allowed interest on the
amount advanced to the firm by him at the rate of ….
(A) 6%
(B) 6% p.a.
(C) 12%
(D) None of these
Answer- 6% p.a.
5. In partnership firm, profits and losses are shared—-
(A) Equally
(B) In the ratio of capitals
(C) As per Agreement
(D) None of these
Answer- As per Agreement
6. Which of the following is not the feature of partnership—-
(A) Agreement
(B) Sharing of Profit
(C) Limited Liability
(D) Two or more than two persons
Answer- Limited Liability
7. Profit and Loss Appropriation Account is prepared to —-
(A) Creat Reserve Fund
(B) Find out Net Profit
(C) Find out Divisible Profit
(D) None of these
Answer- Find out Divisible Profit
8. In an ordinary partnership, minimum number of partners are—–
(A) 2
(B) 4
(C) 7
(D) 50
Answer- 2
9. Which of the following is an appropriation of profit—-
(A) Interest on Loan
(B) Interest on Partner’s Capital
(C) Salary to Manager
(D) Rent
Answer- Interest on Partner’s Capital
10. When time of withdrawls are not mentioned, interest on drawings is charged
for…….months.
(A) 4
(B) 6
(C) 8
(D) 12
Answer-6
Fundamentals of partnership MCQs and Answer Question 11 to 20
Quiz Questions and Answer
Also read : Golden Rules Of Accounting
11. When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings for—
(A) 6 1/2 or 6.5 months
(B) 6 months
(C) 5 1/2 or 5.5 months
(D) 1 month
Answer- 5 1/2 or 5.5 months
12. For the firm, interest on drawing is a ….
(A) Gain
(B) Expense
(C) Loss
(D) None of these
Answer- Gain
13. In the absence of partnership deed, partners, are not entitled to receive
(A) Salaries
(B) Commission
(C) Interest on Capital
D) All of these
Answer-All of these
14. If a fixed amount is withdrawn on the first day of every quarter, the interest on total drawings will be calculated for—
(A) For 6 months
(B) For 6.5 months
(C) For 5.5 months
(D) For 7.5 Months
Answer-For 7.5 Months
15. Ajay and Vijay are partners with the capital of Rs. 25,000 and Rs.15,000 respectively. Interest payable on capital is 10% p.a. Find the interest on capital for both the partners when the profits earned by the firms isRs. 2, 400 before interest on capital.
(A) Rs. 2,500 and 1,500
(B) Rs.1,500 and 900
(C) Rs.1,200 and 1,200
(D) None of these
Answer-Rs.1,500 and 900
Note: The available profit is 2,400 whereas the interest due on capitals is 4,000 (2,500 + 1,500). Since the profit is less than the interest, the available profit will be distributed in the ratio of interest i.e., 2,500: 1,500 or 5: 3.
2,400X5/8=1,500
2,400X3/8=900
16. Features of a partnership are —
(A) Two or more persons
(B) Sharing profit and losses in the agreed ratio
(C) Business carried on by all or any of them acting for all
(D) All of the above
Answer-All of the above
17. What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?
(A) 7 months
(B) 6 months
(C) 5 months
(D) 6.5 months
Answer-6.5 months
18. What balance does a partner’s current account has?
(A) Debit balance
(B) Credit balance
(C) A or B
(D) None of these
Answer-A or B
19. A draws 1,000 per month on the last day of every month. If the rate of interest on drawing 5 % p.a. then the total interest on drawings will be ……
(A) Rs. 275
(B) Rs.250
(C) Rs.300
(D) None of these
Answer-275
Note: Average Period= Time left after first Drawing+Time Left after Last Drawing/2
11+0/2= 5.5 Months
Interest On Drawing= Total amount of drawing X Rate of Interest X Average Period/100X12
12,000X5X5.5/100X12
20. In the absence of an agreement, partners are entitled to ——
(A) Salary
(B) Profit share in capital ratio
(C) Interest an loan and advances @ 6% p.a.
(D) Commission
Answer-Interest an loan and advances @ 6% p.a.
Fundamentals of partnership MCQs and Answer Question 21 to 30
Quiz Questions and Answer
21. Fluctuating capital account is credited with—
(A) Interest on capital
(B)Share of Profit
(C) Remuneration of partners
(D) All of these
Answer- All of these
22. In the absence of an agreement between partners,. the interest to be allowed on partners; capital …..
(A) 8%
(B) 6 %
(C) 9 %
(D) None of these
Answer-None of these
23.Partner’s current account are opened when their Capital Accounts are…..
(A) Fixed
(B) Fixed and fluctuating both
(C) Fluctuating
(D) None of these
Answer- Fixed
24. In the absence of an agreement to the contrary, the partners are…..
(A) Entitled for 12% 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 capitals at the bank rate, only when there are profits
(D) Not entitled for any interest on their capitals.
Answer- Not entitled for any interest on their capitals.
25. Interest on partner’s drawings under Fluctuating Capital Accounts is debited to…..
(A) Partner’s capital Accounts
(B) Profit and loss accounts
(C) Drawings Accounts
(D) None of these
Answer- Partner’s capital Accounts
26. Partnership Deed is also called…..
(A) Prospectus
(B) Articles of Association
(C) Principles of Partnership
(D) Articles of Partnership
Answer- Articles of Partnership
27. Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm?
(A) Interest on Capital
(B) Salary to Partner
(C) Transfer to Reserve
(d) Commission to partners
(E) All of the above
Answer- All of the above
28. Features or Characteristics of Partnership….
(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- All of the above.
29.Forming a Partnership Deed is …..
(A) Mandatory
(B) Mandatory in Writing
(c) Optional
(d) None of the Above
Answer- Optional
30.Partners capital account is …..
(A) Personal account
(B) Real Account
(c) Nominal Account
(d) Assets Account
Answer- Personal account
Fundamentals of partnership MCQs and Answer
Quiz Questions and Answer
Fundamentals of partnership MCQs and Answer
Dear sir/Madam,
This is to inform you that there is some discrepancy in question on 15 and 19. Please review them.
Thanking you,
Best regards
15. Ajay and Vijay are partners with the capital of Rs. 25,000 and Rs.15,000 respectively. Interest payable on capital is 10% p.a. Find the interest on capital for both the partners when the profits earned by the firms isRs. 2, 400 before interest on capital.
(A) Rs. 2,500 and 1,500
(B) Rs.1,500 and 900
(C) Rs.1,200 and 1,200
(D) None of these
Answer-Rs.1,500 and 900
Note: The available profit is 2,400 whereas the interest due on capitals is 4,000 (2,500 + 1,500). Since the profit is less than the interest, the available profit will be distributed in the ratio of interest i.e., 2,500: 1,500 or 5: 3.
2,400X5/8=1,500
2,400X3/8=900
A draws 1,000 per month on the last day of every month. If the rate of interest on drawing 5 % p.a. then the total interest on drawings will be ……
(A) Rs. 275
(B) Rs.250
(C) Rs.300
(D) None of these
Answer-275
Note: Average Period= Time left after the first Drawing+Time Left after the Last Drawing/2
11+0/2= 5.5 Months
Interest On Drawing= Total amount of drawing X Rate of Interest X Average Period/100X12
12,000X5X5.5/100X12
Thanks sir , now the concept is clear