Fundamentals of partnership MCQs and Answer

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

Fundamentals of partnership Quiz Questions and Answer
Fundamentals of partnership
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

Fundamentals of partnership Quiz Questions and Answer
Fundamentals of partnership
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 

Fundamentals of partnership Quiz Questions and Answer
Fundamentals of partnership
Quiz Questions and Answer

Fundamentals of partnership MCQs and Answer

 

 

4 thoughts on “Fundamentals of partnership MCQs and Answer”

  1. 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

    Reply
    • 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

      Reply
    • 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

      Reply

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