ISC ACCOUNTS Fundamental of partnership MCQs with solved answers

ISC ACCOUNTS Fundamental of partnership MCQs with solved answers-

Question 1

Pick the odd one out from the following:

(a) Interest allowed on a loan taken by the firm from a partner

(b) Rent due to a partner of the firm for using his premises for business purposes

(c) Salary due to the manager of the firm

(d)  Salary due to a partner of the firm

Question 2

Pick the odd one out from the following:

(a) Interest on Partner’s capital

(b) Partner’s Commission

(c) Salary due to the manager of the firm

(d) Salary due to a partner of the firm

Question 3

Anil, Ravi and Bela are partners in a firm sharing profits and losses in the ratio of 6:4:1. Anil guaranteed a minimum profit of ₹ 16,000 to Bela. The trading profit of the firm for the year ending 31st March, 2021, was ₹ 1,32,000. Anil share in the profits of the firm will be:

(a)₹ 72,000

(b)₹ 68,000

(c)₹ 69,600

(d)  ₹ 16,000

Question 4

Sahil, Mohit, and Balu are partners in a firm sharing profits and losses in the ratio of 2:2:1. The balances of their fixed capital accounts on 1st April, 2020, were: Sahil ₹ 1,00,000, Mohit ₹ 1,00,000 and Balu ₹ 80,000 After the accounts for the year ended 31st March, 2021, were prepared, it was discovered that interest on capital @ 10% per annum had been credited to the partners’ current accounts even though it was not provided in the partnership deed. The error in Sahil’s capital account / current account will be rectified by:

(a)Debiting his capital account with ₹ 1,200

(b)Crediting his current account with ₹ 1,200

(c)Debiting his current account with ₹ 1,200

(d) Crediting his capital account with ₹ 1,200

Question 5

Mohit, Rachit and  Mayank  started a partnership business on 1st April, 2019. Their capital contributions were ₹4,00,000 , ₹3,00,000 and ₹2,00,000 respectively. Their Drawings are  ₹50,000, ₹ 40,000 and ₹30,000 respectively. Interest charged on Drawings @ 6 % p.a. Interest on Drawings charged from Mohit will be:

(a)₹ 1,500

(b) ₹ 2,400

(c) ₹ 1,800

(d) ₹ 3,000

Note: Answers are ginen below at the end.

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ISC ACCOUNTS Fundamental of partnership MCQs with solved answers-

Question 6

Neelesh is a partner in a firm, his withdrawls are as follows:-  

May 1st 2019  ₹10,000

July 1st 2019  ₹ 12,000

October 1st 2019  ₹ 15,000

November 30th 2019  ₹ 18,000

Interest charged on Drawings @ 9 % p.a. Interest on Drawing will be  charged from Neelesh. Books are closed every year 31st March .

(a) ₹ 2,850

(b) ₹ 2,400

(c) ₹ 2,800

(d) ₹ 3,600

Question 7

Rachit withdrew ₹16,000 per month from the firm for his personal use during the year ending March  31st , 2020. interest is charged at the rate of 3% per annum. Interest on drawings will be charged:

(i) When money is withdrawn at the beginning of the Month

(a) ₹ 3,120

(b) ₹ 2,640

(c) ₹ 2,880

(d) None of these

(ii) When money is withdrawn at the end of the Month

(a) ₹ 3,150

(b) ₹ 2,640

(c) ₹ 2,880

(d) None of these

(iii) When money is withdrawn in the middle of the month

(a) ₹ 3,150

(b) ₹ 2,640

(c) ₹ 2,880

(d) None of these

Question 8

Krishana is a partner in a firm. during the year ending March 31, 2020, Krishana withdrew ₹ 30,000 quarterly .If interest is to be charged on drawings @ 6% per annum, calculate the amount of interest to be charged at the end of the year. Interest on drawings will be charged:

(i) When money is withdrawn at the at Beginning of each quarter-

(a) ₹ 4,500

(b) ₹2,700

(c) ₹ 3,600

(d) None of these

(ii) When money is withdrawn at the end of each quarter-

(a) ₹ 4,500

(b) ₹2,700

(c) ₹ 3,600

(d) None of these

(iii) When money is withdrawn at the middle of each quarter-

(a) ₹ 4,500

(b) ₹2,700

(c) ₹ 3,600

(d) None of these

Question 9

X, Y and Z are partners sharing profits in the ratio of 2 : 2 : 1. Their capitals on 1st April 2019 were ₹ 5,00,000 ₹ 3,00,000 and ₹ 2,00,000 respectively. After closing the accounts on 31st March 2020 it was found out that according to the partnership agreement interest on capital at 10% p.a. was not provided before distribution of profit.

It was agreed among the partners to make the adjustment entry at the begining of the next year rather than to alter the Balance Sheet.

X capital account will be debited/Credited when capitals are not fixed.

(a) ₹ 10,000 (Debited)

(b) ₹ 10,000 (Credited)

(c) ₹ 8,000

(d) None of these

Question 10

X,Y, and Z are partners sharing profits in the ratio of 5 : 3 : 2 Their capitals on 1st April 2019 were ₹ 4,00,000 ₹ 3,00,000 and ₹ 2,00,000 respectively.During the year their drawings were ₹ 20,000, ₹ 15,000 and ₹ 10,000 respectively. After closing the accounts on 31st March 2020 it was found out that according to the partnership agreement interest on drawing ₹ 1,000, ₹ 750 and ₹ 250 respectively was not charged, before distribution of profit. It was agreed among the partners to make the adjustment entry at the beginning of the next year rather than to alter the Balance Sheet.  Journal entry will be passed-

(a) Y’s Capital A/c   Dr  150

To Z’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

(b) x’s Capital A/c   Dr  150

To y’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

(c) Y’s Capital A/c   Dr  150

To X’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

(d) None of these

Note: Answers are ginen below at the end.

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ISC ACCOUNTS Fundamental of partnership MCQs with solved answers-

Answer – Question Number 1 To 10

1. Answer-(d)  Salary due to a partner of the firm

2. Answer- (c) Salary due to the manager of the firm

3. Answer- (b) ₹ 68,000

4. Answer- (b) Crediting his current account with ₹ 1,200

5. Answer- (a)₹ 1,500

6. Answer-  (a) ₹ 2,850

7. Answer- 

(i) (a) ₹ 3,120

(ii) (b) ₹ 2,640

(iii) (c) ₹ 2,880

8. Answer- 

(i) (a) ₹ 4,500

(ii) (b) ₹ 2,700

(iii) (c) ₹ 3,600

9. Answer- 

(b) ₹ 10,000 (Credited)

10. Answer- 

(a) Y’s Capital A/c   Dr  150

To Z’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

ISC ACCOUNTS Fundamental of partnership MCQs with solved answers-

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