1 . Accounting for Partnership Firms : Fundamentals
1. A charitable dispensary is run by 8 members . A new member wants to join them . The new member is of the opinion that partnership deed must be written while other members refused to do that . They said this is not a partnership . Give reason ( s ) in favour of other members .
( a ) There is no business
( b ) There is no sharing of profits
( c ) There is no motive of profit making
( d ) All of the above
2. A partner withdrew 4,000 per month from 1st July , 2016 , on beginning of every month . Accounts are closed at 31st March , 2017. Calculate interest on drawings while rate of interest is 10 % per annum .
( a ) ₹ 1,600
( b ) 1,800
( c ) ₹ 1,500
( d ) 2,200
3. Which of the following statement ( s ) is / are correct ?
( i ) Personal properties of a partner may also be used to pay off the firm's debts .
( ii ) All partners have limited liability in the firm .
( iii ) Rent is payable to partner for letting the firm use his personal property for business .
( iv ) Guarantee of minimum profit may be given to a partner .
( a ) ( i ) and ( ii )
( b ) ( ii ) and ( iii )
( c ) ( i ) , ( iii ) and ( iv )
( d ) Only ( ii )
4. A and B were partners in a firm . They share their profits in the ratio of 2 : 1 . A withdraws an amount of 2,000 on 1st July , 2021. Journalise it .
( a ) Profit and Loss Appropriation A / c Dr 2,000 To A's Capital A / c
( b ) A's Capital A / c To Profit and Loss A / c
( c ) A's Drawings A / c To Cash / Bank A / c ( d ) A's Capital A / c To A's Drawings A / c Dr Dr 2,000 2,000 Dr 2,000 2,000 2,000 2,000 2,000
5. If partnership deed is silent or has not been formulated , then partners are entitled for...............
(A) salary
( b ) commission
( c ) interest on loan
( d ) profit share in capital ratio
6. Assertion ( A ) In the absence of partnership deed profits and losses are divided equally among the partners .
Reason ( R ) This rule is applicable according to Indian Partnership Act , 1932 .
Alternatives
( a ) Both Assertion ( A ) and Reason ( R ) are true and Reason ( R ) is the correct explanation of Assertion ( A )
( b ) Both Assertion ( A ) and Reason ( R ) are true , but Reason ( R ) is not the correct explanation of Assertion ( A )
( c ) Assertion ( A ) is true , but Reason ( R ) is false
( d ) Assertion ( A ) is false , but Reason ( R ) is true
7. Loan has been given by wife of a partner to the firm . Now partner wants interest @ 6 % per annum as per Partnership Act , 1932 while partnership deed is silent . Solve this issue .
( a ) Provide 6 % per annum interest as Partnership Act says
( b ) Provision of interest on loan @ 6 % per annum of the Partnership Act does not apply
( c ) Provide 10 % interest to solve the issue .
( d ) None of the above
8. The capital balance of a partner at the end of the year ( after adjusting for his drawings 3,500 and his share in the profit 2,300 ) is 12,000 . Interest on capital is payable to him at 5 % per annum . What will be the amount of interest on capital ?
( a ) 660
( b ) 600
( c ) 7540
( d ) None of these
9. When fluctuating capital method is used , which of the following items are shown in debit side of partners ' capital account ?
( a ) Opening debit balance of capital account
( b ) Drawings
( c ) Interest on drawings
( d ) All of these ( i ) Interest on capital ( iii ) Interest on loan from partner ( a ) ( i ) , ( ii ) , ( iii )
10. Which of the following factors help in generation of self - generated goodwill ?
( a ) Hardwork of organisation
( b ) Better quality products
( c ) Better customer services
( d ) All of these
11. Ascertain the correct sequence of deductions of the following items from the profit of the partnership firm .
( i ) Interest on capital
( ii ) Commission paid to a partner
( iii ) Interest on loan from partner
( a ) ( i ) , ( ii ) , ( iii )
( b ) ( ii ) , ( iii ) , ( 1 )
( c ) ( iii ) , ( ii ) , ( i )
( d ) None of these
12. A and B are partners sharing profits in the ratio of 3 : 2. Calculate interest on A's capital if profits for the year are 15,000 and interest on capital to all partners is * 20,000 each .
( a ) 20,000
( b ) ₹ 12,500
( c ) * ( 7,500 ) ( loss )
( d ) 7,500
13. If firm gives guarantee to a partner then who will sacrifice for this guarantee ?
( a ) All partners equally
( b ) Only that partner who has maximum profit
( c ) All partners in profit or loss sharing ration
( d ) All of the above
14. Asha and Bipasha are partners in a firm . They share profits in the ratio of 1 : 1 . In this year , they suffered a loss . They maintain capital accounts under fluctuating account method . Pass journal entry to transfer the loss to the capital accounts of Asha and Bipasha . To Bipasha's
15. Aman and Vimal are partners in a firm . Aman says that goodwill is an asset so it has a realisable value . Vimal says that goodwill is an intangible asset , so it has no realisable value . Solve the issue .
( a ) Aman is correct . Goodwill is asset , so it has realisable value .
( b ) Vimal is correct . Goodwill is intangible asset , so it has no realisable value .
( c ) Goodwill is an intangible asset , it may have some realisable value or it can be nil ..
( d ) Goodwill is a loss , it has negative value .
