Accounting for partnership firms (fundamentals) Quiz-1

Accounting for partnership firms (fundamentals) Quiz-1

Quiz

 

1. When the partnership deed does not show any fixed interest on the partner’s loan, by the provision of law, at what rate is the partner entitled to receive interest on loan?
   1.   12% p.a.
   2.   6% p.a.
   3.   18% p.a.
   4.   10% p.a.
2. Interest on drawing will not be charged if :
   1.   There is a loss
   2.   appropriations are more than the profits
   3.   Date of withdrawn is not given
   4.   partnership deed is silent on interest on drawing
3. Rent paid to partner comes under:
   1.   profit and loss account
   2.   profit and loss appropriation account
   3.   partners capital account
   4.   partners current account
4. Under the Indian Partnership Act 1932, which of the following is a requirement for a partnership to be considered valid?
   1.   Registration of the partnership with the Registrar of Firms
   2.   Minimum number of partners required
   3.   Written partnership agreement
   4.   Prior approval from the Income Tax Department
5. When partners have not made any partnership deed, which of these are they still entitled to receive?
   1.   Salary
   2.   Interest on loans and advances
   3.   Commission
   4.   Share of profit
6. Salary paid to manager will be shown in:
   1.   profit and loss appropration account
   2.   profit and loss account
   3.   partners capital account only
   4.   partners current account only
7. Which of the following will not take place in the fixed capital accounts of the partners?
   1.   Additional capital
   2.   Asset taken over against capital
   3.   permanent withdrawal of capital for personal use
   4.   interest on capital
8. Interest on Partners capital is :
   1.   An expenditure
   2.   An appropriation
   3.   A receipt
   4.   None of these
9. Which of the following is shown in profit and loss appropriation account?
   1.   Rent to partner
   2.   interest on loan
   3.   manager's commission
   4.   partner's commission
10. Which of the following statements regarding a partnership deed is true?
    1.   A partnership deed is a legally required document for all partnerships.
    2.   A partnership deed outlines the capital contribution of each partner.
    3.   A partnership deed cannot be modified once it is signed.
    4.   A partnership deed is only applicable to limited liability partnerships (LLPs).
11. Profit or loss on revaluation is shared among the old partners in ______ ratio.
    1.   New Profit Sharing
    2.   Old Profit Sharing
    3.   Capital
    4.   Average Profit Sharing
12. Which of the following is not a feature of a partnership?
    1.   The partners have unlimited liability.
    2.   The partnership is a separate legal entity.
    3.   The partnership can be dissolved at any time by any partner.
    4.   The partners share profits and losses in an agreed ratio.
13. Which of the following is not included in a partnership deed?
    1.   The name of the partnership.
    2.   The names of the partners.
    3.   The nature of the business.
    4.   The capital contributions of the partners.
14. Which of the following is a disadvantage of a partnership?
    1.   Limited access to capital
    2.   Unlimited liability of partners
    3.   Centralized decision-making
    4.   Tax advantages
15. what average period is used to calculate interest on drawings of equal amounts drawn at the end of each quarter?
    1.   6.5
    2.   5.5
    3.   7.5
    4.   4.5
16. In the absence of a partnership agreement, the provisions of the Indian Partnership Act, 1932, govern the partnership. Which of the following statements regarding the Act is true?
    1.   The Act does not define the maximum number of partners in a partnership.
    2.   The Act does not allow for the expulsion of a partner.
    3.   The Act requires equal sharing of profits and losses among partners.
    4.   The Act does not provide for the dissolution of a partnership.
17. Interest on Drawings is:
    1.   Debited to Profit and Loss A/c
    2.   Debited to Capital A/c
    3.   Credited to Profit and Loss A/c
    4.   None
18. If there is no partnership deed, how are profits and losses shared between the partners?
    1.   In equal shares.
    2.   In the ratio of their capital contributions.
    3.   In the ratio of their salaries.
    4.   In the ratio of their drawings.
19. partners collectively are called
    1.   company
    2.   business
    3.   firm's name
    4.   firm
20. When a Fluctuating Capital Account is prepared for partners, which of the following are credited to this account?
    1.   Interest on Capital
    2.   Remuneration to the partners
    3.   Profit of the year
    4.   All of these