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PARTNERSHIP ACCOUNTS CLASS 12

PARTNERSHIP ACCOUNTS CLASS 12
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ACCOUNTING FOR PARTNERSHIP- I

Concepts and MCQ’s (Partnership and Partnership Deed )

According to Indian Partnership Act, 1932 }Partnership is relation between persons .who have agreed to share the profits of a business carried on by all or any of them acting for all.

PARTNERSHIP ACCOUNTS CLASS 12

From the legal viewpoint, partnership is not a separate legal entity. From accounting viewpoint, partnership is  separate business entity. Partnership can be established only for lawful business. Partners act both as an agent and principal of the firm. As an agent, the partner represents other partners and binds them through his acts. As a principal, he is bound by the act of others.

1.The written agreement among the partners is called:

A).Partnership deed

B).Partnership bye-laws.

C).Partnership Constitution.

D).A Contract.

2.The liability of the partners in a partnership firm under Indian Partnership Act, 1932 is

A).Limited

B).Unlimited

C).No Liability

D).Depending upon the situation.

3.. In the absence of the Partnership Deed, Interest on Capital:

A).Is allowed @6% per annum.

B).Is allowed @10% per annum.

C).Is allowed at the borrowing rate.

D).Is not allowed.

4. In the absence of partnership deed, profit of a firm is divided among the partners:

A).In the ratio of capital.

B).Equally.

C).In the ratio of time devoted for the firm’s business.

D). According to the managerial abilities of the partners.

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5.Mohit and Rohit were partners in a firm with capitals of ₹80,000 and ₹40,000 respectively. The firm earned a profit of ₹30,000 during the year. Mohit’s share in profit will be:

A) ₹20,000

B) ₹10,000

C) ₹15,000

D)₹18,000

6.In the absence of an agreement to the contrary, the partners are

A) Entitled to 6% interest on their capitals, only when there are profits.

B) Entitled to 9% interest on their capitals, only when there are profits.

C) Entitled to interest on their capitals at the bank rate, only when there are profits.

D) Not entitled to interest on their capitals.

7.Which of the following is not an essential feature of partnership?

A).An agreement, oral or written, should exist among the partners.

B)Agreement should be carry on lawful business.

C)All the partners should contribute capital in the firm.

D)There should be at least two partners.

8.As per Indian Partnership Act, 1932 if Partnership deed does not exist, partners are entitled to:

A)Salary

B)Interest on Capital C)Equal Profit Share

D)Commission.

9.Relationship between the partners is of

A) Close Relatives

B)Agent and Principal

C)Junior-senior relationship

D) Senior-Subordinate relationship.

10. In the absence of partnership deed, interest on drawings of a partner is charged:

A)8% per annum

B)9% per annum

C)12% per annum

D)No interest is charged.

11. In absence of Partnership, interest on loan is allowed.

A)@8% per annum

B)@ 6% per annum

C)@12% per annum

D)No interest is allowed.

DOWNLOAD MOBILE APPLICATION TO LEARN MORE: PARTNERSHIP ACCOUNTS CLASS 12

DOWNLOAD MOBILE APPLICATION TO LEARN MORE: PARTNERSHIP ACCOUNTS CLASS 12

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