Test: Introduction To Partnership Accounts - 3


31 Questions MCQ Test Principles and Practice of Accounting | Test: Introduction To Partnership Accounts - 3


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QUESTION: 1

​Following are the essential elements of a partnership firm except:

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QUESTION: 2

Following is the difference between partnership deed and partnership agreement.

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QUESTION: 3

If a firm prefers Partners’ Capital Accounts to be shown at the amount introduced by the partners as capital in firm then entries for salary, interest, drawings, interest on capital and drawings and profits are made in

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QUESTION: 4

In the absence of any agreement, partners are liable to receive interest on their Loans @:

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QUESTION: 5

A partner acts as ……… for a firm.

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QUESTION: 6

Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is:

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QUESTION: 7

Ram and Shyam 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 firm is Rs. 2,400.

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QUESTION: 8

Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meeta.

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QUESTION: 9

The relationship between persons who have agreed to share the profit of a business carried on by all or any of them acting for all is known as ………

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QUESTION: 10

Features of a partnership firm are:

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QUESTION: 11

Firm has earned exceptionally high profits from a contract which will not be renewed.
In such a case the profit from this contract will not be included in ………

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QUESTION: 12

In the absence of an agreement, partners are entitled to

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QUESTION: 13

Interest on capital will be paid to the partners if provided for in the agreement but only from …………

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QUESTION: 14

Partners are suppose to pay interest on drawing only when ……… by the ………

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QUESTION: 15

When a partner is given Guarantee by the other partner, loss on such guarantee will be borne by

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QUESTION: 16

​Guarantee given to a partner ‘A’ by the other partners ‘B & C’ means

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QUESTION: 17

What would be the profit sharing ratio if the partnership act is complied with?

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QUESTION: 18

Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?

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QUESTION: 19

When is the Profit & Loss Appropriation Account prepared?

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QUESTION: 20

What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?

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QUESTION: 21

Where will you record interest on drawings?

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QUESTION: 22

What balance does a Partner’s Current Account has?

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QUESTION: 23

Is rent paid to a partner is appropriation of profits?

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QUESTION: 24

How would you close the Partner’s Drawings Account?

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QUESTION: 25

A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs. 20,000, in addition to his capital contribution.

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QUESTION: 26

X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.

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QUESTION: 27

X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and Y determined interest @ 24% p.a. on his loan of Rs. 80,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z respectively.

Solution:

as there was no agreement , interest on loan will be given 6% of 80000 = 4800/-
Remaining profit 1200/- will be divided equally to all partners ( 400/- Each)
To Y = 4800 + 400 = 5200

QUESTION: 28

X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and Z demanded minimum profit of Rs. 5,000 as his financial position was not good. However, there was no written agreement on this profit. Profits to be distributed to X, Y and Z will be

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QUESTION: 29

Following are the differences between Capital Account and Current Account except:

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QUESTION: 30

Following are the differences between Partnership and Joint Venture except:

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QUESTION: 31

Every partner is bound to attend diligently to his ……… in the conduct of the business.

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