Class 12  >  CUET Mock Test Series  >  Accountancy: CUET Mock Test - 8 Download as PDF

Accountancy: CUET Mock Test - 8


Test Description

40 Questions MCQ Test CUET Mock Test Series | Accountancy: CUET Mock Test - 8

Accountancy: CUET Mock Test - 8 for Class 12 2023 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 8 questions and answers have been prepared according to the Class 12 exam syllabus.The Accountancy: CUET Mock Test - 8 MCQs are made for Class 12 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 8 below.
Solutions of Accountancy: CUET Mock Test - 8 questions in English are available as part of our CUET Mock Test Series for Class 12 & Accountancy: CUET Mock Test - 8 solutions in Hindi for CUET Mock Test Series course. Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free. Attempt Accountancy: CUET Mock Test - 8 | 40 questions in 45 minutes | Mock test for Class 12 preparation | Free important questions MCQ to study CUET Mock Test Series for Class 12 Exam | Download free PDF with solutions
1 Crore+ students have signed up on EduRev. Have you?
Accountancy: CUET Mock Test - 8 - Question 1

Following are the essential elements of a partnership firm except:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 1

The essential elements of partnership firm are at least two persons, there is an agreement between all partners and partnership agreement is for some business. But its not necessary to that the partners have equal share of profits. They may have any profit sharing ratio as agreed or in the deed. 

Accountancy: CUET Mock Test - 8 - Question 2

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________.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 2

It is a definition given by Partnership act 1932 in sec 4
It contains 3 three parameters
1) Agreement
2) sharing of profit and losses
3) carried on by all any of them acting for all means mutual agency
above three things required to form a partnership.

Accountancy: CUET Mock Test - 8 - Question 3

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

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 3

Every partner is bound to attend diligently to his duties in the conduct of the business. Every partner is an agent of the partnership firm. The business in the partnership firm can be carred on by all the partners or any one of them acting for all.

Accountancy: CUET Mock Test - 8 - Question 4

‘Salary Rs. 5,000 paid to partner’ The above item will appear in _________.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 4

Profit and loss appropriation account is an account where we record all transactions related to the partners like for example their salary, interest on capital, intrest on darawing etc so salary to partner will also appear on debit side of p & l appropriation account.

Accountancy: CUET Mock Test - 8 - Question 5

nterest on drawings is treated as:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 5

Interest on drawing is treated as revenue for the firm because interest is paid by the proprietor for withdrawal from the business and it will became revenue for the firm.

Accountancy: CUET Mock Test - 8 - Question 6

Three partners A , B , C start a business . B's Capital is four times C's capital and twice A's capital is equal to thrice B's capital . If the total profit is Rs 16500 at the end of a year ,Find out B's share in it.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 6

Suppose C's capital = x then

B's capital = 4x (Since B's Capital is four times C's capital)

A's capital = 6x ( Since twice A's capital is equal to thrice B's capital)

A:B:C =6 x : 4x : x

= 6 : 4 : 1

B's share = 16500 * (4/11) = 1500*4 = 6000

Accountancy: CUET Mock Test - 8 - Question 7

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

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 7

According to the partnership act the partners are to share profits equally unless anything else is agreed by the partners or is in the agreement.

Accountancy: CUET Mock Test - 8 - Question 8

 Is rent paid to a partner is appropriation of profits?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 8

The amount of rent would be seen as this partner's capital contribution instead of needing it paid from the venture.

Accountancy: CUET Mock Test - 8 - Question 9

Insurance Premium paid by the firm on the life Insurance policy of a partner is

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 9

When the partners decide to treat the premium on Joint Life Policy as an expense, then they debit the Premium A/c to the Profit and Loss A/c every year to close it. In this situation, the full amount of policy received from the Insurance Company becomes a gain.

Accountancy: CUET Mock Test - 8 - Question 10

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

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 10

The correct option is Option A.

Fixed capital system of accounting states that the capital of partners will remain the same as in the beginning.

To record any entry related to capital introduction or withdrawal, partners' capital account is prepared and to record any appropriation in the profit like interest on drawing, capital and salaries of partners, partners' current account is prepared so that there is no change in capitals of partners.

The account is debited with capital withdrawn, drawings, interest on drawings and share of loss of the partner. As a result, the balance in this account goes on fluctuating periodically. Under this method, the partner's capital account may show either credit balance or debit balance.

Accountancy: CUET Mock Test - 8 - Question 11

Which Section of the Partnership Act defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 11

Section 4 of the Indian Partnership Act, 1932 defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

Accountancy: CUET Mock Test - 8 - Question 12

In the absence of partnership deed profit sharing ratio will be:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 12

When there is no partnership deed or partnership deed is prepared but it is silent on profit sharing ratio, in such a case rules of Partnership Act, 1932 will be applicable. According to which, profits or losses will be shared by the partners equally irrespective of their capitals.

Accountancy: CUET Mock Test - 8 - Question 13

It is better to have the agreement in writing to avoid any ___

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 13

Partnership deed plays important role in regulating the duties and responsibilities of each partner. A written partnership deed is useful to resolve disputes and misunderstanding among partners because every thing is in written form.

Accountancy: CUET Mock Test - 8 - Question 14

Partnership is established by ___________

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 14

The beginning of partnership is always because of an agreement. There should be an agreement among the partners to start a partnership business. Agreement can be written or oral that does not matter.

Accountancy: CUET Mock Test - 8 - Question 15

The persons who have entered into a partnership business with one another are individually called

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 15

A person who joins a partnership business, individually called a partner. The group of partners is called Firm and the name under which all business activities going on is known as firm’s name

Accountancy: CUET Mock Test - 8 - Question 16

Indian Partnership Act year is

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 16

In India, Partnership Act, 1932 is followed by all the partnership firms. Specially in the absence of partnership deed, all provisions of Partnership Act, 1932 will be applicable.

Accountancy: CUET Mock Test - 8 - Question 17

If partners are running a business without a partnership deed how much interest on their capitals will be given?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 17

Partners are entitled to interest on capital only if rate of interest is mentioned in the partnership deed. But in this case business is continued without partnership deed. As per the Partnership Act, 1932, partners are enttiled to interest on capital only when there is partnership deed and rate of interest is mentioned in it.

Accountancy: CUET Mock Test - 8 - Question 18

Partners collectively are called:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 18

A person who joins a partnership business, individually called a partner. The group of partners is called Firm and the name under which all business activities going on is known as firm’s name.

Accountancy: CUET Mock Test - 8 - Question 19

Which of the following is not a content of partnership deed?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 19

Interest on bank loan will be fixed by the bank and not by the partners or partnership deed. A partnership deed can show only those contents which are concerned with partners or firm. Interest on bank loan is a charge against the profit. It means it will be paid in all conditions whether there is profit or loss in the business.

Accountancy: CUET Mock Test - 8 - Question 20

Registration of partnership firm is _________

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 20

Registration of a partnership firm is optional. It means there is no need for the registration of a partnership firm. As per the Partnership Act, 1932, it is an option for a partnership firm to get registered or not. But it is always advisable to get registered.

Accountancy: CUET Mock Test - 8 - Question 21

Below are listed Content of partnership Deed except:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 21

Interest paid on debentures is a charge against the profit. Partnership Deed is mainly concerned with the appropriations and some charge. Main contents of partnership deed are interest on capital, interest on drawings, name of the firm, partners, their names and address etc.

Accountancy: CUET Mock Test - 8 - Question 22

The members of the partnership firm are called

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 22

Members of the firm are called partners. Proprietor word is mainly used in case of sole proprietorship. But in case of partnership persons join hands together to run a business are called partners. They contribute capitals individually and responsible for all profits or losses.

Accountancy: CUET Mock Test - 8 - Question 23

From the following, identify a situation when fixed capitals of the partners may change?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 23

Fixed capitals of the partners will remain fixed but there are two situations when fixed capitals of the partners may change:
1. When additional capital is introduced by the partners
2. When capital is withdrawn permanently under an agreement.

Accountancy: CUET Mock Test - 8 - Question 24

Mutual Agency implies.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 24

The business of partnership can be carried on by all the partners or any one of them acting for all. Thus, every partner is principal as well as agent of other partners and of the firm. Thus,
(i) Each partner is liable for acts performed by other partners, 
(ii) Each partner can bind other partners and the firm by his acts done in the ordinary course of business.

Accountancy: CUET Mock Test - 8 - Question 25

If the partnership agreement is silent as to Interest on capital

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 25

When rate of interest on capital is not mentioned in partnership deed, partners cannot claim for interest on capital. Interest on capital will be allowed to the partners only if rate of interest is mentioned in the partnership deed.

Accountancy: CUET Mock Test - 8 - Question 26

A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 26

Calculation of Interest on loan:
Interest on A’s Loan = 40,000 × 5/100 × 6/12 = 1,000
Interest on B’s Loan = 20,000 × 5/100 × 6/12 = 500

Accountancy: CUET Mock Test - 8 - Question 27

Rent paid to a partner comes under:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 27

Rent paid to a partner is a charge against the profit. It means it will reduce the profit. That’s why it is shown in Profit and Loss Account instead of Profit and Loss Appropriation Account.

Accountancy: CUET Mock Test - 8 - Question 28

Interest on capital to be given to X & Y when Profits shown by P/L A/C Rs. 1500 and capitals invested by X & Y are Rs. 30,000 and 20,000 (rate of interest is 10% p.a.).

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 28

Interest due to X and Y is ?3,000 and ?2,000 (total Rs.5,000) but profit is only ?1,500. In this case Ratio of appropriation will be 3 : 2 (3,000 : 2,000). Now divide profit ?1,500 in Ratio of appropriation i.e. 3:2.

Accountancy: CUET Mock Test - 8 - Question 29

Salary paid to a partner will be shown in:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 29

Salary paid to partner is an appropriation of profit. All appropriation items are shown in the Profit and loss appropriation account.

Accountancy: CUET Mock Test - 8 - Question 30

Under fluctuating Capital method how many accounts of each partner is maintained

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 30

When accounts are prepared under fluctuating capital method, only one account is prepared for the partners i.e. partners capital account. All items related to partners i.e. capital, interest on capital, interest on drawings, salary, commission etc. are shown in partners capital account.

Accountancy: CUET Mock Test - 8 - Question 31

If dates of the withdrawal of drawings are not given then interest on drawings should be charged

Accountancy: CUET Mock Test - 8 - Question 32

What is the status of partnership from an accounting viewpoint

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 32

There are two main views. One is from the accounting point of view, according to that, status of partnership is different i.e. it has a separate business entity. From the point of view of law, it has no separate business entity. Partners and firm are one.

Accountancy: CUET Mock Test - 8 - Question 33

From the following, what is important for a partnership?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 33

Sharing of profits is must for a partnership business. Profits earned by a partnership firm should be divided amongst partners in the agreed profit sharing ratio. If profit sharing ratio is not mentioned in the partnership deed or partnership deed is silent on the distribution of profits, in such a case profits will be shared equally.

Accountancy: CUET Mock Test - 8 - Question 34

When liabilities of partners are unlimited that implies

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 34

Mostly, the liability of the partners of a firm is unlimited. Their personal properties can be disposed off to pay the debts of the firm if required. The creditors can claim their dues from any one of the partner or from all of them, meaning partners are liable:
• Individually
• Collectively

Accountancy: CUET Mock Test - 8 - Question 35

Partners have decided to provide jobs to the women of economically backward society. What values can be depicted from the decision of partners.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 35

The partners has taken a decision to provide employment to the women of economically backward section of the society. By this decision, partners are communicating the valued to the society i.e. financial security to the weaker section of society and social responsibility.

Accountancy: CUET Mock Test - 8 - Question 36

Money withdrawn by a partner on 1st July Rs. 20,000 and interest on drawings is fixed @ 6% (Books are closed on 31st March.) The amount of interest will be Rupees:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 36

Loan interest to be provided @ 6% p.a.

Loan Amount = ₹ 20,000

Time (from 1st July to 31st March) = 9 months

A’s loan interest = 20,000 * 6/100 * 9/12

= 900

Accountancy: CUET Mock Test - 8 - Question 37

Revaluation A/c is prepared to find out the profit or loss on:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 37

A Revaluation Account is prepared in order to ascertain net gain or loss on revaluation of assets and liabilities and bringing unrecorded items into books. The Revaluation profit or loss is transferred to the capital account of all partners including retiring or deceased partners in their old profit sharing ratio.

Accountancy: CUET Mock Test - 8 - Question 38

When a partner withdraws Rs. 4000 at the beginning of each quarter, the interest on his drawings @ 6% p.a. will be Rs.:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 38

If a fixed amount is withdrawn on the first day of every quarter, then the interest is calculated on the amount withdrawn for a period of seven and half months.

Total drawings made by the partner during the whole year is 4000 * 4 = 16000

Interest on drawings = 16000 * 6/100 * 7.5/12

= 600

Accountancy: CUET Mock Test - 8 - Question 39

Salary paid to the manager will be shown in:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 39

Salary paid to manager is a charge against the profit. It means this transaction will reduce the profit of the firm. All charge items are shown in profit and loss account only. That’s why salary paid to manager is shown in profit and loss account.

Accountancy: CUET Mock Test - 8 - Question 40

If ?3,000 withdrawn by a partner on the first day of every quarter, interest on drawings will be calculated for:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 40

When a partner draws a fixed amount in the beginning of each quarter for his personal use then average period will be calculated as : Time after first drawing 12 months + Time after last drawing 3 months, and average period will be = 15/2 = 7.5.

Use Code STAYHOME200 and get INR 200 additional OFF
Use Coupon Code
Information about Accountancy: CUET Mock Test - 8 Page
In this test you can find the Exam questions for Accountancy: CUET Mock Test - 8 solved & explained in the simplest way possible. Besides giving Questions and answers for Accountancy: CUET Mock Test - 8, EduRev gives you an ample number of Online tests for practice