Commerce Wale Guruji
Accounting for Partnership Firms — Fundamentals Class 12 Accountancy
MCQs
1. Features or
Characteristics of Partnership
1. Features of a partnership firm are :
(A) Two or more persons are carrying common
business under an agreement.
(B) They are sharing profits and losses in the
fixed ratio.
(C) Business is carried by all or any of them
acting tor all as an agent.
(D) All of the above.
2. Following
are essential elements of a partnership firm except: (CPT; June 2012)
(A) At least two persons
(B) There is an agreement between all partners
(C) Equal share of profits and losses
(D) Partnership agreement is for some business.
3. In
case of partnership the act of any partner is : (C.S. Foundation Dec. 2012)
(A) Binding on all partners
(B) Binding on that partner only
(C) Binding on all partners except that
particular partner
(D) None of the above
4. Which of
the following statement is true?
(A) a minor cannot be admitted as a partner
(B) a minor can be admitted as a partner, only
into the benefits of the partnership
(C) a minor can be admitted as a partner but his
rights and liabilities are same of adult partner
(D) none of the above
5. Ostensible
partners are those who
(A) do not contribute any capital but get some
share of profit for lending their name to the business
(B) contribute very less capital but get equal
profit
(C) do not contribute any capital and without
having any interest in the business, lend their name to the business
(D) contribute maximum capital of the business
6. Sleeping
partners are those who
(A) take active part in the conduct of the
business but provide no capital. However, salary is paid to them.
(B) do not take any part in the conduct of the
business but provide capital and share profits and losses in the agreed ratio
(C) take active part in the conduct of the
business but provide no capital. However, share profits and losses in the
agreed ratio.
(D) do not take any part in the conduct of the
business and contribute no capital. However, share profits and losses in the
agreed ratio.
7. The relation of partner with the firm is that
of:
(A) An Owner
(B) An Agent
(C) An Owner and an Agent
(D) Manager
8. What should be the minimum number of persons to
form a Partnership :
(A) 2
(B) 7
(C) 10
(D) 20
9. Number of partners in a partnership firm
may be :
(A) Maximum Two
(B) Maximum Ten
(C) Maximum One Hundred
(D) Maximum Fifty
10.
Liability
of partner is :
(A) Limited
(B) Unlimited
(C) Determined by Court
(D) Determined by Partnership Act
11.
Which one
of the following is NOT an essential feature of a partnership?
(A) There must be an agreement
(B) There must be a business
(C) The business must be carried on for profits
(D) The business must be carried on by all the
partners
12.
(A) X — ₹80,000 : Y — ₹60,000 : and Z — ₹40,000
(B) X — ₹20,000 : Y — ₹15,000 : and Z — ₹10,000
(C) X — ₹1,00,000 : Y — ₹75,000 : and Z —
₹50,000
(D) Equal
13.
Every
partner is bound to attend diligently to his in the conduct of
the business.
(A) Rights
(B) Meetings
(C) Capital
(D) Duties
14.
(ii)
Partnership Deed
14. Forming a Partnership Deed is :
(A) Mandatory
(B) Mandatory in Writing
(C) Not Mandatory
(D) None of the Above
15.
Partnership
Deed is also called
(A) Prospectus
(B) Articles of Association
(C) Principles of Partnership
(D) Articles of Partnership
16.
Which of
the following is not incorporated in the Partnership Act?
(A) profit and loss are to be shared equally
(B) no interest is to be charged on capital
(C) all loans are to be charged interest @6%
p.a.
(D) all drawings are to be charged interest
17.
When is
the Partnership Act enforced?
(A) when there is no partnership deed
(B) where there is a partnership deed but there
are differences of opinion between the partners
(C) when capital contribution by the partners
varies
(D) when the partner’s salary and interest on
capital are not incorporated in the partnership deed
18.
In
the absence of Partnership Deed, the interest is allowed on partner’s capital:
(CPT; June 2011)
(A) @ 5% p.a.
(B) @ 6% p.a.
(C) @ 12% p.a.
(D) No interest is allowed
19.
In the
absence of a partnership deed, the allowable rate of interest on partner’s loan
account will be :
(A) 6% Simple Interest
(B) 6% p.a. Simple Interest
(C) 12% Simple Interest
(D) 12% Compounded Annually
20.
A and B
are partners in partnership firm without any agreement. A has given a loan of
₹50,000 to the firm. At the end of year loss was incurred in the business.
Following interest may be paid to A by the firm :
(A) @5% Per Annum
(B) @ 6% Per Annum
(C) @ 6% Per Month
(D) As there is a loss in the business, interest
can’t be paid
21.
A and B
are partners in a partnership firm without any agreement. A has withdrawn
?50,000 out of his Capital as drawings. Interest on drawings may be charged
from A by the firm :
(A) @ 5% Per Annum
(B) @ 6% Per Annum
(C) @ 6% Per Month
(D) No interest can be charged
22.
A
and B are partners in a partnership firm without any agreement. A devotes more
time for the firm as compare to B. A will get the following commission in
addition to profit in the firm’s profit:
(A) 6% of profit
(B) 4% of profit
(C) 5% of profit
(D) None of the above
23.
In the absence
of partnership deed, the following rule will apply :
(A) No interest on capital
(B) Profit sharing in capital ratio
(C) Profit based salary to working partner
(D) 9% p.a. interest on drawings
24.
In
the absence of agreement, partners are not entitled to :
(A) Salary
(B) Commission
(C) Equal share in profit
(D) Both (a) and (b)
25.
Interest
on capital will be paid to the partners if provided for in the partnership deed
but only out of: (C.S. Foundation; December, 2012)
(A) Profits
(B) Reserves
(C) Accumulated Profits
(D) Goodwill
26.
Which one
of the following items cannot be recorded in the profit and loss appropriation
account?
(A) Interest on capital
(B) Interest on drawings
(C) Rent paid to partners
(D) Partner’s salary
27.
If any
loan or advance is provided by partner then, balance of such Loan Account
should be transferred to :
(A) B/S Assets side
(B) B/S Liability Side
(C) Partner’s Capital A/c
(D) Partner’s Current A/c
28.
A, B and
C were Partners with capitals of ₹50,000; ₹40,000 and ? 30,000 respectively
carrying on business in partnership. The firm’s reported profit for the year
was ₹80,000. As per provision 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 ₹20,000 in addition to his
capital contribution.
(A) ₹26,267 for Partner B and C and ₹27,466 for
Partner A.
(B) ₹26,667 each partner.
(C) ₹33,333 for A ₹26,667 for B and ₹20,000 for
C.
(D) ₹30,000 each partner.
29.
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. .Profit before interest on partner’s capital
was ₹6,000 and Y determined interest @24% p.a. on his loan of ₹80,000. There
was no agreement on this point. Calculate the amount payable to X, Y, and Z
respectively.
(A) ₹2,000 to each partner.
(B) Loss of ₹4,400 for X and Z; Twill take
₹14,800.
(C) ₹400 for A, ₹5,200 for Land ₹400 for Z.
(D) None of the above.
30.
(A) Other partners will pay Z the minimum profit
and will share the loss equally.
(B) Other partners will pay Z the minimum profit
and will share the loss in capital ratio.
(C) Xand T will take ₹50,000 each and Z will
take ₹5,00,000.
(D) ₹2,00,000 to each of the partners.
31.
(A) ₹3,000
(B) Zero
(C) ₹2,500
(D) ₹1,800
32.
On 1st
January 2019, a partner advanced a loan of ₹1,00,000 to the firm. In the
absence of agreement, interest on loan on 31st March 2019 will be :
(A) Nil
(B) ₹1,500
(C) ₹3,000
(D) ₹6,000
33.
A partner
introduced additional capital of ₹30,000 and advanced a loan of ₹40,000 to the
firm at the beginning of the year. Partner will receive year’s interest:
(A) ₹4,200
(B) ₹2,400
(C) Nil
(D) ₹1,800
34.
(A) In the ratio of their Capitals
(B) In the ratio decided by the court
(C) Equally
(D) In the ratio of time devoted
35. In the absence of Partnership Deed :
36. In the absence of express agreement, interest @ 6% p.a. is provided
:
(A) On opening balance of partner’s capital accounts
(B) On closing balance of partner’s capital accounts
(C) On loan given by partners to the firm
(D) On opening balance of partner’s current accounts
37. Which of the following items are recorded in the Profit & Loss
Appropriation Account of a partnership firm?
(A) Interest on Capital
(B) Salary to Partner
(C) Transfer to Reserve
(D) All of the above
38. Is rent paid to a partner appropriation of profits?
(A) It is appropriation of profit
(B) It is not appropriation of profit
(C) If partner’s contribution as capital is maximum
(D) If partner is a working partner.
(iii) Calculation of Profit and Division of Profit among partners
39. According to Profit and Loss Account, the net profit for the year is
₹1,50,000. The total interest on partner’s capital is ₹18,000 and interest on
partner’s drawings is ₹2,000. The net profit as per Profit and Loss
Appropriation Account will be :
(A) ₹1,66,000
(B) ₹1,70,000
(C) ₹1,30,000
(D) ₹1,34,000
40. According to Profit and Loss Account, the net profit for the year is
₹4,20,000. Salary of a partner is ₹5,000 per month and the commission of
another partner is ₹10,000. The interest on drawings of partners is ₹4,000. The
net profit as per Profit and Loss Appropriation Account will be :
(A) ₹3,54,000
(B) ₹3,46,000
(C) ₹4,09,000
(D) ₹4,01,000
41. A and B are partners. According to Profit and Loss Account, the net
profit for the year is ₹2,00,000. The total interest on partner’s drawings is
₹1,000. As salary is ₹40,000 per year and B’s salary is ₹3,000 per month. The
net profit as per Profit and Loss Appropriation Account will be :
(A) ₹1,23,000
(B) ₹1,25,000
(C) ₹1,56,000
(D) ₹1,58,000
42. According to Profit and Loss Account, the net profit for the year is
₹1,40,000. The total interest on partner’s capital is? 8,000 and a partner is
to be allowed commission of ₹5,000. The total interest on partner’s drawings is
₹1,200. The net profit as per Profit and Loss Appropriation Account will be :
(A) ₹1,28,200
(B) ₹1,44,200
(C) ₹1,25,800
(D) ₹1,41,800
43. Sangeeta and Ankita are partners in a firm. Sangeeta’s capital is
₹70,000 and Ankita’s Capital is ₹50.000. Firm’s profit is ₹60,000. Ankita share
in profit will be :
(A) ₹25,000
(B) ₹3 0,000
(C) ₹35,000
(D) ₹20,00
44. A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is
₹1,00,000. C has not invested any amount as capital but he alone manages the
whole business. C wants ?30,000 p.a. as salary. Firm earned a profit of
₹1,50,000. How much will be each partner’s share of profit:
(A) A ₹60,000; B ₹60,000; C ₹Nil
(B) A ₹90,000; B ₹30,000; C ₹Nil
(C) A ₹40,000; B ₹40,000 and C ₹40,000
(D) A ₹50,000; B ₹50,000 and C ₹50,000.
45. Net profit of a firm is ₹49,500. Manager is entitled to a commission
of 10% on profits before charging his commission. Manager’s Commission will be
:
(A) ₹4,950
(B) ₹4,500
(C) ₹5,500
(D) ₹495
46. Net profit of a firm is ₹79,800. Manager is entitled to a commission
of 5% of profits after charging his commission. Manager’s Commission will be :
(A) ₹4,200
(B) ₹380
(C) ₹3,990
(D) ₹3,800
47. Ram and Shyam are partners in the ratio of 3 : 2. Before profit
distribution, ‘ Ram is entitled to 5% commission of the net profit (after
charging such commission). Before charging commission, firm’s profit was
₹42,000. Shyam’s share in profit will be :
(A) ₹16,000
(B) ₹24,000
(C) ₹26,000
(D) ₹16,400
48. A, B and C are partners in the ratio of 5 : 3 : 2. Before B’s salary
of ₹17,000 firm’s profit is ₹97,000. How much in total B will receive from the
firm?
(A) ₹17,000
(B) ₹40,000
(C) ₹24,000
(D) ₹41,000
Hint: Total amount received by die partner will be Salary + Share of
Profit
49. A, B and C are partners in a firm without any agreement. They have
contributed 750,000, 730,000 and 720,000 by way of capital in the firm. A was
unable to work for six months in a year due to illness. At the end of year,
firm earned a pro lit of 7 15,000. A’s share in the profit will be :
(A) 77.500
(B) 73,750
(C) 75,000
(D) 72,500
50. In a partnership lirm, partner A is entitled a monthly salary of
₹7,500. At the end of the year, firm earned a profit of ₹75,000 after charging
T’s salary. If the manager is entitled a commission of 10% on the net profit
after charging his commission, Manager’s commission will be :
(A) ₹7,500
(B) ₹16,500
(C) ₹8,250
(D) ₹15,000
51. Seeta and Geeta are partners sharing profits and losses in the ratio
4 : 1. Meeta was manager who received the salary of ₹4,000 p.m. in addition to
a commission of 5% on net profits after charging such commission. Profit for
the year is ₹6,78,000 before charging salary. Find the total remuneration of
Meeta.
(A) ₹78,000
(B) ₹88,000
(C) ₹87,000
(D) ₹76,000
52. Which of the following statement is true?
(A) Fixed capital account will always have a credit balance
(B) Current account can have a positive or a negative balance
(C) Fluctuating capital account can have a positive or a negative balance
(D) All of the above
(iv) Capital Accounts of Partners
53. Which accounts are opened when the capitals are fixed?
(A) Only Capital Accounts
(B) Only Current Accounts
(C) Capital Accounts as well as Current Accounts
(D) Either Capital Accounts or Current Accounts
54. Which accounts are opened when the capitals are fluctuating?
(A) Only Capital Accounts
(B) Only Current Accounts
(C) Capital Accounts as well as Current Accounts
(D) Either Capital Accounts or Current Accounts
55. Balance of partner’s current accounts are :
(A) Debit balance
(B) Credit balances
(C) Debit or Credit balances
(D) Neither Debit nor credit balances
56. Which item is recorded on the credit side of partner’s current
accounts :
(A) Interest on Fanner’s Capitals
(B) Salaries of Partners
(C) Share of profits of Partners
(D) All of the Above
57. If the Partners’ Capital Accounts are fixed ‘salary payable to
partner’ will be recorded :
(A) On the debit side of Partners’ Current Account
(B) On the debit side of Partners’ Capital Account
(C) On the credit side of Partners’ Current Account
(D) None of the above
58. It the Partner’s Capital Accounts are fixed, interest on capital
will be recorded:
(A) On the credit side of Current Account
(B) On the credit side of Capital Account
(C) On the debit side of Current Account
(D) On the debit side of Capital Account
59. If the Partner’s Capital Accounts are fluctuating, in that case
following item/items will be recorded in the credit side of capital accounts :
(A) Interest on capital
(B) Salary of partners
(C) Commission of partners
(D) All of the above
60. Interest on partner’s capitals will be debited to :
(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Partner’s Capital Accounts
(D) None of the Above
61. Interest on partner’s capitals will be credited to :
(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Interest Account
(D) Partner’s Capital Accounts
62. For the firm interest on drawings is
(A) Capital Payment
(B) Expenses
(C) Capital Receipt
(D) Income
63. Interest on Partner’s drawings will be debited to :
(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Partner’s Current Account
(D) Interest Account
64. When partners’ capital accounts are floating, which one of the
following items will be written on the credit side of the partners’ capital
accounts? :
(A) Interest on drawings
(B) Loan advanced by partner to the firm
(C) Partner’s share in the firm’s loss
(D) Salary to the activ e partners
65. When partners’ capital accounts are fixed, which one of the
following items will be written in the partner’s capital account? :
(A) Partner’s Drawings
(B) Additional capital introduced by the partner in the firm
(C) Loan taken by partner from the firm
(D) Loan Advanced by partner to the firm
66. Interest on partner’s drawings will be credited to
(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Partner’s Capital Accounts
(D) None of the Above
67. For the firm interest on capital is :
(A) Capital Payment
(B) Capital Receipt
(C) Loss
(D) Income
(v) Interest on Capital
68. On 1st April 2018, 2fs Capital was ₹2,00,000. On 1st October 2018, he
introduces additional capital of ₹1,00,000. Interest on capital @ 6% p.a. on
31st March, 2019 will be :
(A) ₹9,000
(B) ₹18,000
(C) ₹10,500
(D) ₹15,000
69. Xand Y are partners in the ratio of 3 : 2. Their capitals are
?2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a.
Firm earned a profit of ?60,000 for the year ended 31st March 2019. Interest on
Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) V ₹8.000; Y ₹4,000
(C) X ₹14,400; Y ₹9,600
(D) No Interest will be allowed
70. X and Y are partners in the ratio of 3 : 2. Their capitals are
₹2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a.
Firm earned a profit of ₹15,000 for the year ended 31st March 2019. Interest on
Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) X ₹9,000; Y ₹6,000
(C) X ₹10,000; Y ₹5,000
(D) No Interest will be allowed
71. X and Y are partners in the ratio of 3 : 2. Their capitals are
?2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a.
Firm incurred a loss of ₹60,000 for the year ended 31st March 2019. Interest on
Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) A ₹8,000; Y ₹4,000
(C) X ₹14,400; Y ₹9,600
(D) No Interest will be allowed
72. X and Y are partners in the ratio of 3 : 2. Their capitals are ₹2,00,000
and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm
earned a profit of ₹15,000 for the year ended 31st March 2019. As per
partnership agreement, interest on capital is treated a charge on profits.
Interest on Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) X ₹9,000; Y ₹6,000
(C) X ₹10,000; Y ₹5,000
(D) No Interest will be allowed
73. A and B contribute ₹1,00,000 and ?₹60,000 respectively in a
partnership firm by way of capital on which they agree to allow interest @ 8%
p.a. Their profit or loss sharing ratio is 3 : 2. The profit at the end of the
year was ₹2,800 before allowing interest on capital. If there is a clear
agreement that interest on capital will be paid even in case of loss, then S’s
share will be:
(A) Profit ₹6,000
(B) Profit ₹4,000
(C) Loss ₹6,000
(D) Loss ₹4,000
(vi) [nterest on Drawings
74. Partners are suppose to pay interest on drawing only when by the
(A) Provided, Agreement
(B) Permitted, Investors
(C) Agreed, Partners
(D) ‘A’ & ‘C’ above
75. Where will you record interest on drawings : (CPT; June 2011)
(A) Debit Side of Profit & Loss Appropriation Account
(B) Credit Side of Profit & Loss Appropriation Account
(C) Credit Side of Profit & Loss Account
(D) Debit Side of Capital/Current Account only.
76. How would you close the Partner’s Drawing Account:
(A) By transfer to Capital or Current Account Debit Side.
(B) By transfer to Capital Account Credit Side.
(C) By transfer to Current Account Credit Side.
(D) Either ‘B‘ or ‘C’.
77. If date of drawings of the partner’s is not given in the question,
interest is charged for how much time
(A) 1 month
(B) 3 months
(C) 6 months
(D) 12 months
78. Vikas is a partner in a firm. His drawings during the year ended
31st March, 2019 were ?72,000. If interest on drawings is charged @ 9% p.a. the
interest charged will be :
(A) ₹324
(B) ₹6,480
(C) ₹3,240
(D) ₹648
79. If a fixed amount is withdrawn by a partner on the first day of
every month, interest on the total amount is charged for …………… months :
(A) 6
(B) 61/2
(C) 51/2
(D) 12
80. If a fixed amount is withdrawn by a partner on the last day of every
month, interest on the total amount is charged for …………… months :
(A) 12
(B) 6 1/2
(C) 5 1/2
(D) 6
81. If a fixed amount is withdrawn by a partner in the middle of every
month, interest on the total amount is charged for …………… months
(A) 6
(B) 6 1/2
(C) 5 1/2
(D) 12
82. In a partnership firm, a partner withdrew ₹5,000 per month on the
first day of every month during the year for personal expenses. If interest on
drawings is charged @ 6% p.a. the interest charged will be : (C.S. Foundation,
Dec. 2012)
(A) ₹3,600
(B) ₹1,950
(C) ₹1,800
(D) ₹1,650
83. Ajay is a partner in a firm. He withdrew ₹2,000 per month on the
last day of every month during the year ended 31st March, 2019. If interest on
drawings is charged @ 9% p.a. the interest charged will be :
(A) ₹990
(B) ₹1,080
(C) ₹1,170
(D) ₹2,160
84. Sushil is a partner in a firm. He withdrew ₹4,000 per month in the
middle of every month during the year ended 31st March, 2019. If interest on
drawings is charged @ 8% p.a. the interest charged will be :
(A) ₹2,080
(B) ₹1,760
(C) ₹3,840
(D) ₹1,920
85. If fixed amount is withdrawn by a partner on the first day of each
quarter, interest on the total amount is charged for …………….. months
(A) 4.5
(B) 6
(C) 7.5
(D) 3
86. If a fixed amount is withdrawn by a partner on the last day of each
quarter, interest on the total amount is charged for ……………… months
(A) 6
(B) 4.5
(C) 7.5
(D) 3
87. If a fixed amount is withdrawn by a partner in each quarter,
interest on the total amount is charged for ……………….. months
(A) 3
(B) 6
(C) 4.5
(D) 7.5
88. Anuradha is a partner in a firm. She withdrew ₹6,000 in the
beginning of each quarter during the year ended 31st March, 2019. Interest on
her drawings @ 10% p.a. will be :
(A) ₹900
(B) ₹1,200
(C) ₹1,500
(D) ₹600
89. Bipasa is a partner in a firm. She withdrew ₹6,000 at the end of
each quarter during the year ended 31st March, 2019. Interest on her drawings @
10% p.a. will be :
(A) ₹900
(B) ₹600
(C) ₹1,500
(D) ₹1,200
90. Charulata is a partner in a firm. She withdrew ₹10,000 in each
quarter during the year ended 31st March, 2019. Interest on her drawings @ 9%
p.a. will be:
(A) ₹1,350
(B) ₹2,250
(C) ₹900
(D) ₹1,800
91. If equal amount is withdrawn by a partner in the beginning of each
month during a period of 6 months, interest on the total amount will be charged
for ……………… months
(A) 2.5
(B) 3
(C) 3.5
(D) 6
92. If equal amount is withdrawn by a partner in the end of each month
during a period of 6 months, interest on the total amount will be charged for
………………… months
(A) 2.5
(B) 3
(C) 3.5
(D) 6
93. If equal amount is withdrawn by a partner in each month during a
period of 6 months, interest on the total amount will be charged for …………… months
(A) 6
(B) 3
(C) 2.5
(D) 3.5
94. X is a partner in a firm. He withdrew regularly ₹1,000 at the
beginning of every month for the six months ending 31st March, 2019. If
interest on drawings is charged @ 8% p.a. the interest charged will be :
(A) ₹240
(B) ₹140
(C) ₹100
(D) ₹120
95. Y is a partner in a firm. He withdrew regularly ₹3,000 at the end of
every month for the six months ending 31st March, 2019. If interest on drawings
is charged @ 10% p.a. the interest charged will be :
(A) ₹375
(B) ₹450
(C) ₹525
(D) ₹900
96. Z is a partner in a firm. He withdrew regularly ?2,000 every month
for the six months ending 31st March, 2019. If interest on drawings is charged
@ 8% p.a. the interest charged will be :
(A) ₹480
(B) ₹280
(C) ₹200
(D) ₹240
97. A partner withdraws ₹8,000 each on 1st April and 1st Oct. Interest
on his drawings @ 6% p.a. on 31 st March will be :
(A) ₹480
(B) ₹720
(C) ₹240
(D) ₹960
98. A partner draws ₹2,000 each on 1st April 2018, 1st July 2018, 1st
October, 2018 and 1st January 2019. For the year ended 31st March, 2019
interest on drawings @ 8% per annum will be :
(A) ₹540
(B) ₹320
(C) ₹960
(D) ₹400
99. A partner withdraws from firm ₹7,000 at the end of each month. At
the rate of 6% per annum total interest will be :
(A) ₹5,040
(B) ₹2,310
(C) ₹3,570
(D) ₹1,370
(vii) Adjustments in the Closed Accounts
100. Anu and Tanu are equal partners with fixed capitals of ₹2,00,000 and
₹1,00,000 respectively. After closing the accounts for the year ending 31st –
March, 2019 it was discovered that interest on capitals @ 8% p.a. was omitted
to be provided. In the adjusting entry :
(A) Anu will be credited by ₹16,000 and Tanu will be credited by ₹8,000
(B) Anu will be debited by ₹16,000 and Tanu will be debited by ₹8,000
(C) Anu will be credited by ₹4,000 and Tanu will be debited by ₹4,000
(D) Anu will be debited by ₹4,000 and Tanu will be credited by ₹4,000
101. Sony and Romy are equal partners with fixed capitals of ₹4,00,000
and ₹3,00,000 respectively. After closing the accounts for the year ending 31st
March, 2019 it was discovered that interest on capitals was provided @ 8%
instead of 10% p.a. In the adjusting entry :
(A) Sony will be credited by ₹8,000 and Romy will be credited by ₹6,000.
(B) Sony will be debited by ₹8,000 and Romy will be debited by ₹6,000.
(C) Sony will be debited by ₹1,000 and Romy will be credited by ₹1,000.
(D) Sony will be credited by ₹1,000 and Romy will be debited by ₹1,000.
102. Asha and Vipasha are equal partners with fixed capitals of
₹5,00,000 and ₹2,00,000 respectively. After closing the accounts for the year
ending 31st March 2019 it was discovered that interest on capitals was provided
@ 6% instead of 5% p.a. In the adjusting entry :
(A) Asha will be debited by ₹1,500 and Vipasha will be credited by ₹1,500;
(B) Asha will be credited by ₹1,500 and Vipasha will be debited by ₹1,500;
(C) Asha will be debited by ₹5,000 and Vipasha will be debited by ₹2,000;
(D) Asha will be credited by ₹5,000 and Vipasha will be credited by ₹2,000;
103. P and Q sharing profits in the ratio of 2 : 1 have fixed capitals
of ₹90,000 and f60,000 respectively. After closing the accounts for the year
ending 31st March 2019 it was discovered that interest on capitals was provided
@ 6% instead of 8% p.a. In the adjusting entry :
(A) P will be credited by ₹1,800 and Q will be credited by ₹1,200;
(B) P will be debited by ₹200 and Q will be credited by ₹200;
(C) P will be credited by ₹200 and Q will be debited by ₹200;
(D) P will be debited by ₹1,800 and Q will be debited by ₹1,200;
104. A and B sharing profits in the ratio of 7 : 3 have fixed capitals
of ₹2,00,000 and ₹1,00,000 respectively. After closing the accounts for the
year ending 31st March 2019 it was discovered that interest on capitals was
provided @ 12% instead of 10% p.a. In the adjusting entry :
(A) A will be debited by ₹4,000 and B will be debited by ₹2,000;
(B) A will be credited by ₹4,000 and B will be credited by ₹2,000;
(C) A will be debited by ₹200 and B will be credited by ₹200;
(D) A will be credited by ₹200 and B will be debited by ₹200;
105. Xand 7are partners in the ratio of 3 : 2. Their fixed capitals are
₹2,00,000 and ₹1,00,000 respectively. After clsoing the accounts for the year
ending 31st March 2019, it was discovered that interest on capital was allowed
@ 12% instead of 10% per annum. By how much amount A will be debited/credited
in the adjustment entry :
(A) ₹600 (Debit)
(B) ₹400 (Credit)
(C) ₹400 (Debit)
(D) ₹600 (Credit)
106. X, Y and Z are equal partners with fixed capitals of ₹2,00,000,
₹3,00,000 and ?4,00,000 respectively. After closing the accounts for the year
ending 31st March 2019 it was discovered that interest on capitals @ 8% p.a.
was omitted to be provided. In the adjusting entry :
(A) Dr. X and Cr. Y by ₹8,000
(B) Cr. X and Dr. Z by ₹8,000
(C) Dr. X and Cr. Z by ₹8.000
(D) Cr. X and Dr. Y by ₹8,000
107. P, Q and R arc equal partners with fixed capitals of ₹5,00,000,
₹4,00,000 and ₹3,00,000 respectively. After closing the accounts for the year
ending 31st March 2019 it was discovered that interest on capitals was provided
@ 7% instead of 9% p.a. In the adjusting entry :
(A) P will be credited by ₹2,000 and Q will be debited by ₹2,000.
(B) P will be debited by ₹2,000 and Q will be credited by ₹2,000.
(C) P will be debited by ₹2,000 and R will be credited by ₹2,000.
(D) P will be credited by ₹2,000 and R will be debited by ₹2,000.
108. X, 7and Z are equal partners with fixed capitals of ₹5,00,000,
?3,00,000 and ₹1,00,000 respectively. After closing the accounts for the year
ending 31st March 2019 it was discovered that interest on capitals was provided
@ 6% instead of 5% p.a. In the adjusting entry :
(A) Dr. X and Cr. Z by ₹2,000
(B) Cr. X and Dr. Z by ₹2,000
(C) Dr. X and Cr. Y by ₹2,000
(D) Cr. X and Dr. Y by ₹2,000
109. P, Q, and R sharing profits in the ratio of 2 : 1 : 1 have fixed
capitals of f4,00,000, ₹3,00,000 and ₹2,00,000 respectively. After closing the
accounts for the year ending 31st March 2019 it was discovered that interest on
capitals was provided @ 6% instead of 8% p.a. In the adjusting entry :
(A) Cr. P ₹1,000; Dr. Q ₹1,500 and Cr. R ₹500
(B) Dr. P ₹500; Cr. Q ₹1,500 and Dr. R ₹1,000
(C) Cr. P ₹500; Dr. Q ₹1,500 and Cr. R ₹1,000
(D) Dr. P ₹1,000; Cr. Q ₹1,500 and Dr. R ₹500
110. A, B and C sharing profits in the ratio of 2 : 2 : 1 have fixed
capitals of ₹3,00,000, ₹2,00,000 and ₹1,00,000 respectively. After closing the
accounts for the year ending 31st March 2019 it was discovered that interest on
capitals was provided @ 12% instead of 10% p.a. In the adjusting entry :
(A) Cr. A ₹1,200; Dr. B ₹800 and Dr. C ₹400
(B) Dr. A ₹1,200; Cr. B ₹800 and Cr. C ₹400
(C) Cr. A ₹800; Cr. B ₹400 and Dr. C ₹1,200
(D) Dr. A ₹800; Dr. B ₹400 and Cr. C ₹1,200
111. X, Y, and Z are partners in the ratio of 4 : 3 : 2. Salary to X
₹15,000 and to Z ₹3,000 omitted and profits distributed. For rectification, now
X will be credited :
(A) ₹15,000
(B) ₹1,000
(C) ₹12,000
(D) ₹7,000
(viii) Guarantee of Profit to a Partner
112. When a partner is given guarantee by other partners, loss on such
guarantee will be borne by :
(A) Partnership firm
(B) All the other partners
(C) Partners who give the guarantee
(D) Partner with highest profit sharing ratio.
113. Guarantee given to partner ‘A’ by the other partners ‘B & C’
means :
(A) In case of loss, ‘A’ will not contribute towards that loss.
(B) In case of insufficient profits, ‘A’ will receive only the minimum
guarantee amount.
(C) In case of loss or insufficient profits, ‘A’ will withdraw the minimum
guarantee amount.
(D) All of the above.
114. P, Q and R are partners in a firm in 3 : 2 : 1. R is guaranteed
that he will get minimum of ₹20,000 as his share of profit every year. Firm’s
profit was ₹90,000. Partners will get:
(A) P ₹40,000; Q ₹30,000; R ₹20,000;
(B) P ₹42,500; Q ₹27,500; R ₹20,000;
(C) P ₹45,000; Q ₹30,000; R ₹15,000;
(D) P ₹42,000; Q ₹28,000; R ₹20,000;
115. A, Y and Z are partners in the ratio of 5 : 4 : 3. A has given to
Za guarantee of minimum ₹10,000 profit. For the year ending 31st March 2019,
firm’s profit is ₹28,800. Js share in profit will be :
(A) ₹9,200
(B) ₹9,600
(C) ₹7,200
(D) ₹12,000
116. E, Fand G share profits in the ratio of 4 : 3 : 2. G is given a
guarantee that his share of profits will not be less than ₹75,000. Deficiency
if any, would be borne by E and F equally Firm’s profit was ₹2,70,000. As share
of profit will be :
(A) ₹90,000
(B) ₹82,500
(C) ₹97,500
(D) ₹75,000
117. X, Y, and Z are partners in the ratio of 6 : 4 : 1. In the firm, A
has guaranteed Z for his minimum profit of ₹15,000. Firm’s profit was ₹99,000.
In the firm profit As share will be :
(A) ₹30,000
(B) ₹15,000
(C) ₹48,000
(D) ₹45,000
118. P, Q, and R are partners in 3 : 2 : 1. R is guaranteed that his
share of profit will not be less than ₹70,000. Any deficiency will be borne by
P and Q in the ratio of 2 : 1. Firm’s profit was ₹2,40,000. Share of P will be
:
(A) ₹1,00,000
(B) ₹1,10,000
(C) ₹1,20,000
(D) ₹1,02,000
119. A Y and Z are partners in 5 : 4 : 1. Z is guaranteed that his share
of profit will not be less than ₹80,000. Any deficiency will be borne by A and
Y in 3 : 2. Firm’s profit was ₹5,60,000. How much deficiency will be borne by Y
:
(A) ₹2,14,400
(B) ₹14,400
(C) ₹2,09,600
(D) ₹9,600
120. P and Q are partners sharing profits in the ratio of 1 : 2. R was
manager who received the salary of ₹10,000 p.m. in addition to commission of
10% on net profits after charging such commission. Total remuneration to R
amounted to ₹1,80,000. Profit for the year before charging salary and
commission was :
(A) ₹7,20,000
(B) ₹6,00,000
(C) ₹7,80,000
(D) ₹6,60,000
121. X and Y are partners. X draws a fixed amount at the beginning of
every month. Interest on drawings is charged @8% p.a. At the end of the year
interest on X’s drawings amounts to *₹2,600. Drawings of A’were :
(A) ₹8,000 p.m.
(B) ₹7,000 p.m.
(C) ₹6,000 p.m.
(D) ₹5,000 p.m
122. A and B are partners. B draws a fixed amount at the end of every
month. Interest on drawings is charged @15% p.a. At the end of the year
interest on B’s drawings amounts to ₹8,250. Drawings of B were :
(A) ₹12,000 p.m.
(B) ₹10,000 p.m.
(C) ₹9,000 p.m.
(D) ₹8,000 p.m.
123. A and B are partners with a profit-sharing ratio of 2 : 1 and
capitals of ₹3,00,000 and ₹2,00,000 respectively. They are allowed 6% p.a.
interest on their capitals and are charged 10% p.a. interest on their drawings.
Their drawings during the year were A ₹60,000 and B ₹40,000. B’s share of net
profit as per profit and loss appropriation account amounted to ₹40,000. Net
Profit of the firm before any appropriations was :
(A) ₹1,22,000
(B) ₹1,13,000
(C) ₹1,17,000
(D) ₹1,45,000
124. A and B are partners in a firm. They are entitled to interest on
their capitals but the net profit was not sufficient for this interest, then
the net profit will be distributed among partners in : (CPT, Dec. 2012)
(A) Agreed Ratio
(B) Profit Sharing Ratio
(C) Capital Ratio
(D) Equally
