Important Multiple Choice Questions(MCQs) Accountancy Class 12th. Accounting for Partnership Firms — Fundamentals
Accounting for Partnership Firms — Fundamentals
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.
Answer: D
2. Following are essential elements of a partnership firm except:
(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.
Answer: C
3. In case of partnership the act of any partner is :
(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
Answer: A
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
Answer: B
5. Oustensible 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
Answer: C
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.
Answer B
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
Answer: C
8. What should be the minimum number of persons to form a Partnership :
(A) 2
(B) 7
(C) 10
(D) 20
Answer: A
9. Number of partners in a partnership firm may be :
(A) Maximum Two
(B) Maximum Ten
(C) Maximum One Hundred
(D) Maximum Fifty
Answer: D
10, Liability of partner is :
(A) Limited
(B) Unlimited
(C) Determined by Court
(D) Determined by Partnership Act
Answer: B
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
Answer: D
12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March,
31, 2012 are ₹80,000, ₹60,000 and ₹40,000 respectively. Their personal assets are worth as
follows : X — ₹20,000, Y — ₹15,000 and Z— ₹10,000. The extent of their liability in the firm
would be : (C.S. Foundation; June 2013)
(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
Answer: B
13. Every partner is bound to attend diligently to his in the conduct of
the business.
(A) Rights
(B) Meetings
(C) Capital
(D) Duties
Answer: D
14. Forming a Partnership Deed is :
(A) Mandatory
(B) Mandatory in Writing
(C) Not Mandatory
(D) None of the Above
Answer: C
15. Partnership Deed is also called:
(A) Prospectus
(B) Articles of Association
(C) Principles of Partnership
(D) Articles of Partnership
Answer: D
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.
Answer: D
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
Answer
Answer: A
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
Answer: D
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
Answer: B
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.
Answer: B
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