MCQs Accounting class 12 – Fundamental of Partnership

1. “A and B are equal partners with capitals of 2,00,000 and 1,00,000 respectively. As per deed, they are allowed a interest @ 8% on capital. During the year, the firm earned a profit of 12,000.
Interest on capital allowed to A and B will be:”

2. A partner, Gaurav, withdrew 12,000 in the beginning of the each quarter during the year. Interest on drawings @ 8% chargeable to him will be:

3. On which side Partner’s drawings out of Capital will be recorded, when their capitals are fixed?

4. A, B and C are partners in a firm sharing profits in the ratio 2 : 2 : 1. C is guaranteed a minimum profit of 40,000 by A. Profit for the year amounted to 1,60,000. The profit credited to each partner will be:

5. Which of the following items is not recorded in Profit and Loss Appropriation A/c?

6. Net profit before commission has been 1,20,000. Partner’s commission is 20% of net profit before charging such commission. The amount of partner’s commission is:

7. Rent paid to a partner is debited to:

8. Which accounts are opened when partners have fluctuating capitals?

9. The balances of partner’s current account are:

10. 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 the profit will be:

11. Partnership Agreement can be:

12. Samira and Aashna are partners in business. They have not issued any specific instructions as to the maintenance of their capital accounts. Where should interest on drawings appear in the books of accounts?

13. The document that contains the terms of partnership is called:

14. In the absence of any Partnership Agreement, the profits or losses of the firm are divided:

15. A and B are equal partners with capitals of ₹ 2,00,000 and ₹ 1,00,000 respectively. As per deed, they are allowed a interest @ 8% on capital. During the year, the firm earned a profit of ₹ 12,000.

Interest on capital allowed to A and B will be:

16. Vijay and Rattan are partners in a firm. The partnership agreement provides for interest on drawings @ 12% per annum. Which of the following accounts will be debited to transfer interest on drawings to Profit and Loss Appropriation Account?

17. Sharma and Verma were partners in a firm. The partnership deed provided that interest on partners’ drawings will be charged @ 12% per annum. During the year Sharma withdrew ₹ 6,000. Interest on his drawings will be :

18. The relationship of partners with the firm is ___________.

19. The interest on Partner’s Capital Accounts is to be credited to ___________.

20. Amit, Sumit and Kiara are partners sharing profits and losses in the ratio 2 : 2 : 1. Sumit is entitled to a commission of 15% on the net profit after charging such commission. The net profit before charging commission is ₹ 9,20,000. The amount of commission payable to Sumit will be:

21. Arun and Nipun are partners with the capital of ₹ 25,000 and ₹ 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 firms is ₹ 2,400.

22. A, B, C and D are partners in a firm. They want to expand their business for which additional capital and more managerial experts are required. For this they want to admit more members in their firm. What is the maximum number of additional members that can be admitted by them in the firm?

23. 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, though the deed is silent. Firm earned a profit of ₹ 1,50,000. How much will each partner receives as an appropriation of profits?

24. Sohan and Mohan are partners sharing profits and losses in the ratio of 2:3 with the capitals of ₹ 5,00,000 and ₹ 6,00,000 respectively. On 1st January 2022, Sohan and Mohan granted loans of ₹ 20,000 and ₹ 10,000 respectively to the firm. Determine the amount of loss to be borne by each partner for the year ended 31st March 2022 if the loss before interest for the year amounted to ₹ 2,500.

25. Choose the correct sequence of the following transactions in context of Division of Profits.

(i) Guarantee by Firm to Partners

(ii) Guarantee by Partners to Firm

(iii) Transfer of Profits to Profit and Loss Appropriation Account

(iv) Guarantee by Partner to Partner