Partnership

Accounting

Medium

common

Match List-I with List-II

List-I List-II
(A) Bank (fresh capital introduced) (I) Debit side of Partner's Current Account
(B) Interest on drawings (II) Debit side of Partner's Capital Account
(C) Bank (permanent withdrawal of capital) (III) Credit side of Partner's Current Account
(D) Commission (IV) Credit side of Partner's Capital Account

Choose the correct answer from the options given below:

List-I	List-II
(A) Bank (fresh capital introduced)	(I) Debit side of Partner's Current Account
(B) Interest on drawings	(II) Debit side of Partner's Capital Account
(C) Bank (permanent withdrawal of capital)	(III) Credit side of Partner's Current Account
(D) Commission	(IV) Credit side of Partner's Capital Account

(A) - (IV), (B) - (I), (C) - (II), (D) - (III)

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 1

(A) Bank (fresh capital introduced) → When a partner introduces additional capital into the business, Bank Account is debited and Partner's Capital Account is credited. This increases the capital of the partner.

Journal Entry:

Bank A/c Dr

To Partner's Capital A/c

Hence, (A) matches with (IV) - Credit side of Partner's Capital Account

(B) Interest on drawings → Interest on drawings is a charge against the partner for withdrawing money from the business. It reduces the partner's share and is debited to Partner's Capital/Current Account.

Journal Entry:

Partner's Current A/c Dr

To Interest on Drawings A/c

Hence, (B) matches with (I) - Debit side of Partner's Current Account

(C) Bank (permanent withdrawal of capital) → When a partner permanently withdraws capital, it reduces their capital in the firm. Partner's Capital Account is debited and Bank Account is credited.

Journal Entry:

Partner's Capital A/c Dr

To Bank A/c

Hence, (C) matches with (II) - Debit side of Partner's Capital Account

(D) Commission → Commission earned by a partner is their entitlement and increases their share in the business. It is credited to Partner's Current Account.

Journal Entry:

Profit & Loss A/c Dr

To Partner's Current A/c

Hence, (D) matches with (III) - Credit side of Partner's Current Account

Correct matching: (A) - (IV), (B) - (I), (C) - (II), (D) - (III)

Correct Answer: Option 1

2026: 29 May Shift 1

Under the Fluctuating Capital Method, how many accounts are prepared for all adjustments like undistributed profits, reserves, etc. related to partners?

2022: 23 Aug Shift 2

The central government has prescribed the maximum number of partners in a firm to be _________ under Rule 10 of the companies (Miscellaneous) Rules, 2014.

2022: 8 Aug Shift 2

Which from the following is not a feature of a partnership firm?

2026: 21 May Shift 2

There are two methods by which the capital accounts of partners can be maintained. Select the main points of differences between the fixed and fluctuating capital methods from the following:

A. Under fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn, whereas under the fluctuating capital method, capital of the partners fluctuates.

B. Under fixed capital method, all items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in Partners' Current Account, whereas under fluctuating capital method, all the adjustments are recorded directly in the capital accounts of the partners.

C. Under fixed capital method, the partners' capital accounts will always show a credit balance and partners' current account, on the other hand, may show a debit or a credit balance, whereas under the fluctuating capital method, the capital account may sometimes show a debit balance.

D. The partners' capital accounts and current account will always show debit balance, whereas under the fluctuating capital method the capital account will always show a credit balance.

Choose the correct answer from the options given below:

2025: 13 May Shift 1

Which statements are true about partnership:

(A) Each partner carrying on the business is the principal as well as the agent for all the other partners.

(B) Valid partnership can be formulated even without a written agreement between the partners.

(D) The maximum number of partners can be 50.

Choose the correct answer from the options given below:

2026: 29 May Shift 1

Capital employed in a business is Rs. 1,00,000. The normal rate of return on this type of business carried out is 10%. The firm has earned profits of Rs. 30,000; Rs. 36,000 and Rs. 42,000 in the last three years. Using capitalisation of super profits method, calculate the value of the goodwill of the firm.

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)