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CUET Accountancy

Q1:

4 June Shift 2

Partnership > Accounting

Medium

Common

Which combination of statements is true about the fixed and fluctuating capital: (A). Under the Fixed capital method, two separate accounts are maintained for each partner, viz., 'capital account' and 'current account'. (B). Under the Fluctuating capital method, the balance of the capital account fluctuates from year to year. (C). Under the Fixed capital method, drawings, salary, interest on capital etc. are posted (transferred) in the current accounts and not in the capital accounts. (D). Under the Fixed capital method, the capital accounts always show a debit balance. Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (C) and (D) only

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q2:

4 June Shift 2

Partnership > Accounting

Medium

Common

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Amitabh has also given a Loan on April 01, 2024 of Rs. 50,000 to the firm without any agreement. Calculate Interest on Amitabh's Loan assuming books are closing on 31st March, 2025.

Nil

Rs. 6,000

Rs. 1,500

Rs. 3,000

Correct Answer

Option 4

Correct Answer

Explanation →

Q3:

4 June Shift 2

Partnership > Accounting

Easy

Common

Which of the following statement is incorrect?

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

Each partner will share profit in same proportion as other in case partnership deed is not there.

Maximum number of partners as prescribed by Central Government can be 50

The method of settlement of dispute among the partner cannot be part of the partnership deed.

Correct Answer

Option 4

Correct Answer

Explanation →

Q4:

4 June Shift 2

Partnership > Accounting

Medium

Common

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01,2018 were: Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidu is 3,50,000. As per a partnership deed, partners are entitled to interest on capital of @5% p.a. and Yadu has to be paid a salary of Rs. 2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to Rs. 75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

Yadu Rs. 30,000 Madhu Rs. 30,000 Vidu Rs. 15,000

Yadu Rs. 25,000 Madhu Rs. 25,000 Vidu Rs. 25,000

Yadu Rs. 39,600 Madhu Rs. 39,600 Vidu Rs. 19,800

Yadu Rs. 35,000 Madhu Rs. 25,000 Vidu Rs. 15,000

Correct Answer

Option 1

Correct Answer

Explanation →

Q5:

4 June Shift 2

Partnership > Accounting

Medium

Common

Ram and Laxman started business on 1st Jan 2020 with a capital of Rs 1,20,000 and Rs 80,000 respectively. Ram introduced Rs. 50,000 to the firm on 1st July 2020 as additional capital. If the rate of interest is 15% p.a. Assuming that accounts are closed as per calender year then the Interest payable to Ram on Capital would be:

Rs. 12,700

Rs. 18,000

Rs. 25,500

Rs. 21,750

Correct Answer

Option 4

Correct Answer

Explanation →

Q6:

4 June Shift 2

Partnership > Accounting

Easy

Common

Choose the correct statement if a partnership deed is not present.

Interest on Capital are allowed.

Interest on partner drawing is charged.

Remuneration or salary is given to partners.

Partners shall share the profit and losses equally.

Correct Answer

Option 4

Correct Answer

Explanation →

Q7:

4 June Shift 2

Partnership > Accounting

Medium

Common

Match List-I with List-II | List-I | List-II | |---|---| | (A). Admission of a New Partner | (I). Realisation Account | | (B). Retirement of a Partner | (II). Sacrificing Ratio | | (C). Dissolution of Partnership | (III). Executors Account | | (D). Death of A Partner | (IV). Revaluation of Assets and Liabilities | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation →

Q8:

4 June Shift 2

Partnership > Accounting

Medium

Common

Match List-I with List-II | List-I | List-II | |---|---| | Interest on Drawings | Time (Month) | | (A). When the amount is withdrawn at the beginning of each month. | (I). 6 months | | (B). When the amount is withdrawn at the end of each month. | (II). 6.5 months. | | (C). When the amount is withdrawn at the middle of each month. | (III). 5.5 months. | | (D). When the amount is withdrawn at the end of each quarter. | (IV). 4.5 months. | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation →

Q9:

3 June Shift 2

Partnership > Accounting

Easy

Common

Which of the following is not the feature of partnership:

There should be at least two persons coming together for a common goal.

Partnership is the result of an agreement between two or more persons to do business and share its profits only.

The business of a partnership concern may be carried on by all the partners or any of them acting for all.

The business profits and losses are shared by all the partners as per profit sharing ratio

Correct Answer

Option 2

Correct Answer

Explanation →

Q10:

3 June Shift 2

Partnership > Accounting

Easy

Common

Which among the following is NOT true?

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

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

The agreement may carry or not on any business. Mere co-ownership of a property can amount to partnership.

Persons who have entered into partnership with one another are individually called 'partners' and collectively called 'firm'.

Correct Answer

Option 3

Correct Answer

Explanation →

Q11:

3 June Shift 2

Partnership > Accounting

Easy

Common

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, which, among the following, is not shown in the Profit and Loss Appropriation Account?

All adjustments in respect of partner's salary.

All adjustments in respect of payment to Vendor.

All adjustments in respect of interest on capital

All adjustments in respect of interest on drawings

Correct Answer

Option 2

Correct Answer

Explanation →

Q12:

3 June Shift 2

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:

(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 Answer

Option 1

Correct Answer

Explanation →

Q13:

3 June Shift 2

Partnership > Accounting

Easy

Common

Which of the following account / statement is prepared to distribute the profit or loss among partners

Profit and Loss Appropriation A/c

Profit and Loss Adjustment A/c

Profit and Loss A/c

Balance Sheet

Correct Answer

Option 1

Correct Answer

Explanation →

Q14:

3 June Shift 2

Partnership > Accounting

Easy

Common

The clauses of a partnership deed can be altered with the consent of ________.

Government Authority

Registrar of Firms

All the partners

State Government

Correct Answer

Option 3

Correct Answer

Explanation →

Q15:

3 June Shift 2

Partnership > Accounting

Easy

Common

Which of the following is the feature of Fixed Capital Method in Partnership Accounts:-

Each partner has one account.

The capital accounts always show a credit balance.

The balance of the capital account fluctuates from year to year.

In the absence of any instruction, the capital account should be prepared by this method.

Correct Answer

Option 2

Correct Answer

Explanation →

Q16:

3 June Shift 2

Partnership > Accounting

Easy

Common

Neha contributed Rs. 30,000 and Solani Rs. 90,000 as capital. What will be Saloni's share in profits if the partnership agreement is silent?

One third of total profit.

One fourth of total profit.

Half of total profit.

Two third of total profit.

Correct Answer

Option 3

Correct Answer

Explanation →

Q17:

3 June Shift 2

Partnership > Accounting

Medium

Common

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

Rs. 1455

Rs. 1745

Rs. 1485

Rs. 1755

Correct Answer

Option 4

Correct Answer

Explanation →

Q18:

3 June Shift 1

Partnership > Accounting

Medium

Common

Match List-I with List-II | List–I (Events) | List–II (Result) | | ---------------------------------------- | ---------------------------- | | (A) Profit share | (I) Gaining ratio. | | (B) Admission of Partners | (II) Different concept | | (C) Retirement of a partner. | (III) Equally among partners | | (D) Dissolution of firm and partnership. | (IV) Sacrifice ratio. | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation →

Q19:

3 June Shift 1

Partnership > Accounting

Easy

Common

Which of the following will lead to the Reconstitution of a partnership Firm? (A) Admission of a new partner (B) Change in the profit sharing ratio among the existing partners (C) Retirement of an existing partner (D) Death of a partner Choose the correct answer from the options given below:

(A), (C) and (D) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation →

Q20:

2 June Shift 2

Partnership > Accounting

Easy

Common

In case of Fixed Capital Account, Interest on Drawings are

Debited to capital account.

Credited to capital accounts.

Debited to current account.

Credited to current account.

Correct Answer

Option 3

Correct Answer

Explanation →

Q21:

2 June Shift 2

Partnership > Accounting

Easy

Common

Rent payable to partner is .

Debited to trading account.

Credited to profit and loss account.

Debited to profit and loss account.

Debited to profit and loss appropriation account.

Correct Answer

Option 3

Correct Answer

Explanation →

Q22:

2 June Shift 2

Partnership > Accounting

Medium

Common

Match List-I with List-II | List-I | List-II | |---|---| | (Different accounts. ) | (Related transaction.) | | (A) profit and loss account. | (I) dissolution of partnership. | | (B) profit and loss appropriation account. | (II) dissolution of firm. | | (C) revaluation account | (III) interest on loan to partner. | | (D) realization account. | (IV) transfer to reserve. | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation →

Q23:

2 June Shift 2

Partnership > Accounting

Easy

Common

In the absence of partnership deed, interest on drawings is charged at.

6% p.a.

Nil

At the prevailing market rate.

6%p.m.

Correct Answer

Option 2

Correct Answer

Explanation →

Q24:

2 June Shift 2

Partnership > Accounting

Easy

Common

When the date of drawing is not specified, interest on drawings are calculated for

One full year.

6.5 month.

5.5 months.

6 months.

Correct Answer

Option 4

Correct Answer

Explanation →

Q25:

2 June Shift 2

Partnership > Accounting

Medium

Common

Identify the correct statement from the given below :-

Partners' Current Account will never be shown in Assets side of the Balance Sheet.

Partners' Current Account will either be shown in Assets side of the Balance Sheet or be shown in Liabilities side of the Balance Sheet.

Partners' Current Account will always be shown in Liabilities side of the Balance Sheet.

Partners' Current Account will always be shown in Assets side of the Balance Sheet.

Correct Answer

Option 2

Correct Answer

Explanation →

Q26:

2 June Shift 2

Partnership > Accounting

Easy

Common

The liability of partners is

Limited to the value of shares held

Limited to amount of investment

Limited to the amount of guarantee

Unlimited

Correct Answer

Option 4

Correct Answer

Explanation →

Q27:

2 June Shift 2

Partnership > Accounting

Medium

Common

When the capital accounts are fixed, additional capital introduced by the partner is.

Credited to current account.

Debted to current account.

Credited to capital account.

Debited to capital account.

Correct Answer

Option 3

Correct Answer

Explanation →

Q28:

2 June Shift 2

Partnership > Accounting

Easy

Common

Reconstitution of partnership does not involves

Admission of partner

Dissolution of firm.

Death of partner.

Retirement of partner.

Correct Answer

Option 2

Correct Answer

Explanation →

Q29:

31 May Shift 1

Partnership > Accounting

Easy

Common

If partnership deed is silent on the profit sharing ratio: interest @_____ per annum is allowed on loans advanced by partners-

8%

6%

10%

12%

Correct Answer

Option 2

Correct Answer

Explanation →

Q30:

31 May Shift 1

Partnership > Accounting

Easy

Common

In case partner's capital is fixed, then where interest on drawings charged will be shown?

Debit side of partner's capital account

Credit side of partner's capital account

Debit side of partner's current account

Credit side of partner's current account

Correct Answer

Option 3

Correct Answer

Explanation →

Q31:

31 May Shift 1

Partnership > Accounting

Easy

Common

Which statement is not true about Capital Accounts of Partner-

Under the fixed capital method, the capitals of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement among the partners.

Under the fluctuating capital method, two account, i.e. capital account and current account is maintained for each partner.

Under the fixed capital method, While the partners' capital accounts shall always appear on the liabilities side in the balance sheet, the partners' current account's balance shall be shown on the liabilities side, if they have credit balance and on the assets side, if they have debit balance.

Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner.

Correct Answer

Option 2

Correct Answer

Explanation →

Q32:

31 May Shift 1

Partnership > Accounting

Medium

Common

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission @ 5,000. Amitabh has also given a Loan on April 01 , 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. Profit and Loss Appropriation account shows balance of the Profit and Loss A/c (Net profit before Babul's salary) amounted to:

Rs. 14500

Rs. 14250

Rs. 14750

Rs. 14350

Correct Answer

Option 2

Correct Answer

Explanation →

Q33:

31 May Shift 1

Partnership > Accounting

Medium

Common

Match List-I with List-II | List-I | List-II | |---|---| | Interest on Drawings | Time (Month) | | (A) When the amount is withdrawn at the beginning of each month. | (I) 6 months | | (B) When the amount is withdrawn at the end of each month. | (II) 6.5 months. | | (C) When the amount is withdrawn at the middle of each month. | (III) 5.5 months. | | (D) When the amount is withdrawn at the end of each quarter. | (IV) 4.5 months. | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation →

Q34:

31 May Shift 1

Partnership > Accounting

Medium

Common

Match List-I with List-II | List-I | List-II | |---|---| | (A) Gaining Ratio | (I) New Share - old Share. | | (B) Sacrificing Ratio | (II) Old Share - New Share. | | (C) Admission of Partner | (III) Partner may be paid amount more that what has actually due to him for hidden goodwill share. | | (D) Retirement of Partner | (IV) Partner may or may not bring his share of goodwill in cash. | Choose the correct answer from the options given below:

(A) - (i), (B) - (ii), (C) - (iii), (D) - (iv)

(A) - (i), (B) - (ii), (C) - (ii), (D) - (iv)

(A) - (i), (B) - (ii), (C) - (iv), (D) - (iii)

(A) - (iii), (B) - (iv), (C) - (i), (D) - (ii)

Correct Answer

Option 3

Correct Answer

Explanation →

Q35:

31 May Shift 1

Partnership > Accounting

Medium

Common

Which combination of statements is true about partnership- (A) Valid partnership can be formulated even without a written agreement between the partners. (B) Methods of settlement of disputes among the partners can't be part of the partnership deed. (C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. (D) Each partner carrying on the business is the principal as well as the agent for all the other partners. Choose the correct answer from the options given below:

(A) and (D) only

(A), (B) and (D) only

(C) and (D) only

(C) and (B) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q36:

31 May Shift 1

Partnership > Accounting

Medium

Common

Saloni and Srishti are partners in a firm. Their capital accounts as on April 01, 2019 showed a balance of Rs. 2,00,000 and Rs. 3,00,000 respectively. On July 01, 2019 Saloni introduced additional capital of Rs. 50,000 and Srishti, Rs. 60,000. On October 01, 2019 Saloni withdrew Rs. 30,000, and on January 01, 2020 Srishti withdrew Rs. 15,000 from their capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital to Saloni during the financial year 2019–2020.

Rs. 8,800

Rs. 17,800

Rs. 14,400

Rs. 20,800

Correct Answer

Option 2

Correct Answer

Explanation →

Q37:

31 May Shift 1

Partnership > Accounting

Easy

Common

Contents of the Partnership Deed does not include

Names and Addresses of all partners

Mode of auditor's appointment, if any

The date of commencement of partnership

Bank Details of Nominee

Correct Answer

Option 4

Correct Answer

Explanation →

Q38:

30 May Shift 2

Partnership > Accounting

Easy

Common

Which of the following is not a features of partnership:

In order to form partnership, there should be at least two persons coming together for a common goal.

Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.

The agreement should be to carry on some business.

The business of partnership concern may be carried on by all the partners but any one of them can't act for all.

Correct Answer

Option 4

Correct Answer

Explanation →

Q39:

30 May Shift 2

Partnership > Accounting

Easy

Common

A partnership deed usually doesn't contain the following details:

Name and address of all the partners

Profit and Loss Sharing Ratio

Mode of auditor's appointment

The date of dissolving the partnership firm

Correct Answer

Option 4

Correct Answer

Explanation →

Q40:

30 May Shift 2

Partnership > Accounting

Medium

Common

Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if the amount is withdrawn at the beginning of each month and rate of interest on drawings is 8% per annum?

Rs. 4,800.

Rs. 5,000.

Rs. 5,200.

Rs. 4,200.

Correct Answer

Option 3

Correct Answer

Explanation →

Q41:

30 May Shift 2

Partnership > Accounting

Medium

Common

If there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm, it should be transferred to:

The old partners' capital accounts.

The new partners' capital accounts.

All partners' capital accounts.

Not to any partners' capital accounts.

Correct Answer

Option 1

Correct Answer

Explanation →

Q42:

30 May Shift 2

Partnership > Accounting

Medium

Common

Mohan and Shyam are partners in a firm. Which statement among the below can be claimed valid if the Partnership Agreement is silent regarding the same.

Mohan is an active partner. He wants a salary of Rs. 10,000 per year.

Shyam had advanced a loan to the firm. He claims interest of @ 10% per annum.

Mohan contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants an equal share in profits.

Shyam wants interest on capital to be credited @ 6% per annum.

Correct Answer

Option 3

Correct Answer

Explanation →

Q43:

30 May Shift 2

Partnership > Accounting

Medium

Common

Anupam and Abhishek are partners. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01, 2019. Show the interest on capital for the year ending march 31, 2020 allowed, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year:

20,000

28,000

26,000

14,000

Correct Answer

Option 4

Correct Answer

Explanation →

Q44:

30 May Shift 2

Partnership > Accounting

Easy

Common

Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a partnership firm?

Section 464 of the Companies Act 1932

Section 464 of the Companies Act 2013

Section 4 of the Companies Act 2013

Section 4 of the Companies Act 1932

Correct Answer

Option 2

Correct Answer

Explanation →

Q45:

30 May Shift 2

Partnership > Accounting

Easy

Common

Which among the following is not the feature of a fixed capital method by which the capital accounts of partners can be maintained?

Under this method, two separate accounts are maintained for each partner, viz., 'capital account' and 'current account'.

Drawings, salary, interest on capital, etc. are posted (transferred) in the current accounts and not in the capital accounts.

The capital account shows debit balance.

The capital account balance remains unchanged unless there is an addition to or withdrawal of capital.

Correct Answer

Option 3

Correct Answer

Explanation →

Q46:

30 May Shift 2

Partnership > Accounting

Easy

Common

If the partnership deed is silent on interest on capital, then:

No interest on capital is payable

Interest on capital is only paid to partner contributing more capital.

Interest on capital is paid equally to all partners

Interest on capital is paid @ 6% p.a.

Correct Answer

Option 1

Correct Answer

Explanation →

Q47:

30 May Shift 2

Partnership > Accounting

Easy

Common

Which of the following is the feature of fluctuating capital:

Under this method, two separate accounts are maintained for each partner, viz., 'capital account' and 'current account'.

Each partner has one account, i.e. capital account under this method

Each partner has one account, i.e. current account under this method

The capital account balance remain unchanged unless there is addition or withdrawal of capital.

Correct Answer

Option 2

Correct Answer

Explanation →

Q48:

30 May Shift 1

Partnership > Accounting

Easy

Common

If there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm. It should be transferred to:

The old partners' capital accounts.

The new partners' capital accounts.

All partners' capital accounts.

Not any partners' capital accounts.

Correct Answer

Option 1

Correct Answer

Explanation →

Q49:

30 May Shift 1

Partnership > Accounting

Medium

Common

By virtue of which Section of the Companies Act 2013, the Central Government is empowered to prescribe the maximum number of partners in a firm, but the number of partners can not be more than 100?

Section 364

Section 464

Section 460

Section 454

Correct Answer

Option 2

Correct Answer

Explanation →

Q50:

30 May Shift 1

Partnership > Accounting

Medium

Common

Pinki, Deepti and Kaku are partner's sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than Rs 5000. Deficiency, if any, would be borne by Pinki and Deepu equally. Calculate the deficiency assumed by Pinki and Deepti for each case separately if profits for the year were:- Case I - Rs 40,000 or Case II - Rs 60,000

Case I - Rs 500 each by Pinki and Deepti Case II - Rs 0 each by Pinki and Deepti

Case I - Rs 0 each by Pinki and Deepti Case II - Rs 500 each by Pinki and Deepti

Case I - Rs 1000 each by Pinki and Deepti Case II - Rs 500 each by Pinki and Deepti

Case I - Rs 500 each by Pinki and Deepti Case II - Rs 100 each by Pinki and Deepti

Correct Answer

Option 1

Correct Answer

Explanation →

Q51:

30 May Shift 1

Partnership > Accounting

Medium

Common

The Partnership agreement between Maneesh and Girish provides that: (A) Profits will be shared equally (B) Maneesh will be allowed a salary of Rs 400 pm (C) Girish who manages the sales department will be allowed a commission of 10% of the net profits after deducting Maneesh's salary (D) 7% p.a. interest will be allowed on Partner's fixed capital (E) 5% p.a. interest will be charged on partner's annual drawings (F) The fixed capitals of Maneesh and Girish are Rs 1,00,000 and Rs. 80,000 respectively. Their annual drawings were Rs. 16,000 and Rs 14,000 respectively. The net profit for the year ended March 31, 2018 amounted to Rs. 40,000 Calculate the profit allocated to each partner after all adjustments.

Rs 22,890 to each partner

Rs 8,790 to each partner

Rs 10,050 to each partner

Rs 10,290 to each partner

Correct Answer

Option 4

Correct Answer

Explanation →

Q52:

30 May Shift 1

Partnership > Accounting

Medium

Common

Identify the correct sequence for finding out divisible Profit & Loss for a Partnership Firm manufacturing Steel pipes : (A) Transfer amount to general reserve, as per requirement. (B) Allow interest on capital and charge interest on drawing. (C) Transfer of the balance of profit and loss account to profit and loss appropriation A/c (D) Find out the balance amount to be distributed among partners. Choose the correct answer from the options given below:

(A), (B), (C), (D)

(D), (C), (B), (A)

(C), (B), (A), (D)

(B), (C), (D), (A)

Correct Answer

Option 3

Correct Answer

Explanation →

Q53:

30 May Shift 1

Partnership > Accounting

Medium

Common

The following are the features of the fluctuating capital method by which the capital accounts of partners can be maintained. (A) Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner. (B) All the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, etc. are recorded directly in the capital accounts of the partners. (C) the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners. (D) The capital account may sometimes show a debit balance. Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q54:

30 May Shift 1

Partnership > Accounting

Easy

Common

Which among the following is NOT true about the Partnership?

Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner.

Partnership is the result of an agreement between two or more persons to do business and share their profits and losses.

If persons join hands for the purpose of some charitable activity it can be termed as partnership.

The minimum number of partners in a firm can be two.

Correct Answer

Option 3

Correct Answer

Explanation →

Q55:

30 May Shift 1

Partnership > Accounting

Medium

Common

In the Proforma of Partner's Capital Account under the Fluctuating capital Method, the Credit side includes the following items: (A) Balance b/d (in case of credit opening balance) (B) Salaries (C) Interest on drawings (D) Profit and Loss Appropriation (for share of profit) Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (B), (C) and (D)

(A), (B) and (D) only

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation →

Q56:

30 May Shift 1

Partnership > Accounting

Medium

Common

Himanshu withdrew Rs 2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ended March 31, 2017

Rs 1,950

Rs 1,650

Rs 3,600

Rs 1,675

Correct Answer

Option 2

Correct Answer

Explanation →

Q57:

29 May Shift 2

Partnership > Accounting

Easy

Common

Which of the following are shown under capital account in case capital of partner's are fixed? (A) Fresh capital introduced (B) Permanent capital withdrawn (C) Interest on capital (D) Amount of capital brought down from the previous year Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (B) and (D) only

(A), (C), and (D) only

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q58:

29 May Shift 2

Partnership > Accounting

Easy

Common

The maximum limit for the number of partner is decided by.

Partnership deed .

Partnership act 1932.

Companies Act 2013

Central Government.

Correct Answer

Option 4

Correct Answer

Explanation →

Q59:

29 May Shift 2

Partnership > Accounting

Easy

Common

Himanshu withdrew Rs.2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

Rs 1,950

Rs 1,650

Rs 3,600

Rs 1,800

Correct Answer

Option 2

Correct Answer

Explanation →

Q60:

29 May Shift 2

Partnership > Accounting

Easy

Common

When drawings are made at the beginning of every month for the full year, interest on drawings is calculated for

One Year.

6.5 months

6 months.

5.5 months.

Correct Answer

Option 2

Correct Answer

Explanation →

Q61:

29 May Shift 2

Partnership > Accounting

Easy

Common

Identify which statement is FALSE-

In case of no written agreement between partners, a partnership can be started.

If a partnership deed does not exist, each partner will share profit in equal ratio.

In a partnership deed, the method of settlement of dispute among the partner cannot be included / mentioned.

Maximum number of partners in a Partnership Firm must not exceed 50.

Correct Answer

Option 3

Correct Answer

Explanation →

Q62:

29 May Shift 2

Partnership > Accounting

Medium

Common

A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided under partnership deed @10% p.a was omitted. Select the correct option from the following:

A capital account will be debited by 25,000

A capital account will be debited by 5,000

B capital account will be debited by 5,000

B capital account will be debited by 25,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q63:

29 May Shift 2

Partnership > Accounting

Medium

Common

The steps followed for calculating interest on drawing in the product method are. (A) Calculate number of month for which interest is due on each drawing (B) List down amount of drawing in decending order in a table.. (C) find the total of product and apply the formula to calculate interest on drawing. (D) Calculate product for each drawing by multiplying amount and number of month. Choose the correct answer from the options given below:

(A), (B), (C), (D)

(A), (B), (D), (C)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 3

Correct Answer

Explanation →

Q64:

29 May Shift 2

Partnership > Accounting

Easy

Common

Which is not usually included / mentioned in the contents of the Partnership Deed:-

All partners' residential addresses and their names.

Partnership commencement Date

Ratio in which Profit / Loss will be shared among the partners.

Date on which the Partnership firm will be dissolved.

Correct Answer

Option 4

Correct Answer

Explanation →

Q65:

27 May Shift 2

Partnership > Accounting

Easy

Common

Identify the true statement in respect of the Fixed Capital Method for a Partnership Firm :-

The Balance of Partners' Capital Account will be positive/credit.

The Balance of Partners' Capital Account may be negative / Debit or may be nil/zero.

The Balance of Partners' Capital Account may be negative / Debit or may be positive/Credit.

The Balance of Partners' Capital Account will never be positive/Credit.

Correct Answer

Option 1

Correct Answer

Explanation →

Q66:

27 May Shift 2

Partnership > Accounting

Easy

Common

Under the fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners. Which among the following is NOT the feature of the fixed capital method?

The partners' capital accounts will always show a credit balance.

All adjustments for drawings, salary, interest on capital, etc., are posted (transferred) in the capital accounts.

Under this method, two accounts are maintained for each partner.

The partners' current account, on the other hand, may show a debit or a credit balance.

Correct Answer

Option 2

Correct Answer

Explanation →

Q67:

27 May Shift 2

Partnership > Accounting

Hard

Common

J and K are partners sharing profits and losses in the ratio of 3:1. Their capitals at the end of the financial year 2024-2025 were Rs. 1,50,000 and Rs. 75,000 respectively. During the year 2024-2025, J’s drawings were Rs. 20,000 and the drawings of K were Rs. 5,000, which had been duly debited to partner’s capital accounts. Profit before charging interest on capital for the year was Rs. 16,000. The same had also been credited in their profit sharing ratio. K had brought additional capital of Rs. 16,000 on October 1, 2024. Calculate interest on capital @ 12% p.a. for the year 2024-2025 for J.

Rs. 3,960

Rs. 7,200

Rs. 8,160

Rs. 18,960

Correct Answer

Option 4

Correct Answer

Explanation →

Q68:

27 May Shift 2

Partnership > Accounting

Medium

Common

Identify the true statement in respect of a partnership Firm-

Rent paid to a partner is a charge and interest on loan from the partner is an appropriation for the firm.

Rent paid to partner and Interest on loan from the partner, both are charges for the firm.

Rent paid to a partner is an appropriation and interest on loan from the partner is a charge for the firm.

Rent paid to partner and Interest on loan from the partner, both are appropriation for the firm.

Correct Answer

Option 2

Correct Answer

Explanation →

Q69:

27 May Shift 2

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:

(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 Answer

Option 1

Correct Answer

Explanation →

Q70:

27 May Shift 2

Partnership > Accounting

Medium

Common

Which of the following statements relates to Fixed Capital Method? (A) The capitals of the partners shall remain fixed unless additional capital is introduced or capital is withdrawn. (B) All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in Partner's Current Account. (C) The partners' capital accounts will always show a debit balance. (D) The partners' current account may show a debit or a credit balance. Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q71:

27 May Shift 2

Partnership > Accounting

Easy

Common

Which Act empowers the Central Government to prescribe a maximum number of partners in a partnership firm :-

The Companies Act 2014

The Partnership Act 2013

The Companies Act 2013

The Partnership Act 1932

Correct Answer

Option 3

Correct Answer

Explanation →

Q72:

27 May Shift 2

Partnership > Accounting

Easy

Common

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, Which, among the following, is not shown in the Profit and Loss Appropriation Account?

All adjustments in respect of partner's salary.

All adjustments in respect of payment to Vendor.

All adjustments in respect of interest on capital

All adjustments in respect of interest on drawings

Correct Answer

Option 2

Correct Answer

Explanation →

Q73:

27 May Shift 1

Partnership > Accounting

Medium

Common

Which combination of statements are false about partnership- (A) Interest on partner's loan is to be given @ 12% p.a. If the deed is silent about the rate. (B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. (C) Methods of settlement of dispute among the partners can't be part of the partnership deed. (D) Each partner carrying on the business is the principal as well as the agent for all the other partners Choose the correct answer from the options given below: 1. (A), (B) and (D) only 2. (A), (B) and (C) only 3. (A), (B), (C) and (D) 4. (B), (C) and (D) only

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q74:

27 May Shift 1

Partnership > Accounting

Easy

Common

If the partnership deed is silent on interest on capital, then:

No interest on capital is payable

Interest on capital is only paid to partner contributing more capital

Interest on capital paid equally to all partners

Interest on capital is paid @6% p.a.

Correct Answer

Option 1

Correct Answer

Explanation →

Q75:

27 May Shift 1

Partnership > Accounting

Medium

Common

Which of the following statements results in the reconstitution of a partnership firm :- (A) Change in profit sharing ratio among partners. (B) Admission of a new partner. (C) Dissolution of a partnership firm. (D) Dissolution of a partnership. Choose the correct answer from the options given below: 1. (A), (B) and (C) only 2. (A), (B) and (D) only 3. (A), (B), (C) and (D) 4. (B), (C) and (D) only

(A), (B) and (C) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q76:

27 May Shift 1

Partnership > Accounting

Easy

Common

Which of the following is not included in the Contents of the Partnership Deed-

Names and Addresses of all partners

Profit and loss sharing ratio

Rate of interest on capital, loan, drawings, etc

The rights, duties and liabilities of each partner's spouse

Correct Answer

Option 4

Correct Answer

Explanation →

Q77:

27 May Shift 1

Partnership > Accounting

Easy

Common

Correct Journal entry for transferring interest on capital to Profit and Loss Appropriation Account is-

Profit and Loss Appropriation A/c Dr. To Interest on Capital A/c

Interest on Capital A/c Dr. To Partner's Capital/Current A/cs

Interest on Capital A/c Dr. To Profit and Loss Appropriation A/c

Partners Capital/Current A/c's Dr. To Interest on Capital A/c

Correct Answer

Option 1

Correct Answer

Explanation →

Q78:

27 May Shift 1

Partnership > Accounting

Medium

Common

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

Rs 1455

Rs 1745

Rs 1485

Rs 1755

Correct Answer

Option 4

Correct Answer

Explanation →

Q79:

27 May Shift 1

Partnership > Accounting

Medium

Common

Which of the following is not the feature of fluctuating capital in partnership-

Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner

The partners' capital accounts will always show a credit balance, which shall remain the same (fixed) year after year unless there is any addition or withdrawal of capital.

All the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, salary or commission to partners, etc are recorded directly in the capital accounts of the partners.

In the absence of any instruction, the capital account should be prepared by this method.

Correct Answer

Option 2

Correct Answer

Explanation →

Q80:

27 May Shift 1

Partnership > Accounting

Medium

Common

Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a firm, but the number of partners can not be more than 100?

Section 464 of the Companies Act 1932

Section 464 of the Companies Act 2013

Section 4 of the Companies Act 2013

Section 4 of the Companies Act 1932

Correct Answer

Option 2

Correct Answer

Explanation →

Q81:

26 May Shift 2

Partnership > Accounting

Medium

Common

Under the fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners. Which among the following is NOT the feature of the fixed capital method?

The partners' capital accounts will always show a credit balance.

All adjustments for drawings, salary, interest on capital, etc., are posted in the current accounts.

Under this method, two capital accounts are maintained for each partner.

The partners' current account may show a debit or a credit balance.

Correct Answer

Option 3

Correct Answer

Explanation →

Q82:

26 May Shift 2

Partnership > Accounting

Easy

Common

Neha contributed Rs. 30,000 and Saloni Rs. 90,000 as capital. What will be Saloni's share in profits if the partnership agreement is silent?

One third of total profit.

One fourth of total profit.

Half of total profit.

Two third of total profit.

Correct Answer

Option 3

Correct Answer

Explanation →

Q83:

26 May Shift 2

Partnership > Accounting

Easy

Common

The clauses of a partnership deed can be altered with the consent of ______

Government Authority

Registrar of Firms

All the partners

State Government

Correct Answer

Option 3

Correct Answer

Explanation →

Q84:

26 May Shift 2

Partnership > Accounting

Medium

Common

Which of the following statements are correct about partnership:- (A) Each partner carrying on the business is the principal as well as the agent for all the other partners (B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner (C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners (D) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate Choose the correct answer from the options given below:

(B) and (D) only

(A), (B) and (D) only

(C) and (D) only

(A) and (C) only

Correct Answer

Option 4

Correct Answer

Explanation →

Q85:

26 May Shift 2

Partnership > Accounting

Medium

Common

John Ibrahim, a partner in Ancient Tours and Travels withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. He withdrew Rs. 3,000 per month at the beginning of the month. Calculate interest on drawings that should be charged from John Ibrahim, if the rate of interest charged on drawing is 9% per annum.

Rs. 1485

Rs. 1755

Rs. 1795

Rs. 1685

Correct Answer

Option 2

Correct Answer

Explanation →

Q86:

26 May Shift 2

Partnership > Accounting

Easy

Common

A correct journal entry for Transfer of the balance of Profit and Loss Account (a credit balance) to Profit and Loss Appropriation Account is-

Profit and Loss Appropriation A/c Dr. To Profit and Loss A/c

Profit and Loss A/c Dr. To Profit and Loss Appropriation A/c

Profit and Loss Appropriation A/c Dr. To Partner's Capital/Current A/c's

Partner's Capital/Current A/c Dr. To Profit and Loss Appropriation A/c

Correct Answer

Option 2

Correct Answer

Explanation →

Q87:

26 May Shift 2

Partnership > Accounting

Medium

Common

Which of the following statements results in the reconstitution of a partnership firm :- (A) Change in profit sharing ratio among partners. (B) Admission of a new partner. (C) Dissolution of a partnership firm. (D) Dissolution of a partnership. Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q88:

26 May Shift 2

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:

(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 Answer

Option 1

Correct Answer

Explanation →

Q89:

26 May Shift 2

Partnership > Accounting

Easy

Common

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, which, among the following, is not shown in the Profit and Loss Appropriation Account?

All adjustments in respect of partner's salary.

All adjustments in respect of payment to Vendor.

All adjustments in respect of interest on capital

All adjustments in respect of interest on drawings

Correct Answer

Option 2

Correct Answer

Explanation →

Q90:

26 May Shift 2

Partnership > Accounting

Medium

Common

Which of the following is not always an essential feature of partnership?

Sharing of profits and losses

Relationship of mutual agency among the partners.

Liability of partners is always unlimited.

Agreement to carry lawful business

Correct Answer

Option 3

Correct Answer

Explanation →

Q91:

26 May Shift 2

Partnership > Accounting

Medium

Common

Which among the following is NOT true?

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

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

Mere co-ownership of a property can amount to partnership.

Persons who have entered into partnership with one another are individually called 'partners' and collectively called 'firm'.

Correct Answer

Option 3

Correct Answer

Explanation →

Q92:

24 May Shift 1

Partnership > Accounting

Easy

Common

By virtue of which section of the Indian Partnership Act 1932, partnership is defined 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'.

Section 1

Section 4

Section 2

Section 3

Correct Answer

Option 2

Correct Answer

Explanation →

Q93:

24 May Shift 1

Partnership > Accounting

Easy

Common

The Partnership Deed usually contains the following details: (A) Amount of capital to be contributed by each partner (B) The accounting period of the firm (C) Profit and loss sharing ratio (D) The rights, duties and liabilities of each partner Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation →

Q94:

24 May Shift 1

Partnership > Accounting

Easy

Common

Choose the correct statement in respect of the Fixed Capital Method for a Partnership Firm :-

Closing Balance of Partners' Current Account will never be a zero.

Closing Balance of Partners' Capital Account may be a debit or may be a credit.

Closing Balance of Partners' Capital Account will always be a credit.

Closing Balance of Partners' Current Account will never be a credit.

Correct Answer

Option 3

Correct Answer

Explanation →

Q95:

24 May Shift 1

Partnership > Accounting

Easy

Common

Which of the following item is not shown in the Profit and Loss Appropriation Account?

Partner's Salary

Interest on Drawings

Interest on Capital

Depreciation

Correct Answer

Option 4

Correct Answer

Explanation →

Q96:

24 May Shift 1

Partnership > Accounting

Medium

Common

Sumit, a partner in Tours and Travels withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. Calculate interest on drawings at simple rate of interest of 10 percent per annum and if an amount of Rs. 4,000 per month was withdrawn by sumit at the end of each month.

2100

2020

2200

2050

Correct Answer

Option 3

Correct Answer

Explanation →

Q97:

24 May Shift 1

Partnership > Accounting

Easy

Common

Which of the following characteristics is highlighted in the statement: "He can bind other partners by his acts and also is bound by the acts of other partners with regard to the business of the firm."

Agreement between Partners

Liability of Partners

Sharing of Profit

Mutual Agency

Correct Answer

Option 4

Correct Answer

Explanation →

Q98:

24 May Shift 1

Partnership > Accounting

Easy

Common

If the partnership deed is silent, at what rate, the interest would be charged on the drawings made by the partner:

0%

8%

12%

5%

Correct Answer

Option 1

Correct Answer

Explanation →

Q99:

24 May Shift 1

Partnership > Accounting

Easy

Common

Which of the following is NOT a feature of partnership?

Two or more persons

Disagreement

Mutual agency

Sharing of profit

Correct Answer

Option 2

Correct Answer

Explanation →

Q100:

24 May Shift 1

Partnership > Accounting

Medium

Common

Opening capital balances of partners will be calculated by using which of the following formula :-

Closing Capital - Addition to the Capital + Withdrawal of Capital - interest on Capital + Drawings + interest on drawings + Share of Loss + Share of Profit

Closing Capital - Addition to the Capital + Withdrawal of Capital - interest on Capital + Drawings + interest on drawings - Share of Loss - Share of Profit

Closing Capital - Addition to the Capital + Withdrawal of Capital - interest on Capital + Drawings + interest on drawings + Share of Loss - Share of Profit

Closing Capital - Addition to the Capital + Withdrawal of Capital - interest on Capital + Drawings + interest on drawings - Share of Loss + Share of Profit

Correct Answer

Option 3

Correct Answer

Explanation →

Q101:

22 May Shift 2

Partnership > Accounting

Easy

Common

'The business of a partnership concern may be carried on by all the partners or any of them acting for all.' Which feature of partnership is indicated by the above statement?

Business

Agreement

Mutual agency

Profit sharing

Correct Answer

Option 3

Correct Answer

Explanation →

Q102:

22 May Shift 2

Partnership > Accounting

Easy

Common

For distribution of profits among the partners, the following account is debited to the partners:

Profit and Loss Appropriation A/c

Partner's Capital A/c

Goodwill A/c

Profit and Loss A/c

Correct Answer

Option 1

Correct Answer

Explanation →

Q103:

22 May Shift 2

Partnership > Accounting

Medium

Common

A and B are partners without any partnership deed. B has given loan of Rs.2,00,000 to the firm on 1st July 2023. B claim interest on loan @ 10% p.a. How much interest on loan will be paid to B for the year ending on 31st March 2024. ?

Rs 20,000

Rs 12,000

Rs 9,000

Rs 6,000

Correct Answer

Option 3

Correct Answer

Explanation →

Q104:

22 May Shift 2

Partnership > Accounting

Medium

Common

A and B are partners in a firm with their fixed capital Rs 4,00,000 and 5,00,000 respectively. After preparation of accounts, it was found that interest on capital @ 10% p.a as provided by the partnership deed is omitted. In order to rectify the mistake, A's current account will be ………?

Credited by Rs 5,000.

Debited by Rs 5,000

Credited by Rs 10,000

Debited by Rs 10,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q105:

22 May Shift 2

Partnership > Accounting

Easy

Common

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

Partnership deed can be oral

Partnership deed can be in writing

Partnership deed helps to resolve disputes

Partnership deed can be presented as evidence in court

Correct Answer

Option 1

Correct Answer

Explanation →

Q106:

22 May Shift 2

Partnership > Accounting

Easy

Common

In the case of fixed capital method, following two accounts are maintained.

Capital account and Balance sheet

Current account and Balance sheet

Capital account and Current account

Revaluation and Capital account

Correct Answer

Option 3

Correct Answer

Explanation →

Q107:

22 May Shift 2

Partnership > Accounting

Easy

Common

Which of the following are charges against profits? (A) Rent paid to partners (B) Interest on loan, paid to partners (C) Interest on Capital (D) Manager's commission Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (C) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q108:

22 May Shift 2

Partnership > Accounting

Easy

Common

Which of the following is not a part of capital account under the fixed Capital Method?

Permanent Withdrawl from capital

Opening Balance of Capital

Drawings

Additional Capital

Correct Answer

Option 3

Correct Answer

Explanation →

Q109:

22 May Shift 1

Partnership > Accounting

Medium

Common

Ram and Laxman started business on 1st Jan 2020 with a capital of Rs 1,20,000 and Rs 80,000 respectively. Ram introduced Rs. 50,000 to the firm on 1st July 2020 as additional capital. If the rate of interest is 15% p.a. Assuming that accounts are closed as per calender year then the Interest payable to Ram on Capital would be:

Rs. 12,750

Rs. 18,000

Rs. 25,500

Rs. 21,750

Correct Answer

Option 4

Correct Answer

Explanation →

Q110:

22 May Shift 1

Partnership > Accounting

Easy

Common

When the date of drawing is not specified, interest on drawings is calculated for

One full year.

6.5 month.

5.5 months.

6 months.

Correct Answer

Option 4

Correct Answer

Explanation →

Q111:

22 May Shift 1

Partnership > Accounting

Medium

Common

Which of the following statement is incorrect?

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

Each partner will share profit in same proportion as other in case partnership deed is not there.

Maximum number of partners as prescribed by Central Government can be 50

The method of settlement of dispute among the partner cannot be part of the partnership deed.

Correct Answer

Option 4

Correct Answer

Explanation →

Q112:

22 May Shift 1

Partnership > Accounting

Medium

Common

Match List-I with List-II | List-I | List-II | |---|---| | (A) Admission of a New Partner | (I) Realisation Account | | (B) Retirement of a Partner | (II) Sacrificing ratio | | (C) Dissolution of Partnership | (III) Executors Account | | (D) Death of A Partner | (IV) Gaining Ratio | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation →

Q113:

22 May Shift 1

Partnership > Accounting

Easy

Common

The Central Government has prescribed the maximum number of partners in a firm to be .......

100

50

20

10

Correct Answer

Option 2

Correct Answer

Explanation →

Q114:

22 May Shift 1

Partnership > Accounting

Easy

Common

Choose the correct statement if a partnership deed does not exist.

Interest on Capital are allowed.

Interest on partner drawing is charged.

Remuneration or salary is given to partners.

Partners shall share the profit and losses equally.

Correct Answer

Option 4

Correct Answer

Explanation →

Q115:

22 May Shift 1

Partnership > Accounting

Easy

Common

All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through:

Profit and Loss Account

Profit and Loss Appropriation Account

Partners' Capital Accounts

Revaluation Account

Correct Answer

Option 2

Correct Answer

Explanation →

Q116:

22 May Shift 1

Partnership > Accounting

Medium

Common

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01, 2018 were: Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidu is 3,50,000. As per the partnership deed, partners are entitled to interest on capital @5% p.a. and Yadu has to be paid a salary of Rs. 2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to Rs. 75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

Yadu Rs. 30,000 Madhu Rs. 30,000 Vidu Rs. 15,000

Yadu Rs. 25,000 Madhu Rs. 25,000 Vidu Rs. 25000

Yadu Rs. 39,600 Madhu Rs. 39,600 Vidu Rs. 19,800

Yadu Rs. 35,000 Madhu Rs. 25,000 Vidu Rs. 15,000

Correct Answer

Option 1

Correct Answer

Explanation →

Q117:

22 May Shift 1

Partnership > Accounting

Medium

Common

M and N are partners in a firm and agree that an interest @12% per annum should be charged on drawings. M draws Rs. 20,000 per month at the beginning of each month. The amount of interest to be charged from M is:

Rs. 14,400

Rs. 13,200

Rs. 15,600

Rs. 15,200

Correct Answer

Option 3

Correct Answer

Explanation →

Q118:

16 May Shift 1

Partnership > Accounting

Medium

X and Y are partners sharing profits in the ratio 3:2. Capital introduced by X and Y is ₹ 1,00,000 and ₹ 5,00,000 respectively. Interest on capital is allowed to partners @ 10%p.a. Profit of the firm for the year ending March 31st, 2025 is ₹ 30,000. Calculate Interest on Capital to be allowed to the partners.

20,000 ; 10,000

18,000 ; 12,000

5,000 ; 25,000

12,000 ; 18,000

Correct Answer

Option 3

Correct Answer

Explanation →

Q119:

16 May Shift 1

Partnership > Accounting

Easy

Ram, one of the partners, has withdrawn ₹ 1,00,000 from Business for his personal work. If the rate of interest charged on drawings is 12% p.a., find the amount of interest on drawings to be charged from Ram:

₹ 12,000

₹ 6,000

₹ 9,000

₹ 3,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q120:

16 May Shift 1

Partnership > Accounting

Medium

Following are considered as appropriations out of profits (A) Rent paid to partners (B) Interest on capital (C) Salary paid to partners (D) Commission allowed to partners Choose the correct answer from the options given below:

(B), (C) and (D) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q121:

16 May Shift 1

Partnership > Accounting

Easy

The Central government has prescribed the maximum number of partners in a firm to be

30

40

50

2

Correct Answer

Option 3

Correct Answer

Explanation →

Q122:

16 May Shift 1

Partnership > Accounting

Medium

If the amount is withdrawn at the end of each quarter, the interest is calculated on the total money withdrawn during the year, for a period of _______?

6 months

9 months

7.5 months

4.5 months

Correct Answer

Option 4

Correct Answer

Explanation →

Q123:

16 May Shift 1

Partnership > Accounting

Easy

There is a need for valuation of goodwill under which of the following cases (A) Admission of new partner (B) Retirement of a partner (C) Dissolution of a firm involving sale of business as a going concern. (D) Amalgamation of partnership firms. Choose the correct answer from the options given below:

(B) and (D) only

(A), (C) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation →

Q124:

15 May Shift 2

Partnership > Accounting

Medium

Accounting treatment for a partnership firm is similar to that of a sole proprietorship business except the following aspects: (A) Distribution of Profit and Loss among the partners (B) Dissolution of Partnership Firm (C) Raising Capital through public offering (D) Adjustments for Wrong Appropriation of Profits in the Past Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (B), (C) and (D)

(A), (B) and (D) only

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation →

Q125:

15 May Shift 2

Partnership > Accounting

Medium

Match List-I with List-II If the partnership deed is silent regarding the items provided in List-I | List-I | List-II | |---|---| | (A) Interest on Capital | (I) to be shared equally | | (B) Interest on Loan | (II) not charged | | (C) Interest on Drawings | (III) not payable | | (D) Sharing of Profits | (IV) @6% p.a. | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation →

Q126:

15 May Shift 2

Partnership > Accounting

Medium

Which of the following are shown under capital account in case capital of partner's are fixed? (A) Fresh capital introduced (B) Permanent capital withdrawn (C) Interest on capital (D) Amount of capital brought down from the previous year Choose the correct answer from the options given below:

(A), (B) and (C) only

(A), (B) and (D) only

(A), (C), and (D) only

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q127:

15 May Shift 2

Partnership > Accounting

Easy

Which of the following entry shows withdrawal of excess capital by partner's ?:

Partner's capital A/c is debited and Cash/Bank A/c is credited

Cash/Bank A/c is debited and partner's capital A/c is credited

Drawings A/c is debited and profit and loss A/c is credited

Profit and loss A/c is debited and Drawings A/c is credited

Correct Answer

Option 1

Correct Answer

Explanation →

Q128:

15 May Shift 2

Partnership > Accounting

Easy

Net loss of the firm as per profit and loss account for the year ending March 31, 2024 amounted to Rs. 75,000. Yaduvanshi, Madhulika and Vidushi are partners, sharing profits and losses in the ratio of 2:2:1. Their fixed capitals on April 01, 2019 were: Yaduvanshi Rs. 5,00,000, Madhulika Rs. 4,00,000 and Vidushi Rs. 3,50,000. On the basis of the above information, pass the necessary journal entry

Yaduvanshi capital A/c Dr. 30,000 Madhulika capital A/c Dr. 30,000 Vidushi capital A/c Dr. 15,000 To profit & loss appropriation A/c 75,000

Yaduvanshi current A/c Dr. 30,000 Madhulika current A/c Dr. 30,000 Vidushi current A/c Dr. 15,000 To profit & loss appropriation A/c 75,000

Profit & loss appropriation A/c Dr. 75,000 To Yaduvanshi capital A/c 30,000 To Madhulika capital A/c 30,000 To Vidushi capital A/c 15,000

Profit & loss appropriation A/c Dr. 75,000 To Yaduvanshi current A/c 30,000 To Madhulika current A/c 30,000 To Vidushi current A/c 15,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q129:

15 May Shift 2

Partnership > Accounting

Medium

Match List-I with List-II Match the accounts with their purpose | List-I | List-II | |---|---| | (A) Profit and Loss adjustment A/c | (I) Changes in amount of capital | | (B) Profit and loss appropriation A/c | (II) Generally no change in amount of capital | | (C) Fixed capital A/c | (III) Errors and omissions found after preparation of final A/c | | (D) Fluctuating capital method | (IV) Extention of Profit & loss A/c | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation →

Q130:

15 May Shift 2

Partnership > Accounting

Medium

A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided under partnership deed @10% p.a was omitted. Select the correct option from the following:

A capital account will be debited by 25,000

A capital account will be debited by 5,000

B capital account will be debited by 5,000

B capital account will be debited by 25,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q131:

15 May Shift 1

Partnership > Accounting

Medium

Which of the following is correct? The important provision affecting partnership accounting, in the absence of a partnership deed is:

Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared by partners in their capital ratio.

Interest on Capital: Partner is entitled to claim higher interest on the amount of capital contributed by him in the firm as a matter of right.

Interest on Drawings: No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed.

Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get an interest on the loan amount at the rate of 16 per cent per annum.

Correct Answer

Option 3

Correct Answer

Explanation →

Q132:

15 May Shift 1

Partnership > Accounting

Medium

Arrange the following in a sequence, in which they will be utilize for the payment of losses: (A) Out of capital of partners. (B) Out of profits. (C) By the partners individually in their profit sharing ratio. Choose the correct answer from the options given below:

(A), (B), (C)

(A), (C), (B)

(B), (A), (C)

(B), (C), (A)

Correct Answer

Option 3

Correct Answer

Explanation →

Q133:

15 May Shift 1

Partnership > Accounting

Easy

Comprehension: Read the following passage and answer the questions A Solid Partnership A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following: (i) Interest on partners’ capital @ 5% p.a. (ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm. (iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3. During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.

What is the amount of A's deficiency of annual fee?

Rs. 2,80,000

Rs. 1,80,000

Rs. 3,80,000

Rs. 4,80,000

Correct Answer

Option 1

Correct Answer

Explanation →

Q134:

15 May Shift 1

Partnership > Accounting

Hard

Comprehension: Read the following passage and answer the questions A Solid Partnership A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following: (i) Interest on partners’ capital @ 5% p.a. (ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm. (iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3. During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.

What is the amount of profit to be credited to A's Capital account?

Rs.5,28,000

Rs.5,30,000

Rs.5,35,000

Rs.5,38,000

Correct Answer

Option 4

Correct Answer

Explanation →

Q135:

15 May Shift 1

Partnership > Accounting

Medium

Comprehension: Read the following passage and answer the questions A Solid Partnership A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following: (i) Interest on partners’ capital @ 5% p.a. (ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm. (iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3. During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.

What is the amount of T's deficiency in profits?

Rs. 20,000

Rs. 30,000

Rs. 40,000

Rs. 57,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q136:

15 May Shift 1

Partnership > Accounting

Medium

Comprehension: Read the following passage and answer the questions A Solid Partnership A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following: (i) Interest on partners’ capital @ 5% p.a. (ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm. (iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3. During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.

What is the amount of profit to be credited to V's Capital account?

Rs.3,10,000

Rs.3,11,000

Rs.3,12,000

Rs.3,13,000

Correct Answer

Option 3

Correct Answer

Explanation →

Q137:

15 May Shift 1

Partnership > Accounting

Easy

Comprehension: Read the following passage and answer the questions A Solid Partnership A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following: (i) Interest on partners’ capital @ 5% p.a. (ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm. (iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3. During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.

In which ratio the deficiency of T will be borne by A & V.

5:3

2:3

2:4

2:1

Correct Answer

Option 2

Correct Answer

Explanation →

Q138:

14 May Shift 2

Partnership > Accounting

Easy

Partnership comes into existence as a result of an agreement among the partners, that agreement is called......

Partnership

Partnership Document

Partnership Deed

Partnership Constitution.

Correct Answer

Option 3

Correct Answer

Explanation →

Q139:

14 May Shift 2

Partnership > Accounting

Easy

Which of the following is not a general feature of partnership-

In order to form partnership, there should be at least two persons coming together for a common goal.

Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.

The agreement should be to carry on some business.

Liability of Partners are limited to the extent of capital contribution.

Correct Answer

Option 4

Correct Answer

Explanation →

Q140:

14 May Shift 2

Partnership > Accounting

Medium

Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. Calculate the interest on drawings, which is charged @8% p.a., when the amount is withdrawn at the beginning of each month .

Rs. 5,400

Rs. 5,200

Rs. 4,400

Rs. 4,800

Correct Answer

Option 2

Correct Answer

Explanation →

Q141:

14 May Shift 2

Partnership > Accounting

Medium

Which combination of statements is true about partnership- (A) Valid partnership can be formulated even without a written agreement between the partners. (B) Methods of settlement of disputes among the partners can't be part of the partnership deed. (C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. (D) Each partner carrying on the business is the principal as well as the agent for all the other partners. Choose the correct answer from the options given below:

(A) and (D) only

(A), (B) and (D) only

(C) and (D) only

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q142:

14 May Shift 2

Partnership > Accounting

Easy

Which statement is not true about Capital Accounts of Partner-

Under the fixed capital method, the capitals of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement among the partners.

Under the fluctuating capital method, two account, i.e. capital account and current account is maintained for each partner.

Under the fixed capital method, While the partners' capital accounts shall always appear on the liabilities side in the balance sheet, the partners' current account's balance shall be shown on the liabilities side, if they have credit balance and on the assets side, if they have debit balance.

Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner.

Correct Answer

Option 2

Correct Answer

Explanation →

Q143:

14 May Shift 2

Partnership > Accounting

Medium

Match List-I with List-II | List-I | List-II | |---|---| | (A) Sacrificing ratio | (I) Dissolution of Partnership | | (B) Gaining Ratio | (II) Admission of a New Partner | | (C) Executors Account | (III) Retirement of a Partner | | (D) Realisation Account | (IV) Death of a Partner | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation →

Q144:

14 May Shift 2

Partnership > Accounting

Medium

Saloni and Srishti are partners in a firm. Their capital accounts as on April 01, 2019 showed a balance of Rs. 2,00,000 and Rs. 3,00,000 respectively. On July 01, 2019 Saloni introduced additional capital of Rs. 50,000 and Srishti, Rs. 60,000. On October 01, 2019 Saloni withdrew Rs. 30,000 and on January 01, 2020 Srishti withdrew Rs. 15,000 from their respective capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital to Saloni during the financial year 2019–2020.

Rs. 8,800

Rs. 17,800

Rs. 14,400

Rs. 20,800

Correct Answer

Option 2

Correct Answer

Explanation →

Q145:

14 May Shift 1

Partnership > Accounting

Easy

In case partner's capital is fixed, then where interest on drawings charged will be shown?

Debit side of partner's capital account

Credit side of partner's capital account

Debit side of partner's current account

Credit side of partner's current account

Correct Answer

Option 3

Correct Answer

Explanation →

Q146:

14 May Shift 1

Partnership > Accounting

Easy

If partnership deed is silent on the profit sharing ratio and other provisions: interest @_____ per annum is allowed on loans advanced by partners:

8%

6%

10%

12%

Correct Answer

Option 2

Correct Answer

Explanation →

Q147:

14 May Shift 1

Partnership > Accounting

Medium

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission Rs. 5,000. Amitabh has also given a loan on April 01, 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. What amount of profit will be transferred to Profit and Loss Appropriation account :

Rs. 14,500

Rs. 14,250

Rs. 14,750

Rs. 14,350

Correct Answer

Option 2

Correct Answer

Explanation →

Q148:

14 May Shift 1

Partnership > Accounting

Easy

Which of the following is the feature of fluctuating capital:

Under this method, two separate accounts are maintained for each partner, viz., 'capital account' and 'current account.'

Each partner has one account, i.e. capital account under this method

The capital accounts always show a credit balance

The capital account balance remain unchanged unless there is addition or withdrawal of capital.

Correct Answer

Option 2

Correct Answer

Explanation →

Q149:

14 May Shift 1

Partnership > Accounting

Easy

Contents of the Partnership Deed does not include

Names and Addresses of all partners

Mode of auditor's appointment, if any

The date of commencement of partnership

Bank Details of Nominee

Correct Answer

Option 4

Correct Answer

Explanation →

Q150:

13 May Shift 2

Partnership > Accounting

Easy

Ravi, one of the partners, provided Rs 1,00,000 loan to the firm. In the absence of partnership deed, interest on partner's loan is allowed @ _____?

6%

6% p.a

5%

5% p.a

Correct Answer

Option 2

Correct Answer

Explanation →

Q151:

13 May Shift 2

Partnership > Accounting

Easy

For distribution of profits made during a year among the partners, the following account is debited:

Profit and Loss Appropriation A/c

Partner's Capital A/c

Goodwill A/c

Profit and Loss A/c

Correct Answer

Option 1

Correct Answer

Explanation →

Q152:

13 May Shift 2

Partnership > Accounting

Easy

"The business of a partnership concern may be carried on by all the partners or any one of them acting for all", indicate which feature of the partnership?

Agreement

Mutual agency

Business

Liability of partners

Correct Answer

Option 2

Correct Answer

Explanation →

Q153:

13 May Shift 2

Partnership > Accounting

Easy

In the case of fixed capital method, following two accounts are maintained.

Capital account and Balance sheet

Current account and Balance sheet

Capital account and Current account

Revaluation and Capital account

Correct Answer

Option 3

Correct Answer

Explanation →

Q154:

13 May Shift 2

Partnership > Accounting

Medium

A and B are partners in a firm with their fixed capital Rs 4,00,000 and 5,00,000 respectively. After preparation of accounts, it was found that interest on capital @ 10% p.a as provided by the partnership deed is omitted. In order to rectify the mistake, A's Current account will be _____?

Credited by Rs 5,000.

Debited by Rs 5,000

Credited by Rs 10,000

Debited by Rs 10,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q155:

13 May Shift 2

Partnership > Accounting

Easy

Which section of the Partnership Act 1932, defines partnership?

Section 4

Section 5

Section 6

Section 7

Correct Answer

Option 1

Correct Answer

Explanation →

Q156:

13 May Shift 1

Partnership > Accounting

Medium

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. (C) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate (D) The maximum number of partners can be 50. Choose the correct answer from the options given below:

(A), (B) and (D) only

(B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q157:

13 May Shift 1

Partnership > Accounting

Medium

Match List-I with List-II | List-I | List-II | |---|---| | (A) Admission of a partner | (I) Executor Accounts | | (B) Retirement of a partner | (II) Sacrificing Ratio | | (C) Death of a partner | (III) Realisation Account | | (D) Dissolution of a partnership | (IV) Gaining Ratio | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation →

Q158:

13 May Shift 1

Partnership > Accounting

Easy

Comprehension: Read the information carefully and answer the questions A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020. Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate Interest on drawings for the amount Rs. 12000 on June 1, 2019.

1200

900

1080

800

Correct Answer

Option 2

Correct Answer

Explanation →

Q159:

13 May Shift 1

Partnership > Accounting

Easy

Comprehension: Read the information carefully and answer the questions A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020. Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate Interest on drawings for the amount of Rs. 3000 drawn on September 30, 2019

135

300

270

90

Correct Answer

Option 1

Correct Answer

Explanation →

Q160:

13 May Shift 1

Partnership > Accounting

Medium

Comprehension: Read the information carefully and answer the questions A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020. Calculate interest on drawings, if the rate of interest is 9 percent per annum.

The total amount of interest on drawings will be:

1595

1755

2000

1355

Correct Answer

Option 2

Correct Answer

Explanation →

Q161:

13 May Shift 1

Partnership > Accounting

Easy

Comprehension: Read the information carefully and answer the questions A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020. Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate interest on drawings for the amount Rs. 6000 on January 31, 2019.

90

180

54

120

Correct Answer

Option 1

Correct Answer

Explanation →

Q162:

13 May Shift 1

Partnership > Accounting

Easy

Comprehension: Read the information carefully and answer the questions A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020. Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate Interest on drawings for the amount of Rs. 7000 withdrawn on November 30, 2019

700

630

210

315

Correct Answer

Option 3

Correct Answer

Explanation →

Q163:

CUET Accountancy 2024 Slot 1

Partnership > Accounting

Easy

Which of the following would affect the Revaluation Account at the time of reconstitution of a partnership firm?

Increase in assets

Drawings against capital

Interest on capital

Partner's salary

Correct Answer

Option 1

Correct Answer

Explanation →

Q164:

CUET Accountancy 2024 Slot 1

Partnership > Accounting

Easy

<ul> <li> (A) Profit and Loss Appropriation Account </li> <li>(B) Profit and Loss Account </li> <li>(C) Trading Account </li> <li> (D) Balance Sheet </li> </ul>

Identify the correct sequence to be followed while preparing of final account of a partnership firm:

(C), (B), (A), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 1

Correct Answer

Explanation →

Q165:

CUET Accountancy 2024 Slot 1

Partnership > Accounting

Easy

<table class="question-table"> <tr> <th>List-I</th> <th>List-II</th> </tr> <tr> <td>(A) Salary to partner</td> <td>(I) Credit side of Partner's Capital Account</td> </tr> <tr> <td>(B) Interest on partner's loan</td> <td>(II) Debit side of Partner's Current Account</td> </tr> <tr> <td>(C) Interest on partner's drawings</td> <td>(III) Debit side of Profit and Loss Account</td> </tr> <tr> <td>(D) Additional capital introduced</td> <td>(IV) Credit side of Partner's Current Account</td> </tr> </table>

Match List-I with List-II

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation →

Q166:

CUET Accountancy 2024 Slot 1

Partnership > Accounting

Medium

<ul> <li> (A) reduction from concerned year's profit. </li> <li> (B) reduction from next year's profit. </li> <li> (C) addition to next year's profit. </li> <li> (D) addition to previous year's profit. </li> </ul>

The adjustment required for overvaluation of closing stock, while calculating adjusted profit for calculating goodwill is

(A), (B) and (D) only

(A) and (C) only

(A) and (D) only

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q167:

CUET Accountancy 2024 Slot 1

Partnership > Accounting

Hard

A partnership can have maximum 50 partners. This limit has been set by the:

Indian Partnership Act, 1932

State Government

Indian Contract Act, 1872

Central Government

Correct Answer

Option 4

Correct Answer

Explanation →

Q168:

CUET Accountancy 2024 Slot 1

Partnership > Accounting

Easy

A, B and C are partners sharing profits in the ratio of 3:3:4. They decide to share the future profits equally. The sacrifice or gain of partners are:

A gains 1/30; B gains 1/30; C sacrifices 2/30

A gains 2/30; B gains 1/30; C sacrifices 3/30

A sacrifices 1/30; B gains 3/30; C sacrifices 2/30

A gains 2/30; B gains 3/30; C sacrifices 5/30

Correct Answer

Option 1

Correct Answer

Explanation →

Q169:

CUET Accountancy 2024 Slot 1

Partnership > Accounting

Medium

<table class="question-table"> <tr> <th>List-I<br>(Equal amount of drawings made)</th> <th>List-II<br>(Number of month for which interest calculated)</th> </tr> <tr> <td>(A) At the end of each half year</td> <td>(I) 4.5 months</td> </tr> <tr> <td>(B) At the beginning of each quarter</td> <td>(II) 6.5 months</td> </tr> <tr> <td>(C) At the beginning of each month</td> <td>(III) 7.5 months</td> </tr> <tr> <td>(D) At the end of each quarter</td> <td>(IV) 3 months</td> </tr> </table>

Match List-I with List-II

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation →

Q170:

20 June Shift 2

Partnership > Accounting

Easy

Salary of a partner is shown in

Profit and Loss A/c

Profit and Loss Appropriation A/c

Trading A/c

Manufacturing A/c

Correct Answer

Option 2

Correct Answer

Explanation →

Q171:

20 June Shift 2

Partnership > Accounting

Medium

Select the conditions required for computing interest on drawings using average period method: A. Equal amount of drawings B. Fixed interval of drawings C. Varying amounts of drawings D. Different interval of drawings E. Rate of Interest Choose the correct answer from the options given below:

A, D and E only

A, C and B only

A, C and D only

A, B and E only

Correct Answer

Option 4

Correct Answer

Explanation →

Q172:

20 June Shift 2

Partnership > Accounting

Medium

The content of Partnership deed includes: A. Name and address of all partners B. Method of settlement of disputes among partners C. Deed once made cannot be altered D. Rules regarding operation of Bank account E. Verbal agreement between partners is considered as deed Choose the correct answer from the options given below:

B, D and E only

A, C and E only

A, B and C only

A, B and D only

Correct Answer

Option 4

Correct Answer

Explanation →

Q173:

20 June Shift 2

Partnership > Accounting

Medium

Match List I with List II | LIST I | LIST II | |---|---| | A. Only Capital A/c exist | I. Credited to partner's capital account | | B. Capital account balance remain unchanged | II. Debited to Partner's Capital Account | | C. Fresh/additional capital brought in by partner | III. Fixed Capital Account | | D. Permanent withdrawal | IV. Fluctuating Capital Account | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation →

Q174:

20 June Shift 2

Partnership > Accounting

Easy

Identify the way by which the clauses of partnership deed can be altered.

On the basis of majority partners' consent

On the basis of registrar of companies consent

On the basis of all the partners' consent

Clauses of partnership deed cannot be altered

Correct Answer

Option 3

Correct Answer

Explanation →

Q175:

11 June Shift 3

Partnership > Accounting

Medium

__________ is/are not true with regard to Limited liability partnership. (A) Separate Legal entity (B) Unlimited liability for one partner (C) Indian Partnership Act, 1932 is applicable (D) Perpetual Succession (E) Unlimited liability of partners Choose the correct answer from the options given below :

(A) and (B) Only

(C) and (E) Only

(B) and (C) Only

(D) and (E) Only

Correct Answer

Option 2

Correct Answer

Explanation →

Q176:

11 June Shift 3

Partnership > Accounting

Easy

Which of the following facts are related to modes of reconstitution of a partnership firm. (A) Admission of a new partner (B) Dissolution of a partnership firm (C) Death of a partner (D) Change in the profit sharing ratio among the existing partners (E) Retirement of a partner Choose the correct answer from the options given below :

(A), (B), (C) and (D) Only

(A), (C), (D) and (E) Only

(A), (B), (D) and (E) Only

(B), (C), (D) and (E) Only

Correct Answer

Option 2

Correct Answer

Explanation →

Q177:

11 June Shift 3

Partnership > Accounting

Easy

In the absence of a partnership deed which of the following are correct. (A) Profit sharing ratio will be on the basis of capital contributed by the partners (B) No interest on capital will be provided (C) No interest on Drawing will be charged (D) 6% p.a. interest on partner's loan will be provided (E) Partner will get salary for extra time devoted for the firm Choose the correct answer from the options given below :

(A), (B) and (C) Only

(A), (D) and (E) Only

(D) and (E) Only

(B), (C) and (D) Only

Correct Answer

Option 4

Correct Answer

Explanation →

Q178:

11 June Shift 3

Partnership > Accounting

Medium

Arrange the following in sequence of the final Accounts for a Partnership firm. (A) Profit and Loss Account (B) Partner's Capital Account (C) Trading Account (D) Balance Sheet (E) Profit and Loss Appropriation Account Choose the correct answer from the options given below :

(C), (A), (E), (B), (D)

(C), (E), (A), (B), (D)

(E), (C), (A), (B), (D)

(E), (A), (C), (B), (D)

Correct Answer

Option 1

Correct Answer

Explanation →

Q179:

29 May Shift 2

Partnership > Accounting

Medium

Complete the sequence where interest on capital has to be provided as per partnership deed, but available profits are not sufficient to provide full amount of Interest on capital. A. If it is appropriation, calculate interest on capital for all partners at given rate B. Divide the available amount in the capital ratio among the partners C. Calculate ratio between capital of partners D. Consider the partnership deed and decide whether interest on capital is a charge or an appropriation E. Consider the available profit Choose the correct answer from the options given below:

A, B, C, D, E

B, C, D, E, A

D, A, E, C, B

C, D, A, B, E

Correct Answer

Option 3

Correct Answer

Explanation →

Q180:

29 May Shift 2

Partnership > Accounting

Easy

In a partnership firm, partners share profit and loss in the ratio of 3:2. If the firm incurred a loss of Rs. 10,000 during the year then calculate the amount of loss to be shared by partners.

Equally

According to profit sharing ratio.

According to gaining ratio.

According to sacrificing ratio.

Correct Answer

Option 2

Correct Answer

Explanation →

Q181:

29 May Shift 2

Partnership > Accounting

Medium

In which of the following case, claim is valid if the partnership agreement is silent?

Sanjay is an active partner and wants a salary of Rs. 1,00,000 per year.

Monika had advanced a loan to the firm and claims interest @10% per annum.

Sanjay and Monika contributed Rs. 2,00,000 and Rs. 5,00,000 as capital respectively and Monika wants equal share.

Monika wants interest on capital to be credited @10% per annum.

Correct Answer

Option 3

Correct Answer

Explanation →

Q182:

29 May Shift 2

Partnership > Accounting

Medium

Match List I with List II | LIST I | LIST II | |---|---| | A. Interest on capital | I. Admission of partner | | B. Gaining Ratio | II. Profit/Loss in the old profit sharing ratio | | C. Sacrificing ratio | III. Continuing partners | | D. Revaluation of Assets and Liabilities | IV. when partnership deed specifically provide for it | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation →

Q183:

28 May Shift 1

Partnership > Accounting

Medium

Partnership deed should be drafted and prepared as per :

Provision of Partnership Act

Companies Act

Registrar of Firms

Provisions of the Stamp Act

Correct Answer

Option 4

Correct Answer

Explanation →

Q184:

28 May Shift 1

Partnership > Accounting

Medium

A, B & C were sharing profits & losses in the ratio of 3 : 2 : 1. They decided to share profits & losses equally in future. General reserve was appearing in their books at Rs. 60,000. Goodwill was valued at Rs. 1,20,000. The partners do not want to disturb the general reserve. The adjusting entry will be :

A's capital A/C Dr. 1,80,000 To C's Capital A/C 1,80,000

A's capital A/C Dr. 1,80,000 To B's Capital A/C 1,20,000 To C's Capital A/C 60,000

C's capital A/C Dr. 30,000 To A's Capital A/C 30,000

C's capital A/C Dr. 1,80,000 To A's Capital A/C 1,20,000 To B's Capital A/C 60,000

Correct Answer

Option 3

Correct Answer

Explanation →

Q185:

28 May Shift 1

Partnership > Accounting

Medium

The steps in the Process of Preparing Profit and Loss Appropriation account are : (A) Transfer the net profit to the credit side of P & L Appropriation A/c (B) Divide the Profit among partners in the Profit Sharing ratio (C) Ascertain net profit after providing for all charges (D) Debit the P & L Appropriation A/c with all appropriations like partners salary etc. (E) Credit the P & L Appropriation A/c with interest on drawing and deficiency on account of partner's guarantee of earnings to the firm. Choose the correct answer from the options given below :

(A), (B), (C), (D), (E)

(C), (A), (D), (E), (B)

(B), (C), (E), (A), (D)

(B), (C), (D), (A), (E)

Correct Answer

Option 2

Correct Answer

Explanation →

Q186:

30 Aug Shift 2

Partnership > Accounting

Medium

As per Receipts and Payments Account for the year ended on March 31, 2020, subscriptions received were Rs. 2,50,000 subscriptions outstanding on 1-04-2019 Rs. 50,000, Subscriptions received in advance as on 31-3-2020 are Rs. 30,000. Subscriptions for the year 2019-20 will be:

Rs. 2,30,000

Rs. 1,50,000

Rs. 2,40,000

Rs. 1,70,000

Correct Answer

Option 4

Correct Answer

Explanation →

Q187:

30 Aug Shift 2

Partnership > Accounting

Easy

Match List I with List II in context of not having partnership deed. | | LIST I | | LIST II | |---|---|---|---| | A. | Interest on loan | I. | Equal | | B. | Interest on drawings | II. | Will not be charged | | C. | Salary | III. | @ 6% p.a. | | D. | Profit sharing ratio | IV. | Will not be allowed/provided | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation →

Q188:

30 Aug Shift 2

Partnership > Accounting

Easy

The capital accounts of partners will always show a ____ balance under fixed capital account method

Debit

Credit

Zero

Negative

Correct Answer

Option 2

Correct Answer

Explanation →

Q189:

30 Aug Shift 2

Partnership > Accounting

Medium

Identify the steps in preparation of final accounts of not for profit organisation (NPO) A. Prepare Balance Sheet of NPO B. Prepare Income and Expenditure Account from Receipts and payment Account C. Prepare Receipts and payment Account D. Adjust outstanding/prepaid expenditure/Income and determine surplus/ Deficit E. Prepare cash book Choose the correct answer from the options given below:

E, C, B, D, A

D, E, A, B, D

A, B, C, D, E

E, C, A, B, D

Correct Answer

Option 1

Correct Answer

Explanation →

Q190:

30 Aug Shift 2

Partnership > Accounting

Easy

It is the amount-paid to the person who is not the regular employee of the institution.

Wages

Honorarium

Salary

Donation

Correct Answer

Option 2

Correct Answer

Explanation →

Q191:

30 Aug Shift 2

Partnership > Accounting

Easy

When the total amount withdrawn is given but the date of withdrawal is not given then interest on drawings is charged for a period of:

3 months

6 months

9 months

12 months

Correct Answer

Option 2

Correct Answer

Explanation →

Q192:

23 Aug Shift 2

Partnership > Accounting

Medium

Calculate net profit as per P & L A/c for the year ending 31 March, 2022 from the following information : share of profit transferred to Capital A/c's of partners : Ram Rs. 7,000 Shyam Rs. 3,500 Interest on capital : Ram Rs. 1,500 Shyam Rs. 500 Interest on Drawings : Ram Rs. 300 Shyam Rs. 200 Ram's salary Rs. 1,000

Rs. 13,000

Rs. 13,500

Rs. 12,000

Rs. 11,000

Correct Answer

Option 1

Correct Answer

Explanation →

Q193:

23 Aug Shift 2

Partnership > Accounting

Hard

M and R are partners sharing profits and losses in the ratio of 3 : 2. Their capital A/c's showed the balance of Rs. 4,00,000 and Rs. 3,00,000 respectively on 1 April, 2021. M introduced additional capital on 1 August, 2021. Interest on capital is allowed @ 6% p.a. Total interest on capital of both the partners is Rs. 50,000. Calculate additional capital introduced by M on 1 August, 2021 and interest on capital earned on additional capital. Books are closed on 31 March.

Rs. 1,00,000 and Rs. 4,000

Rs. 3,00,000 and Rs. 18,000

Rs. 2,00,000 and Rs. 8,000

Rs. 1,50,000 and Rs. 10,000

Correct Answer

Option 3

Correct Answer

Explanation →

Q194:

23 Aug Shift 2

Partnership > Accounting

Easy

Sudhir and Vimal came into partnership with profit sharing ratio of 3 : 2. Due to paucity of time, Sudhir was unable to give time to business so Vimal acted as principle and took all financial and operational decisions. Due to break down of Covid 19, business suffered a loss of 4,00,000. State the amount of loss to be borne by Sudhir.

Rs. 2,00,000

Rs. 2,40,000

None, as he was not working actively

Rs. 1,60,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q195:

23 Aug Shift 2

Partnership > Accounting

Medium

Gitansh withdrew Rs. 5000 pm at the end of every month for ten months. Interest on drawing is charged @ 10% p.a. Gitansh's interest on drawings is :

Rs. 1875

Rs. 2250

Rs. 2292

Rs. 2750

Correct Answer

Option 1

Correct Answer

Explanation →

Q196:

23 Aug Shift 2

Partnership > Accounting

Medium

Match List - I with List - II. | List - I | List - II | |---|---| | (A) Interest on loan | (I) Current Account | | (B) Fixed capital | (II) Charge Against Profit | | (C) Fluctuating capital | (III) Capital Account | | (D) Interest on capital | (IV) Appropriation of Profit | Choose the correct answer from the options given below :

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation →

Q197:

23 Aug Shift 2

Partnership > Accounting

Easy

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

10

20

100

50

Correct Answer

Option 4

Correct Answer

Explanation →

Q198:

20 Aug Shift 2

Partnership > Accounting

Medium

Extract of Receipt and Payment Account for the year ended on March 31, 2021 is given. Calculate the amount of Stationery to be shown in Income and Expenditure A/c. Payments for Stationery: Rs. 23,000 Additional Information: | | 1 April, 2020 | 31 Mar 2021 | | --- | --- | --- | | Stock of Stationary | 4,000 | 3,000 | | Creditors for stationery | 9,000 | 2,500 |

Rs. 17,500

Rs. 20,500

Rs. 11,500

Rs. 23,000

Correct Answer

Option 1

Correct Answer

Explanation →

Q199:

20 Aug Shift 2

Partnership > Accounting

Easy

________ is the amount received as per the will of a deceased person.

Honorarium

Entrance Fees

Donation

Legacies

Correct Answer

Option 4

Correct Answer

Explanation →

Q200:

20 Aug Shift 2

Partnership > Accounting

Hard

From the following information, calculate interest on Capital of C, a partner for the year ended 31st March, 2022. C's Capital on 31/3/2022: Rs. 12,00,000 Profit credited to C for the year ended 31/3/2022: Rs. 3,00,000 Drawings made during the year: Rs. 1,00,000 Additional Capital introduced on 1/10/21: Rs. 5,00,000 Rate of Interest = 12 % p.a.

Rs. 60,000

Rs. 1,44,000

Rs. 90,000

Rs. 1,20,000

Correct Answer

Option 3

Correct Answer

Explanation →

Q201:

20 Aug Shift 2

Partnership > Accounting

Easy

If the total income earned by Saket Club, a Not-for-Profit organisation is Rs. 2,60,000 and surplus earned is Rs. 85,000, then total expenditure incurred will be:

Rs. 1,85,000

Rs. 1,75,000

Rs. 3,45,000

Rs. 85,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q202:

20 Aug Shift 2

Partnership > Accounting

Medium

Match List I with List II | List I | List II | | --- | --- | | A. Partner's Salary | I. P & L A/c Dr. | | B. Manager's Salary | II. P & L Appropriation A/c Dr. | | C. Distribution of Loss | III. P & L A/c Cr. | | D. Commission Received | IV. P & L Appropriation A/c Cr. | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation →

Q203:

20 Aug Shift 2

Partnership > Accounting

Hard

How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet, on the same date : Donation for the Pavilion construction Rs. 12,25,000, Expenditure incurred Rs. 10,80,000, Total estimate Rs. 25,00,000.

Rs. 1,45,000 to be shown in Liability side of Balance Sheet

Rs. 1,45,000 to be shown on the Asset side of the Balance sheet and Rs. 25,00,000 to be shown on Liability side

Rs. 12,75,000 to be shown on expenditure side of Income and Expenditure Account

Rs. 12,75,000 to be shown on Income side of Income and Expenditure Account

Correct Answer

Option 1

Correct Answer

Explanation →

Q204:

20 Aug Shift 2

Partnership > Accounting

Medium

If Amit, a partner, withdrew Rs. 10,000 per month in the end, what will be the amount of interest on drawing if it is calculated @ 8 % p.a.?

Rs. 9,600

Rs. 4,800

Rs. 5,200

Rs. 4,400

Correct Answer

Option 4

Correct Answer

Explanation →

Q205:

8 Aug Shift 2

Partnership > Accounting

Easy

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

Existence of Business

Sharing of profits

Free transfer of share

Unlimited liability

Correct Answer

Option 3

Correct Answer

Explanation →

Q206:

8 Aug Shift 2

Partnership > Accounting

Medium

In partnership, a minor can be partner:

in no case

but not more than one

but only to the benefits of partnership firm

but only as a secret partner

Correct Answer

Option 3

Correct Answer

Explanation →

Q207:

20 July Shift 1

Partnership > Accounting

Medium

A firm earns a profit in last three years as follows : 2020 - 21 Rs. 75,000 2019 - 20 Rs. 1,20,000 2018 - 19 Rs. 50,000 Additional Information :- Closing stock of 2020 - 21 was undervalued by Rs. 10,000. Calculate the Average Profit.

Rs. 55,000

Rs. 75,000

Rs. 45,000

Rs. 85,000

Correct Answer

Option 4

Correct Answer

Explanation →

Q208:

20 July Shift 1

Partnership > Accounting

Easy

Identify the right combination of type of Account in making Final Accounts of Partnership Firm. (a) Profit and Loss A/C (b) Profit and Loss Suspence A/C (c) Profit and Loss Appropriation A/C (d) Profit and Loss Adjustment A/C (e) Partners' Capital A/Cs Choose the correct answer from the options given below :

(a), (b), (d) only

(a), (c), (e) only

(a), (d), (e) only

(b), (c), (d) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q209:

20 July Shift 1

Partnership > Accounting

Medium

Interest on drawings of a partner has been calculated Rs. 3,000 @ 8% p.a. who has drawn equal amount in each quater; commencing from end of the first quarter throughout the year. The amount of drawing of partner per quarter would be :

Rs. 25,000

Rs. 1,00,000

Rs. 60,000

Rs. 15,000

Correct Answer

Option 1

Correct Answer

Explanation →

Q210:

20 July Shift 1

Partnership > Accounting

Medium

If average capital employed in a firm is Rs. 15,00,000 and fair rate of return in the same industry was 8%. Goodwill was valued at Rs. 90,000 on the basis of three times of super profit. The Average Profit of the firm is ?

Rs. 2,50,000

Rs. 50,000

Rs. 90,000

Rs. 1,50,000

Correct Answer

Option 4

Correct Answer

Explanation →

Q211:

20 July Shift 1

Partnership > Accounting

Easy

From the following information, identify when goodwill is required to be calculated. (a) Admission of a Partner (b) Amalgamation of partnership firms (c) Dissolution of partnership firm (d) Retirement and Death of any partner (e) Preparation of Balance sheet Choose the correct answer from the options given below :

(a), (c), (d) only

(a), (d), (e) only

(a), (b), (d) only

(b), (c), (d) only

Correct Answer

Option 3

Correct Answer

Explanation →

Q212:

16 July Shift 2

Partnership > Accounting

Easy

In the absence of Partnership deed, partners share profits and losses :-

Ratio of capital employed

2:1

Equal Ratio

1:2

Correct Answer

Option 3

Correct Answer

Explanation →

Q213:

16 July Shift 2

Partnership > Accounting

Easy

Match the following with regard to partnership | List I | List II | |---|---| | A. When a new partner joins the partnership | I. Compulsory dissolution | | B. When an existing partner leaves the partnership | II. Admission of a partner | | C. When the business of firm becomes illegal | III. Prepared in the case of death of a partner | | D. Executor's Account | IV. Retirement of a Partner | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation →

Q214:

16 July Shift 2

Partnership > Accounting

Easy

Match List I with List II | List I | List II | |---|---| | A. Mutual Agency | I. It can be oral or written | | B. Agreement | II. Written agreement | | C. Liability of partners | III. Partnership concern carried by all or any of them acting for all. | | D. Partnership deed | IV. Joint and unlimited | Choose the correct answer from the options given below:

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

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

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

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

Correct Answer

Option 1

Correct Answer

Explanation →

Q215:

16 July Shift 2

Partnership > Accounting

Medium

A firm which maintains fixed capital had two partners Vimla and Kamla sharing profits in the ratio 1:1 The firm credited the partners with profit without interest on Capital which is allowed in the deed. Choose the correct option to pass a journal entry for the past adjustment if the Interest on capital Rs.2000 for Vimla Rs.3000 for Kamla

Vimla's capital A/c Dr 500 To Kamla's Capital A/c 500

Vimla's current A/c Dr 500 To Kamla's Current A/c 500

Kamla's capital A/c Dr 500 To Vimla's Capital Dr 500

Kamla's current A/c Dr 500 To Vimla's Current A/c 500

Correct Answer

Option 2

Correct Answer

Explanation →

Q216:

16 July Shift 2

Partnership > Accounting

Medium

Choose the correct sequence of financial statements prepared for a partnership firm at the end of a financial year. A. Capital Accounts B. Profit and Loss A/c C. Profit and Loss Adjustment A/c D. Balance Sheet Choose the correct answer from the options given below:

A, B, C, D

B, C, D, A

B, A, C, D

B, C, A, D

Correct Answer

Option 4

Correct Answer

Explanation →

Q217:

16 July Shift 2

Partnership > Accounting

Easy

Soni, Moni and Toni are partners sharing profits in the ratio of 5:3:2. If Moni's share of profit at the end of the year amounted to Rs.1,50,000. What will be Soni's share of profits?

Rs. 5,00,000

Rs. 1,50,000

Rs. 3,00,000

Rs. 2,50,000

Correct Answer

Option 4

Correct Answer

Explanation →

Q218:

16 July Shift 2

Partnership > Accounting

Hard

Vivek, Virat and Vineet were partners in a firm. Their capital accounts as on April 1, 2019 showed a balance of Rs.4,00,000, Rs.6,00,000 and Rs.8,00,000 respectively. On 1st July 2019 Virat introduced additional capital of Rs.1,00,000 while Vineet withdraw 50,000 on 31 Oct 2019 from their capitals. Interest on capital is allowed @8%. Calculate Interest on capital to be given to each partner.

Vivek 32,000, Virat Rs.54,000, Vineet Rs.60,000

Vivek 32,000, Virat Rs.54,000, Vineet Rs.62,000

Vivek 32,000, Virat Rs.48,000, Vineet Rs.64,000

Vivek 30,000, Virat Rs.50,000, Vineet Rs.62,000

Correct Answer

Option 2

Correct Answer

Explanation →

Q219:

16 July Shift 2

Partnership > Accounting

Medium

Find the right sequence of appropriation of profits A. Profits transferred to P and L appropriation A/c. B. Interest on capital C. Profits distributed to partner after appropriation D. Interest on partner loan A/c Choose the correct answer from the options given below

A, B, C, D

C, D, A, B

D, A, B, C

B, C, D, A

Correct Answer

Option 3

Correct Answer

Explanation →

Q220:

15 July Shift 2

Partnership > Accounting

Medium

Calculate manager's commission at 10% on Net profit, if the Divisible profit of a firm is Rs. 10,000, salary to partners is Rs. 3000 and Interest on drawings is Rs. 2000.

Rs. 1500

Rs. 900

Rs. 1100

Rs. 1000

Correct Answer

Option 3

Correct Answer

Explanation →

Q221:

15 July Shift 2

Partnership > Accounting

Easy

Identify a characteristics not applicable in partnership

Maximum 50 members

Partnership Agreement

Social or Religious Purpose

Relationship of Principal and Agent

Correct Answer

Option 3

Correct Answer

Explanation →

Q222:

15 July Shift 2

Partnership > Accounting

Easy

When the fixed amount is withdrawn at the end of each quarter, interest on drawing will be calculated for _______

7 1/2 months

4 1/2 months

6 months

6 1/2 months

Correct Answer

Option 2

Correct Answer

Explanation →

Q223:

15 July Shift 2

Partnership > Accounting

Medium

Identify the treatment of Government Grant received from the government from following:

Treated as Revenue Income

Treated as capital Income

Treated as deferred Income

Treated as both capital as well as deferred income

Correct Answer

Option 2

Correct Answer

Explanation →

Q224:

15 July Shift 2

Partnership > Accounting

Easy

Outstanding Salaries for the current year is shown A. In the Opening Balance Sheet, as an asset B. In the Closing Balance Sheet, as an asset C. In the Income and Expenditure A/c by adding to the expense 'salary' D. In the Closing Balance Sheet, as a liability Choose the correct answer form the options given below:

B only

B and C only

C only

C and D only

Correct Answer

Option 4

Correct Answer

Explanation →

Q225:

15 July Shift 2

Partnership > Accounting

Easy

How will you show Bank overdraft while preparing the Income and Expenditure Account and Balance sheet of a club?

Shown in expenditure side of Income and Expenditure A/c

Shown in Income side of Income and Expenditure A/c

Shown in Assets side of Balance Sheet

Shown in Liabilities side of Balance Sheet

Correct Answer

Option 4

Correct Answer

Explanation →

Q226:

15 July Shift 2

Partnership > Accounting

Medium

Lockers Rent Received during the year by a club is Rs. 17,050. Locker rent Rs. 3,050 outstanding for the previous year and Rs. 1500 outstanding for the current year. The amount to be shown in Income and Expenditure is :

Rs. 15,500

Rs. 17,050

Rs. 21,100

Rs. 18,550

Correct Answer

Option 1

Correct Answer

Explanation →

Q227:

15 July Shift 2

Partnership > Accounting

Medium

Show the following information in financial statements of a Non-Profit Organisation | Detail | Amount (Rs.) | |---|---| | Match Fund | 20,000 | | Match Expenses | 30,000 | | Donation for match fund | 15,000 | | Sale of match ticket | 5,000 |

(Rs.) 30,000 will be shown in liability side of Balance Sheet.

(Rs.) 10,000 will be shown in liability side of Balance Sheet.

(Rs.) 10,000 will be shown in Income side of Income and Expenditure a/c.

(Rs.) 30,000 will be shown in Income & Expenditure a/c.

Correct Answer

Option 2

Correct Answer

Explanation →

Q228:

15 July Shift 2

Partnership > Accounting

Medium

Calculate the amount of subscription to be shown in Income and expenditure A/C for the year ending 31st March 2022 Subscription received during the year 2021-22 Rs. 100,000 Outstanding subscription for the year 2020-21 Rs. 10000 Outstanding subscription for the year 2021-22 Rs. 20000 Subscription received in advance in 2020-21 Rs. 5000 Subscription received in advance in 2021-22 Rs. 4000

Rs. 1,11,000

Rs. 1,19,000

Rs. 89,000

Rs. 1,21,000

Correct Answer

Option 1

Correct Answer

Explanation →