CUET Accountancy: PartnershipAccounting. Free, no login required.

X and Y are partners in a firm and their capital account shows a balance of Rs. 1,00,000 and Rs. 75,000 respectively on April 1, 2024. X introduced additional capital of Rs. 50,000 on August 1, 2024, and Mr. Y introduced further capital of Rs. 75,000 on October 1, 2024. Interest on capital is allowed @6 % annually. Calculate interest payable to Y.

The Profit or Loss on revaluation of accounts is transferred to:

If partnership deed is silent about the interest on capital contributed by the partners in the firm, then ......... on the contributed capital will be paid.

Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses in the ratio of 3:3:2. From April 1, 2025, they decided to share profits and losses equally. The value of fixed assets on March 31, 2025, in the balance sheet was Rs. 2,80,000 and it was revalued at Rs. 3,31,000 on April 1, 2025. What journal entry will be passed in the books of the firm related to fixed Assets?

If the capital of a firm is Rs. 2,00,000 and profit earned by the firm is Rs. 48,000. Match the value of goodwill, according to the super profit method of goodwill valuation at the different normal rate of return on the firm's capital on the basis of 3 years of purchase.

Choose the correct answer from the options given below:

The Liability of the partners in a firm is__________

Mukesh and Vanshika are partners. They agreed to share profits in the ratio of 3:2.

Their capital balances on 01st April, 2024 were Rs.15,00,000 and Rs. 10,00,000 respectively. Additional capital contributed by Mukesh and Vanshika was Rs 3,00,000 and Rs 2,00,000 respectively on 01st Jan, 2025. Interest on capital was allowed @ 5 % p.a. Find the interest on Vanshika's Capital.

When the partners withdraw different amounts of money at different time intervals, the interest is calculated using the following formula:

If the partnership deed is silent regarding Interest on the partner's loan, the following provision of the Indian Partnership Act 1932 will be applicable:

By virtue of section ___________, the Central Government is empowered to prescribe a maximum number of partners in a firm.

Profit and Loss Appropriation Account has the following features:

(A) It is merely an extension of the Profit and Loss Account of the firm.

(B) It shows how the profits are appropriated or distributed among the partners.

(C) It starts always with the net profit as per Profit and Loss Account.

(D) All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through this account.

Choose the correct answer from the options given below:

Arun, a partner in a firm, withdraws Rs.1,000 from his capital at the beginning of every month for personal use. What would be the amount of interest on drawings for the whole year given the rate of interest is 9% per annum?

When partners' capital account is prepared under the fluctuating capital method, interest on drawings is shown under:

Choose the correct option for transferring partner's salary to Profit and Loss Appropriation A/c

Select the correct options from the following in case there is no partnership deed:

A. Profit and losses of the firm are shared equally.

B. Interest on capital is to be paid at the rate of 6 percent per annum.

C. Interest on the partner's loan is to be paid at the rate of 6 percent per annum.

D. No interest is to be charged on the drawings made by the partners.

Choose the correct answer from the options given below:

Partners' Current Account shows:

If partnership deed is silent in respect of interest on drawings, how much interest wll be charged?

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

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

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

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

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

Choose the correct answer from the options given below:

Identify which of the following is not related to the concept of "MUTUAL AGENCY"?

Amita and Kabuliwala are partners, sharing profits in the ratio of 2:2 with capitals of Rs.1,50,000 and Rs.30,000 respectively. Interest on capital is agreed @ 6% p.a. A commission of Rs. 5000 is to be allowed to manager. During the financial year 2024-25, on Oct. 01, 2024, Amita gave a loan of Rs. 1,00,000 to the firm without any agreement. During the year 2024-2025, a profit of Rs. 2,22,250 was earned. Calculate the profit that would be transferred to Profit & Loss Appropriation A/C.

If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm:

Mukesh and Chittudeep are two partners. Mukesh and Chittudeep withdrew ₹ 30,000 each at the beginning of each quarter. Calculate interest on Chittudeep's drawings @10% p.a.

Under fluctuating capital method,

(A) Only one account, i.e., a 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, salary or commission to partners, etc. are recorded directly in the current accounts of the partners.

(C) 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.

(D) This makes the balance in the capital account fluctuate from time to time.

Choose the correct answer from the options given below:

"In partnership, all the acts of omission and commission need adjustments for correction of their impact." Necessary adjustments can be made by:

Partnership deed should be properly drafted and prepared as per the provisions of:

Ansh and Abhi are partners sharing profits and losses in the ratio of 3 : 2. Their capital accounts showed balances of Rs. 3,00,000 and Rs. 4,00,000 respectively on April 01, 2024. Calculate interest on Ansh's Capital for the year ending March 31, 2025, 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.

Match List-I with List-II

Choose the correct answer from the options given below:

The Goodwill of a firm is Rs 30,000, when it is valued at three years' purchase of the super profits of the business. Find the normal rate of return, if the firm's capital employed is Rs 5,00,000 and average profits of last five years were Rs 60,000.

The capital of the firm of M and N is Rs. 1,00,000 and the market rate of interest is 15%. The annual salary to partners is Rs. 6,000 each. The profits for the last 3 years were Rs. 30,000 (for 2022); Rs. 36,000 (for 2023) and Rs. 42,000 (for 2024). Goodwill is to be valued at 2 years' purchase of the last 3 years' average super profits or 3 years' purchase of the last 2 years' average super profits, whichever is less. Calculate the goodwill of the firm.

Select the essential features of partnership from the following:

(A) Partnership is the result of an agreement between partners.

(B) Co-ownership of a property between people amounts to partnership.

(C) Sharing of profits and losses of a business.

(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: