Class 12 Accountancy Chapter 2 (Part 1) - Accounting for partnership: basic concepts MCQs

Class 12 Accountancy Chapter 2 (Part 1) – Accounting for partnership: basic concepts MCQ Question Answers for CUET 2024

1. Which Of the following is Correct about Partnership?

a.Persons who have entered into partnership with one another are individually called Members

b.Partnership deed (agreement) Has to be in written

c.All of the above

d.Partnership is Governed Under the Provisions of the Indian Partnership Act 1932

2. Which Of the following is incorrect about Partnership?

a.Partnership is the result of an agreement between two or more persons

b.Each partner is liable jointly with all the other partners and also severally to the third party

c.The Central government has prescribed the maximum number of partners in a firm to be 60

d.Partnership is supported By Relationship of mutual Agency

3. Opening Balance of Profit and loss appropriation account-

a.Gross Profit

b.Profit

c.Capital balance

d.Net Profit

4. Under which method only one account, i.e., capital account is maintained for each partner

a.Appropriation method

b.Capital Balancing Method

c.Fluctuating capital method

d.Fixed Capital method

5. The Relationship of Partner to its firm is of

a.Debtor and creditor

b.Principal and Agent

c.Manager and Director

d.Surety and guarantee

6. Under fixed capital account method, the capital account always shows a_____ Balance

a.Positive Balance

b.Negative Balance

c.Debit Balance

d.Credit Balance

7. Interest on Drawing if a Partner withdraws Rs. 2000 once in month @12% Interest

a.1400

b.1445

c.1500

d.1440

8. Anupam and Abhishek are partners sharing profits and losses in the ratio of 3: 2. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively. If the partnership deed is silent as to the payment of interest on capital and the profit for the year is Rs. 50,000 What Will be True in this case

a.No interest will be paid on the capital to the partners

b.Interest will amount to 22000

c.Interest will amount to 28000

d.Interest will be paid at 6% on their Capitals Respectively

9. When two or more persons join hands to set up a business and share its profits and losses, they are said to be in ____

a.Joint Venture

b.Joint Partnership

c.Partnership

d.Venture

10. Default Rate of 6% is applicable in case of

a.Interest on Drawings

b.All of the above

c.Interest On Capital

d.Interest On Loan

11. Partnership act was passed in year

a.1952

b.1933

c.1982

d.1932

12. All Adjustments in respect of partner’s salary, partner’s commission, interest on capital, interest on drawings, etc. are made through Which Account?

a.Partners Current account

b.Profit and loss account

c.Profit and loss appropriation Account

d.Partners Capital account

13. When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount ___________

a.Withdrawn Every Day

b.Withdrawn Every Month

c.withdrawn evenly throughout the year

d.Withdrawn evenly till the Partners Leave the firm

14. The net profit for the year is Rs. 600000. Salary of a partner is Rs. 5000 per month and the commission of another partner is Rs. 10000. The interest on drawings of partners is Rs. 4000. Net Balance of Profit and Loss Appropriation Account will be:

a.550000

b.534000

c.600000

d.546000

15. Ankit Draws Rs. 10000 per month on the last day of every month. If the rate of interest is 5% p.a., then the total interest on drawings will be:

a.2300

b.2550

c.2400

d.2750

16. In case If the partnership deed is silent about the Profit-sharing ratio, Profit and loss should be distributed ______

a.In Their Capital ratio

b.In their Working time Ratio