FUNDAMENTALS OF PARTNERSHIP

IS PARTNERSHIP FIRM A LEGAL PERSON?
YES
NO

WHICH ACT PRESCRIBES MAXIMUM NO. OF PARTNERS?
PARTNERSHIP ACT
SOCIETIES ACT
INCOME TAX ACT
COMPANIES ACT

WHAT HAPPENS REGARDING INTEREST ON LOAN IN ACCOUNTS OF FIRM IF PARTNERSHIP DEED IS SILENT IN RESPECT OF LOAN GIVEN BY A PARTNER TO THE FIRM
IT IS GIVEN @6.5% P.A
IT IS GIVEN @6%P.A
IT IS GIVEN @6.5%
IT IS GIVEN @6%

which section of Indian partnership Act defines "partnership"
section 40
section 42
section 41
section 4

Bhanu and Partab are partners sharings profits eqully. Their fixed capitals as on 1st April, 2017 are ₹ 8,00,000 and ₹ 10,00,000 respectively. Their drawings the year were ₹ 50,000 and ₹ 1,00,000 respectively. Interest on Capital is a charge and is to be allowed @ 10% p.a. and interest on drawings is to be charged @ 15% p.a. Profit for the year ended 31st March, 2018 was ₹ 1,20,000. Prepare Profit and Loss Appropriation Account.

Bhanu, loss:24000, pratap,loss:24125
Bhanu, loss:24375, pratap,loss:24375
Bhanu, loss:24000, pratap,loss:24000
none of the above

Which one of the following is NOT an essential feature of a partnership?
(A) There must be an agreement
(B) There must be a business
(C) The business must be carried on for profits
(D) The business must be carried on by all the partners

A
B
C
D

 In the absence of Partnership Deed, the interest is allowed on partner’s capital: (CPT; June 2011)
(A) @ 5% p.a.
(B) @ 6% p.a.
(C) @ 12% p.a.
(D) No interest is allowed

A
B
C
D

. A and B are partners in partnership firm without any agreement. A has given a loan of ₹50,000 to the firm. At the end of year loss was incurred in the business. Following interest may be paid to A by the firm :
(A) @5% Per Annum
(B) @ 6% Per Annum
(C) @ 6% Per Month
(D) As there is a loss in the business, interest can’t be paid

A
B
C
D

 A, B and C were Partners with capitals of ₹50,000; ₹40,000 and ? 30,000 respectively carrying on business in partnership. The firm’s reported profit for the year was ₹80,000. As per provision of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of ₹20,000 in addition to his capital contribution.
(A) ₹26,267 for Partner B and C and ₹27,466 for Partner A.
(B) ₹26,667 each partner.
(C) ₹33,333 for A ₹26,667 for B and ₹20,000 for C.
(D) ₹30,000 each partner.

A
B
C
D

On 1st June 2018 a partner introduced in the firm additional capital ₹50,000. In the absence of partnership deed, on 31st March 2019 he will receive interest :
(A) ₹3,000
(B) Zero
(C) ₹2,500
(D) ₹1,800

A
B
C
D

Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm?
(A) Interest on Capital
(B) Salary to Partner
(C) Transfer to Reserve
(D) All of the above

A
B
C
D

Net profit of a firm is ₹79,800. Manager is entitled to a commission of 5% of profits after charging his commission. Manager’s Commission will be :
(A) ₹4,200
(B) ₹380
(C) ₹3,990
(D) ₹3,800

A
B
C
D

Which of the following statement is true?
(A) Fixed capital account will always have a credit balance
(B) Current account can have a positive or a negative balance
(C) Fluctuating capital account can have a positive or a negative balance
(D) All of the above

A
B
C
D

Anu and Tanu are equal partners with fixed capitals of ₹2,00,000 and ₹1,00,000 respectively. After closing the accounts for the year ending 31st – March, 2019 it was discovered that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting entry :
(A) Anu will be credited by ₹16,000 and Tanu will be credited by ₹8,000
(B) Anu will be debited by ₹16,000 and Tanu will be debited by ₹8,000
(C) Anu will be credited by ₹4,000 and Tanu will be debited by ₹4,000
(D) Anu will be debited by ₹4,000 and Tanu will be credited by ₹4,000

A
B
C
D

P and Q are partners sharing profits in the ratio of 1 : 2. R was manager who received the salary of ₹10,000 p.m. in addition to commission of 10% on net profits after charging such commission. Total remuneration to R amounted to ₹1,80,000. Profit for the year before charging salary and commission was :
(A) ₹7,20,000
(B) ₹6,00,000
(C) ₹7,80,000
(D) ₹6,60,000

A
B
C
D

 A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of ₹3,00,000 and ₹2,00,000 respectively. They are allowed 6% p.a. interest on their capitals and are charged 10% p.a. interest on their drawings. Their drawings during the year were A ₹60,000 and B ₹40,000. B’s share of net profit as per profit and loss appropriation account amounted to ₹40,000. Net Profit of the firm before any appropriations was :
(A) ₹1,22,000
(B) ₹1,13,000
(C) ₹1,17,000
(D) ₹1,45,000

A
B
C
D

A and B are partners in a firm. They are entitled to interest on their capitals but the net profit was not sufficient for this interest, then the net profit will be distributed among partners in : (CPT, Dec. 2012)
(A) Agreed Ratio
(B) Profit Sharing Ratio
(C) IN THE RATIO OF INTEREST
(D) Equally

A
B
C
D

. Guarantee given to partner ‘A’ by the other partners ‘B & C’ means :
(A) In case of loss, ‘A’ will not contribute towards that loss.
(B) In case of insufficient profits, ‘A’ will receive only the minimum guarantee amount.
(C) In case of loss or insufficient profits, ‘A’ will withdraw the minimum guarantee amount.
(D) All of the above.

A
B
C
D