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. Default Rate of 6% is applicable in case of

a.Interest On Loan

b.Interest On Capital

c.Interest on Drawings

d.All of the above

2. Partnership act was passed in year

a.1933

b.1952

c.1932

d.1982

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

a.Profit and loss appropriation Account

b.Partners Current account

c.Profit and loss account

d.Partners Capital account

4. The persons who Have entered into partnership Are individually known as

a.Principal

b.Partners

c.Members

d.Agents

5. The Relationship of Partner to its firm is of

a.Principal and Agent

b.Surety and guarantee

c.Debtor and creditor

d.Manager and Director

6. Which Of the following is Correct about Partnership?

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

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

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

d.All of the above

7. 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.Venture

c.Partnership

d.Joint Partnership

8. 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

c.In Equal ratio

d.In Previous year Capital Contribution

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

a.Fixed Capital method

b.Appropriation method

c.Fluctuating capital method

d.Capital Balancing Method

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

a.1500

b.1445

c.1440

d.1400

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 When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount ___________

a.withdrawn evenly throughout the year

b.Withdrawn Every Day

c.Withdrawn Every Month

d.Withdrawn evenly till the Partners Leave the firm

12. Which Of the following is incorrect about Partnership?

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

b.Partnership is supported By Relationship of mutual Agency

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

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

13. Question

a.Interest on Capital A/c

b.Partner’s Capital/Current A/c’s

c.Profit and Loss A/c

d.Interest on Profit A/c

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.546000

c.600000

d.534000

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

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

c.Interest will amount to 28000

d.Interest will amount to 22000

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

a.Positive Balance

b.Debit Balance

c.Negative Balance

d.Credit Balance

17. 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.2750

b.2400