Partnership Firm -Fundamental Quiz Questions | MCQs | MOCK TEST | Expert Commerce Edge

1. In a firm, 10% of net profit after deducting all adjustments, including reserve is transferred to general reserve. The net profit after all adjustments but before transfer to general reserve is ₹44,000. Calculate the amount which is to be transferred to reserve.

2. In case of partnership, the act of any partner is

3. Manager’s commission of ABC Ltd. (Partnership) was ₹33,000. What amount of net profit in manager’s commission was to be charged @10% before charging such commission?

4. Pinky and Chinky are partners in a firm. They share their profits in 2 : 3 ratio. The accountant of the firm, finalised the profit and loss and capital account and presented the accounts to them.
Pinky disagreed with accounts because Pinky's capital account showed negative balance. Pinky is in doubt, this cannot happen. Give your opinion.

5. The partnership agreement between Mahesh and Ramesh provides that
(i) profits will be shared equally.
(ii) Mahesh will be allowed a salary ₹ 400 per month.
(iii) Ramesh is allowed a commission @ 10% on net profits after all adjustments.
(iv) 10% per annum interest will be charged on drawings.
(v) their annual drawings were ₹16,000 and ₹14,000 respectively.
Net profit before above adjustments are ₹40,000. Calculate profits to be distributed between partners.

6. A charitable dispensary is run by 8 members. A new member wants to join them. The new member is of the opinion that partnership deed must be written while other members refused to do that. They said this is not a partnership. Give reason(s) in favour of other members.

7. The capital balance of a partner at the end of the year (after adjusting for his drawings ₹3,500 and his share in the profit ₹ 2,300) is ₹12,000. Interest on capital is payable to him at 5% per annum. What will be the amount of interest on capital?

8. If a partner withdraws equal amount at end of each quarter, then…........… are to be considered for interest on total drawings.

9. A partner withdrew ₹4,000 per month from 1st July, 2020, on beginning of every month. Accounts are closed at 31st March, 2021. Calculate interest on drawings while rate of interest is 10% per annum.

10. Features of partnership include -

11. Under what circumstances, a partner can get exemption from sharing losses in a firm?

12. Following are essential elements of a partnership firm except

13. Loan has been given by wife of a partner to the firm. Now partner wants interest @ 6% per annum as per Partnership Act, 1932 while partnership deed is silent. Solve this issue.

14. If partner’s capitals are fixed, drawings will be recorded in

15. Virat and Anushka are partners in a firm sharing profits and losses in 2 : 1 ratio. Their capital balance were ₹10,00,000 and ₹8,00,000 respectively.
The firm made profits during the year amounting to ₹ 3,45,000. Both partners are allowed salary of ₹2,500 per month.
Interest on capital is allowed @ 5% on capital balance.
Calculate closing balance of capital for Virat and Anushka.

16. Why a partnership firm needs partnership deed?

17. The firm of Sonu and Monu earned a profit of ₹ 3,25,000 during the year ending on 31st March, 2019. They have decided to donate 10% of this profit to an NGO working for senior citizens. Pass the journal entry.

18. Where a partner is entitled to interest on capital contributed by him, such interest will be payable

19. Which of the following items is not dealt through profit and loss appropriation account?

20. Aman is a partner of Jivan firm with a fixed capital of ₹9,00,000. He withdrew ₹ 60,000 during financial year 2020-21. What will be the journal entry?