Fundamentals Of Partnership And Goodwill CBSE Questions & Answers

Fundamentals Of Partnership And Goodwill

This is Accountancy Class 12 Fundamentals of partnership and Goodwill CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Why is it important to have a partnership deed in writing?
  • A
    defining relationship of among Partners
  • B
    it is good evidence in the court
  • C
    assistance in settlement of disputes, if any and also avoids possible
  • D
    All of these
    Correct
2
For transfer to Profit and Loss Appropriation account to Reserve account, which account to be credited
  • A
    None of these
  • B
    Profit and Loss Appropriation account
  • C
    Profit and Loss account
  • D
    Reserve A/c
    Correct
3
Profit and Loss adjustment account is differ from Profit and Loss Appropriation account which is prepared to show the effect of
  • A
    Both A and B
  • B
    Revaluation of assets and liabilities at the time of reconstitution of partnership
    Correct
  • C
    None of the above
  • D
    Depreciation charged on assets
4
The following are the examples of the said errors and omissions except:
  • A
    Partner’s salaries on commission has not been provided
  • B
    Partner’s salary on commission has not been provided at higher or less amount.
  • C
    Interest on capital and interest on drawings considered but at higher percentage
  • D
    Interest on capital and interest on drawings considered
    Correct
5
Circumstances when fixed capital can be changed
  • A
    None of these
  • B
    Both
    Correct
  • C
    Fresh capital introduce by the partner
  • D
    Amount of capital withdrawn by partners under agreement
6
How drawing against capital is differ from drawings against profit:
  • A
    Drawings against capital is a part of capital where drawings against profit is a part of expected profits
  • B
    Drawings against capital debited in capital account where drawings against profit is debited in drawings account
  • C
    All of these
    Correct
  • D
    Drawings against capital reduce capital where drawings against profit does not reduce capital
7
For calculation of capital in the beginning what should be added in the capital at the end of the year
  • A
    Salary
  • B
    Profit
  • C
    Drawing
    Correct
  • D
    Additional capital
8
Entry for loss as per P/L Appropriation A/c
  • A
    ll of the above
  • B
    Option B
  • C
    Option C
  • D
    Option D
    Correct
9
Rent paid to a partner is always charged against
  • A
    Assets
  • B
    Capital
  • C
    Profit
    Correct
  • D
    Drawings
10
A, B, and C were partners in a firm having no partnership agreement. A, B and C contributed 2, 00,000; 3, 00,000 and 1, 00,000 respectively. A and B desire that the profits should be divided in the ratio of capital contribution. C does not agree to this. How will the dispute be settled? Who is correct?
  • A
    B
  • B
    C
    Correct
  • C
    A
  • D
    All are correct
11
When partners accounts are fixed where the drawings will be recorded
  • A
    Neither in Current account nor in Capital account
  • B
    Current account
    Correct
  • C
    Both the accounts
  • D
    Capital account
12
A, B and C are partners sharing profits in the ratio 3:2:1 and contribute capital 1,00,000; 80,000 and 60,000 respectively. Profit before adjustments is 84,000. Interest on capital is to be provided \(@{\text{ 1}}0\% \) p.a. Since C has to take care of his physically challenged brother, his share of profit should not be less than 15,000. A and B have agreed to bear the deficiency. What values are reflected on the part of A and B that they are ready to sacrifice their share to meet the deficiency of guaranteed profit
  • A
    Commitment
  • B
    All
    Correct
  • C
    Contentment
  • D
    Sacrificing nature
13
Which account is to be recorded on debit side for charging the interest on partner’s loan
  • A
    None of these
  • B
    Partners A/c
  • C
    Partners Loan A/c
  • D
    Interest on Partners Loan
    Correct
14
When liabilities of partners are unlimited that implies
  • A
    His private assets can also be used for paying off the firm’s debt
    Correct
  • B
    Not liable for any loss in the partnership
  • C
    Only to the extent of capital introduced
  • D
    Only 50 \(%\) of Loss occurred
15
Mutual Agency implies:
  • A
    Both
    Correct
  • B
    None of these
  • C
    One partner can bind other partner by his act
  • D
    Bound by the act of the other partners