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
Interest on capital as a charge against profits in case of insufficient profit is
- AAllowed in full irrespective of profitCorrect
- BAll of these
- CNot allowed
- DAllowed to the extent of profit
2
Interest on capital is calculated on
- ANone of these
- BOpening capitalCorrect
- CClosing capital
- DProfit
3
When rate of Interest on Drawings is given without the word per annum, interest will be calculated _____
- AFor 6 month
- BFor 1 month
- CFor 12 month
- DIrrespective of time periodCorrect
4
Under which section of the Partnership Act 1932 defines partnership
- ASection 4Correct
- BSection 45
- CSection 3
- DSection 2
5
Goodwill is an __________ asset
- ANone of these
- BIntangible asset.Correct
- CTangible asset
- DBoth
6
Goodwill is capitalized valued of ____
- ASuper Profit
- BNormal Profit
- CAverage ProfitCorrect
- DNone of these
7
Formula for capitalization of Average Profit is
- A\(\frac{{Average{\text{ Profit }} \times {\text{ 100}}}}{{Normal{\text{ }}rate{\text{ }}of{\text{ }}return}}\)Correct
- B\(\frac{{Average{\text{ Profit }}}}{{Normal{\text{ Profit }}}}\)
- C\(\frac{{Average{\text{ Profit }}}}{{Normal{\text{ }}rate{\text{ }}of{\text{ }}return}}\)
- D\(\frac{{Average{\text{ Profit + 100 }}}}{{Normal{\text{ Profit }}}}\)
8
________ is the excess of actual profit over normal profit
- ASuper Loss
- BSuper ProfitCorrect
- CNormal profit
- DAverage Profit
9
Types of goodwill are
- AAverage Goodwill and Generated Goodwill
- BPurchase Goodwill and Generated GoodwillCorrect
- CAverage Goodwill and Super Goodwill
- DPurchase Goodwill and Super Goodwill
10
Match the following and choose the correct option

- A1.(c) , 2. (b), 3. (a)Correct
- B1.(b) , 2. (c), 3. (a)
- C1.(b) , 2. (b), 3. (a)
- D1.(a) , 2. (b), 3. (c)
11
How fixed capital account is differ from fluctuating capital account
- AFixed capital account neither show positive or negative accounts.
- BFixed capital account can never show a negative balance.Correct
- CFixed capital account can show both positive and negative accounts.
- DFixed capital account can show only negative account
12
Transfer of Balance of Profit and Loss Account to Profit and Loss Appropriation when Profit and Loss Account shows a credit balance (net profit).
- A

- BCorrect

- C

- D

13
What will be the adjusting entry to provide for Interest on Partner’s loan
- A

- B

- C

- DCorrect

14
Salary or Commission to a partner is an
- Aappropriation out of profitsCorrect
- Bcharge against profits
- CNone of these
- Dboth of these
15
Profit and Loss appropriation account is differ from Profit and Loss account as it is prepared by
- AOnly partnership firmCorrect
- BAll business firms
- COnly companied
- DOnly sole proprietorship