Self Studies
Self Studies
Self Studies
Self Studies
Selfstudy
Selfstudy

Accounting for Partnership: Basic Concepts Test 11

Result Self Studies

Accounting for Partnership: Basic Concepts Test 11
  • Score

    -

    out of -
  • Rank

    -

    out of -
TIME Taken - -
Self Studies

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Self Studies Self Studies
Weekly Quiz Competition
  • Question 1
    1 / -0
    Inter se relations of partners between themselves is that of a _________.
    Solution
    A Partner is an Agent of the Firm (Section 18) A partnership is a relationship between partners who agree to share the profits of the business. The business can be carried on by all of them or any of them acting for all.

     He is not an A Partner is an Agent of the Firm (Section 18) A partnership is a relationship between partners who agree to share the profits of the business. 

    The business can be carried on by all of them or any of them acting for all. 
    He is not an agent for all transactions and dealings between the partners themselves.
  • Question 2
    1 / -0
    In a partnership firm engaged in banking business the number of partners cannot exceed _____.
  • Question 3
    1 / -0
    The liability of partners is ______.
    Solution
    An unlimited liability company involves general partners and sole proprietors who are equally responsible for debt and liabilities accrued by the business. Most companies opt to form limited partnerships, where one (or more) business partner is liable only up to the amount of money that partner invested in the company.
  • Question 4
    1 / -0
    In a normal partnership firm the number of partners cannot exceed _____.
  • Question 5
    1 / -0
    ______ is not a feature of a partnership.
    Solution
    In company law, perpetual succession is the continuation of a corporation's or other organization's existence despite the death, bankruptcy, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock, etc.
  • Question 6
    1 / -0
    The members of a partnership firm are collectively called _______.
    Solution
    A partnership is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Individually, member of partnership firm called as partners and collectively firm. 
  • Question 7
    1 / -0
    In the absence of specific provision on the partnership deed at what rate salary and remuneration would be paid to the partners?
  • Question 8
    1 / -0
    X and Y are two partners with a capital of Rs. 35,000 and Rs. 30,000 respectively. They are allowed interest @10% on the total capital. Find the interest allowed to $$X$$ and $$Y$$.
    Solution
    Capital of partners-:
    X - 35,000 ; Y - 30,000
    So,
     X capital is 35,000, and interest is 3,500 on 10%
     Y capital is 30,000, and interest is 3,000 on 10%.
  • Question 9
    1 / -0
    Current Account of the partners are opened when the capital is _________.
    Solution
    The current account is used for credit of profit or debit of loss, interest on partners capital and drawings. This account fluctuates from year to year. A current account that is held by a partnership firm is referred to as partner current account.
  • Question 10
    1 / -0
    The difference between the guaranteed profit and actual share of profit is borne by ________.
    Solution

    Guarantee of  profit in Partnership Accounts

    Sometimes, a partner is admitted in the firm on guarantee in respect of his minimum share of profit from the business. Such a gurantee can be given even to an existing partner also. Such a guarantee to the incoming partner is given either by

    • the firm i.e. by all the old partners in an agreed ratio, or
    • some of the old partners or any one of the old partners

    When all the partners guarantee that one of the partners shall be given a minimum amount of profit, we should calculate the following two amounts separately:

    1.  Share of profit of the guaranted partner as per profit sharing ratio, and
    2. Minimum guaranteed amount of profit of the guanteed partner.

    The higher of the above two is to be given to that partner. The balance of profit (total profit minus profit given to the guaranteed partner) is to be shared by the remaining partners in their respective profit -sharing ratio.

    When the new partner’s share of profit is more than the guaranteed amount, his actual share of profit is given to him instead of the guaranteed amount of profit and difference of guaranteed profit and actual share of profit is borne by the partner who is giving guarantee.

Self Studies
User
Question Analysis

  • Correct -

  • Wrong -

  • Skipped -

My Perfomance
  • Score

    -

    out of -
  • Rank

    -

    out of -
Re-Attempt Weekly Quiz Competition
Self Studies Get latest Exam Updates
& Study Material Alerts!
No, Thanks
Self Studies
Click on Allow to receive notifications
Allow Notification
Self Studies
Self Studies Self Studies
To enable notifications follow this 2 steps:
  • First Click on Secure Icon Self Studies
  • Second click on the toggle icon
Allow Notification
Get latest Exam Updates & FREE Study Material Alerts!
Self Studies ×
Open Now