Accounting for Partnership: Basic Concepts Test 3

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Accounting for Partnership: Basic Concepts Test 3

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SHARING IS CARING

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Weekly Quiz Competition

Question 1
1 / -0

The relationship between persons who have agreed to share the profit of a business carried on by all or any of them acting for all is known as.

A
Partnership

B
Joint Venture

C
Association of Persons

D
Body of Individuals

Solution

"Partnership" is 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.
Persons who have entered into partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm name".
Question 2
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Partnership can be formed for the purpose of carrying.

A
Charitable activities

B
Social activities

C
Business

D
All of the above

Solution

Any company or firm is set up to earn profits and such profits can only be earned due to any kind of business. Any charity or social work will not earn company the profits they wished to have.
Hence, a partnership is set up to carry on a business since every partner needs profits on the behalf of work one by them.
Question 3
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Choose the correct answer from the alternatives given.
Which one is correct

A
A minor can act as a principal

B
A minor cannot act as an agent

C
A minor can act as an agent

D
None of these

Solution

Under Section 182 of the Indian Contract Act, 1872. According to this section, any person can become an agent, i.e. there is no need to have a contractual capacity to become an agent. Therefore, a minor can also act as an agent.
Question 4
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The law relating to partnership firms is contained in ________.

A
the Partnership Act, 1930

B
the Partnership Act, 1932

C
the Indian Partnership Act, 1930

D
the Indian Partnership Act, 1932

Solution

The concept of running a business in partnership was brought in India by the Indian partnership act of 1932. This act has defined all the norms that every individual must keep in his mind while setting up a business with other person. Moreover certain laws are alo defined by this partnership act. But now companies act of 2013 has replaced the earlier act related to partnership firms.
Question 5
1 / -0

A partnership can be formed ____________________.

A
only with a written agreement

B
only with an oral agreement

C
only with an express agreement

D
only with an implied agreement

E
none of these

Solution

The basic requrirement of any partnership is an agreement which can be in any form written, oral, implied or expressed.
All of the options are incorrect for a partneship agreement because it is mutual decision of partner to decide whattype of agreement they would like to have. There is no compulsion that an agreement can only be written, oral , implied or expressed.
Question 6
1 / -0

A firm is the name of ________.

A
the partners

B
the minors in the firm

C
the business under which the firm carries on business

D
the collective name under which it carries on business

Solution

The name of the firm is in the hands of partners and they are the ones to decide. Usually partnership firms are named after collective name of all the partners. Example, partners A, B and C keep the name of firm as ABC Ltd.
Question 7
1 / -0

Interest on partners capital is___________.

A
An Expenditure

B
An appropriation

C
A Gain

D
None of these

Solution

Interest on capital account is an appropriation. Appropriation means it is paid only and only if there is profit. It is not a charge and hence, will not be provided if there is loss or if there are profits will be provided only till the extent of profits.
Question 8
1 / -0

Under _______ there have been made rules regarding the dissolution of him.

A
Indian partnership Act section 35

B
Indian partnership Act section 39

C
Companies Act section 48

D
Companies Act section 45

Solution

Indian partnership act, section 39 there are rules for dissolution of partnership firm.
Question 9
1 / -0

Persons who have entered into partnership with one another are called individually "______________" and collectively "_____________", and the name under which their business is carried on is called the "_____________".

A
co-owner; firm name; a firm

B
partners; firm name; a firm

C
partners; a firm; firm name

D
co-owner; a firm; firm name

Solution

The persons who own the partnership business are individually called 'partners' who have agreed to share the profits of a business carried on by all or any of them acting for all' a partner is an agent of the firm. Persons who have entered into partnership with one another are called individually "partners" and collectively "firm", and the name under which their business is carried on is called the "firm name".
Question 10
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A change in the nature of the business can only be brought about by the consent of ____________.

A
majority partners

B
all the partners

C
two partners

D
five partners

Solution

Partnership agreements are usually made flexible to make any change in future. The changes in agreement cannot be made by a single partner, it is the decision of every partner to make any change to the agreement. This is because each partner has a proper right in the firm and they are legallised to present a correct opinion in any matter.

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Re-Attempt Weekly Quiz Competition

Accounting for Partnership: Basic Concepts Test 3

Result

Accounting for Partnership: Basic Concepts Test 3

Score

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Rank

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SHARING IS CARING

Question 1

Partnership

Joint Venture

Association of Persons

Body of Individuals

Solution

Question 2

Charitable activities

Social activities

Business

All of the above

Solution

Question 3

A minor can act as a principal

A minor cannot act as an agent

A minor can act as an agent

None of these

Solution

Question 4

the Partnership Act, 1930

the Partnership Act, 1932

the Indian Partnership Act, 1930

the Indian Partnership Act, 1932

Solution

Question 5

only with a written agreement

only with an oral agreement

only with an express agreement

only with an implied agreement

none of these

Solution

Question 6

the partners

the minors in the firm

the business under which the firm carries on business

the collective name under which it carries on business

Solution

Question 7

An Expenditure

An appropriation

A Gain

None of these

Solution

Question 8

Indian partnership Act section 35

Indian partnership Act section 39

Companies Act section 48

Companies Act section 45

Solution

Question 9

co-owner; firm name; a firm

partners; firm name; a firm

partners; a firm; firm name

co-owner; a firm; firm name

Solution

Question 10

majority partners

all the partners

two partners

five partners

Solution

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