Accounting for Partnership: Basic Concepts Test 30

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Accounting for Partnership: Basic Concepts Test 30

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SHARING IS CARING

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Weekly Quiz Competition

Question 1
1 / -0

A partner is agent of the firm ________.

A
for the business of the firm only

B
for all purpose during his continuance as partner of the firm

C
for all purpose even after his retirement

D
for the acts done during emergency
Question 2
1 / -0

Interest on advance money provided by the Partner can be paid from ____________.

A
profits

B
out of capital

C
both (a) and (b)

D
from the money provided by Central Government
Question 3
1 / -0

Which of these provisions are found in Partnership Act regarding sharing of profit and loss by partners ?

A
share the profits and losses in the ratio of their capital contributions

B
share the profits and losses equally irrespective of any agreement between them to the contrary

C
share the profits and losses equally in the absence of any agreement to the contrary between them

D
share the profits and losses in the ratio of their personal effoks input
Question 4
1 / -0

The right to indemnity is lost on ___________________.

A
the dissolution of the partnership

B
the death of the partner

C
the retirement of the partner

D
neither (a) nor (b) nor (c)
Question 5
1 / -0

Under section 11 of th 6 Companies Act, 1956 for a non-banking business, the maximum number of partners can be __________.

A
ten

B
twenty

C
twenty-five

D
thirty
Question 6
1 / -0

Interest on capital can be paid __________.

A
Out of profits

B
Put of capital if no profits

C
Out of capital if losses

D
Either (a) or (b) or (c)

Solution

Interest can be allowed when it is expressly agreed to by the partners. Thus, no interest on capital is payable if the partnership deed is silent on the issue. Further the interest is payable only out of the profits of the business and not if the firm incurs losses during the period.
Question 7
1 / -0

ABC purchased an office equipment for Rs.$$25,000$$ on $$1-4-2012$$ and spent Rs.$$5000$$ on its installation. The office equipment is being depreciated at the rate of $$10\%$$ p.a. under SLM. On $$30$$th September $$2014$$ the firm decided to sell the office equipment for Rs. $$15,000$$. Find out the book value of the office equipment on the date of sale

A
Rs.$$23085$$

B
Rs.$$22500$$

C
Rs.$$20725$$

D
Rs.$$21500$$
Question 8
1 / -0

Which of these is a point of difference between consignment and Joint Venture?

A
Principal agent relationship v equal ownership relationship

B
Commission v profit sharing

C
No capital contribution v Capital contribution

D
All the three
Question 9
1 / -0

Going run concern concept is not followed in __

A
Bank accounts

B
Joint venture accounting

C
Partnership accounting

D
Proprietorship concerns
Question 10
1 / -0

In case of winding up of firm if the asset of the firm are not sufficient to pay the partner capital, the deficiency in capital _______________________.

A
will be made good by the Registrar of firms

B
will be borne by the partners in their profit sharing ratio

C
will be borne by the partners in their capital ratio

D
will be borne by the partners in the ratio of their net worth
Solution
Option B is right answer. Winding up a partnership refers to procedures that are taken to distribute or liquidate any remaining partnership property and assets that is remaining after a dissolution of a partnership business. Only partners that are still remaining with the partnership have the right to partnership assets during the winding up process.
The procedure of winding up a partnership involves:
- Collecting remaining business assets
- Settling any remaining debts owed to non-partner creditors
- Distributing the remaining assets to the remaining partners.

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Re-Attempt Weekly Quiz Competition

Accounting for Partnership: Basic Concepts Test 30

Result

Accounting for Partnership: Basic Concepts Test 30

Score

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Rank

-

SHARING IS CARING

Question 1

for the business of the firm only

for all purpose during his continuance as partner of the firm

for all purpose even after his retirement

for the acts done during emergency

Question 2

profits

out of capital

both (a) and (b)

from the money provided by Central Government

Question 3

share the profits and losses in the ratio of their capital contributions

share the profits and losses equally irrespective of any agreement between them to the contrary

share the profits and losses equally in the absence of any agreement to the contrary between them

share the profits and losses in the ratio of their personal effoks input

Question 4

the dissolution of the partnership

the death of the partner

the retirement of the partner

neither (a) nor (b) nor (c)

Question 5

ten

twenty

twenty-five

thirty

Question 6

Out of profits

Put of capital if no profits

Out of capital if losses

Either (a) or (b) or (c)

Solution

Question 7

Rs.$$23085$$

Rs.$$22500$$

Rs.$$20725$$

Rs.$$21500$$

Question 8

Principal agent relationship v equal ownership relationship

Commission v profit sharing

No capital contribution v Capital contribution

All the three

Question 9

Bank accounts

Joint venture accounting

Partnership accounting

Proprietorship concerns

Question 10

will be made good by the Registrar of firms

will be borne by the partners in their profit sharing ratio

will be borne by the partners in their capital ratio

will be borne by the partners in the ratio of their net worth

Solution

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