Accounting for Partnership: Basic Concepts Test 39

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Accounting for Partnership: Basic Concepts Test 39

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Weekly Quiz Competition

Question 1
1 / -0

An association of two or more persons created for which of these purposes is not a partnership.........

A
Social

B
Religious

C
Charitable

D
All the three
Question 2
1 / -0

Under the concept of Disclosure which of these would require proper disclosure in financial statements.

A
Accounting policies adopted

B
Change in Accounting policies and its effect on profitability

C
All major events effecting the decision of users of financial statements

D
All the three
Question 3
1 / -0

Shares can be forefeited for..........

A
Non- payment of call money

B
Absence from extinary raordinary meeting

C
Not purchasing right issues

D
Non-demating of shares
Question 4
1 / -0

Tick the correct statement.

A
Upon transfer of his interest by a partner to a stranger, the transferee does not become partner of the firm.

B
the transferee has all the rights of a partner.

C
the transferee can take part in business

D
transferee can send notice for dissolution of the firm.
Question 5
1 / -0

Public notice in respect of partnership firm is required to be published in at least on vernacular newspaper circulated in the district where the firm to which relates, has its....

A
Head office

B
Place

C
Principle place of business

D
Place or principle place of business
Question 6
1 / -0

...... is a conclusive evidence of existence of a partnership.

A
Mutual agency

B
Agreement

C
Business

D
Sharing of profit and loss
Question 7
1 / -0

A and B are two partners in a partnership firm having capital Rs. $$10,000$$ and Rs. $$15,000$$. The firm intends to value its goodwill by capitalizing super profit of Rs. $$10,000$$ @$$8\%$$. Find the goodwill of the firm.

A
$$150,000$$

B
$$125,000$$

C
$$100,000$$

D
$$105,000$$
Question 8
1 / -0

Under fixed capital methods, profits will be credited to __________.

A
capital account

B
drawings

C
current A/c

D
profit and loss

Solution

The account in a partnership firm can be kept in two ways- fixed capital and fluctuating capital.
Under the fixed nature of capital, the capital of each partner remains constant from the start of partnership till at the end of it. No adjustments like interest on capital, partner’s salary/commission, Drawings and profit or loss earned during the operation is made. To have record of all such adjustments each partner’s current account is opened, which is debited with Drawings, share of loss sustained during a period and credit is given for partner’s salary/commission, interest on capital and share of profit earned.
Question 9
1 / -0

Which of the following statements is not true?

A
It is not true that all partners can have limited liability in a limited partnership

B
Capital contributions do not have to be equal from each partner

C
A minor has a right to access and inspect books of accounts of partnership firm in which he is partner

D
Interest on capital is a reward for the different amounts of work partners may perform

Solution

Interest will be allowed to each partner on the capital contributed by him . Interest on capital of the partners is calculated for the relevant period for which the amount of capital has been used in the business. Capital introduced or withdrawn by a partner during the accounting year has to be taken for the purpose of calculation and definitely is not a reward for the partners.
Question 10
1 / -0

Which of the following is not required to be mentioned in the partnership deed?

A
Age of partners

B
Name of partners

C
Address of partners

D
Firm name

Solution

To become a partner it is not necessary to mention the age but to become a partner you need to be a major and should be of sound mind . However, a minor can also become a partner. In such a scenario, all the partners should give their consent in order to admit a minor.

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Re-Attempt Weekly Quiz Competition

Accounting for Partnership: Basic Concepts Test 39

Result

Accounting for Partnership: Basic Concepts Test 39

Score

-

Rank

-

SHARING IS CARING

Question 1

Social

Religious

Charitable

All the three

Question 2

Accounting policies adopted

Change in Accounting policies and its effect on profitability

All major events effecting the decision of users of financial statements

All the three

Question 3

Non- payment of call money

Absence from extinary raordinary meeting

Not purchasing right issues

Non-demating of shares

Question 4

Upon transfer of his interest by a partner to a stranger, the transferee does not become partner of the firm.

the transferee has all the rights of a partner.

the transferee can take part in business

transferee can send notice for dissolution of the firm.

Question 5

Head office

Place

Principle place of business

Place or principle place of business

Question 6

Mutual agency

Agreement

Business

Sharing of profit and loss

Question 7

$$150,000$$

$$125,000$$

$$100,000$$

$$105,000$$

Question 8

capital account

drawings

current A/c

profit and loss

Solution

Question 9

It is not true that all partners can have limited liability in a limited partnership

Capital contributions do not have to be equal from each partner

A minor has a right to access and inspect books of accounts of partnership firm in which he is partner

Interest on capital is a reward for the different amounts of work partners may perform

Solution

Question 10

Age of partners

Name of partners

Address of partners

Firm name

Solution

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