Accounting for Partnership: Basic Concepts Test 42

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Accounting for Partnership: Basic Concepts Test 42

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Weekly Quiz Competition

Question 1
1 / -0

A is drawing Rs.1,000 p.m. on the last day of every month. If the rate of interest is 5% p.a., then the total interest chargeable from him in the accounting year will be ____________.

A
Rs.325

B
Rs.275

C
Rs.300

D
Rs.350
Question 2
1 / -0

What time would be taken into consideration for calculation of interest on drawings if equal monthly amount is drawn as drawing at the beginning of each month ?

A
7 months

B
6 months

C
5 months

D
6.5 months

Solution

If the fixed amount withdraw in the beginning of every month, then interest on the total amount of drawing will be calculated for the 6.5 months.
Average period calculated as:

Time left after first drawing +Time left after last drawing
= ------------------------------------------------------------------------------------------
2
12+1
= ----------
2

= 6.5 Months.
Question 3
1 / -0

Capital of A, B and C in the beginning was Rs. $$80,000$$, Rs. $$60,000$$ and Rs. $$40,000$$. Profit sharing ratio being $$2:2:1$$. Interest on Capital @$$10$$% p.a to be provided. Net Profit before allowing interest to partners was Rs. $$38,000$$. What will be capital of A at the end of year?

A
Rs. $$90,000$$

B
Rs. $$74,000$$

C
Rs. $$96,000$$

D
Rs. $$95,000$$
Question 4
1 / -0

X, Y and Z are partners sharing profits and losses in the ratio $$5:3:2$$. They decide to share the future profits in the ratio $$2:3:5$$. What will be the treatment for workmen compensation fund appearing in the balance sheet on the date if no information is available for the same?

A
Distributed to the partners in old sharing ratio

B
Distributed to the partners in new sharing ratio

C
Distributed to the partners in capital ratio

D
Carried forward to new balance sheet without any adjustment
Question 5
1 / -0

A, B and C are the partners sharing in the ratio $$2:2:1$$. They have taken a Joint Life Policy of 10 years for Rs. $$3,00,000$$. Annual premium is Rs. $$20,000$$. They have been charging annual premium to profit and loss account. At the end of 4 years, when surrender value of Policy is Rs. $$90,000$$, they want to raise policy account in the books. Joint life policy account will be ______________.

A
Debited by Rs. $$3,00,000$$

B
Debited by Rs. $$80,000$$

C
Debited by Rs. $$90,000$$

D
Credited by Rs. $$90,000$$
Question 6
1 / -0

A is drawing Rs.500 regularly on the 16th of every month.He will have to pay interest in a year on Rs.6,000 (at the given rate of interest) for a total period of _________________.

A
5 months

B
6 months

C
7 months

D
$$6\dfrac{1}{2}$$ months
Question 7
1 / -0

A, B and C were partners in a firm sharing profits and losses in theratio of 2 : 2 : 1 respectively with the capital balance of 50,000 for A and B, for C 25,000. B declared to retire from the firm and balance in reserve on the date was 15,000 if goodwill of the firm was valued as 30,000 and profit on revaluation was 7,050, then what amount will be transferred to the loan account of B?

A
70,820

B
50,820

C
25,820

D
58,820
Question 8
1 / -0

L and M invest Rs 2,00,000 and Rs 1,00,000 respectively in a partnership, and agree to divide profit/loss equally after providing for interest @ 10% per annum on original capital and salaries of Rs 24,000 and Rs 48,000 respectively. How much total amount L would get if the period's net income (before interest and salaries) is Rs 1,78,000 ______________.

A
Rs 96,000

B
Rs 89,000

C
Rs 82,000

D
Nil
Question 9
1 / -0

On the admission of a new partner, the balance of the profit and loss adjustment account should be transferred to the capital account of_________.

A
all partners in their new profit-sharing ratio

B
old partners in their old profit-sharing ratio

C
old partners in their new profit-sharing ratio

D
old partners in their sacrificing ratio

Solution

One of the forms of reconstitution of the firm is change in profit sharing ratio among existing partners. Here there is no change in the partners carrying on the business of the firm. The only change is the profit sharing ratio among existing partners.
Question 10
1 / -0

A retiring partner continues to be liable for obligations incurred after his retirement if:

A
Unpaid amount is transferred to his loan account.

B
He does not give public notice.

C
He starts a similar business elsewhere.

D
None of the above

Solution

If a partner withdraws from a firm by dissolving it, then it is a dissolution and not retirement of a partner. The retirement of a partner from a firm does not dissolve it. The partnership is at will, by giving notice in writing to all the other partners of his intention to retire.

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Re-Attempt Weekly Quiz Competition

Accounting for Partnership: Basic Concepts Test 42

Result

Accounting for Partnership: Basic Concepts Test 42

Score

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Rank

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SHARING IS CARING

Question 1

Rs.325

Rs.275

Rs.300

Rs.350

Question 2

7 months

6 months

5 months

6.5 months

Solution

Question 3

Rs. $$90,000$$

Rs. $$74,000$$

Rs. $$96,000$$

Rs. $$95,000$$

Question 4

Distributed to the partners in old sharing ratio

Distributed to the partners in new sharing ratio

Distributed to the partners in capital ratio

Carried forward to new balance sheet without any adjustment

Question 5

Debited by Rs. $$3,00,000$$

Debited by Rs. $$80,000$$

Debited by Rs. $$90,000$$

Credited by Rs. $$90,000$$

Question 6

5 months

6 months

7 months

$$6\dfrac{1}{2}$$ months

Question 7

70,820

50,820

25,820

58,820

Question 8

Rs 96,000

Rs 89,000

Rs 82,000

Nil

Question 9

all partners in their new profit-sharing ratio

old partners in their old profit-sharing ratio

old partners in their new profit-sharing ratio

old partners in their sacrificing ratio

Solution

Question 10

Unpaid amount is transferred to his loan account.

He does not give public notice.

He starts a similar business elsewhere.

None of the above

Solution

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