Self Studies
Self Studies
Self Studies
Self Studies
Selfstudy
Selfstudy

Accounting for Partnership: Basic Concepts Test 45

Result Self Studies

Accounting for Partnership: Basic Concepts Test 45
  • 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
    At the time of dissolution, which payment will be made in priority ?

    Solution
    Payment of partner's loan is made before payment of capital because capitals are paid off only if any balance is left after payment of all the liabilities. Loan provided by partner is a liability for the firm. A separate Partner's loan account is prepared for payment. Following entry is passed on payment :
    Partner's loan A/c Dr.
       To Bank/Cash A/c 
  • Question 2
    1 / -0
    All the agreements are contracts _____________.
  • Question 3
    1 / -0
    Under fixed capital methods, profit will be credited to:
    Solution
    If fixed capital account is maintained while accounting of partnership firm. In that case current capital account is maintained for drawing, salary and profit -loss effect.
  • Question 4
    1 / -0
    Which of the following are included in a partnership deed?
    Solution
    A partnership deed is a written legal document among the partners. The following content should be there in the partnership deed:
    1. Duties and obligations of the partner
    2. Distribution of profits and losses
    3. Terms governing admission, retirement, and expulsion of a partner, etc.
    Thus the correct answer is D.
  • Question 5
    1 / -0
    __________ constitutes as an evidence of agreement.
    Solution
    The written agreement of partnership is called a partnership deed. It is a contract between two or more individuals who decide to manage and operate a business together for profit-making. The deed defines the management roles and once the Partnership deed is completed, all of the Partners will sign and date the deed and keep copies of the deed for their records. 
    Thus the correct answer is B.
  • Question 6
    1 / -0
    It is UNCOMMON in a partnership firm.

    Solution
    A partnership is a contract between the partners. Hence, a minor cannot be a partner in a partnership firm. However, according to the Partnership Act, a minor may be admitted to the benefits of a partnership.
  • Question 7
    1 / -0
    Which of the following would not be found in a partnership appropriation account?

    Solution
    Partnership appropriation account is to allow adjustments to be made to the net income from the profit and loss account before distribution of any residual net income is made to the partner capital accounts. The adjustments include such items as partner salaries and interest on partner capital, loans and drawings accounts.
  • Question 8
    1 / -0
    If partners maintain both fixed capital and current accounts, which of the following would normally be credited to a partner's fixed capital account?

    Solution
    Introducing additional capital will credit to fixed capital account. Other mentioned transaction will be debited or credit to current capital account.
  • Question 9
    1 / -0
    A new agreement of a partnership firm to replace the old one is formed only in following conditions_______.

  • Question 10
    1 / -0
    Amit and Varun are partners with capital balances of Rs. 60,000 and Rs. 20,000, respectively. Profits and losses are divided in the ratio of 60:40. Amit and Varun decided to form a new partnership with Amit, who invested land valued at Rs. 15,000 for a 20% capital interest in the new partnership. Amit's cost of the land was Rs. 12,000. The partnership elected to use the bonus method to record the admission of Amit into the partnership. Amit's capital account should be credited for________.
    Solution
    b"Amit invested land valued                15,000
    Less=  20% capital                               3,000
                                                                   12,000
    Amit's capital account should be credited  for Rs.12,000.
    "
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