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Fundamental of partnership - MCQ Quiz no. 1

A visually appealing illustration of a partnership meeting, showing three diverse business partners discussing financial documents, with graphs and charts depicting profit sharing and capital contributions in the background.

Fundamentals of Partnership Quiz

Test your knowledge of partnership fundamentals with this engaging quiz! This quiz covers key concepts like partnership deeds, profit distribution, and interest on loans. Whether you're a student or a professional looking to enhance your understanding, this quiz is designed for you.

11 carefully crafted questions
Immediate feedback on answers
Learn more about partnership principles

11 Questions3 MinutesCreated by AnalyzingData202

Partnership Deed is also called

Articles of Partnership

Prospectus

Articles of Association

Principles of Partnership

When is the Partnership Act enforced?

When there is no partnership deed

Where there is a partnership deed but there are differences of opinion between the partners

When capital contribution by the partners varies

When the partner’s salary and interest on capital are not incorporated in the partnership deed

In the absence of a partnership deed, the allowable rate of interest on partner’s loan account will be :

6% Simple Interest

6% p.a. Simple Interest

12% Simple Interest

12% Compounded Annually

Which one of the following items cannot be recorded in the profit and loss appropriation account?

Interest on capital

Interest on drawings

Rent paid to partners

Partner’s salary

If any loan or advance is provided by partner then, balance of such Loan Account should be transferred to :

B/S Assets side

B/S Liability Side

Partner’s Capital A/c

Partner’s Current A/c

On 1st January 2019, a partner advanced a loan of ₹1,00,000 to the firm. In the absence of agreement, interest on loan on 31st March 2019 will be :

Nil

�1,500

�3,000

�6,000

Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm?

Interest on Capital

Salary to Partner

Transfer to Reserve

All of the above

A partner introduced additional capital of ₹30,000 and advanced a loan of ₹40,000 to the firm at the beginning of the year. Partner will receive year’s interest:

�4,200

�2,400

Nil

�1,800

X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner’s capital was ₹6,00,000 and Z demanded minimum profit of ₹5,00,000 as his financial position was not good. However, there was no written agreement on this point.

Other partners will pay Z the minimum profit and will share the loss equally

Other partners will pay Z the minimum profit and will share the loss in capital ratio

X and Z will take ₹50,000 each and Z will take ₹5,00,000.

�2,00,000 to each of the partners

X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was dispute between the partners. .Profit before interest on partner’s capital was ₹6,000 and Y determined interest @24% p.a. On his loan of ₹80,000. There was no agreement on this point. Calculate the amount payable to X, Y, and Z respectively.

�2,000 to each partner

Loss of ₹4,400 for X and Z; Twill take ₹14,800

�400 for X, ₹5,200 for Y and ₹400 for Z.

None of the above.

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