PLUS TWO - ONE MARK QUESTIONS AND ANSWERS (BOOK BACK) = UNIT 3 - ACCOUNTS OF PARTNERSHIP FIRMS FUNDAMENTALS

 1. In the absence of a partnership deed, the profits of the firm will be shared by the partners in

(a) Equal ratio (b) Capital ratio

(c) Both (a) and (b) (d) None of these

2. In the absence of an agreement among the partners, interest on capital is

(a) Not allowed (b) Allowed at bank rate

(c) Allowed @ 5% per annum (d) Allowed @ 6% per annum

3. As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by

partners is

(a) 8% per annum (b) 12% per annum

(c) 5% per annum (d) 6% per annum

4. Which of the following is shown in the Profit and loss appropriation account?

(a) Office expenses (b) Salary of staff

(c) Partners’ salary (d) Interest on bank loan

5. When the fixed capital method is adopted by a partnership firm, which of the following items

will appear in the capital account?

(a) Additional capital introduced (b) Interest on capital

(c) Interest on drawings (d) Share of profit

6. When a partner withdraws regularly a fixed sum of money in the middle of every month,

the period for which interest is to be calculated on the drawings on an average is

(a) 5.5 months (b) 6 months

(c) 12 months (d) 6.5 months

7. Which of the following is the incorrect pair?

(a) Interest on drawings – Debited to capital account

(b) Interest on capital – Credited to capital account

(c) Interest on loan – Debited to capital account

(d) Share of profit – Credited to capital account

8. In the absence of an agreement, partners are entitled to

(a) Salary (b) Commission

(c) Interest on loan (d) Interest on capital

9. Pick the odd one out

(a) Partners share profits and losses equally

(b) Interest on partners’ capital is allowed at 7% per annum

(c) No salary or remuneration is allowed to partners

(d) Interest on loans from partners is allowed at 6% per annum.

10. Profit after interest on drawings, interest on capital and remuneration is ` 10,500. Geetha, a

partner, is entitled to receive commission @ 5% on profits after charging such commission.

Find out commission.

(a) ` 50 (b) ` 150

(c) ` 550 (d) ` 500

Answers

1 (a) 2(a) 3(d) 4(c) 5 (a) 6(b) 7(c) 8(c) 9(b) 10(d)