Partnership PYQ — Page 17

M and N are partners in a firm and agree that an interest @12% per annum should be charged on drawings. M draws Rs. 20,000 per month at the beginning of each month. The amount of interest to be charged from M is:

A firm is dissolved compulsorily in the following cases: (A) when all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract (B) when the business of the firm becomes illegal (C) when the business of the firm is earning a large amount of profit. (D) when some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership Choose the correct answer from the options given below:

Which of the following item is not shown in the Profit and Loss Appropriation Account?

P, Q and R are partners in a firm. If S is admitted as a new partner then:

In the absence of any information, it is assumed that the remaining partners acquire the share of profit of the retiring/deceased partner in:

Which of the following is NOT a feature of partnership?

The accumulated profits and reserves are transferred to:

Partners' current accounts are transferred to respective Partners' ______ Accounts.

Which of the following statements are correct about partnership:- (A) Each partner carrying on the business is the principal as well as the agent for all the other partners (B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner (C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners (D) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate Choose the correct answer from the options given below:

John Ibrahim, a partner in Ancient Tours and Travels withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. He withdrew Rs. 3,000 per month at the beginning of the month. Calculate interest on drawings that should be charged from John Ibrahim, if the rate of interest charged on drawing is 9% per annum.

Arrange the following in correct sequence for application of assets in the Settlement of Accounts in Case Of Dissolution of a Partnership firm - (A) The balance should be applied to repay loans made by the partners to the firm. (B) The assets of the firm should be used in paying the debts of the firm to third parties. (C) The balance assets may be used for paying partners proportionately, on account of capital. (D) The asset's residue, if any, shall be divided among the partners in their profit sharing ratio. Choose the correct answer from the options given below:

Which among the following is NOT true?

On the happening of certain contingencies, Subject to contract between the partners, a firm is dissolved , (A) if constituted for a fixed term, by the expiry of that term. (B) if constituted to carry out one or more ventures, by the completion thereof. (C) by the death of a partner (D) by the adjudication of a partner as an insolvent Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | Revaluation of assets and reassessment of liabilities at the time of admission of a new partner | Journal Entry | | (A) For increase in the value of an asset | (I) Revaluation A/c Dr. To Asset A/c | | (B) For reduction in the amount of a liability | (II) Revaluation A/c Dr. To Liability A/c | | (C) For reduction in the value of an asset | (III) Asset A/c Dr. To Revaluation A/c | | (D) For appreciation in the amount of a liability | (IV) Liability A/c Dr. To Revaluation A/c | Choose the correct answer from the options given below:

When drawings are made at the beginning of every month for the full year, interest on drawings is calculated for

When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Sacrificing ratio | (I) Dissolution of Partnership | | (B) Gaining Ratio | (II) Admission of a New Partner | | (C) Executors Account | (III) Retirement of a Partner | | (D) Realisation Account | (IV) Death of a Partner | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A). Payment of loans due to partners | (i). Realisation A/c Dr To Bank A/c | | (B). For settlement of partners' accounts, in case their capital account shows a debit balance. | (ii). Bank A/c Dr. To loan to partners A/c | | (C). For settlement of loan by a firm to a partner: | (iii) Bank A/c Dr. To Partner's Capital A/c | | (D). For settlement of any unrecorded liability | (iv) Partner's Loan A/c Dr. To Bank A/c | Choose the correct answer from the options given below:

The profits for the five years of a firm are as follows – year 2013 Rs. 4,00,000;year 2014 Rs. 3,98,000; year 2015 Rs. 4,50,000; year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. Calculate the goodwill of the firm on the basis of a 4-year purchase of 5 years average profits:

The liability of partners is

Identify the correct statement from the given below :-

Which of the following is not a features of partnership:

Which Factor does not Affect the Value of Goodwill:

Which of the following statements truly makes the distinction between Dissolution of Partnership and Dissolution of Firm: (A) In dissolution of partnership, business is not terminated, while in dissolution of firm business is terminated. (B) The Court intervenes in dissolution of Partnership because a partnership is not dissolved by mutual agreement. A firm can not be dissolved by court order. (C) Economic relationships between partners continue in a changed form in dissolution of partnership. Economic relationships between the partners come to an end at the dissolution of the Firm. (D) Dissolution of Partnership doesn't require permanent closure of books, while in Dissolution of firm books are closed. Choose the correct answer from the options given below: