Q.1
To which account salary and commission to partners and interest on capital be debited?
  • Current Account
  • Capital Account
  • Profit and Loss Account
  • Profit and Loss Appropriation Account
Q.2
In the absence of Partnership Deed, the interest is allowed on partner’s capital:
  • @ 5% p.a.
  • @ 6% p.a
  • @ 12% p.a.
  • No interest is allowed
Q.3
Current Account of a partner
  • Will always have a credit balance.
  • Will always have a debit balance
  • May have a debit balance or a credit balance.
  • May have a debit balance or a credit balance.
Q.4
Which one of the following is NOT an essential feature of a partnership?
  • There must be an agreement
  • There must be a business
  • The business must be carried on for profits
  • The business must be carried on by all the partners
Q.5
In the absence of an agreement to the contrary, partners share profits and losses in the
  • ratio of their capitals in the beginning of the year.
  • ratio of their capitals at the end of the year.
  • ratio of average capital
  • equal ratio
Q.6
The interest on capital accounts of partners under fluctuating capital account method is credited to :
  • Interest Account
  • Profit and Loss Account
  • Partners' Capital Account
  • Partners' Current Account
Q.7
Partners current accounts are opened when their capital accounts are:
  • Fixed and Fluctuating both
  • Fixed
  • None of these
  • Fluctuating
Q.8
Which of the following transactions is always recorded in the partner's capital account irrespective of whether the partners capitals are fixed or fluctuating?Additional capital introduced by a partnerPermanent withdrawal of capital by a partnerboth (b) and (c)
  • Additional capital introduced by a partner
  • Permanent withdrawal of capital by a partner
  • both (a) and (b)
  • Interest on partner's loan
Q.9
In the absence of partnership deed, interest on loan of a partner is allowed :
  • @8% per annum
  • @6% per annum
  • no interest is allowed
  • @12% per annum
Q.10
If equal amount is withdrawn by partner in the beginning of each month during a month of 6 months interest on the total amount will be charged for......month
  • 3.5
  • 2.5
  • 3
  • 6
Q.11
Which one of the following items is recorded in the Profit and Loss appropriation account
  • Interest on Loan
  • Partner Salary
  • Rent paid to Partner’s
  • Managers Commission
Q.12
By virtue of Sectionof the Companies Act,the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than ___________.
  • 50
  • 100
  • 20
  • 10
0 h : 0 m : 1 s