Monday, 24 August 2020

Accounting Multiple Choice Questions with answers | Download PDF for MCQs

 

MCQs BASED ON "PARTNERSHIPS BASICS FUNDAMENTALS"

1. According to……., "The relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all"—

(a) Batliboi

(b) L.H. Haney

(c) Spicer and Pegler

(d) Indian Partnership Act,1932.


2. Main characteristics of Indian Partnership Act 1932, are—

(a) More than one person

(b) To earn the profit object

(c) Relation of owner and as an agent

(d) All the above.


3. The relation of partner with the firm is—

(a) As manager

(b) As an agent and owner

(c) As a servant

(d) As a monopolist.


4. In the absence of Partnership Deed, the interest is allowed on the loan given by the partners to the firm—

(a) 9% per annum

(b) 8% per annum

(c) 6% per annum

(d) 5% per annum


5. In the absence of Partnership Deed, the interest is allowed on the capital of the partner—

(a) No interest is allowed

(b) @ 9% per annum

(c) @ 5% per annum

(d) @ 6% per annum.


6. In Profit and Loss Appropriation Account-

(a) Recording of transactions related to partnership firm

(b) Recording of transactions related to partners only

(c) Recording of Salary and Commission only given to the partners

(d) Recording of only the interest on loan of the partners.


7. According to Profit and Loss Account, the net profit for the year is ₹29,977. The total interest on the Partner's Capital is ₹3,250 and interest on the drawings of partners is ₹900. The net profit according to Profit and Loss Appropriation Account will be—

(a) ₹2,582

(b) ₹32,327

(c) ₹27,627

(d) ₹29,077.


8. According to Profit and Loss Account, the net profit for the year is ₹25,000. Interest on the loan of a partner is ₹8000 and the Commission of the another partner is ₹1,000. The interest on the drawings of partners is ₹5000. The net profit according

32

to Profit and Loss Appropriation Account will he-

(a) 25,700

(b) 23,700

(c) 26,300

(d) None of the above.


9. To keep the accounts of partners on fluctuating Capital Method the accounts opened in the firm’s, books are:

(a) Partner's Capital Accounts

(b) Only Partner's Current Accounts

(c) Partners Drawings Accounts and Current Accounts

(d) Partner's Capital Accounts and Partner's Current Account.


10. To keep the accounts of partners on fixed capital method the accounts opened in the firm's books are—

(a) Partner's Capital Accounts

(b) Partner's Current Accounts Only

(c) Partner's Capital Accounts and Drawings Account

(d) Partner' Capital Accounts and Current Accounts.


11. If date of drawings of the partner's is not given in the question, then interest is charged for-

(a) 3 Months

(b) 6 Months

(c) 9 Months

(d) 12 Months.


12. X is a partner in a firm. He withdraws ₹200 per month as drawings from the firm on the 1st day of each month. The rate of interest on drawings is @ 5% per annum and books are closed on 31st December. In this case interest on drawings will be—

(a) ₹ 60

(b) ₹ 65

(c) ₹ 120

(d) ₹ 30


13. If in the above question no. 12, drawings are made at the end of each month, the amount of interest on drawings will be—

(a) ₹ 55

(b) ₹ 60

(c) ₹ 30

(d) ₹ 120


14. In the above question no. 12, if drawings are made in the middle of each month, the amount interest on drawings will be—

(a) ₹ 120

(b) ₹ 55

(c) ₹ 60

(d) ₹ 65


15. Balance of Ram's Capital is ₹ 80,000 in the beginning of the year. He withdraws ₹ 20,000 from the firm in the middle of the year. He is entitled to get the interest on capital @ 10% per annum. In this case interest on his capital will be—

(a) ₹ 8,000

(b) ₹ 4,000

(c) ₹ 7,000

(d) ₹ 6,000


16. B drew ₹ 6,000 at the end of each month. The deed provides interest on drawings @ 10% p.a. What will be the amount of interest on drawings?

(a) ₹ 3,300

(b) ₹ 3,000

(c) ₹ 3,600

(d) ₹ 4,200


17. Below are given some characteristics of partnership, state which of them is correct :-

(a) At least three persons are necessary for forming a partnership

(b) Partnership arises from status

(c) The Business of the firm can be conducted by all the partners or by an one of the partner on behalf of all

(d) The liability of the partners is limited.


18. In Profit and Loss Appropriation Account are recorded—

(a) Interest on Partner's Capital

(b) Interest on Partner's Drawings

(c) Salary and Commission to Partners

(d) All of the above.


19. According to Profit and Loss Account, the net profit for the year is ₹ 30,000. The total interest on the Partner's Capital is ₹ 2,000 and the salary of a partner is ₹ 6,000. Total interest on partner's drawings is ₹ 1,200. The net profit according to Profit and Loss Appropriation Account will be:

(a) ₹ 23,200

(b) ₹ 24,800

(c) ₹ 36,800

(d) ₹ 32,800


20. According to Profit and Loss Account, the net profit for the year is ₹ 4,000. Total interest on partner's capital is ₹ 3,600 and interest on a partner's loan is ₹ 2,000. Total interest on partner's drawings is ₹ 300, the result of the Profit and Loss Appropriation Account will be :

(a) ₹ 5,300 Profit

(b) ₹ 2,700 Profit

(c) ₹ 1,300 Loss

(d) ₹ 21,000 Profit.


21. In the absence of partnership deed interest @ 6% p.a. is provided—

(a) On partner's initial capital

(b) On partner's opening balances of current accounts

(c) On amounts paid by partners as loan to the firm

(d) On closing balances of partner's capital accounts.


22. In case of fixed capital the salary payable to the partner will be credited to :

(a) Partner's Capital A/c’s (b) Partner's Current A/c’s

(c) Salary A/c’s (d) Profit & Loss A/c.


23. A is a partner in a firm. He withdraws ₹ 1,000 per month as drawings from the firm on the first day of each month. The rate of interest on drawings is @ 6% per annum and books are closed on 31st December each year. In this case interest on drawings will be :

(a) ₹ 720

(b) ₹ 360

(c) ₹ 390

(d) ₹ 540


24. If in the above question no. 23 drawings are made at the end of each month, the amount of interest on drawings will be :

(a) ₹ 360

(b) ₹ 330

(c) ₹ 720

(d) ₹ 540


25. In the above question no. 23 if drawings are made in the middle of each month, the amount of interest on drawings will be :

(a) ₹ 360

(b) ₹ 720

(c) ₹ 540

(d) ₹ 330


26. The Partnership Deed provided that interest on partner's drawings will be charged @ 9% annum. During the year ended Dec., 2019 a partner withdraws ₹ 5,000 in the beginning of each quarter. In this case the amount of interest on partner's drawings will be :

(a) ₹ 1,800

(b) ₹ 900

(c) ₹ 1,350

(d) ₹ 1,125


27. Balance of Shyam's Capital is ₹ 1,20,000 in the beginning of the year. He withdraws ₹ 40,000 from the firm in the middle of the year. He is entitled to get the interest on capital @ 9% per annum. In this case interest on his capital will be :

(a) ₹ 7,200

(b) ₹ 9,000

(c) ₹ 5,400

(d) ₹ 10,800


28. The amount of Joint Life Policy Premium may be treated as :

(a) Business Expenditure

(b) Investment

(c) Surrender value of policy is to be treated as an Asset

(d) All of the above.


29. The amount of repair on firm's building will be debited to :

(a) In Building Account

(b) In Purchase Account

(c) In Repair Account

(d) Not in any Account.


30. In the absence of Partnership Deed, the interest is allowed on the loan given by partners to the firm-

(a) 9% p. a.

(b) 8 % p.a.

(c) 6% p.a.

(d) 5 % p.a.


31. According to Profit and Loss A/c, the net profit for the year is ₹ 29,977. The total interest on the partners' capitals is ₹ 3,250 and the interest on the drawing of the partner is ₹ 900. The net profit according to Profit and Loss Appropriation A/c will be :

(a) ₹ 2,582

(b) ₹ 32,327

(c) ₹ 27,627

(d) ₹ 29,077


32. According to Profit & Loss A/c, The net profit for the year is ₹ 25,000. Interest on the loan of a partner is ₹ 800 and commission of the other partner is ₹1,000. The interest on the drawings of partners is ₹ 500. The net profit according to Profit & Loss Appropriation A/c will be :

(a) ₹ 25,700

(b) ₹ 23,700

(c) ₹ 26,300

(d) None of the above.


33. X is a partner in a firm. He withdraws ₹ 200 per month as drawings from the firm on the 1st date of each month. The rate of interest on drawings is @ 10% p.a. and the books are closed on 31st March. In this case interest on drawings will be :

(a) ₹ 120

(b) ₹ 130

(c) ₹ 240

(d) ₹ 60


34. In the above question no. 4, drawings are made at the end of each month, the amount of interest on drawings will be :

(a) ₹ 110

(b) ₹ 120

(c) ₹ 60

(d) ₹ 240


35. In the above questions no. 4, drawings are made in the middle of each month, the amount of interest on drawings will be :

(a) ₹ 240

(b) ₹ 110

(c) ₹ 120

(d) ₹ 130


36. Balance of Ram's Capital is ₹ 80,000 in the beginning of the year. He withdraws ₹ 20,000 from the firm in the middle of the year. He is entitled to get the interest on capital @ 10% p.a. In this case interest on his capital will be :

(a) ₹ 8,000

(b) ₹ 4,000

(c) ₹ 7,000

(d) ₹ 6,000


37. According to Profit & Loss A/c, the net profit for the year is ₹30,000. The total interest on partners' capital is ₹2000 and the salary of a partner is ₹6,000. Total interest on partners' drawings is ₹1,200.

The net profit according to Profit & Loss Appropriation A/c will be—

(a) ₹ 23,200

(b) ₹ 24,800

(c) ₹ 36,800

(d) ₹ 32,800


38. According to Profit & Loss A/c, the net for the year is ₹ 4,000. Total interest on partner’s capitals is ₹3,600 and interest on a partners Loan is ₹ 2,000. Total interest on partners drawing is ₹ 300, the result of the Profit and Loss Appropriation A/c will be :

(a) ₹ 5,300 profit

(b) ₹ 2,700 profit

(c) ₹ 1,300 loss

(d) ₹ 2,100 profit.


39. The partnership deed provided that interest on partners' drawings will be charged @9% p.a. During the year ended March, 2018, a partner withdraws ₹5,000 in the beginning of each quarter. In this case the amount of interest on partners drawings will be—

(a) ₹ 1,800

(b) ₹ 900

(c) ₹ 1,350

(d) ₹ 1,125


40. On 1st January, 2018 Ram's Capital was ₹ 1,00,000. On 1st July he brought ₹ 50,000 as his additional capital. If he is allowed interest on his capital @ 6% p.a., what will be the interest on his capital at the end of the year —

(a) ₹ 6,000

(b) ₹ 9,000

(c) ₹ 7,500

(d) ₹ 12,000


41. Ram and Rahim are partners in a the balance on April 1, 2018 as ₹ 2,00,000 and₹ 1,50,000 respectively. On September 1, 2018 they introduced further capitals of ₹ 50,000 and ₹ 1,00,000 respectively. Rahim withdrew ₹ 40,000 from his capital on March 1, 2019. Interest is allowed @ 8% p. a. The interest on Rahim's Capital will be—

(a) ₹ 16,400 (b) ₹ 17,000

(c) ₹ 19,000 (d) ₹ 18,500


Instruction: In the following questions there is a paragraph followed by five questions. You have to mark correct alternative from the option given in those questions:

42. Ram and Shyam are partners in a firm. Saurav is to get a commission of 10% of net profit before charging commission while Gaurav is to get a commission of 5% of net profit after charging all commission. Net profit before charging any commission was ₹ 1,10,000 and both are taking profit in ratio 2 : 3.

(1). Commission payable to Shyam will be :

(a) ₹ 12,000

(b) ₹ 10,000

(c) ₹ 5,238

(d) ₹ 4,714.

(2). Share of Ram in profit :

(a) ₹ 5,238

(b) ₹ 37,505

(c) ₹ 1,10,000

(d) ₹ 5,238.

(3). Commission payable to Ram will be :

(a) ₹ 6,000

(b) ₹ 11,000

(c) ₹ 10,000

(d) ₹ 4,500.

(4). Share of Shyam in profit :

(a) ₹ 5,238

(b) ₹ 1 ,10 ,000

(c) ₹ 37,505

(d) ₹ 56,257

(5). Commission payable to Ram and Shyam :

(a) ₹ 22,000

(b) ₹ 16,238

(c) ₹ 12,000

(d) ₹ 20,000


43. A partnership firm can have not more than………….partners.

(a) 100

(b) 200

(c) 50

(d) 10


44. Banking partnership firm can have not more than ………… partners.

(a) 5

(b) 10

(c) 20

(d) 2


45. In the absence of any provisions in the partnership agreement, partners loan to the firm can carry interest at …………..% p.a.

(a) 4%

(b) 6%

(c) 8%

(d) 10%


46. The value of goodwill of the business will be the highest if the majority of the customers of the firm are of the nature of ……….

(a) cats

(b) dogs

(c) horses

(d) bull


47. A and B share in the ratio of 3 : 2. C Join with them with for 15 th share from A. Then the new profit sharing ratio will be………..

(a) 1:1:2

(b) 2:2:1

(c) 1:1:1

(d) 1:2:1


48. Old profit sharing ratio minus the new profit sharing ratio is equal to………..

(a) gaining ratio

(b) sacrificing ratio

(c) Equal ratio

(d) none of the above


49. Partners salary is debited to………..Account.

(a) Profit and loss A/c

(b) Profit and loss appropriation A/c

(c) Revaluation A/c

(d) None of the above


50. A and B are sharing profit in the ratio of 3 : 2. C is admitted as a new partner with 15 th share. Then the ratio of sacrifice will be………..

(a) 1:1

(b) 3:2

(c) 2:3

(d) 1:3


51. Partnership arises from a contract which may be a……….contract.

(a) oral

(b) written

(c) both (a) and (b)

(d) only (a)


52. A partner and his business exist ………..

(a) independently

(b) together

(c) equally

(d) all of the above


Answers to Basic fundamentals

1. D

2. D

3. B

4. C

5. A

6. B

7. C

8. B

9. A

10. D

11. B

12. B

13. A

14. C

15. C

16. A

17. C

18. D

19. A

20. C

21. C

22. B

23. C

24. B

25. A

26. D

27. B

28. D

29. C

30. C

31. C

32. B

33. B

34. A

35. C

36. C

37. A

38. C

39. B

40. C

41. A

42. (1) c

(2) b

(3) b

(4) d

(5) b

43. c

44. b

45. b

46. a

47. b

48. b

49. b

50. b

51. c

52. a

No comments:

Post a comment

All about journals and research paper | What is impact factor? | how the impact factor is calculated? | who calculate the impact factor? Scopous journals

Figure 1: One of my Research Papers When the Scholars are in their Master or PhD or in any research field. They are supposed to writ...