Bihar Board 12th Accountancy Objective Answers Chapter 2 Accounting for Partnership Firms : Basic Concepts

Bihar Board 12th Accountancy Objective Questions and Answers

Bihar Board 12th Accountancy Objective Answers Chapter 2 Accounting for Partnership Firms : Basic Concepts

Question 1.
In the absence of partnershipdeed, the partner will be allowed interest on the amount advanced to the firm:
(A) @5%
(B) @6%
(C) @ 9%
(D) @8%
Answer:
(B) @6%

Question 2.
Which one is not the feature of partnership ?
(A) Agreement
(B) Sharing of Profit
(C) Limited Liability
(D) Two or more than two persons
Answer:
(C) Limited Liability

Question 3.
In the absence of partnership deed, interest on capital will be given to the partners at:
(B) 6% p.a.
(D) None of these
(B) Real Account
(D) None of these
Answer:
(D) None of these

Question 4.
The interest on partners’ Capital Accounts under fluctuating method is to be credited to:
(A) Profit & Loss A/c
(B) Interest A/c
(C) Partner’s Capital A/c
(D) None of these
Answer:
(A) Profit & Loss A/c

Question 5.
The Interest on partners’ Capftal Accounts under fluctuating method is to be credited to:
(A) Profit & Loss A/c
(B) Interest A/c
(C) Partner’s Capital A/c
(D) None of these
Answer:
(C) Partner’s Capital A/c

Question 6.
The Current Account of the partners will always have:
(A) Debit balance
(B) Credit balance
(C) Either of the two
(D) None of these
Answer:
(C) Either of the two

Question 7.
Interest on partner’s capital is calculated on:
(A) Opening Capital
(B) Closing Capital
(C) Average Capital
(D) None of these
Answer:
(A) Opening Capital

Question 8.
Preparation of partnership agreement in writing is :
(A) Compulsory
(B) Voluntary
(C) Partly Compulsory
(D) None of these
Answer:
(B) Voluntary

Question 9.
Interest payable on the capital of the partners is recorded in:
(A) Profit & Loss A/c
(B) Realisation A/c
(C) Profit & Loss Appropriation A/c
(D) None of these
Answer:
(C) Profit & Loss Appropriation A/c

Question 10.
For the firm, interest on partner’s drawings is a/an :
(A) Expense
(B) Income
(C) Loss
(D) Gain
Answer:
(B) Income

Question 11.
In the absence ofany agreement, the profits or losses of the firm are shared:
(A) Equally
(B) In Capital Ratio
(C) In Different Proportions
(D) None o these
Answer:
(A) Equally

Question 12.
In partnership firm profits and losses are shared :
(A) Equally
(B) In the Ratio of Capitals
(C) As per Agreement
(D) None of these
Answer:
(C) As per Agreement

Question 13.
Profit & Loss Appropriation Account is prepared to:
(A) Create Reserve Fund
(B) Find out Net Profit
(C) Find out Divisible Profit
(D) None of these
Answer:
(C) Find out Divisible Profit

Question 14.
In an Ordinary Partnership, maximum number of partners can be:
(A) 50
(B) 10
(C) 15
(D)20
Answer:
(A) 50

Question 15.
Which of the following is an appropriation of profit ?
(A) Interest on Loan
(B) Interest on Capital
(C) Salary
(D) Rent
Answer:
(B) Interest on Capital

Question 16.
When time of withdrawals are not mentioned, interest on drawings is charged :
(A) for 616 months
(B) for 8 months
(C) for 516 months
(D) for 12 months
Answer:
(B) for 8 months

Question 17.
When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings:
(A) for 616 months
(B) for 6 months
(C) for 516 months
(D) for i month
Answer:
(C) for 516 months

Question 18.
In the absence of partnership deed, partners are not entitled to receive:
(A) Salaries
(B) Commission
(C) Interest on Capital
(D) All of these
Answer:
(D) All of these

Question 19.
If a fixed amount is withdrawn on the first day of every quarter, the interest on total drawing will be calculated :
(A) for 6 months
(B) for 6.5 months
(C) for 5.5 months
(D) for 7.5 months
Answer:
(D) for 7.5 months

Question 20.
Which accounts are apened when the capitals are fixed ?
(A) Only Capital Accounts
(B) Only Current Accounts
(C) Liability Accounts
(D) Capital and Current Accounts
Answer:
(D) Capital and Current Accounts

Question 21.
Features of a partnership firm are:
(A) Two or more persons
(B) Sharing profit and losses in the agreed ratio
(C) Business carried on by all or any of them acting for all
(D) All of the above
Answer:
(D) All of the above

Question 22.
What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month ?
(A) 7 months
(B) 6 months
(C) 5 months
(D) 6.5 months
Answer:
(D) 6.5 months

Question 23.
A draws ₹ 1,000 per month on the last day of every month. If the rate of interest is 5% p.a., then the total interest on drawings will be :
(A) ₹ 325
(B) ₹ 275
(C) ₹ 300
(D) ₹ 350
Answer:
(B) ₹ 275

Question 24.
In the absence of an agreement, pamers are entitled to:
(A) Salary
(B) Profit share in capital ratio
(C) Interest on loan and advances
(D) Commission
Answer:
(C) Interest on loan and advances

Question 25.
Fluctuating capital account is credited with :
(A) Interest on capital
(B) Profit of the year
(C) Remuneration of partners
(D) All of these
Answer:
(D) All of these

Question 26.
Interest on Partner’s capital is :
(A) An expenditure
(B) An appropriation
(C) A gain
(D) None of these
Answer:
(B) An appropriation

Question 27.
Calculate interest on drawings @ 12% p.a. for Gambhir if he withdrew 7 2,000 once at the beginning of each month:
(A) 7 1,560
(B) 7 1,500
(C) 7 1,200
(D) 7 1,000
Answer:
(A) 7 1,560

Question 28.
Interest on drawings of the Partners is a :
(A) Loss to business
(B) Profit to business
(C) Profit to partners
(D) Loss to Bank
Answer:
(B) Profit to business

Question 29.
The relation of partners with the firm is that of:
(A) An owner
(B) An Agent
(C) An owner and an agent
(D) Manager
Answer:
(C) An owner and an agent

Question 30.
Liability of Partners is :
(A) Limited
(B) Unlimited
(C) Determined by partnerships Account
(D) None of these
Answer:
(B) Unlimited

Question 31.
Partners’ current accounts are opened when their capital is:
(A) Fixed
(B) Fluctuating
(C) Both (A) and (B)
(D) None of these
Answer:
(A) Fixed

Question 32.
The interest on partner’s drawings is debited to:
(A) Partner’s Capital A/c
(B) Profit and Loss A/c
(C) Drawings A/c
(D) P. & L. App. A/c
Answer:
(A) Partner’s Capital A/c

Question 33.
Interest on advance given to the firm is :
(A) Ah appropriation
(B) A gain
(C) A charge
(D) None of these
Answer:
(C) A charge

Question 34.
Interest on loan is :
(A) Operating Expense
(B) Direct Expense
(C) Indirect Expense
(D) All of these
Answer:
(C) Indirect Expense

Question 35.
Partner’s salary is debited to :
(A) Trading Account
(B) Profit and Loss Account
(C) Profit & Loss Appropriation Account
(D) None of these
Answer:
(C) Profit & Loss Appropriation Account

Question 36.
Partnership may be :
(A) Limited
(B) Unlimited
(C) At will
(D) All of these
Answer:
(D) All of these

Question 37.
Partnership Deed is also called :
(A) Prospectus
(B) Articles of Association
(C) Principles of Partnership
(D) Articles of Partnership
Answer:
(D) Articles of Partnership

Question 38.
In which year did the Partnership Act passed ?
(A) Year 1932
(B) Year 1956
(C) Year 1947
(D) Year 1952
Answer:
(A) Year 1932

Question 39.
Calculate interest on drawing @12% p.a. for Abhishek if he withdraw ₹ 2,000 once in month :
(A) ₹ 1,440
(B) ₹ 1,200
(C) ₹ 1,320
(D) ₹ 1,500
Answer:
(A) ₹ 1,440

Question 40.
The interest on capital accounts of partners under fixed capital method is to be credited to:
(A) Partner’s Capital A/c
(B) Profit & Loss A/c
(C) Interest A/c
(D) Partner’s Current A/c
Answer:
(D) Partner’s Current A/c