MCQ Class 12 Accountancy Chapter 2 Accounting for Partnership Firms – Basic Concepts

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MCQ Questions for Class 12 Accountancy Chapter 2 Accounting For Partnership Firms – Basic Concepts Class 12 Accountancy with Answers

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Question: Under Cash Flow from Operating Activities incorporates are
(a) All of the options
(b) Cash received from customers
(c) Paid to suppliers
(d) Paid for operating costs

Question: Cash Credit is concerned with __
(a) Financing Activities
(b) Investing Activities
(c) Operating Activities
(d) Cash and Cash Equivalents

Question: Principal revenue generating activities of an enterprise are called as
(a) Operating activities
(b) Financing activities
(c) Investing activities
(d) All of the options

Question. Which of the following is an example of not-profit-organisation:
(a) Public hospitals 
(b) Corporations 
(c) Audit firm 
(d) Insurance companies

Question. Subscription received in cash during the year amounted to Rs.5,00,000; subscription outstanding at the end of previous year was Rs.20,000 and outstanding at the end of current year was Rs.25,000. Subscription received in advance for next year was Rs. 8,000 and received in advance during previous year was Rs.7,000. The amount credited to Income & Expenditure Account will be :
(a) Rs.5,04,000
(b) Rs.5,06,000
(c) Rs.4,96,000
(d) Rs.4,94,000

Question. If a General Donation of huge amount is received by a school, that donation is treated as :
(a) Revenue Receipt (Income)
(b) Capital Receipt (Liability)
(c) Assets
(d) Earned Income

Question. A non-profit organization received ₹10,000 as the entrance fee of a new member. If 20% of the fee has to be capitalised, what is the amount of fee needs to be shown in the income and expenditure account?
(a) ₹9000
(b) ₹8000
(c) ₹2000
(d) ₹5000

Question. Identify the best definition of planning.
(a) A process in which plans are formulated, carried out and controlled
(b) The core activity of planners and planning departments
(c) Devising ways of achieving objectives
(d) Setting an organization’s objectives and means of reaching them.

Question: Ostensible partners are those who
(a) do not contribute any capital but get some share of profit for lending their name to the business
(b) contribute very less capital but get equal profit
(c) do not contribute any capital and without having any interest in the business, lend their name to the business
(d) contribute maximum capital of the business

Question: X, 7and Z are equal partners with fixed capitals of ?5,00,000, ?3,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(a) Dr. X and Cr. Z by ₹ 2,000
(b) Cr. X and Dr. Z by ₹ 2,000
(c) Dr. X and Cr. Y by ₹ 2,000
(d) Cr. X and Dr. Y by ₹ 2,000

Question: P, Q, and R sharing profits in the ratio of 2 : 1 : 1 have fixed capitals of f4,00,000, ?3,00,000 and ?2,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 8% p.a. In the adjusting entry :
(a) Cr. P ₹ 1,000; Dr. Q ₹ 1,500 and Cr. R ₹ 500
(b) Dr. P ₹ 500; Cr. Q ₹ 1,500 and Dr. R ₹ 1,000
(c) Cr. P ₹ 500; Dr. Q ₹ 1,500 and Cr. R ₹ 1,000
(d) Dr. P ₹ 1,000; Cr. Q ₹ 1,500 and Dr. R ₹ 500

Question: Anu and Tanu are equal partners with fixed capitals of ?2,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st – March, 2019 it was discovered that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting entry :
(a) Anu will be credited by ₹ 16,000 and Tanu will be credited by ₹ 8,000
(b) Anu will be debited by ₹ 16,000 and Tanu will be debited by ₹ 8,000
(c) Anu will be credited by ₹ 4,000 and Tanu will be debited by ₹ 4,000
(d) Anu will be debited by ₹ 4,000 and Tanu will be credited by ₹ 4,000

Question:  If equal amount is withdrawn by a partner in the end of each month during a period of 6 months, interest on the total amount will be charged for ………………… months
(a) 2.5
(b) 3
(c) 3.5
(d) 6

Question: Z is a partner in a firm. He withdrew regularly ?2,000 every month for the six months ending 31st March, 201Question: If interest on drawings is charged @ 8% p.a. the interest charged will be :
(a) ₹ 480
(b) ₹ 280
(c) ₹ 200
(d) ₹ 240

Question:  Asha and Vipasha are equal partners with fixed capitals of ?5,00,000 and ?2,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(a) Asha will be debited by ?1,500 and Vipasha will be credited by ?1,500;
(b) Asha will be credited by ?1,500 and Vipasha will be debited by ?1,500;
(c) Asha will be debited by ?5,000 and Vipasha will be debited by ?2,000;
(d) Asha will be credited by ?5,000 and Vipasha will be credited by ?2,000;

Question: P and Q sharing profits in the ratio of 2 : 1 have fixed capitals of ?90,000 and f60,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 8% p.a. In the adjusting entry :
(a) P will be credited by ?1,800 and Q will be credited by ?1,200;
(b) P will be debited by ?200 and Q will be credited by ?200;
(c) P will be credited by ?200 and Q will be debited by ?200;
(d) P will be debited by ?1,800 and Q will be debited by ?1,200;

Question: A and B sharing profits in the ratio of 7 : 3 have fixed capitals of ?2,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 12% instead of 10% p.a. In the adjusting entry :
(a) A will be debited by ₹ 4,000 and B will be debited by ₹ 2,000;
(b) A will be credited by ₹ 4,000 and B will be credited by ₹ 2,000;
(c) A will be debited by ₹ 200 and B will be credited by ₹ 200;
(d) A will be credited by ₹ 200 and B will be debited by ₹ 200;

Question: X and Y are partners. X draws a fixed amount at the beginning of every month. Interest on drawings is charged @8% p.a. At the end of the year interest on X’s drawings amounts to *₹2,600. Drawings of A’were :
(a) ₹8,000 p.m.
(b) ₹ 7,000 p.m.
(c) ₹6,000 p.m.
(d) ₹5,000 p.m.

Question: A and B are partners. B draws a fixed amount at the end of every month. Interest on drawings is charged @15% p.a. At the end of the year interest on B’s drawings amounts to ?8,250. Drawings of B were :
(a) ₹ 12,000 p.m.
(b) ₹ 10,000 p.m.
(c) ₹ 9,000 p.m.
(d) ₹ 8,000 p.m.

Question: A, B and C sharing profits in the ratio of 2 : 2 : 1 have fixed capitals of ?3,00,000, ?2,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 12% instead of 10% p.a. In the adjusting entry :
(a) Cr. A ₹ 1,200; Dr. B ?800 and Dr. C ₹ 400
(b) Dr. A ₹ 1,200; Cr. B ?800 and Cr. C ₹ 400
(c) Cr. A ₹ 800; Cr. B ?400 and Dr. C ₹ 1,200
(d) Dr. A ₹ 800; Dr. B ?400 and Cr. C ₹ 1,200

Question: X, Y, and Z are partners in the ratio of 6 : 4 : 1. In the firm, A has guaranteed Z for his minimum profit of ?15,000. Firm’s profit was ?99,000. In the firm profit As share will be :
(a) ₹ 30,000
(b) ₹ 15,000
(c) ₹ 48,000
(d) ₹ 45,000

Question: X, Y, and Z are partners in the ratio of 4 : 3 : 2. Salary to X ?15,000 and to Z ?3,000 omitted and profits distributed. For rectification, now X will be credited :
(a) ₹ 15,000
(b) ₹ 1,000
(c) ₹ 12,000
(d) ₹ 7,000

Question:  Sony and Romy are equal partners with fixed capitals of ?4,00,000 and ?3,00,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals was provided @ 8% instead of 10% p.a. In the adjusting entry :
(a) Sony will be credited by ?8,000 and Romy will be credited by ?6,000.
(b) Sony will be debited by ?8,000 and Romy will be debited by ?6,000.
(c) Sony will be debited by ?1,000 and Romy will be credited by ?1,000.
(d) Sony will be credited by ?1,000 and Romy will be debited by ?1,000.

Question: X, Y and Z are equal partners with fixed capitals of ?2,00,000, ?3,00,000 and ?4,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting entry :
(a) Dr. X and Cr. Y by ?8,000
(b) Cr. X and Dr. Z by ?8,000
(c) Dr. X and Cr. Z by ?Question:000
(d) Cr. X and Dr. Y by ?8,000

Question: P, Q and R arc equal partners with fixed capitals of ?5,00,000, ?4,00,000 and ?3,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discoveredthat interest on capitals was provided @ 7% instead of 9% p.a. In the adjusting entry :
(a) P will be credited by ₹ 2,000 and Q will be debited by ₹ 2,000.
(b) P will be debited by ₹ 2,000 and Q will be credited by ₹ 2,000.
(c) P will be debited by ₹ 2,000 and R will be credited by ₹ 2,000.
(d) P will be credited by ₹ 2,000 and R will be debited by ₹ 2,000.

Question: When a partner is given guarantee by other partners, loss on such guarantee will be borne by :
(a) Partnership firm
(b) All the other partners
(c) Partners who give the guarantee
(d) Partner with highest profit sharing ratio.

Question: Guarantee given to partner ‘A’ by the other partners ‘B & C’ means :
(a) In case of loss, ‘A’ will not contribute towards that loss.
(b) In case of insufficient profits, ‘A’ will receive only the minimum guarantee amount.
(c) In case of loss or insufficient profits, ‘A’ will withdraw the minimum guarantee amount.
(d) All of the above.

Question: P, Q and R are partners in a firm in 3 : 2 : 1. R is guaranteed that he will get minimum of ?20,000 as his share of profit every year. Firm’s profit was ?90,000. Partners will get:
(a) P ₹ 40,000; Q ?30,000; R ₹ 20,000;
(b) P ₹ 42,500; Q ?27,500; R ₹ 20,000;
(c) P ₹ 45,000; Q ?30,000; R ₹ 15,000;
(d) P ₹ 42,000; Q ?28,000; R ₹ 20,000;

Question: A, Y and Z are partners in the ratio of 5 : 4 : Question: A has given to Za guarantee of minimum ?10,000 profit. For the year ending 31st March 2019, firm’s profit is ?28,800. Js share in profit will be :
(a) ₹ 9,200
(b) ₹ 9,600
(c) ₹ 7,200
(d) ₹ 12,000

Question: E, Fand G share profits in the ratio of 4 : 3 : 2. G is given a guarantee that his share of profits will not be less than ?75,000. Deficiency if any, would be borne by E and F equally Firm’s profit was ?2,70,000. As share of profit will be :
(a) ₹ 90,000
(b) ₹ 82,500
(c) ₹ 97,500
(d) ₹ 75,000

Question: P, Q, and R are partners in 3 : 2 : 1. R is guaranteed that his share of profit will not be less than ?70,000. Any deficiency will be borne by P and Q in the ratio of 2 : 1. Firm’s profit was ?2,40,000. Share of P will be :
(a) ₹ 1,00,000
(b) ₹ 1,10,000
(c) ₹ 1,20,000
(d) ₹ 1,02,000

Question: A Y and Z are partners in 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than ?80,000. Any deficiency will be borne by A and Y in 3 : 2. Firm’s profit was ?5,60,000. How much deficiency will be borne by Y :
(a) ₹ 2,14,400
(b) ₹ 14,400
(c) ₹ 2,09,600
(d) ₹ 9,600

Question: P and Q are partners sharing profits in the ratio of 1 : 2. R was manager who received the salary of ?10,000 p.m. in addition to commission of 10% on net profits after charging such commission. Total remuneration to R amounted to ?1,80,000. Profit for the year before charging salary and commission was :
(a) ₹ 7,20,000
(b) ₹ 6,00,000
(c) ₹ 7,80,000
(d) ₹ 6,60,000

Question: A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of ?3,00,000 and ?2,00,000 respectively. They are allowed 6% p.a. interest on their capitals and are charged 10% p.a. interest on their drawings. Their drawings during the year were A ?60,000 and B ?40,000. B’s share of net profit as per profit and loss appropriation account amounted to ?40,000. Net Profit of the firm before any appropriations was :
(a) ₹ 1,22,000
(b) ₹ 1,13,000
(c) ₹ 1,17,000
(d) ₹ 1,45,000

Question: A and B are partners in a firm. They are entitled to interest on their capitals but the net profit was not sufficient for this interest, then the net profit will be distributed among partners in : (CPT, Dec. 2012)
(a) Agreed Ratio
(b) Profit Sharing Ratio
(c) Capital Ratio
(d) Equally

Question: A and B are partners having fixed capitals of ₹2,00,000 and ₹1,00,000 respectively. At the end of the year 2019-20, their current accounts showed balances: A ₹1,00,000 (Cr.) B ₹5,000 (Dr.). Where will B’s current account balance be shown in the books of A and B?
(a) On the liabilities side of the Balance Sheet.
(b) On the assets side of the Balance Sheet.
(c) On the debit side of Profit and Loss Appropriation A/c.
(d) On the credit side of Profit and Loss Appropriation A/c.

Question:  A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is ₹2,50,000. The total interest on partner’s drawing is ₹4,000. A’s salary is ₹4,000 per quarter and B’s salary is ₹40,000 per annum. The net profit/loss earned during this year was:
(a) ₹3,02,000
(b) ₹1,98,000
(c) ₹3,06,000
(d) ₹2,50,000

Question:  Ram and Shyam are partners sharing profits/losses equally. Ram withdrew ₹1,000 p.m. regularly on the first day of every month during the year 2019-20 for personal expenses. If interest on drawings is charged @ 5% p.a. What will be the interest on the drawings of Ram?
(a) ₹50
(b) ₹27
(c) ₹600
(d) ₹325

Question:  One of the partners in a partnership firm has withdrawn `9,000 at the end of each quarter, throughout the year. The interest on drawings at the rate of 6% per annum will be:
(a) ₹540
(b) ₹2,160
(c) ₹810
(d) None of these

Question: Verma and Kaul are partners in a firm. The partnership agreement provides that interest on drawings should be charged @ 6% p.a. Kaul withdrew ₹3,000 per quarter, starting from April 01, 2019. What will be the interest on Kaul’s drawings during the year 2019-20?
(a) ₹180
(b) ₹90
(c) ₹270
(d) ₹450

Question:  A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. During the year the firm incurred a loss of ₹84,000. The amount of loss transferred to the capital accounts of A, B and C will be:
(a) Loss debited to the capital accounts of A, B and C equally.
(b) Nil
(c) Loss debited to the capital accounts of A, B and C will be ₹42,000, ₹28,000 and ₹14,000 respectively.
(d) None of the above

Question: Reena and Raman are partners with capitals of ₹3,00,000 and ₹1,00,000 respectively. The profit (as per Profit and Loss Account) for the year ended March 31, 2020 was ₹1,20,000. Interest on capital is to be allowed at 6% p.a. Raman was entitled to a salary of ₹30,000 p.a. The drawings of partners were ₹30,000 and 20,000. The interest on drawings to be charged to Reena was Rs. 1,000 and to Raman, ₹500. Their share of profit after necessary appropriations are:
(a) Reena ₹50,625; Raman ₹16,875
(b) Reena ₹33,750; Raman ₹33,750
(c) Reena ₹33,000; Raman ₹33,000
(d) Reena ₹48,750; Raman ₹48,750

Question: A and B are partners sharing profits in the ratio of 3 : 2 with capitals of ₹50,000 and ₹30,000 respectively. Interest on capital is payable @ 6% p.a. B is to be allowed a salary of ₹1,250 semi-annually. During the year 2019-20, the profits prior to the calculation of interest on capital but after charging B’s salary amounted to ₹12,500. 10% of the Net Profit is to be transferred to the General Reserve. What Journal entry will be passed for transfer of profit to General Reserve?

Question:  Abha and Bharat were partners. They shared profits and losses equally. On April 1st, 2019 their capital accounts showed balances of ₹3,00,000 and ₹2,00,000 respectively. Calculate the share of divisible profit of the partners if the partnership deed provided for interest on capital @10% p.a. and the firm earned a profit of ₹50,000 for the year ended 31st March, 2020.
(a) Abha ₹30,000; Bharat ₹20,000
(b) Abha ₹25,000; Bharat ₹25,000
(c) Abha ‘Nil’; Bharat ‘Nil’
(d) None of the above

Question:  X and Y are partners sharing profits and losses in the ratio of 3 : 2 having fixed capitals of ₹1,50,000 and ₹2,00,000 respectively. The partnership deed provides for interest on capital @ 8% p.a. The Net Profit of the firm during 2019-20 was ₹21,000. In what ratio the appropriation of profit will be made?
(a) 3 : 2
(b) 1 : 1
(c) 3 : 4
(d) 4 : 3

Question:  Under which of the following situation interest on partners’ capitals shall not be provided?
(a) If the firm has incurred net loss during the year.
(b) If partners’ capitals are equal and their profit sharing ratio is also equal.
(c) Both (a) and (b)
(d) If the net profit is less than the total amount payable to partners as interest on capitals.

Question:  Anna and Bobby were partners sharing profits and losses in the ratio of 5 : 3. On 1st April, 2019 their capital accounts showed balances of ₹3,00,000 and ₹2,00,000 respectively. The partnership deed provided for interest on capital @10% p.a. and the firm earned a profit of ₹45,000 for the year ended 31st March, 2020. The interest on partners’ capitals will be:
(a) ₹30,000 and ₹20,000 respectively
(b) ₹27,000 and ₹18,000 respectively
(c) ₹22,500 and ₹22,500 respectively
(d) None of the above

Question: M and N are partners having capitals of ₹50,000 and ₹1,00,000 respectively. On 1 April 2020, P was admitted with a capital of ₹2,00,000. At the end of the year 2020, the firm earned a profit of ₹30,000. How should the profits be distributed among partners, if there is no partnership deed?
(a) Equally
(b) In the ratio of 1:2:4
(c) In the ratio of 1:2:3
(d) None of the above

Question: Aakriti and Bindu entered into partnership for making garments on April 01, 2019 without any partnership agreement. They introduced Capitals of ₹5,00,000 and ₹3,00,000 respectively. On October 01, 2019, Aakriti advanced ₹20,000 by way of loan to the firm without any agreement as to interest. Profit and Loss account for the year ended March 31 2020 showed profit of ₹43,000 before charging interest on Aakriti’s loan. Their share of profit for the year 2019-20 are:
(a) ₹21,200 each
(b) ₹21,500 each
(c) ₹26,875 and ₹16,125 respectively
(d) ₹26,500 and ₹15,900 respectively

Question: A and B are partners in a firm having capitals ₹5,00,000 and ₹10,00,000 respectively. The partnership deed provides for charging interest on drawings @ 5% p.a. A withdrew `40,000 for his personal use during the year 2019-20. B withdrew ₹2,00,000 from his capital 1.1.2020. The amount of interests that will be charged on partners’ drawings are:
(a) A ₹1,000; B ₹5,000
(b) A ₹2,000; B ₹10,000
(c) A ₹1,000; B Nil
(d) A `2,000; B Nil

Question: Himanshu withdrew ₹2,500 at the end of each month. The Partnership deed provides for charging the interest on drawings @ 12% p.a. What will be the interest on Himanshu’s drawings for the year ending 31st December, 2017?
(a) ₹300
(b) ₹137.50
(c) ₹1,650
(d) ₹1,800

Question:  Dev withdrew `10,000 on 15th day of every month. Interest on drawings was to be charged @ 12% per annum. Interest on Dev’s drawings will be:
(a) ₹14,400
(b) ₹7,200
(c) ₹1,200
(d) None of these

Question: Interest on capital will be paid to the partners if provided for in the partnership deed but only out of:
(a) Profits
(b) Reserves
(c) Accumulated Profits
(d) Goodwill

Question: A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is ₹1,00,000. C has not invested any amount as capital but he alone manages the whole business. C wants RS30,000 p.a. as salary. Firm earned a profit of ₹1,50,000. How much will be each partner’s share of profit:
(a) A ₹60,000; B ₹60,000; C ₹Nil
(b) A ₹90,000; B ₹30,000; C ₹Nil
(c) A ₹40,000; B ₹40,000 and C ₹40,000
(d) A ₹50,000; B ₹50,000 and C ₹50,000.

Question: If the Partners’ Capital Accounts are fixed ‘salary payable to partner’will be recorded :
(a) On the debit side of Partners’ Current Account
(b) On the debit side of Partners’ Capital Account
(c) On the credit side of Partners’ Current Account
(d) None of the above

Question: Where will you record interest on drawings :
(a) Debit Side of Profit & Loss Appropriation Account
(b) Credit Side of Profit & Loss Appropriation Account
(c) Credit Side of Profit & Loss Account
(d) Debit Side of Capital/Current Account only

Question: If a fixed amount is withdrawn by a partner in each quarter, interest on the total amount is charged for ……………….. months
(a) 3
(b) 6
(c) 4.5
(d) 7.5

Question: In the absence of express agreement, interest @ 6% p.a. is provided :
(a) On opening balance of partner’s capital accounts
(b) On closing balance of partner’s capital accounts
(c) )On loan given by partners to the firm
(d) On opening balance of partner’s current accounts

Question: A and B are partners. According to Profit and Loss Account, the net profit for the year is ₹2,00,000. The total interest on partner’s drawings is ₹1,000. As salary is ₹40,000 per year and B’s salary is ₹3,000 per month. The net profit as per Profit and Loss Appropriation Account will be :
(a) ₹1,23,000
(b) ₹1,25,000
(c) ₹1,56,000
(d) ₹1,58,000

Question: Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta was manager who received the salary of ₹4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profit for the year is ₹6,78,000 before charging salary. Find the total remuneration of Meeta.
(a) ₹78,000
(b) ₹88,000
(c) ₹87,000
(d) ₹76,000

Question: Balance of partner’s current accounts are :
(a) Debit balance
(b) Credit balances
(c) Debit or Credit balances
(d) Neither Debit nor credit balances

Question: It the Partner’s Capital Accounts are fixed, interest on capital will be recorded:
(a) On the credit side of Current Account
(b) On the credit side of Capital Account
(c) On the debit side of Current Account
(d) On the debit side of Capital Account

Question: When partners’ capital accounts are floating, which one of the following items will be written on the credit side of the partners’ capital accounts? :
(a) Interest on drawings
(b) Loan advanced by partner to the firm
(c) Partner’s share in the firm’s loss
(d) Salary to the active partners

Question: X and Y are partners in the ratio of 3 : 2. Their capitals are ₹2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ₹60,000 for the year ended 31st March 2019. Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) V ₹8.000; Y ₹4,000
(c) X ₹14,400; Y ₹9,600
(d) No Interest will be allowed

Question: A and B contribute ₹1,00,000 and ₹60,000 respectively in a partnership firm by way of capital on which they agree to allow interest @ 8% p.a. Their profit or loss sharing ratio is 3 : 2. The profit at the end of the year was ₹2,800 before allowing interest on capital. If there is a clear agreement that interest on capital will be paid even in case of loss, then S’s share will be:
(a) Profit ₹6,000
(b) Profit ₹4,000
(c) Loss ₹6,000
(d) Loss ₹4,000

Question: Vikas is a partner in a firm. His drawings during the year ended 31st March, 2019 were ₹72,000. If interest on drawings is charged @ 9% p.a. the interest charged will be :
(a) ₹324
(b) ₹6,480
(c) ₹3,240
(d) ₹648

Question: Ajay is a partner in a firm. He withdrew ₹2,000 per month on the last day of every month during the year ended 31st March, 2019. If interest on drawings is charged @ 9% p.a. the interest charged will be :
(a) ₹990
(b) ₹1,080
(c) ₹1,170
(d) ₹2,160

Question: Bipasa is a partner in a firm. She withdrew ₹6,000 at the end of each quarter during the year ended 31st March, 2019. Interest on her drawings @ 10% p.a. will be :
(a) ₹900
(b) ₹600
(c) ₹1,500
(d) ₹1,200

Question: X, 7and Z are equal partners with fixed capitals of ?5,00,000, ?3,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(a) Dr. X and Cr. Z by ₹ 2,000
(b) Cr. X and Dr. Z by ₹ 2,000
(c) Dr. X and Cr. Y by ₹ 2,000
(d) Cr. X and Dr. Y by ₹ 2,000

Question: P, Q, and R sharing profits in the ratio of 2 : 1 : 1 have fixed capitals of f4,00,000, ?3,00,000 and ?2,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 8% p.a. In the adjusting entry :
(a) Cr. P ?1,000; Dr. Q ₹ 1,500 and Cr. R ₹ 500
(b) Dr. P ?500; Cr. Q ₹ 1,500 and Dr. R ₹ 1,000
(c) Cr. P ?500; Dr. Q ₹ 1,500 and Cr. R ₹ 1,000
(d) Dr. P ?1,000; Cr. Q ₹ 1,500 and Dr. R ₹ 500

Question: Anu and Tanu are equal partners with fixed capitals of ?2,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st – March, 2019 it was discovered that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting entry :
(a) Anu will be credited by ?16,000 and Tanu will be credited by ₹ 8,000
(b) Anu will be debited by ?16,000 and Tanu will be debited by ₹ 8,000
(c) Anu will be credited by ?4,000 and Tanu will be debited by ₹ 4,000
(d) Anu will be debited by ?4,000 and Tanu will be credited by ₹4,000

Question:  If equal amount is withdrawn by a partner in the end of each month during a period of 6 months, interest on the total amount will be charged for ………………… months
(a) 2.5
(b) 3
(c) 3.5
(d) 6

Question: Z is a partner in a firm. He withdrew regularly ?2,000 every month for the six months ending 31st March, 201Question: If interest on drawings is charged @ 8% p.a. the interest charged will be :
(a) ₹ 480
(b) ₹ 280
(c) ₹ 200
(d) ₹ 240

Question:  Asha and Vipasha are equal partners with fixed capitals of ?5,00,000 and ?2,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(a) Asha will be debited by ₹ 1,500 and Vipasha will be credited by ₹ 1,500;
(b) Asha will be credited by ₹ 1,500 and Vipasha will be debited by ₹ 1,500;
(c) Asha will be debited by ₹ 5,000 and Vipasha will be debited by ₹ 2,000;
(d) Asha will be credited by ₹ 5,000 and Vipasha will be credited by ₹ 2,000;

Question: P and Q sharing profits in the ratio of 2 : 1 have fixed capitals of ?90,000 and f60,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 6% instead of 8% p.a. In the adjusting entry :
(a) P will be credited by ₹ 1,800 and Q will be credited by ₹ 1,200;
(b) P will be debited by ₹ 200 and Q will be credited by ₹ 200;
(c) P will be credited by ₹ 200 and Q will be debited by ? ₹ 00;
(d) P will be debited by ₹ 1,800 and Q will be debited by ₹ 1,200;

Question: A and B sharing profits in the ratio of 7 : 3 have fixed capitals of ?2,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 12% instead of 10% p.a. In the adjusting entry :
(a) A will be debited by ?4,000 and B will be debited by ₹ 2,000;
(b) A will be credited by ?4,000 and B will be credited by ₹ 2,000;
(c) A will be debited by ?200 and B will be credited by ₹ 200;
(d) A will be credited by ?200 and B will be debited by ₹ 200;

Question: X and Y are partners. X draws a fixed amount at the beginning of every month. Interest on drawings is charged @8% p.a. At the end of the year interest on X’s drawings amounts to *?2,600. Drawings of A’were :
(a) ₹ 8,000 p.m.
(b) ₹ 7,000 p.m.
(c) ₹ 6,000 p.m.
(d) ₹ 5,000 p.m.

Question: A and B are partners. B draws a fixed amount at the end of every month. Interest on drawings is charged @15% p.a. At the end of the year interest on B’s drawings amounts to ?8,250. Drawings of B were :
(a) ₹ 12,000 p.m.
(b) ₹ 10,000 p.m.
(c) ₹ 9,000 p.m.
(d) ₹ 8,000 p.m.

Question: A, B and C sharing profits in the ratio of 2 : 2 : 1 have fixed capitals of ?3,00,000, ?2,00,000 and ?1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 12% instead of 10% p.a. In the adjusting entry :
(a) Cr. A ?1,200; Dr. B ?800 and Dr. C ?400
(b) Dr. A ?1,200; Cr. B ?800 and Cr. C ?400
(c) Cr. A ?800; Cr. B ?400 and Dr. C ?1,200
(d) Dr. A ?800; Dr. B ?400 and Cr. C ?1,200

Question: X, Y, and Z are partners in the ratio of 6 : 4 : 1. In the firm, A has guaranteed Z for his minimum profit of ?15,000. Firm’s profit was ?99,000. In the firm profit As share will be :
(a) ₹ 30,000
(b) ₹ 15,000
(c) ₹ 48,000
(d) ₹ 45,000

Question: X, Y, and Z are partners in the ratio of 4 : 3 : 2. Salary to X ?15,000 and to Z ?3,000 omitted and profits distributed. For rectification, now X will be credited :
(a) ₹ 15,000
(b) ₹ 1,000
(c) ₹ 12,000
(d) ₹ 7,000

Question:  Sony and Romy are equal partners with fixed capitals of ?4,00,000 and ?3,00,000 respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered that interest on capitals was provided @ 8% instead of 10% p.a. In the adjusting entry :
(a) Sony will be credited by ₹ 8,000 and Romy will be credited by ₹ 6,000.
(b) Sony will be debited by ₹ 8,000 and Romy will be debited by ₹ 6,000.
(c) Sony will be debited by ₹ 1,000 and Romy will be credited by ₹ 1,000.
(d) Sony will be credited by ₹ 1,000 and Romy will be debited by ₹ 1,000.

Question: X, Y and Z are equal partners with fixed capitals of ?2,00,000, ?3,00,000 and ?4,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting entry :
(a) Dr. X and Cr. Y by ?8,000
(b) Cr. X and Dr. Z by ?8,000
(c) Dr. X and Cr. Z by ?8000
(d) Cr. X and Dr. Y by ?8,000

Question: P, Q and R arc equal partners with fixed capitals of ?5,00,000, ?4,00,000 and ?3,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discoveredthat interest on capitals was provided @ 7% instead of 9% p.a. In the adjusting entry :
(a) P will be credited by ₹ 2,000 and Q will be debited by ₹ 2,000.
(b) P will be debited by ₹ 2,000 and Q will be credited by ₹ 2,000.
(c) P will be debited by ₹ 2,000 and R will be credited by ₹ 2,000.
(d) P will be credited by ₹ 2,000 and R will be debited by ₹ 2,000.

Question: When a partner is given guarantee by other partners, loss on such guarantee will be borne by :
(a) Partnership firm
(b) All the other partners
(c) Partners who give the guarantee
(d) Partner with highest profit sharing ratio.

Question: Guarantee given to partner ‘A’ by the other partners ‘B & C’ means :
(a) In case of loss, ‘A’ will not contribute towards that loss.
(b) In case of insufficient profits, ‘A’ will receive only the minimum guarantee amount.
(c) In case of loss or insufficient profits, ‘A’ will withdraw the minimum guarantee amount.
(d) All of the above.

Question: P, Q and R are partners in a firm in 3 : 2 : 1. R is guaranteed that he will get minimum of ?20,000 as his share of profit every year. Firm’s profit was ?90,000. Partners will get:
(a) P ₹ 40,000; Q ?30,000; R ₹ 20,000;
(b) P ₹ 42,500; Q ?27,500; R ₹ 20,000;
(c) P ₹ 45,000; Q ?30,000; R ₹ 15,000;
(d) P ₹ 42,000; Q ?28,000; R ₹ 20,000;

Question: A, Y and Z are partners in the ratio of 5 : 4 : Question: A has given to Za guarantee of minimum ?10,000 profit. For the year ending 31st March 2019, firm’s profit is ?28,800. Js share in profit will be :
(a) ₹ 9,200
(b) ₹ 9,600
(c) ₹ 7,200
(d) ₹ 12,000

Question: E, Fand G share profits in the ratio of 4 : 3 : 2. G is given a guarantee that his share of profits will not be less than ?75,000. Deficiency if any, would be borne by E and F equally Firm’s profit was ?2,70,000. As share of profit will be :
(a) ₹ 90,000
(b) ₹ 82,500
(c) ₹ 97,500
(d) ₹ 75,000

Question: P, Q, and R are partners in 3 : 2 : 1. R is guaranteed that his share of profit will not be less than ?70,000. Any deficiency will be borne by P and Q in the ratio of 2 : 1. Firm’s profit was ?2,40,000. Share of P will be :
(a) ₹ 1,00,000
(b) ₹ 1,10,000
(c) ₹ 1,20,000
(d) ₹ 1,02,000

Question: A Y and Z are partners in 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than ?80,000. Any deficiency will be borne by A and Y in 3 : 2. Firm’s profit was ?5,60,000. How much deficiency will be borne by Y :
(a) ₹ 2,14,400
(b) ₹ 14,400
(c) ₹ 2,09,600
(d) ₹ 9,600

Question: P and Q are partners sharing profits in the ratio of 1 : 2. R was manager who received the salary of ?10,000 p.m. in addition to commission of 10% on net profits after charging such commission. Total remuneration to R amounted to ?1,80,000. Profit for the year before charging salary and commission was :
(a) ₹ 7,20,000
(b) ₹ 6,00,000
(c) ₹ 7,80,000
(d) ₹ 6,60,000

Question: A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of ?3,00,000 and ?2,00,000 respectively. They are allowed 6% p.a. interest on their capitals and are charged 10% p.a. interest on their drawings. Their drawings during the year were A ?60,000 and B ?40,000. B’s share of net profit as per profit and loss appropriation account amounted to ?40,000. Net Profit of the firm before any appropriations was :
(a) ₹ 1,22,000
(b) ₹ 1,13,000
(c) ₹ 1,17,000
(d) ₹ 1,45,000

Question: A and B are partners in a firm. They are entitled to interest on their capitals but the net profit was not sufficient for this interest, then the net profit will be distributed among partners in : (CPT, Dec. 2012)
(a) Agreed Ratio
(b) Profit Sharing Ratio
(c) Capital Ratio
(d) Equally

Question: According to Profit and Loss Account, the net profit for the year is ₹1,40,000. The total interest on partner’s capital is? 8,000 and a partner is to be allowed commission of ₹5,000. The total interest on partner’s drawings is ₹1,200. The net profit as per Profit and Loss Appropriation Account will be :
(a) ₹1,28,200
(b) ₹1,44,200
(c) ₹1,25,800
(d) ₹1,41,800

Question: Sangeeta and Ankita are partners in a firm. Sangeeta’s capital is ₹70,000 and Ankita’s Capital is ₹50.000. Firm’s profit is ₹60,000. Ankita share in profit will be :
(a) ₹25,000
(b) ₹3 0,000
(c) ₹35,000
(d) ₹20,00

Question: A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is ₹1,00,000. C has not invested any amount as capital but he alone manages the whole business. C wants ?30,000 p.a. as salary. Firm earned a profit of ₹1,50,000. How much will be each partner’s share of profit:
(a) A ₹60,000;B ₹60,000; C ₹Nil
(b) A ₹90,000; B ₹30,000; C ₹Nil
(c) A ₹40,000; B ₹40,000 and C ₹40,000
(d) A ₹50,000; B ₹50,000 and C ₹50,000.

Question: Net profit of a firm is ₹49,500. Manager is entitled to a commission of 10% on profits before charging his commission. Manager’s Commission will be :
(a) ₹4,950
(b) ₹4,500
(c) ₹5,500
(d) ₹495

Question: If the Partners’ Capital Accounts are fixed ‘salary payable to partner’ will be recorded :
(a) On the debit side of Partners’ Current Account
(b) On the debit side of Partners’ Capital Account
(c) On the credit side of Partners’ Current Account
(d) None of the above

Question: It the Partner’s Capital Accounts are fixed, interest on capital will be recorded:
(a) On the credit side of Current Account
(b) On the credit side of Capital Account
(c) On the debit side of Current Account
(d) On the debit side of Capital Account

Question: A, B and C are partners in the ratio of 5 : 3 : 2. Before B’s salary of ₹17,000 firm’s profit is ₹97,000. How much in total B will receive from the firm?
(a) ₹17,000
(b) ₹40,000
(c) ₹24,000
(d) ₹41,000

Question: A, B and C are partners in a firm without any agreement. They have contributed 750,000, 730,000 and 720,000 by way of capital in the firm. A was unable to work for six months in a year due to illness. At the end of year, firm earned a pro lit of 7 15,000. A’s share in the profit will be :
(a) 7Question:500
(b) 73,750
(c) 75,000
(d) 72,500

Question: In a partnership lirm, partner A is entitled a monthly salary of ₹7,500. At the end of the year, firm earned a profit of ₹75,000 after charging T’s salary. If the manager is entitled a commission of 10% on the net profit after charging his commission, Manager’s commission will be :
(a) ₹7,500
(b) ₹16,500
(c) ₹8,250
(d) ₹15,000

Question: Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta was manager who received the salary of ₹4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profit for the year is ₹6,78,000 before charging salary. Find the total remuneration of Meeta.
(a) ₹78,000
(b) ₹88,000
(c) ₹87,000
(d) ₹76,000

Question: Net profit of a firm is ₹79,800. Manager is entitled to a commission of 5% of profits after charging his commission. Manager’s Commission will be :
(a) ₹4,200
(b) ₹380
(c) ₹3,990
(d) ₹3,800

Question: Ram and Shyam are partners in the ratio of 3 : 2. Before profit distribution, ‘ Ram is entitled to 5% commission of the net profit (after charging such commission). Before charging commission, firm’s profit was ₹42,000. Shyam’s share in profit will be :
(a) ₹16,000
(b) ₹24,000
(c) ₹26,000
(d) ₹16,400

Question: Which accounts are opened when the capitals are fixed?
(a) Only Capital Accounts
(b) Only Current Accounts
(c) Capital Accounts as well as Current Accounts
(d) Either Capital Accounts or Current Accounts

Question: Which accounts are opened when the capitals are fluctuating?
(a) Only Capital Accounts
(b) Only Current Accounts
(c) Capital Accounts as well as Current Accounts
(d) Either Capital Accounts or Current Accounts

Question: Balance of partner’s current accounts are :
(a) Debit balance
(b) Credit balances
(c) Debit or Credit balances
(d) Neither Debit nor credit balances

Question: Which of the following statement is true?
(a) Fixed capital account will always have a credit balance
(b) Current account can have a positive or a negative balance
(c) Fluctuating capital account can have a positive or a negative balance
(d) All of the above

Question: Which item is recorded on the credit side of partner’s current accounts :
(a) Interest on Fanner’s Capitals
(b) Salaries of Partners
(c) Share of profits of Partners
(d) All of the Above

Question: If the Partner’s Capital Accounts are fluctuating, in that case following item/items will be recorded in the credit side of capital accounts :
(a) Interest on capital
(b) Salary of partners
(c) Commission of partners
(d) All of the above

Question:  Interest on partner’s capitals will be debited to :
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) Partner’s Capital Accounts
(d) None of the Above

Question:  Interest on partner’s capitals will be credited to :
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) Interest Account
(d) Partner’s Capital Accounts

Question:  For the firm interest on drawings is
(a) Capital Payment
(b) Expenses
(c) Capital Receipt
(d) Income

Question: Interest on Partner’s drawings will be debited to :
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) Partner’s Current Account
(d) Interest Account

Question: When partners’ capital accounts are floating, which one of the following items will be written on the credit side of the partners’ capital accounts? :
(a) Interest on drawings
(b) Loan advanced by partner to the firm
(c) Partner’s share in the firm’s loss
(d) Salary to the activ e partners

Question: When partners’ capital accounts are fixed, which one of the following items will be written in the partner’s capital account? :
(a) Partner’s Drawings
(b) Additional capital introduced by the partner in the firm
(c) Loan taken by partner from the firm
(d) Loan Advanced by partner to the firm

Question: Interest on partner’s drawings will be credited to
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) Partner’s Capital Accounts
(d) None of the Above

Question: For the firm interest on capital is :
(a) Capital Payment
(b) Capital Receipt
(c) Loss
(d) Income

Question: On 1st April 2018, 2fs Capital was ₹2,00,000. On 1st October 2018, he introduces additional capital of ₹1,00,000. Interest on capital @ 6% p.a. on 31st March, 2019 will be :
(a) ₹9,000
(b) ₹18,000
(c) ₹10,500
(d) ₹15,000

Question: Xand Y are partners in the ratio of 3 : 2. Their capitals are ?2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ?60,000 for the year ended 31st March 201Question: Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) V ₹Question:000; Y ₹4,000
(c) X ₹14,400; Y ₹9,600
(d) No Interest will be allowed

Question:  X and Y are partners in the ratio of 3 : 2. Their capitals are ₹2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ₹15,000 for the year ended 31st March 201Question: Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) X ₹9,000; Y ₹6,000
(c) X ₹10,000; Y ₹5,000
(d) No Interest will be allowed

Question: A and B contribute ₹1,00,000 and ?₹60,000 respectively in a partnership firm by way of capital on which they agree to allow interest @ 8% p.a. Their profit or loss sharing ratio is 3 : 2. The profit at the end of the year was ₹2,800 before allowing interest on capital. If there is a clear agreement that interest on capital will be paid even in case of loss, then S’s share will be:
(a) Profit ₹6,000
(b) Profit ₹4,000
(c) Loss ₹6,000
(d) Loss ₹4,000

Question: Partners are suppose to pay interest on drawing only when by the
(a) Provided, Agreement
(b) Permitted, Investors
(c) Agreed, Partners
(d) ‘A’ & ‘C’ above

Question: Where will you record interest on drawings : (CPT; June 2011)
(a) Debit Side of Profit & Loss Appropriation Account
(b) Credit Side of Profit & Loss Appropriation Account
(c) Credit Side of Profit & Loss Account
(d) Debit Side of Capital/Current Account only.

Question: How would you close the Partner’s Drawing Account:
(a) By transfer to Capital or Current Account Debit Side.
(b) By transfer to Capital Account Credit Side.
(c) By transfer to Current Account Credit Side.
(d) Either ‘B‘ or ‘C’.

Question: If date of drawings of the partner’s is not given in the question, interest is charged for how much time
(a) 1 month
(b) 3 months
(c) 6 months
(d) 12 months

Question:  X and Y are partners in the ratio of 3 : 2. Their capitals are ?2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹60,000 for the year ended 31st March 201Question: Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) A ₹8,000; Y ₹4,000
(c) X ₹14,400; Y ₹9,600
(d) No Interest will be allowed

Question:  X and Y are partners in the ratio of 3 : 2. Their capitals are ₹2,00,000 and ₹1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ₹15,000 for the year ended 31st March 201Question: As per partnership agreement, interest on capital is treated a charge on profits. Interest on Capital will be :
(a) X ₹16,000; Y ₹8,000
(b) X ₹9,000; Y ₹6,000
(c) X ₹10,000; Y ₹5,000
(d) No Interest will be allowed

Question: X is a partner in a firm. He withdrew regularly ₹1,000 at the beginning of every month for the six months ending 31st March, 2019. If interest on drawings is charged @ 8% p.a. the interest charged will be :
(a) ₹240
(b) ₹140
(c) ₹100
(d) ₹120

Question: A partner withdraws from firm ₹7,000 at the end of each month. At the rate of 6% per annum total interest will be :
(a) ₹5,040
(b) ₹2,310
(c) ₹3,570
(d) ₹1,370

Question: X and 7are partners in the ratio of 3 : 2. Their fixed capitals are ₹2,00,000 and ₹1,00,000 respectively. After clsoing the accounts for the year ending 31st March 2019, it was discovered that interest on capital was allowed @ 12% instead of 10% per annum. By how much amount A will be debited/credited in the adjustment entry :
(a) ₹600 (Debit)
(b) ₹400 (Credit)
(c) ₹400 (Debit)
(d) ₹600 (Credit)

Question. In the absence of Partnership Deed, interest on loan of a partner is allowed:
(a) at 8% per annum
(b) at 6% per annum
(c) no interest is allowed
(d) at 12% per annum

Question.What should be the amount of Jay’s interest on Capital (Blank A)?
(a) `4,000
(b) `4,500
(c) `4,800
(d) `7,200

Question. Where would you record ‘Interest on Drawings’ when Capitals are fluctuating?
(a) Debit side of Partner’s Capital A/c
(b) Debit side of Partner’s Current A/c
(c) Credit side of Partner’s Current A/c
(d) Credit side of Partner’s Capital A/c

Question.The Partnership Deed is silent on payment of salary to partners. Amita, a partner, claimed that since shemanages the business, she should get a monthly salary of `10,000. Is she entitled for the salary?
(a) No
(b) Yes
(c) Half of the salary
(d) Defined salary by law

Question. In the absence of Partnership Deed the profits are divided among the partners:
(a) in the ratio of their capital
(b) equally
(c) in the ratio of time devoted for the firm’s business
(d) according to their managerial abilities

Question. How is interest on drawings calculated, if the drawings are made at regular intervals, as on the last dayof each month?
(a) Total Drawings × Rate/100 x 6.5 months/12months
(b) Total Drawings × Rate /100 x 6 months/12months
(c) Total Drawings × Rate/100 x months5.5/12months
(d) None of the above

Question.What is each partner’s interest on drawings?
(a) `3300, `1800, `2400
(b) `1800, `3300, `2400
(c) `2400, `3600, `4800
(d) None of the above

Question. In a partnership firm, a partner withdrew `5,000 per month on the first day of every month during theyear for personal expenses. If interest on drawings is charged @ 6% p.a. the intereinterest charged will be:
(a) `3,600
(b) `1,950
(c) `1,800
(d) `1,650

Question. If their is a provision for the interest on capital in the partnership deed, it will be allowed only whenthere is ………….. .
(a) Loss
(b) Profit
(c) Profit of atleast `10,000
(d) Profit of at least `50,000

Question. When the profit is less than the amount of interest on capitals, the available profit will be distributed
………….. .
(a) equally
(b) in the ratio of their capital
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question.If the date of drawings of the partners is not given in the question, interest is charged for how much time?
(a) 1 month
(b) 3 months
(c) 6 months
(d) 12 months 

Question. What was the amount of interest on Drawings that was charged from A and B?
(a) `7,200 and `2,400
(b) `2,400 and `4,500
(c) `4,500 and `2,400
(d) `4,000 and `6,000

Question. Interest on capital can only be calculated using ……….. .
(a) Opening Capital
(b) Closing Capital
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question.What adjustment entry should be passed to rectify the above mentioned errors?
(a) A’s Capital A/c Dr. To B’s Capital A/c140140
(b) B’s Capital A/c Dr. To A’s Capital A/c100100
(c) A’s Capital A/c Dr. To B’s Capital A/c280280
(d) B’s Capital A/c Dr. To A’s Capital A/c300300 

Question. What is the amount of Net Profit?
(a) `3,06,000
(b) `3,00,000
(c) `2,00,000
(d) None of the above

Question. Calculate the amount of Ajay’s deficiency?
(a) `75,400
(b) `74,600
(c) `85,000
(d) `56,550

Question. What was the balance in their capital accounts on 1st April, 2021?
(a) `1,65,500 and `1,27,600
(b) `2,00,000 and `1,50,000
(c) `1,50,000 and `2,00,000
(d) None of the above

Question. Partners’ amount of interest on capital are:
(a) `10,000 and `7,500
(b) `15,000 and `7,500
(c) `16,000 and `6,000
(d) None of the above

Question. What should be the amount of Vijay’s interest on Capital (Blank B)?
(a) `4,500
(b) `4,000
(c) `7,200
(d) `3,000

Question. What should be the amount of profit after adjustments?
(a) `1,88,500
(b) `2,10,500
(c) `3,00,000
(d) None of the above

Question: Interest on money advanced by a partner to the firm beyond the amount of his capital for the purpose of business is paid @ 6% p.a. True/False? Give reason.

Question: Partner’s capital account always shows a credit balance. True/False? Give reasons.

Question: Partner’s capital account will not show a debit balance in spite of losses year after year when _______ because ______.

We hope you liked MCQ Questions for Class 12 Accountancy Chapter 2 Accounting For Partnership Firms Basic – Concepts with answers provided above. Incase you have any questions please post them in the comments section below and our Accountancy teachers will provide a response. Also read DK Goel Class 12 Solutions