partnership -admission

A partnership can be formed only for a ________ business

• legal

• owned

• illegal

The excess of average profit over normal profit is ________.

• net profit

• gross profit

• super profit

The minimum number of persons in a partnership firm is

• one

• two

• seven

In the absence of an agreement profits and losses are divided

• in the ratio of capitals

• in the ratio of time devoted by each partner

• equally

X and Y are partners sharing the profits and losses in the ratio of 2:3 with capitals of Rs.1,20,000 and Rs.60,000 respectively. Profits for the year are Rs.9,000. If the partnership deed is silent as to interest on capital. Show how profit is shared among X and Y

• Profit : X - Rs. 6,000; Y - Rs.3,000

• Profit : X - Rs. 3,600; Y - Rs.5,400

• Profit : X - Rs. 3,000; Y - Rs.6,000

Under fixed capital method salary payable to a partner is recorded

• in Current Account

• in Capital Account

• either in Current Account or Capital Account

If a firm is maintaining both ‘Capital Accounts’ and ‘Current Accounts’ of the partners A and B. Additional capital introduced by B will be recorded in

• B’s Current Account

• B’s Capital Account

• either B’s Capital Account or Current Account

The capital accounts of partners may be ________ or fluctuating.

• fixed

• current

• capital

Indian Partnership Act was enacted in the year ________.

• 1948

• 1932

• 1956

At the time of admission, when goodwill is raised, the old partners capital account will be credited in the ________ ratio.

• Old profit sharing

• new profit sharing

• agreed