PARTNERSHIP

Profit and Loss Appropriation Account is prepared to ----

• (A) Create Reserve Fund

• (B) Find out Net Profit

• (C) Find out Divisible Profit

• (D) None of these

Pick the odd one out

• (A) Interest on Loan

• (B) Interest on Partner's Capital

• C) Salary to Manager

• (D) Rent

When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings for---

• (A) 61/2

• (B) 6 months

• (C) 51/2

• (D) 1 month

.In the absence of partnership deed, partners, are not entitled to receive

• (A) Salaries

• (B) Commission

• (C) Interest on Capital

• (D) All of these

Arun and Nipun are partners with the capital or Rs' 25,000 and Rs' 15,000 respectively. Interest payable on capital is 10% p.a. Find the interest on capital for both the partners when the profits earned by the firms is Rs' 2, 400

• (A) Rs' 2,500 and 1,500

• (B) Rs' 1,500 and 900

• (C) Rs' 1,200 and 1,200

• (D) None of these

What balance does a partner's current account has?

• (A) Debit balance

• (B) Credit balance

• (C) A or B

• D) None of these

A draws 1,000 per month on the last day of every month. If the rate of interest on drawing 5 % p.a. then the total interest on drawings will be ..

Fluctuating capital account is credited with---

• (A) Interest on capital

• (B) Profit of the year

• (C) Remuneration of partners

• (D) All of these

A and B were partners in a firm sharing profit ration or losses equally with effect from 1st April, 2019 they agreed to share profits in the ratio of 4: 3 . Due to change in the profit sharing ratio, B's gain or sacrifice will be:

• a) Gain 1/14

• b) Sacrifice 1/14

• c) Gain 4/7

• d) Sacrifice 3/7

A firm earns Rs1,50,000,. Their capitals were (A&B) Rs.3,00,000 and Rs.2,00,000.The Normal rate of return is 20% . Value of goodwill by capitalization of average profit will be. (2011 board)

• a) 2,50,000

• b) 1,00,000;

• c) 5,00,000;

• d) 1,00, 000