Partnership Fundamentals

A partnership deed contains the details associated with

• Nature of business and duration of firm.
• Capital contribution, profit/loss sharing ratio and other agreed terms.
• Name of firm and partners.
• All of these.

A partnership business is determined by the mutual agreement of a partner. This kind of agreement can be?

• Oral agreement
• Written agreement
• Oral or written agreement
• None of them

Where no agreement exists between the partners, what will be the benefit-sharing ratio between them?

• Unequal
• Equal
• It will depend on the experience of a partner
• It will depend on a partner’s capital

In partnership Interest on drawings is:

• Credited to partner’s current a/c
• Not shown in the current account
• Debited to partner’s current a/c
• None of the above

Salary of a partner is _________

• Credited to a current account
• Debited to a current account
• Paid in Cash
• Debited to Partner's Capital Account

What is the minimum partner requirement to start a partnership firm?

• 10
• 2
• 5
• 3

At what percent the interest is levied on partners' capital in the absence of partnership deed?

• 14% p.a.
• 12% p.a.
• No Interest
• 6% p.a.

What is the accepted rate of interest on a partner's loan account in the absence of a partnership deed in a partnership firm?

• 10% p.a.
• 6% p.a.
• 12% p.a.
• No Interest

In the absence of an agreement, the partners are not entitled to get this

• Profit and loss
• Salary
• Interest of loan
• None of the above

What is essential for the establishment of a partnership firm?

• An agreement among the partners
• Lawful business
• Consent of two or more persons
• All of the above