Partnership and Profit Sharing Quiz

Rani and Shyam is partner in a firm. They are entitled to interest on their capital but the net profit was not sufficient for paying his interest, then the net profit will be disturbed among partner in

• 1 : 2

• Profit Sharing Ratio

• Capital Ratio

• Equally

Which one of the following items is recorded in the Profit and Loss appropriation account

• Interest on Loan

• Partner Salary

• Rent paid to Partner's

• Managers Commission

Salary to a partner under fixed capital account is credited to

• Partner's Capital A/c

• Partner's current A/c

• Profit & Loss A/c

• Partner's Loan A/c

In the absence of partnership deed partner share profit and loss in

• Ratio of capital Employed

• Equal Ratio

• 2 : 1

• 1 : 2

As per section a minor may be admitted for the benefit of the partnership if:-

• One partner agree

• More than one agree

• All partners agree

• Both (a) or (b)

If the partner carries on the business that is similar to firm competition with the firm and profit earned from it, the profit

• Shall be retained by the partner

• Shall be paid to firm

• Can be retained or gained to the firm

• Both (a) or (b)

The relation of the partner with the firm is that of

• An owner

• An agent and A Principal

• An agent

• Manager

A, B, and C are partner's sharing profits in the ratio of 5:3:2 According to the partnership agreement C is to get a minimum amount of Rs. 10,000 as his share of profits every year. The net profit for the year ended 31st March, 2019 amounted to Rs. 40,000. How much amount contributed by A?

• Rs. 1,350

• Rs. 1,250

• Rs. 750

• Rs. 1,225

Which one of the following item cannot be recorded in Profit and Loss Appropriation Account?

• Interest on Capital

• Manager's Commission

• Interest on Drawings

• Partner's Salary

A and B are partner's sharing profit equally. A draw regularly Rs. 4,000 at the end of every month for 6 months. Year ended on 30th September 2018, calculate interest on drawings @ rate 5% p.a.

• Rs. 350

• Rs. 450

• Rs. 150

• Rs. 250