PARTNERSHIP - CH1 Q1

What should be the minimum number of persons to form a Partnership :

• 2

• 7

• 10

• 20

Number of partners in a partnership firm may be :

• Maximum Two

• Maximum Ten

• Maximum One Hundred

• Maximum Fifty

X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31, 2012 are ₹80,000, ₹60,000 and ₹40,000 respectively. Their personal assets are worth as follows : X - ₹20,000, Y - ₹15,000 and Z - ₹10,000. The extent of their liability in the firm would be;

• X - ₹80,000 : Y - ₹60,000 : and Z - ₹40,000

• X - ₹20,000 : Y - ₹15,000 : and Z - ₹10,000

• X - ₹1,00,000 : Y - ₹75,000 : and Z - ₹50,000

• Equal

Partnership Deed is also called

• Prospectus

• Articles of Association

• Principles of Partnership

• Articles of Partnership

A and B are partners in partnership firm without any agreement. A has given a loan of ₹50,000 to the firm. At the end of year loss was incurred in the business. Following interest may be paid to A by the firm :

• @5% Per Annum

• @ 6% Per Annum

• @ 6% Per Month

• As there is a loss in the business, interest can't be paid

A and B are partners in a partnership firm without any agreement. A has withdrawn ₹50,000 out of his Capital as drawings. Interest on drawings may be charged from A by the firm :

• @ 5% Per Annum

• @ 6% Per Annum

• @ 6% Per Month

• No interest can be charged

In the absence of partnership deed, the following rule will apply :

• No interest on capital

• Profit sharing in capital ratio

• Profit based salary to working partner

• 9% p.a. interest on drawings

In the absence of agreement, partners are not entitled to :

• Salary

• Commission

• Equal share in profit

• Both (a) and (b)

Interest on capital will be paid to the partners if provided for in the partnership deed but only out of:

• Profits

• Reserves

• Accumulated Profits

• Goodwill

Which one of the following items cannot be recorded in the profit and loss appropriation account?

• Interest on capital

• Interest on drawings

• Rent paid to partners

• Partner's salary