___ HASSE oe Dae ( multiple Choice Questions (MCQs) Sele He correct alternative: 1. Partnership bs an association of ‘or more persons. (@) two ® seven © tn @ twenty | \ | 2, the relationship between persons who have agreed to share profits of a business carticd on by all or any of them acting for all is known as @) Partnership, ® Joint Venture. (© Association of persons, © Body of individual. 3. feature of partnership firm is (@ Tuo of more persons carrying common business under an agreement. @® Profits and losses are shared in agreed ratio or as provided in the Partnership Act, 1932. © Business is carried on by all or any of them acting for all. @ Allof the above. 4, The written agreement among the partners Is called @ Partnership Deed. © Partnership bye-laws, © Partnership Constitution. @ a contract. 5. The liability of the partners in a partnership firm under Indian Partnership Act, 1932 Is @ Limited. © Unlimited. © No Liability. © Depending on the situation. &. Interest on Capital is allowed on @ the opening capital. @® the capital at the year end. © average capital of the year. @ the capital for the period capital remains invested In the business. 7. In the absence of the Partnership Deed, Interest on Capital @® 1s allowed @ 6% per annum. ® is allowed @ 10% per annum, © Isallowed at the borrowing rate. @ [snot allowed.Po SBSey MCQ2 ty 8. Inthe absence of Parta rest on drawings of a partner is charged im © © 9% per annum, @ @ sre perannum. @ No interest is charged, (86 Fons @© @ 12% per annum. ‘ eof Partnership Deed, in ership Agreement. int terest on loan of a partner is allowed 9. Inthe absenc © @ 6% per annum @® © ss per annum, oe © No interest is allowed In the absence of Partnership Deed. pr @ Inthe ratio of capital. @® Equally. : © in the ratio of time devoted for the firm's b oft of a firm is distributed among the partners 10. usiness. @ axcordng tothe managerial ails ofthe partners, (CESE201 11. Inthe absence of agreement, partners are entitled to @ Salary. ® Commission. © Interest on Loans and Advances. @ Profit Share in Capital Ratio. 12. As per Indian Partnership Act, 1932, if Partnership Deed does not exist partners get @ Salary. ® Interest on Capital © Equal Profit Share. @ Commission. 13. Relationship between the partners is of @® Close relatives. ® Agent and Principat © Junior-Senior Relationship. @ Senior-Subordinate Relationship 14, Inthe absence of specific provision in the partnership deed, a5 to salary and remuneration, amount paste to him as salary and remuneration will be @® 215,000 pm. ® 2% 20,000 pm. © % 10.000 pm. @ Nil. 15. Profit and Loss Appropriation Account is prepared by ® Sole trader firm, ® Partnership firm, © Both (a) and (by. © None of these, 16. Inthe absence of an agreement to the contrary, the partners are ® entitled to interest @ 655 Pa. on their capitals, only if there are profits, @ ntited to interest @ 955 p.a. on their capitals, only if there are profits. © entitled to interest on thelr capitals at the bank rate, @® not entitled to interest on their capitals, 2 mene Osan na loss for the year among the partners. 1g the partners. Determit it c Daten Ine Profit remaining for distribution for the year after appropriation. istribute the profit for the year among the partners. ; 18, ‘Which of the followi lowing tems isnot dealt though Pro vt joe ge, @ Interest ow Partners Load = 2 Gus. ration Account =, b © Interest on Partners capital @ Pariners commission = (case sonpehee™ commis only if there are profits. 7,Multiple Choice Questions MCQ:! 19. The item that will not be shown in the debit of Profit and Loss Appropriation Account is @ Interest on Capital © Interest on Drawings 20. Pick the odd one out of the following: @ Rent to Partner. © Interest on Partner's Loan. 21. Current Accounts of partners are maintained if @® capitals are fixed. © capitals are fixed or fluctuating. 22, In case of fixed capitals, partners will have ® credit balances in their Capital Accounts. ® @ © @ ©© Commission to a partner Salary to partners Manager's Commission. Interest on Partner's Capital. (CBSE Sample Paper 202 capitals are fluctuating. it is decided by the Partners.