Section – I (10 X ½ = 5 Marks)

Multiple choice questions

1. In the absence of an agreement interest on partner's loan is pain in the ratio of [ ]

a) 4% b) 6% c) 5% d) 10%

2. When dates of withdrawals are not given, interest on drawings is charge for [ ]
a) 51/2 months b) 5 Months c) 6 Months d) 12 Months

3. The current account of a partner will always have [ ]

a) Credit balance b) Debit balance c) No Balance
d) May have debit or credit balance

4. Treatment of goodwill will be done as per [ ]

a) Para 16 of As10 b) Para 15 of As13 c) Para 14 of As11 d) Para 13 of As12

5. If new partner brings the amount of goodwill in cash it is transferred to old partner's capital accounts in
[ ]
a) Sacrificing ratio b) Old ratio c) New ratio d) Gaining ratio

6. A company is formed [ ]
a) Buy special act of parliament b) Under companies Act
c) General Agreement among potential investors d) None of these

7. Public Limited companies should have a minimum paid up capital of [ ]

a) 5 Lakhs b) 10 Lakhs c) 20 Lakhs d) 50 Lakhs

8. The liability of equity shareholders is [ ]

a) Unlimited b) Limited up to c) Guarantee given by them d) None of the above

9. In case of private companies [ ]

a) Shares can be transferred without restrictions b) There is restriction on transfer of
c) Can transfer 200 shares without consent of other shareholders.
d) Can transfer 500 shares with other

10. Preferences share have priority over equity shares [ ]

a) Payment of dividend and repayment b) Voting in annual general meeting
c) Subscribe for new issue of shares and debentures d) Interest on money invested in company
 Section – II ( 10X ½ = 5 Marks)

Fill in the blanks

11. In the absence of an agreement, partners are _____________ entitled to receive salary.

12. In the balance sheet prepared after admission of a partner assets and liabilities are recorded at _________

13. If at the time of admission, profit & loss account appears in the books, it will be transferred to _________

14. A and B are partners sharing profit in the ratio of 3:2. C is admitted with 1/5 the shares in the profit
sharing ratio will be ________________

15. Interest on capital is calculated on the _________________

16. A Private company is prohibited form _________________

17. According to see 53 of the companies Act. 2013 a company cannot issued shares at _____________

18. A Company cannot allot shares unless _____________________ stated in the prospectus is received.

19. When shares are issued to promoters for services rendered by them _____________ is debited and share
capital is credited.

20. To write off preliminary expenses ________________ can be used.

Section – III ( 5 X 1 = 5 Marks)

Answer the following questions

21. What is sacrificing ratio?

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22. What are difference between sacrificing ratio and gaining ratio?
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23. What are different kinds of preference shares?

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24. Calls in Arrears and calls in Advance.

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25. What is Authorized Capital?

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