Chapter # 6 Partnership Objective Type

1) The relationship between two or more persons who have agreed to share the profit of a business carried on by all or any of them acting for all.is
called

A) Sole Proprietorship B) Joint Stock Company C) Partnership D) Cooperative Society

2) In partnership the number of partners should be at least

a) 2 b) 4 c) 3 d) 1

3) In a Partnership business, the number of partners should exceed than:

a) 2 b) 20 c) 15 d) 25

4) Partnership is governed by the Partnership Act:

a) 1932 b) 1832 c) 1833 d) 1933

5) The person who has entered into a partnership are collectively called:

A) Shareholders B) Partners C) Firm D) Company

6) In general partnership liability of partner is:

A) Guaranteed B) Unlimited C) Limited D) Unguaranteed

7) A partnership under which liability of all partners is unlimited

A) General Partnership B) Unlimited Partnership C) Limited Partnership D) None Of Above

8) Registration of partnership is:

A) Necessary B) Optional C) Compulsory D) Both A And C

9) A partner who takes an active part in the management of the partnership:

A) Nominal Partner B) Active Partner C) Clever Partner D) Both A And B

10) A person who does not take an active part in the management of a partnership business is called:

a) Dormant partner b) sleeping partner c) nominal partner d) both a and b

11) Partnership is formed by the partner through:
A) Oral Agreement B) Verbal Agreement C) Written Agreement D) Both B And C

12) A person who has major investment is partnership business or have more experience than other is called:
A) Old Partner B) Experienced Partner C) Junior Partner D) Senior Partner

13) A person who has minor share in partnership capital or have lesser experience than other is called:

A) Old Partner B) Experienced Partner C) Junior Partner D) Senior Partner

14) If there is no provision made in the agreement about duration of partnership this represent:
a) partner at will b) limited partnership c) unlimited partnership d) General partnership

15) A partner who has not attained the age of majority is called:
A) Minor Partner B) Immature Partner C) Junior Partner D) Young Partner

16) A person who lends his name to the firm is called:

A) Sleeping Partner B) Dormant Partner C) General Partner D) Nominal Partner

17) A person who shares the profit of a firm but he is not responsible for the loss is called:
a) Quasi partner b) profit partner c) nominal partner d) Estoppel partner

18) A partner who is newly admitted to the firm with the consent of all the partners is called
A) Profit Partner B) Nominal Partner C) Retiring Partners D) Quasi Partner

19) A partner who goes out of a firm due to any reason is called:
A) Nominal Partner B) Retiring Partners C) Sleeping Partner

20) A partner who invest in the partnership business in the form of:

A) Both A and B B) Non-Cash Assets C) Cash D) None Of Above

21) How profit will be distributed if there is no agreement among partner:

A) According To Work B) According To Experience C) According To Capital D) Equally

22) Profit or loss is distributed among partner through:

A) Partner's Capital Account B) Profit And Loss Account C) Trading Account D) Profit And Loss Appropriation
Account
23) In the absence of agreement salary is paid to partner who:
A) Shares Loss Of The Business B) Not Paid C) Takes Active Part In The Work D) None Of Above

24) Partner contribution to the firm is called

A) Contribution B) Capital C) Share D) Property

Sir Imran Ali (M.com)

 25) In the absence of an agreement interest on loan advanced by partner is allowed at the rate of:

a) 5% b) 4% c) not paid d) 6%

26) In the absence of an agreement interest on drawing made by a partner is charged at the rate of:
a) 4% b) not charged c) 5% d) 6%

27) Capital accounts of the partners are maintained under

A) General Capital Method B) Fixed Capital Method C) Fluctuating Capital Method D) Both A And B

28) When the fixed capital method is adopted to record partner capital
A) Only One Account Is Opened B) Three Accounts Are Opened C) Two Accounts Are Opened D) None Of These

29) Current account is opened under:

a) both a and b b) fluctuating capital method c) fixed capital method d) none of above

30) A partner who take an active part in the partnership business but he is not known to general is called:

a) Nominal partner b) Secret partner c) General partner d) Darment partner

31) A method under which only one account is maintained to record partner capital is called:
A) Single Account Method B) Fluctuating Capital Method C) Fixed Capital Method D) None Of Above

32) When new partner bring cash for goods will the amount should be credited to:
A) None Of Above B) Partner A/C C) Cash A/C D) Goodwill A/C

33) When a goodwill is raised in the books of account it should be debited t:

A) Cash A/C B) Partner's A/C C) Goodwill A/C D) None Of Above

34) When a goodwill is raised in the books of account it should be credited to:

a) cash a/c b) partner's a/c c) goodwill a/c d) none of above

35) When a good will is raised in the books of amount it should be shown in:
a) profit and loss b) trading sheet c) balance sheet d) profit and loss appropriation account

36) When a goodwill is written off,it should be written off in the:

a) sacrificing ratio b) new ratio c) Old ratio d) Gaining ratio

37) Interest on drawing is debited to:

a) Profit and loss appropriation account b) Partner's drawing accounts c) Partner's Capital accounts d) none of above

38) Interest on drawing is credited to:

a) Profit and loss appropriation account b) Partner's drawing accounts c) Partner's Capital accounts d) none of above

39) For partnership business ,interest on drawing is:

a) Liability b) Expense c) Assets d) Income

40) Partnership and co-ownership are:

A) Similar In Meaning B) Antonymous Terms C) Synonymous Terms D) Both A And C

41) If some property is owned jointly by some persons without any desire to carry on business is called:
A) None Of Above B) Partnership C) Co-Ownership D) Joint Partnership

42) Revaluation account represent

A) Personal Account B) Real Account C) Nominal Account D) None Of Above

43) Partners’ capital account represent

A) Personal Account B) Real Account C) Nominal Account D) None Of Above

44) Loss on revaluation should be debited to:

A) Revaluation Account B) New Partner's Capital Account C) Old Partner Capital Account D) None Of Above

45) Profit and loss on revaluation is distributed in old partner in:

A) Sacrificing Ratio B) New Ratio C) Old Ratio D) Gaining Ratio

46) Reserve are transferred to old:

A) Gaining Ratio B) Old Ratio C) New Ratio D) Sacrficing Ratio

47) Reserves are transferred to old partner in:

A) Sacrficing Ratio B) New Ratio C) Old Ratio D) Gaining Ratio

48) When a new partner is decide to show their assets and liability except cash at their original amount after revaluation which account is prepared:
A) Profit And Loss B) Memorandum Revaluation Account C) Revaluation Account D) None Of Above
Appropriate Account

49) The owner of the partnership is called:

A) Agents B) Proprietors C) Partners D) Shareholders

50) The partnership ,every partner acts for other partners as:
A) Director B) Employee C) Agent D) Principal

Sir Imran Ali (M.com)