12th BOOK KEEPING BY AJAYSANTHOSH MOURYA
Question to be continued
: -III Problem
QUESTIONS
I. Objective Type
a) Fill in the
blanks:
1. A sole trader
business is owned and managed by ________ person.
2. Indian
Partnership Act was enacted in the year ________.
3. Mutual and
________ agency is the essence of a partnership.
4. The profits
and losses of the business will be shared among the partners in the ________
ratio.
5. Under
fluctuating capital method, profit or loss in a year, will be transferred to
the respective ________ accounts.
6. The capital
accounts of partners may be ________ or fluctuating.
7. Under
__________ capital arrangement, current accounts will not be maintained.
8. The debit
balance of the current account, will be shown in the ________ side of the
balance sheet.
9. Interest on
partners’ capital is allowed, only when the ________ specifically provides for
it.
10. Money lent
to the business by a partner is credited to his ________ account and not his
capital account.
11. Interest on
partners’ loan should be paid, even if there is no ________ in a year.
12. Goodwill is
an _______ asset.
13. The excess
of average profit over normal profit is _______.
14. In the
absence of partnership deed, no interest is to be charged on ________.
15. A
partnership can be formed only for a ________ business.
16. The persons
who entered into partnership are collectively known as ________.
(Answers: 1.
one; 2. 1932; 3. implied; 4. agreed; 5. capital; 6. fixed;
7. fluctuating;
8. assets; 9. partnership agreement; 10. loan;
11. profit; 12.
intangible; 13. Super profit; 14. drawings;
15. legal; 16.
firm)
b) Choose the
correct answer:
1. The minimum
number of persons in a partnership firm is ______
a) one
b) two
c) seven
2. In a
partnership business, agreement is _______
a) compulsory
b) optional
c) not necessary
3. In a
partnership, partners share their profits and losses in _______ ratio
a) their capital
b) equal
c) agreed
4. Under fixed capital system,
the profits and losses of partners will be transferred to their _______ account
a) current
b) drawings
c) capital
5. Interest on capital is
calculated on the
a) Opening Capital
b) Closing Capital
c) Average Capital
6. Current accounts for partners
will be opened under
a) Fixed capital method
b) Fluctuating capital method
c) Either fixed capital method or
fluctuating capital method
7. In the absence of an agreement
profits and losses are divided
a) in the ratio of capitals
b) in the ratio of time devoted
by each partner
c) equally
8. X and Y are
partners sharing the profits and losses in the ratio of 2:3 with capitals of
Rs.1,20,000 and Rs.60,000 respectively. Profits for the year are Rs.9,000. If
the partnership deed is silent as to interest on capital. Show how profit is
shared among X and Y.
a) Profit : X - Rs. 6,000; Y -
Rs.3,000
b) Profit : X - Rs. 3,600; Y -
Rs.5,400
c) Profit : X - Rs. 3,000; Y - Rs.6,000
9. Where a
partner is entitled to interest on capital such interest will be payable,
a) Only out of
profits
b) Only out of
capital
c) Out of
profits or out of capital
10. In the
absence of partnership deed, partners shall
a) be paid
salaries
b) not to be
paid salaries
c) paid salaries
to those who work for the firm
11. Under fixed
capital method salary payable to a partner is recorded
a) in Current
Account
b) in Capital
Account
c) either in
Current Account or Capital Account.
12. If a firm is
maintaining both ‘Capital Accounts’ and ‘Current Accounts’ of the partners A
and B. Additional capital introduced by B will be recorded in
a) B’s Current
Account
b) B’s Capital
Account
c) either B’s
Capital Account or Current Account
(Answers : 1.
(b); 2. (b); 3. (c); 4. (a); 5.(a); 6.(a); 7. (c); 8. (b); 9. (a);
10. (b); 11. (a); 12.
(b))
II. Other
Questions:
1. Define
Partnership.
2. What is
Drawings?
3. What is
Goodwill?
4. What is
Average profit?
5. What is Super
profit?
6. What is Partner’s
Current Account?
7. What is
Profit and Loss Appropriation Account?
8. What are the
features of a partnership?
10. In the
absence of Partnership Deed, how are the following items dealt in the books of
accounts of a firm?
a) Interest on
Capital
b) Interest on
drawings
c) Salaries to
partners
d) Commission to
partners
e) Interest on
partners loan
f) profit
sharing ratio
11. What are the
differences between fixed capital account and fluctuating capital account?
12. What are the
factors affecting goodwill?
13. Explain the methods
of valuation of Goodwill.
a) Salary
payable to a Partner
b) Drawings made
by a Partner
15. If a firm is maintaining both Capital Accounts and Current Accounts of partners A and B where
will the following be recorded
a) Fresh Capital
introduced by B
b) Share of
profits earned by A and B.
16. Mention the
items that may appear on the credit side of the capital accounts of a partner
when the capitals are fluctuating.
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