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MCQ Questions for Class 12 Accountancy set-2
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1. The relation of partners with the firm is that of:
An owner
An Agent
An owner and an agent
Manager
2. Liability of Partners is :
Limited
Unlimited
Determined by partnerships Account
None of these
3. Partners’ current accounts are opened when their capital is:
Fixed
Fluctuating
Both (a) and (b)
None of these
4. The interest on partner’s drawings is debited to:
Partner’s Capital A/c
Profit and Loss A/c
Drawings A/c
P. & L. App. A/c
5. Interest on advance given to the firm is :
Ah appropriation
A gain
A charge
None of these
6. Interest on loan is :
Operating Expense
Direct Expense
Indirect Expense
All of these
7. Partner’s salary is debited to :
Trading Account
Profit and Loss Account
Profit & Loss Appropriation Account
None of these
8. Partnership may be :
Limited
Unlimited
At will
All of these
9. Partnership Deed is also called :
Prospectus
Articles of Association
Principles of Partnership
Articles of Partnership
10. In which year did the Partnership Act passed ?
Year 1932
Year 1956
Year 1947
Year 1952
11. Calculate interest on drawing @12% p.a. for Abhishek if he withdraw ₹ 2,000 once in month :
₹ 1,440
₹ 1,200
₹ 1,320
₹ 1,500
12. The interest on capital accounts of partners under fixed capital method is to be credited to:
Partner’s Capital A/c
Profit & Loss A/c
Interest A/c
Partner’s Current A/c
13. In the absence of partnership deed, the partner will be allowed interest on the amount advanced to the firm:
@5%
@6%
@ 9%
@8%
14. Which one is not the feature of partnership?
Agreement
Sharing of Profit
Limited Liability
Two or more than two persons
15. In the absence of partnership deed, interest on capital will be given to the partners at:
6% p.a.
None of these
Real Account
None of these
16. The interest on partners’ Capital Accounts under fluctuating method is to be credited to:
Profit & Loss A/c
Interest A/c
Partner’s Capital A/c
None of these
17. The Current Account of the partners will always have:
Debit balance
Credit balance
Either of the two
None of these
18. Interest on partner’s capital is calculated on:
Opening Capital
Closing Capital
Average Capital
None of these
19. Preparation of partnership agreement in writing is :
Compulsory
Voluntary
Partly Compulsory
None of these
20. Interest payable on the capital of the partners is recorded in:
Profit & Loss A/c
Realisation A/c
Profit & Loss Appropriation A/c
None of these
21. For the firm, interest on partner’s drawings is a/an :
Expense
Income
Loss
Gain
22. In the absence ofany agreement, the profits or losses of the firm are shared:
Equally
In Capital Ratio
In Different Proportions
None o these
23. In partnership firm profits and losses are shared :
Equally
In the Ratio of Capitals
As per Agreement
None of these
24. Profit & Loss Appropriation Account is prepared to:
Create Reserve Fund
Find out Net Profit
Find out Divisible Profit
None of these
25. In an Ordinary Partnership, maximum number of partners can be:
50
10
15
20
26. Which of the following is an appropriation of profit?
Interest on Loan
Interest on Capital
Salary
Rent
27. When time of withdrawals are not mentioned, interest on drawings is charged :
for 616 months
for 8 months
for 516 months
for 12 months
28. When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings:
for 616 months
for 6 months
for 516 months
for i month
29. In the absence of partnership deed, partners are not entitled to receive:
Salaries
Commission
Interest on Capital
All of these
30. If a fixed amount is withdrawn on the first day of every quarter, the interest on total drawing will be calculated :
for 6 months
for 6.5 months
for 5.5 months
for 7.5 months
31. Which accounts are opened when the capitals are fixed?
Only Capital Accounts
Only Current Accounts
Liability Accounts
Capital and Current Accounts
32. Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by:
Spicer and Pegler
ICAI
Lord Elton
AICPA
33. Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be :
₹ 12,000
₹ 10,000
₹ 15,000
None of these
34. When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited :
Partner’s Capital
Goodwill
Cash
Reserve
35. The amount of goodwill is paid by new partner :
for the payment of capital
for sharing the profit
for purchase of assets
None of these
36. At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:
All Partner’s Capital Accounts
New Partner’s Capital Account
Old Partners’. Capital Accounts
None of these
37. Profit or Loss on Revaluation is borne by:
Old Partners
New Partners
All Partners
Only Two Partners
38. Share of goodwill brought by new partner in case is shared by old partners in :
Sacrificing Ratio
Old Ratio
New Ratio
Equal Ratio
39. A, Band Care three partners sharing profits and losses in the ratio of 4:3:2. D is admitted for 1/10 share, the new ratio will be :
10 : 7 : 7 :4
5 : 3 : 2 : 1
4 : 3 : 2 : 1
None of these
40. A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner for 1/3 rd share in the profits of the firm. The new profit sharing ratio of A, B and C would be :
3 : 2 : 1
3 : 2 : 2
3 : 2 : 3
6 : 4 : 5
41. X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :
₹ 2,50,000
₹ 50,000
₹ 1,00,000
₹ 1,25,000
42. A, B and C are partners in a firm. If D is admitted as a new partner, then:
Old firm is dissolved
Old firm and old partnership is dissolved
Old Partnership is reconsitituted
None of these
43. In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners :
Profit sharing ratio
Capital ratio
Sacrificing ratio
None of these
44. Sacrificing ratio is ascertained at the time of:
Death of a partner
Retirement of a partner
Admission of a partner
None of these
45. If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it will the transferred to:
Profit & Loss Appropriation A/c
All Partners’ Capital A/cs
Old Partners’ Capital A/cs
Revaluation A/c
46. State the ‘true’ statement:
Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner
The new partner is liable for the past losses of the firm
In case the new partner is unable to bring in cash for goodwill, Goodwill Account may be raised in the firm’s books as per AS-26
When a partner is admitted, there is dissolution of firm
47. Excess of the credit side over the debit side of Revaluation account is:
Profit
Loss
Gain
Expense
48. Balance sheet prepared after new partnership agreement, assets and liabilities are recorded at:
Original Value
Revalued Figure
At Realisable Value
Either of (a) or (b)
49. Assets and Liabilities are shown at their revalued values in :
New Balance Sheet
Revaluation A/c
All Partner’s Capital A/c’s
Realisation A/c
50. Which of the following assets is compulsorily revalued at the time of admission of a new partner :
stock
Fixed Assets
Investment
Goodwill
Submit