Class 12 Accountancy MCQs Partnership Basic Concepts

Class 12 Accountancy MCQs Partnership Basic Concepts

There are a large number of questions included in the learning activities given for each chapter here. But, for preparation of exam. paper pen practice is must. You have to maintain 'speed with accuracy' to score high.

Questions are from the single chapter but not according to the difficulty level or topic wise. These are jumbled to prepare you mentally for getting difficult questions at once.

Always note down your time taken before doing these questions. As these questions are based on actual examination questions, you should do these after thoroughly reading the notes and doing practice from your book.

Answers are given at the end.

Class 12 Accountancy MCQs Partnership Basic Concepts

Assertion: Ramesh, a partner in a firm with four partners has advanced a loan of ₹40,000 to the firm for last six months of the financial year without any agreement. He claims an interest on loan of ₹2,400 despite the firm being in loss for the year.

Reason: In the absence of any agreement / provision in the partnership deed, provisions of Indian

Partnership Act, 1932 would apply.

a) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion.

b) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion.

c) Assertion is correct but Reason is incorrect.

d) Assertion is incorrect but Reason is correct.

2. Meena, Beena and Teena are partners, Teena has been given a guarantee of minimum profit of ₹8,000 by the firm. Firm suffered a loss of ₹5,000 during the year. Capital account of Beena will be ……… by ₹……….

a) Credited, ₹6,500.

b) Debited, ₹6,500.

c) Credited, ₹1,500.

d) Debited, ₹1,500.

3. Ankita and Babita are partners. Babita draws a fixed amount at the end of every quarter. Interest on drawings is charged @15% p.a. At the end of the year interest on Babita’s drawings amounted to ₹9,000. Drawings of Babita were:

a) ₹24,000 per quarter.

b) ₹40,000 per quarter

c) ₹30,000 per quarter

d) ₹80,000 per quarter

4. Anandi and Chandni are partners in a firm. On 1st July, 2023 Anandi advanced a loan of ₹6,00,000 to the firm. There is no partnership deed. On 31st March, 2024, Anandi was entitled to get the following amount as interest on loan:

a) ₹ 36,000

b) ₹18,000

c) ₹9,000

d) ₹27,000

5. Kawal and Preet were partners in a firm. Their partnership deed provided that interest on partners’ drawings will be calculated at 12% p.a. Interest on Preet’s drawings was calculated at ₹900.

The necessary journal entry for charging interest on drawings will be:

a) Profit and Loss Appropriation A/c Dr. ₹ 900

To Interest on Drawings A/c ₹ 900

b) Interest on Drawings A/c Dr. ₹ 900

To Profit and Loss Appropriation A/c ₹ 900

c) Preet’s Capital/Current A/c Dr. ₹ 900

To Interest on Drawings A/c ₹ 900

d) Interest on Drawings A/c Dr. ₹ 900

To Partner’s Capital/Current A/c ₹ 900

6. Josh and Jeevan were partners in a firm. During the year ended 31.03.2023 Jeevan withdrew ₹ 5,000 per month starting from 30.06.2022. The partnership deed provided that interest on drawings will be charged @ 12% per annum. The average number of months for which are:

a) 6 months

b) 5 months

c) 5months

d) 5 months

7. Assertion (A): - Commission provided to partner is shown in Profit and Loss A/c.

Reason (R): - Commission provided to partner is charge against profits and is to be provided at fixed rate.

a) (A) is correct but (R) is wrong

b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

c) Both (A) and (R) are incorrect.

d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)

8. A, B and C are in partnership business. A used ₹2,00,000 belonging to the firm without the information to other partners and made a profit of ₹35,000 by using this amount. Which decision should be taken by the firm to rectify this situation?

a) A need to return only ₹2,00,000 to the firm.

b) A is required to return ₹35,000 to the firm.

c) A is required to pay back ₹35,000 only equally to B and C.

d) A need to return ₹2,35,000 to the firm.

9. Interest on Partner’s loan is credited to:

a) Partner’s Fixed capital account.

b) Partner’s Current account.

c) Partner’s Loan Account.

d) Partner’s Drawings Account.

10. Assertion - A firm should have a Partnership Deed.

Reason - In case, any dispute or any misunderstanding arises among partners, Partnership Deed acts as good evidence in the court. In the context of above two statements, which of the following is correct:

a) Assertion is correct but Reason is incorrect

b) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion

c) Both Assertion and Reason are incorrect

d) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion

Class 12 Accountancy MCQs Partnership Basic Concepts

11. Ajay and Umar are partners in a hotel. Net Profit for the year ended 31st March, 2024 was ₹2,30,000. While preparing the Profit & Loss Account, following were not accounted - Hall charges for hall used by guests of partners free of charge@₹30,000 each partner, Repairs paid for Ajay's personal car ₹7,500 from the firm's bank account and accounted as an expense. Ajay and Umar are entitled to salaries as- Ajay ₹30,000 p.a., Umar ₹40,000 p.a. These salaries have not been paid. The correct net profit is:

a) ₹2,32,500

b) ₹2,27,500

c) ₹2,97,500

d) None of these

12. When a partner draws a fixed sum for 12 months at the beginning of each month, interest on drawings at an agreed rate will be equal to interest for:

a) 5.5 months

b) 6 months

c) 4.5 months

d) 6.5 months

13. Would interest on Partner's Loan to the firm be allowed in the absence of an agreement:

a) Interest is not allowed

b) Allowed only when agreed by all the partners

c) Will be paid only when adequate profit is earned

d) Allowed at 6% p.a.

14. Sangeeta and Mita were partners in a firm sharing profits and losses in the ratio of 7:1. Sangeeta withdrew a fixed amount of ₹12,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. The Journal entry for charging interest on drawings at the end of the year will be:

a) Interest on Drawings A/c Dr. To Sangeeta's Capital A/c ₹1,800

b) Interest on Drawings A/c Dr. To Sangeeta's Current A/c ₹1,800

c) Sangeeta's Capital A/c Dr. To Interest on Drawings A/c ₹1,800

d) Profit & Loss Appropriation A/c Dr. To Interest on Drawings A/c

15. Pinka, Tinku and Minka are partners in a firm dealing in steel utensils. Pinka withdrew ₹15,000 in the beginning of each quarter. Tinku withdrew steel utensils costing ₹22,500 for donation to an NGO. Minka withdrew ₹30,000 from his Capital Account. The Partnership Deed provides for interest on drawings @ 10% p.a. Interest on drawings charged from the partners will be:

a) Pinka - ₹7,200, Tinku - ₹1,250, Minka - ₹2,500

b) Pinka - ₹7,200, Tinku - ₹1,250, Minka - ₹2,000

c) Pinka - ₹3,750, Tinku - ₹1,125, Minka - Nil

d) Pinka - ₹7,200, Tinku - Nil, Minka - Nil

16. Simran and Baljit are partners in a firm. Simran draws a fixed amount at the end of each quarter. Interest on drawings is charged @ 10% p.a. At the end of the year, interest on Simran's drawings was ₹900. Drawings of Simran per quarter were:

a) ₹4,000

b) ₹6,000

c) ₹5,000

d) ₹8,000

17. Amrit, a partner in a firm is to receive interest of ₹5,000 on loan. The Journal entry would be:

a) Dr. Interest on Amrit's Loan Account and Cr. Amrit's Capital Account by ₹5,000

b) Dr. Bank Account and Cr. Amrit's Capital Account by ₹5,000.

c) Dr. Interest on Amrit's Loan Account and Cr. Amrit's Loan Account by ₹5000

d) Dr. Amrit's Loan Account and Cr. Interest on Amrit's Loan Account by ₹5,000

18. Assertion - Interest on Loan by Partner is credited to Partner's Loan Account.

Reason - Interest on Partner's Loan is a gain to a partner as a lender and not as a partner. In the context of above two statements, which of the following is correct:

a) Assertion is correct but Reason is incorrect

b) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion

c) Both Assertion and Reason are incorrect

d) Both Assertion and Reason are correct, and Reason is the correct explanation of Assertion

19. ASSERTION - Om Prakash, a partner in a firm with four partners has advanced a loan of ₹80,000 to the firm for last six months of the financial year without any agreement. He claims an interest on loan of ₹4,800 despite the firm being in loss for the year.

REASONING - In the absence of any agreement / provision in the partnership deed, provisions of Indian Partnership Act, 1932 would apply:

a) A is correct but R is incorrect

b) A is incorrect but R is correct

c) Both A and R are correct, and R is the correct explanation of A

d) Both A and R are correct, but R is not the correct explanation of A

20. Neena, Jyoti and Poonam are in partnership business. Neena used ₹2,00,000 belonging to the firm without the information to other partners and made a profit of ₹35,000 by using this amount. Which decision should be taken by the firm to rectify this situation:

a) Neena needs to return only ₹2,00,000 to the firm

b) Neena is required to return ₹35,000 to the firm

c) Neena is required to pay back ₹35,000 only equally to Jyoti and Poonam

d) Neena needs to return ₹2,35,000 to the firm

Class 12 Accountancy MCQs Partnership Basic Concepts

To Share this article, Click here:

Related Posts

Accounting for Partnership Made Easy (Comic)

Basics of Partnership Accounting

Guarantee of Profits

Past Adjustments – Questions