MCQs on Partnership Accounting Class 12

MCQs on Partnership Accounting - All these questions are from previous year CBSE Question Papers and Sample Papers, selected to facilitate the students to have correct idea of what has been asked and what may be asked in examination.

Question 1

Atul, Beena and Sita were partners in a firm sharing profits and losses in the ratio of 8 : 7 : 5. Damini was admitted as a new partner for 1/5th share in the profits which she acquired entirely from Atul. The NPSR after Damini's admission will be:

7 : 7 : 5 : 1

*4 : 7 : 5 : 4

8 : 7 : 5 : 4

7 : 5 : 8 : 4

Question 2

Rushil and Abheer were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted Sunil as a new partner for 3/7th share in the profits of firm, which he acquired 2/7th share from Rushil and 1/7th share from Abheer. The new profit-sharing ratio of Rushil, Abheer and Sunil will be:

4 : 3 : 3

2 : 1 : 3

*2 : 2 : 3

4 : 3 : 1

Question 3

Abhay, Boris and Chetan were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Boris was guaranteed a profit of ₹95,000. Any deficiency on account of this was to be borne by Abhay and Chetan equally. The firm earned a profit of ₹2,00,000 for the year ended 31st March, 2023. The amount given by Abhay to Boris as guaranteed amount will be:

*₹17,500

₹35,000

₹25,000

₹10,000

Question 4

Aavya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of ₹ 50,000 at ₹ 45,000 in part settlement of their amount of ₹ 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be:

₹ 10,000

₹ 50,000

₹ 45,000

*₹ 15,000

Question 5

Piyush, Rajesh and Avinash were partners in a firm sharing profits and losses equally. Shiva was admitted as a new partner for an equal share. Shiva brought his share of capital and premium for goodwill in cash. The premium for goodwill amount will be divided among:

Old partners in old ratio

New partners in new ratio

New partners in sacrificing ratio

*Old partners in sacrificing ratio

MCQs on Partnership Accounting

Question 6

Alex, Benn and Cole were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted Dona as a new partner for 1/5th share in the future profits. Dona agreed to contribute proportionate capital. On the date of admission, capitals of Alex, Benn and Cole after all adjustments were ₹1,20,000; ₹80,000 and ₹1,00,000 respectively. The amount of capital brought in by Dona will be:

*₹75,000

₹60,000

₹65,000

₹70,000

Question 7

Assertion (A) : Each partner is a principal as well as an agent for all the other partners.

Reason (R) : As per the definition of Partnership Act, partnership business may be carried on by all the partners or any of them acting for all.

Pick the correct option:

Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

*Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Assertion (A) is correct, but Reason (R) is incorrect.

Assertion (A) is incorrect, but Reason (R) is correct.

Question 8

Abha and Babita were partners in a clay toy making firm sharing profits in the ratio of 2 : 1. On 1st April, 2023, their capital accounts showed balances of ₹5,00,000 and ₹10,00,000 respectively. The partnership deed provides for interest on capital @ 10% p.a. The firm earned a profit of ₹90,000 during the year. The amount of interest on capital allowed to Abha will be:

₹50,000

₹60,000

*₹30,000

₹1,00,000

Question 9

₹60,000

₹30,000

*Nil

₹1,00,000

Question 10

Mita, Veena and Atul were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Atul retired and his share was taken over by Mita and Veena in the ratio of 1 : 4. The new profit sharing ratio between Mita and Veena after Atul's retirement will be:

3:2

*8:7

7:3

2:3

MCQs on Partnership Accounting

Question 11

Which of the following items cannot be recorded in the capital account of partners if the capital accounts of partners are fixed?

*Drawings

Withdrawal of capital

Introduction of additional capital

Opening balance of capital

Question 12

Ashu and Basu are partners sharing profits and losses in the ratio of 2 : 1. Chetan is admitted as a new partner with 1/4th share in the profits which he acquires equally from Ashu and Basu. The new profit sharing ratio between Ashu, Basu and Chetan will be:

*13 : 5 : 6

13 : 2 : 1

2 : 13 : 5

1 : 1 : 1

Question 13

On 1st January, 2023, Abhishek, a partner, advanced a loan of ₹3,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on the loan for the year ending 31st March, 2023 will be:

₹18,000

*₹4,500

₹9,000

NIl

Question 14

If a partner withdraws a fixed amount at the end of each quarter, interest on drawings will be charged for _____ months.

7.5

*4.5

Question 15

Bhim, Arjun and Nakul were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2023, they agreed to share profits equally. Due to change in the profit sharing ratio, Arjun's sacrifice or gain will be:

Sacrifice 1/30

*Gain 1/30

Sacrifice 1/15

Gain 1/15

MCQs on Partnership Accounting

Question 16

Neeru and Meetu are partners in a firm with capitals of ₹2,00,000 and ₹1,50,000 respectively. If the firm earned a profit of ₹17,500 for the year ended 31st March, 2023, then interest on capital @ 10% p.a. would be:

Neeru ₹ 15,000; Meetu ₹ 20,000

Neeru ₹ 8,750; Meetu ₹ 8,750

Neeru ₹ 20,000; Meetu ₹15,000

*Neeru ₹10,000; Meetu ₹ 7,500

Question 17

At the time of dissolution of a firm, the total assets were ₹6,00,000 and outside liabilities were ₹2,40,000. If assets realised ₹7,20,000 and realisation expenses of ₹ 8,000 were paid, the profit or loss on realisation will be:

Loss ₹1,20,000

Profit ₹ 1,20,000

Loss ₹ 1,12,000

*Profit ₹ 1,12,000

Question 18

Kishore and Bimal are partners in a firm sharing profits and losses in the ratio of 4 : 3. Nand is admitted as a new partner in the firm for 1/4th share in the profits. Kishore and Bimal decide to share profits and losses equally in the future. The sacrificing ratio of Kishore and Bimal will be:

1 : 1

4 : 3

*11 : 3

3 : 11

Question 19

Raju, Sohan and Tina are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Tina is guaranteed a minimum amount of ₹40,000 as share of profit every year. Any deficiency arising on that account shall be borne by Raju. If profit of the firm for the year ended 31st March, 2023 is ₹1,60,000, Raju will bear a deficiency of:

*₹8,000

₹40,000

₹48,000

₹4,000

Question 20

Assertion (A) : The court does not intervene when dissolution of partnership takes place.

Reason (R) : Dissolution of partnership takes place by mutual agreement between the partners.

Choose the correct option from the following:

*Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is incorrect, but Reason (R) is correct.

Assertion (A) is correct, but Reason (R) is incorrect.

MCQs on Partnership Accounting

Question 21

Manas and Ranvir are partners in a firm having capital balances of ₹1,20,000 and ₹ 80,000 respectively. Sanju is admitted as a new partner in the firm for 1/5th share in future profits. Sanju brought ₹1,00,000 as his capital. The goodwill of the firm on Sanju's admission will be:

₹5,00,000

*₹2,00,000

₹3,00,000

₹1,00,000

Question 22

Assertion (A) : In a partnership firm, at the time of admission, the new partner brings in an agreed amount of capital either in cash or in kind.

Reason (R) : In a partnership firm, at the time of admission, the new partner acquires the right to share the assets and the profits of the partnership firm. Choose the correct option from the following:

*Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is incorrect, but Reason (R) is correct.

Assertion (A) is correct, but Reason (R) is incorrect.

Question 23:

Shrikant and Ajay were partners in a firm sharing profits and losses in the ratio of 5 : 3. Shrikant withdrew ₹10,000 in the beginning of each quarter during the year ended 31st March, 2023. Interest on Shrikant’s drawings @ 6% p.a for the year ended 31st March, 2023 will be :

(A) ₹2,400

(B) ₹1,200

*(C) ₹1,500

(D) ₹900

Question 24:

Abha, Manju and Rhea were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. During the year ended 31st March, 2023, Rhea withdrew ₹30,000 at the beginning of each half year. Interest on Rhea’s drawings @ 10% p.a. for the year ended 31st March, 2023 will be :

(A) ₹6,000

*(B) ₹4,500

(D) ₹1,500

Question 25:

Seema and Laksh were partners in a firm sharing profits and losses in the ratio of 2 : 1. Their capitals were ₹2,00,000 and ₹1,80,000 respectively. They admitted Aadi as a new partner on 1st April, 2023 for 1/5th share in future profits. Aadi brought ₹1,50,000 as his share of capital. The goodwill of the firm on Aadi s admission will be :

(A) ₹7,50,000

*(B) ₹2,20,000

(D) ₹1,50,000

MCQs on Partnership Accounting

Question 26:

Lata, Mehu and Namita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2023. Creditors took over stock of book value of ₹80,000 at 80%, in part settlement of their amount of ₹90,000. The balance amount was paid to the creditors by cheque. The amount paid by cheque to the creditors will be :

*(A) ₹26,000

(B) ₹64,000

(D) ₹1,44,000

Question 27:

Sanya, Sarthak and Nitya were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. They decided to dissolve the firm on 31st March, 2023. On this date, the firm had debtors amounting to ₹3,00,000 and provision for doubtful debts of ₹30,000. On dissolution, debtors for ₹20,000 proved bad and the remaining debtors realised 90%. Amount realised from the debtors will be :

(A) ₹3,00,000

(B) ₹2,25,000

*(D) ₹2,52,000

Question 28:

Geeta and Hari were partners in a firm sharing profits and losses in the ratio of 3 : 2. Krish was admitted as a new partner for 1/5th share in profits of the firm which he acquired from Geeta and Hari in the ratio of 2 : 3. Krish brought ₹1,00,000 as his share of capital and ₹50,000 as premium for goodwill in cash. The sacrificing ratio of Geeta and Hari will be :

(A) 3 : 2

(B) 1 : 1

*(C) 2 : 3

(D) 13 : 7

MCQs on Partnership Accounting

Question 29:

Manu, Sonu and Rahul were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2023, they decided to share profits and losses in the future in the ratio of 3 : 2 : 1. Their Balance Sheet showed Workmen Compensation Reserve of ₹84,000. The claim on account of Workmen Compensation is estimated at ₹75,000. The journal entry to give effect to the above transaction will be :

*(A) Workmen Compensation Reserve A/c Dr 84,000

To Workmen Compensation Claim A/c 75,000

To Manu’s Capital A/c 4,000

To Sonu’s Capital A/c 3,000

To Rahul’s Capital A/c 2,000

(B) Workmen Compensation Reserve A/c Dr 84,000

To Workmen Compensation Claim A/c 75,000

To Manu’s Capital A/c 4,500

To Sonu’s Capital A/c 3,000

To Rahul’sCapital A/c 1,500

To Rahul’s Capital A/c 500

(D) Workmen Compensation Reserve A/c Dr 84,000

To Workmen Compensation Claim A/c 75,000

To Manu’s Capital A/c 3,000

To Sonu’s Capital A/c 3,000

To Rahul’s Capital A/c 3,000

Question 30:

Assertion (A) : Partner current accounts under Fixed Capital Method may show a debit or a credit balance.

Reason (R) : In the Fixed Capital , all items like share of profit or loss, interest on capital, drawings, interest on drawings etc. are recorded in the partners capital accounts.

Choose the correct option from the following :

(A) Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

*(C) Assertion (A) is correct, but Reason (R) is not correct.

(D) Both Assertion (A) and Reason (R) are not correct.

MCQs on Partnership Accounting

Question 31:

Read the following hypothetical situation and answer questions No. 1 and 2 on the basis of the given information :

Richa, Sheena and Tapti were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The partnership deed provided for charging interest on drawings @ 10% p.a. The drawings of Richa, Sheena and Tapti during the year ended 31st March, 2023 amounted to ₹50,000, ₹40,000 and ₹30,000 respectively. The net profit for the year ended 31st March, 2023 was ₹57,000.

(a) Sheena’s interest on drawings will be :

(A) ₹5,000

(B) ₹4,000

*(D) ₹2,000

(b) Tapti’s share of profit will be :

(A) ₹11,500

(B) ₹34,500

*(C) ₹10,500

(D) ₹23,000

Question 32:

Nicku, Mala and Ritu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Nicku died on 30th September, 2023. The deceased partner was entitled to his share of profit up to the date of death which was to be calculated on the basis of previous year profit. ₹80,000. Nicku s share of profit will be :

(A) ₹10,000

*(B) ₹20,000

(D) ₹40,000

Question 33:

Nikhil, Arun and Mansi were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2023, they decided to share profits and losses in the ratio of 5 : 3 : 2. Due to change in the profit s gain or sacrifice will be :

(A) Gain 1/10

(B) Sacrifice 3/10

*(C) Sacrifice 1/10

(D) Gain 3/10

Question 34:

Hema and Tara were partners in a firm sharing profits and losses in the ratio of 2 : 3. They admitted Ojas as a new partner. Hema surrendered 1/3rd of her share and Tara surrendered ½ of her share in favour of Ojas. The new profit sharing ratio of Hema, Tara and Ojas will be :

*(A) 8 : 9 : 13

(B) 3 : 2 : 5

(D) 2 : 3 : 25

Question 35:

Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu’s share in 2 : 1. The new profit sharing ratio between Aaroh and Bhuvan after Charu’s death would be:

(A) 2 : 1

(B) 1 : 2

*(C) 5 : 4

(D) 4 : 5

MCQs on Partnership Accounting

Question 36:

Renu, Trilok and Mansi were partners in a firm sharing profits and losses in the ratio of 9 : 6 : 5. Hina was admitted as a partner for 1/10th share in the profits which she acquired equally from Renu and Trilok. The new profit sharing ratio after Hina’s admission will be :

(A) 5 : 5 : 2 : 8

(B) 5 : 5 : 8 : 2

*(D) 8 : 5 : 5 : 2

Question 37:

Ashu and Ria were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted Nitu for a 3/7th share in the profits of the firm, which she took 2/7th from Ashu and 1/7th from Ria. The new profit sharing ratio between Ashu, Ria and Nitu will be :

(A) 4 : 3 : 3

(B) 2 : 1 : 3

*(C) 2 : 2 : 3

(D) 4 : 3 : 2

Question 38:

Nikhil and Sharat were partners in a firm sharing profits and losses in the ratio of 4 : 3. Nikhil withdrew ₹ 6,000 on the first day of every quarter for the year ended 31st March, 2023. Interest on drawings is to be charged @ 5% p.a. Interest on Nikhil’s drawings will be calculated for :

(A) 6 months

(B) 4.5 months

*(C) 7.5 months

(D) 3 months

Question 39:

Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹ 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be :

(A) ₹ 5,000

*(B) ₹ 6,000

(D) Nil

Question 40:

Kamini, Lata and Meera were partners in a firm sharing profits and losses equally. Neel was admitted as a new partner for an equal share in the profits of the firm. Neel brought his share of capital and premium for goodwill in cash. On the date of admission of Neel, goodwill appeared in the books at ₹ 1,20,000. The existing goodwill is to be written off among :

*(A) Old partners in old ratio.

(B) New partners in new ratio.

(D) Old partners in sacrificing ratio

MCQs on Partnership Accounting

Question 41:

Arjun, Babita and Charlie were partners in a firm sharing profits in the ratio of 2 : 2 : 1. They admitted Dheeraj for 1/5th share in the profits of the firm. He has to contribute proportionate capital to acquire 1/5th share in future profits. On the date of admission, the capitals after all adjustments relating to goodwill and revaluation of assets and liabilities, were : Arjun ₹ 62,000, Babita ₹52,000 and Charlie ₹36,000. The capital brought by Dheeraj will be :

*(A) ₹ 37,500

(B) ₹ 30,000

(D) ₹ 35,000

Question 42:

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : The maximum number of partners in a partnership firm are 50.

Reason (R) : The maximum number of partners are prescribed by the Partnership Act, 1932.

Choose the correct option from the following :

(A) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

*(C) Assertion (A) is correct, but Reason (R) is incorrect.

(D) Assertion (A) is incorrect, but Reason (R) is correct.

Question 43:

Read the following hypothetical situation and answer questions (a) and (b) on the basis of the given information :

Daksh and Ekansh are partners in a firm sharing profits and losses in the ratio of 3 : 1. Their capitals were ₹ 1,60,000 and ₹ 1,00,000 respectively. As per partnership deed, they were entitled to interest on capital @ 10% p.a. The firm earned a profit of ₹ 13,000 for the year ended 31st March, 2023.

(a) Daksh’s interest on capital will be :

(A) ₹ 5,000

*(B) ₹ 8,000

(D) ₹ 10,000

(b) Ekansh’s share of profit/loss will be :

*(A) Nil

(B) ₹ 9,750 (Loss)

(D) ₹ 9,750 (Profit)

MCQs on Partnership Accounting

Question 44:

There are two statements Assertion (A) and Reason (R) :

Assertion (A) : Court does not intervene in case of dissolution of partnership.

Reason (R) : Dissolution of partnership takes place by mutual agreement among partners.

Choose the correct option from the following:

(A) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

*(B) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

(D) Assertion (A) is incorrect, but Reason (R) is correct.

Question 45:

Deepa, Elton and Frank were partners in a firm sharing profits in the ratio of 2 : 2 : 1. With effect from 1st April, 2023 they decided to change their profit sharing ratio as 1 : 2 : 2. There existed a Debit Balance of Profit and Loss Account of ₹50,000 in the books of the firm on the date of change in profit sharing ratio. The partners decided to retain the Debit Balance of Profit and Loss Account in the books. The adjustment entry will be :

*(A) Deepa’s Capital A/c Dr. 10,000

To Frank’s Capital A/c 10,000

(B) Deepa’s Capital A/c Dr. 5,000

To Frank’s Capital A/c 5,000

To Deepa’s Capital A/c 10,000

(D) Frank’s Capital A/c Dr. 5,000

To Deepa’s Capital A/c 5,000

MCQs on Partnership Accounting

Question 46:

Som, Pam and Ron were partners in a firm sharing profits in the ratio of 7 : 2 : 1. With effect from 1st April, 2023 they decided to change their profit sharing ratio to 1 : 2 : 7. There existed a Credit Balance in the Profit and Loss Account of ₹ 1,00,000 on the date of change in profit sharing ratio in the books of the firm. The partners decided to retain the Credit Balance in Profit and Loss Account in the books. The adjustment entry will be :

(A) Ron’s Capital A/c Dr. 20,000

To Som’s Capital A/c 20,000

*(B) Ron’s Capital A/c Dr. 60,000

To Som’s Capital A/c 60,000

To Ron’s Capital A/c 20,000

(D) Som’s Capital A/c Dr. 60,000

To Ron’s Capital A/c 60,000

Question 47:

Anu, Bina and Roy were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Roy retired and his share was acquired by Anu. The new profit sharing ratio between Anu and Bina after Roy’s retirement will be :

(A) 3 : 2

(B) 3 : 1

*(D) 2 : 1

Question 48:

Asha, Yug and Zubin were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Zubin retired. Zubin’s share was acquired equally by Asha and Yug. The new profit sharing ratio between Asha and Yug after Zubin’s retirement was :

(A) 3 : 2

*(B) 5 : 4

(D) 2 : 1

Class 12 Accountancy MCQs Partnership Basic Concepts

Class 12 Accountancy MCQs Valuation of Goodwill

Class 12 Accountancy MCQs Reconstitution of Partnership Firm

Class 12 Accountancy MCQs Admission of Partner

Class 12 Accountancy MCQs Retirement of Partner

Class 12 Accountancy MCQs Death of Partner

Class 12 Accountancy MCQs Dissolution of Partnership Firm