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) 6.5 months
c) 4.5 months
d) 9.5 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