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
(C) ₹3,000
(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
(C) ₹3,70,000
(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
(C) ₹80,000
(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
(C) ₹2,80,000
*(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
(C) Manu’s Capital A/c Dr 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.