MCQs on Fundamental of Partnership, Mcq on fundamental of partnership

   Hello viewers, Today we are going to start MCQs on Fundamental of Partnership , I hope it will be helpful for your upcoming exam. (Part-1, From Question No. 01 to 20 ) 

MCQ on fundamental of partnership in english pdf

Multiple Choice Questions for Financial accounting


1. The relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all is called?

(a) Partnership

(b) Joint Stock Company

(c) Limited liability company

(d) Sole proprietorship

Ans-(a) Partnership

2. The document sets out the terms on which partners agreed to form a partnership is called?

(a) Partnership deed

(b) Partnership agreement

(c) Both a and b

(d) None

Ans- (c) Both a and b

 

3. The partnership form of business organization?

(a) Is a separate legal entity

(b) is a common form of organization

(c) Enjoys an unlimited life

(d) has limited liability

Ans- (b) is a common form of organization

 

4. Which of the following is an artificial person recognized by law?

(a) Foundation

(b) Partnership

(c) Limited company

(d) Mosque

Ans-(c) Limited company

 

5.Arvi Bare partner in a fim They are entitled to interest on their capitals but the net profit was insufficient for this interest, then the net profit will distributed in

(A) Agreed Ratio.                      

(b) Profit Sharing Ralio

(C) Capital Ratio.                       

(D) Equally ratio

Ans-(A) Agreed Ratio. 

 

6. For the firm interest on capital is

a. Capital Payment 

b. Loss

c. Capital Receipt

d. Income

Ans- b. Loss

 

7. Liability of partners in a partnership business is:

(a) Limited 

(b) Un-limited 

(c) Limited & unlimited.                  

(d) None of these

Ans- (b) Un-limited 

 

8. Any partner who investments in the business but does not take active part in the business is:

(a) Secret partner 

(b) Sleeping partner

(c). Active partner 

(d) Nominal partner

Ans- (b) Sleeping partner

 

9. Investment in partnership is made by introducing:

(a) Cash  

(b) None-cash assets

(c) Cash or non-cash assets 

(d) None of these.

Ans- (c) Cash or non-cash assets 

 

10. Under fixed capital methods, profit will be credited to:

(a) Capital Account 

(b) Drawings

(c) Current A/c 

(d) Profit and Loss a/c

Ans- (c) Current A/c 

 

11. A new partner can be entered into the partnership with the consent of:

a - singflucbalanco partners

b- only two partner

c - majority of partners

d - all the existing partners

Ans- d - all the existing partners

 

12. Interest on drawing of partners calculated by

a. Direct method 

b. Product method

c. Both a And b 

d. None of this

Ans- c. Both a And b 

 13. _________ is the relation between persons who have agreed to share the profits of

business carried on by all or any to them acting for all.

a. Partners 

b. Partnership 

c. Firm

d.  Goodwill

Ans-b. Partnership 

 

14. The guarantee to an existing or incoming partner may be given by all the old partners or any of them in their new profit sharing ratio or an agreed basis.

a. True  

b. False

Ans- a. True  

 

15. Critically evaluate the preparation of partnership deed by a partnership firm.

a. Partnership deed        

b. Partners personal agreement  

c. Partnership act 1932    

d. None of this

Ans- a. Partnership deed        

 

16. Pass the necessary entries for preparing profit and loss appropriation account.

Capital accounts

a. Fluctuating Capital a/c     

b. Fixed capital method  

c. Profit and loss account

d. Capital a/c


 

17. which kind of partnership one partner has unlimited liability and other partner have limited liability

a. Partnership at will

b. Lits partnership

c. Cene partnership                      

d. Particular partnership

Ans- d. Particular partnership

 

18. To start a partnership business, what should be the minimum number of partners?

a. 2

b. 10

c. 20

d. 50

Ans- a. 2

 

19. Interest on partner's capitals will be debited to:

a. Profit and Loss Account

b. Profit and Loss Appropriation Account

c. Partner's Capital Accounts

d.  None of the Above

Ans-b. Profit and Loss Appropriation Account

 

20. For the firm interest on drawings is

a. Capital Payment 

b. Expenses 

c. Capital Receipt

d. Income

Ans- d. Income

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