1. Partners’ Current Accounts are opened when their Capital Accounts are :(a) Fixed(b) Fixed and Fluctuating(c) Fluctuating(d) None of these

2. On 1st January 2019, a partner advanced a loan of ₹1,00,000 to the firm. In the absence of agreement, interest on loan on 31st March 2019 will be :(A) Nil(B) ₹1,500(C) ₹3,000(D) ₹6,000

3. A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is ₹1,00,000. C has not invested any amount as capital but he alone manages the whole business. C wants RS30,000 p.a. as salary. Firm earned a profit of ₹1,50,000. How much will be each partner’s share of profit:

4. Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta was manager who received the salary of ₹4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profit for the year is ₹6,78,000 before charging salary. Find the total remuneration of Meeta.

5. If the Partners’ Capital Accounts are fixed ‘salary payable to partner’ will be recorded :(A) On the debit side of  Partners’ Current Account(B) On the debit side of Partners’ Capital Account(C) On the credit side of Partners’ Current Account(D) None of the above

6. Interest on Partner’s drawings will be debited to : A) Profit and Loss Account(B) Profit and Loss Appropriation Account(C) Partner’s Current Account(D) Interest Account

7. Where will you record interest on drawings :(A) Debit Side of Profit & Loss Appropriation Account(B) Credit Side of Profit & Loss Appropriation Account(C) Credit Side of Profit & Loss Account(D) Debit Side of Capital/Current Account only

8.  If a fixed amount is withdrawn by a partner in the middle of every month, interest on the total amount is charged for …………… months

(A) 6(B) 6 1/2(C) 5 1/2(D) 12

9. Charulata is a partner in a firm. She withdrew ₹10,000 in each quarter during the year ended 31st March, 2019.Interest on her drawings @ 9% p.a. will be:(A) ₹1,350(B) ₹2,250(C) ₹900(D) ₹1,800

10. A and B are partners. According to Profit and Loss Account, the net profit for the year is ₹2,00,000. The total interest on partner’s drawings is ₹1,000. As salary is ₹40,000 per year and B’s salary is ₹3,000 per month. The net profit as per Profit and Loss Appropriation Account will be : (A) ₹1,23,000(B) ₹1,25,000(C) ₹1,56,000(D) ₹1,58,000

11. In the absence of Partnership Deed,interest on Partner’s loan is provided(a) 6% p.a.(b) 7% p.a.(c) 4% p.a.(d) 10% p.a.

12. The partner who provides capital and shares profit and loss in partnership business but does not take active part in the management is known as :(a) Active Partner(b) Sleeping Partner(c) Secret Partner(d) Limited Partner

13. In the absence of Partnership Deed,the profits of a firm are divided among the partners :(a) In the ratio of Capital(b) Equally(c) In the ratio of time devoted for the firm’s business.(d) According to the managerial abilities of the partners. 

14. The ratio in which the continuing partners acquire the outgoing partners share is called  a) Gaining Ratio b) New Profit sharing ratio c) Old Profit sharing ratio d) None of the options

15. Goodwill of the firm on the basis of 2years’ purchase of average profit of the last 3 years is Rs. 25,000. Find average profit.(a) Rs. 50,000(b) Rs. 25,000(c) Rs. 10,000(d) Rs. 2500

16. On the admission of a new partner:a. Old partnership is dissolved b. Both old partnership and firm are dissolved c. Old firm is dissolved  d. None of the above

17. Calculate the value of goodwill at 3years’ purchase when: Capital employed Rs. 2,50,000; Average profit Rs. 30,000and normal rate of return is I0%.(a) Rs. 3000(b) Rs. 25,000(c) Rs. 30,000(d) Rs. 5,000

18. When the incoming partner brings his share of premium for goodwill in cash, it is adjusted by crediting to :(a) His Capital Account(b) Premium for Goodwill Account(c) Sacrificing Partners’ Capital Accounts(d) None of the above.

19. Which of the following items are added to previous year’s profits for finding normal profits for valuation of goodwill.?a)Loss on sale of fixed assets b) Loss due to fire, earthquake etc c) Undervaluation of closing stock d) All of the above

20. Revaluation account or Profit &loss adjustment account is a) Real Account b) Nominal Account c) Personal Account d) None of the options