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- 1. Multiple-choice1 minute1 pt
1. Interest on Partners’ Loan is to be treated as –-------
a charge against profit
an appropriation of profit
- 2. Fill-in-the-Blank30 seconds1 pt
P and Q are partners in a firm. They are entitled to interest on their capitals but the net profit was not sufficient for this interest. The net profit will be distributed between partners in
- 3. Fill-in-the-Blank30 seconds1 pt
3. What is the maximum number of partners that a partnership firm can have? Name the act that provides for maximum number of partners in a partnership firm.
- 4. Fill-in-the-Blank30 seconds1 pt
---------------------------- is an extension of Profit & Loss Account.
- 5. Open-ended2 minutes1 pt
Kajal, Neerav and Alisha are partners in a firm sharing profits in the ratio of 3 : 2 : 1.They decided to admit Venusan, their landlord as a partner in the firm. Venusan brought sufficient amount of capital and his share of goodwill premium. The accountant of the firm passed the entry of rent paid for the building to Venusan in ‘Profit and Loss Appropriation Account’. Is he correct in doing so? Give reason in support of your answer.
- 6. Open-ended15 minutes1 pt
Shreya&Vivek were partners sharing profits in the ratio 3:2. The balances in capital & current accounts of Shreya and Vivek as on 01.04.2017 were Rs.3,00,000 and Rs.2,00,000 and Rs.1,00,000(Cr.) and Rs.28,000(Dr.) respectively. The partnership deed provided that Shreya was to be paid a salary of Rs.5, 000 p.m. and Vivek was to get a commission of Rs.30, 000 p.a. Interest on Capital was to be allowed @ 8% p.a. whereas Interest on Drawings were to be charged @ 6% p.a. The drawings of Shreya were Rs.3, 000 at the beginning of each quarter while Vivek withdrew Rs.30, 000 on 01.09.2017. Net profits before making the above adjustments were Rs.1, 20,000. Prepare Profit & Loss Appropriation A/c. and Partners Capitals and Current A/cs.
- 7. Open-ended15 minutes1 pt
X, Y and Z are partners in a firm sharing profits & losses in the ratio of 2 : 3 : 5. On April 1, 2016 their fixed capitals were Rs. 2, 00,000, Rs. 3,00,000 and Rs. 4,00,000 respectively.
Their partnership deed provided for the following:
(i) Interest on capital @ 9% per annum.
(ii) Interest on Drawings @ 12% per annum.
(iii) Interest on partners’ loan @ 12% per annum.
On July 1, 2016, X brought Rs. 1,00,000 as additional capital and Z withdrew Rs. 1,00,000 from his capital. During the year X,Y and Z withdrew Rs. 12,000, Rs. 18,000 and Rs. 24,000 respectively for their personal use. On January 1, 2017 the firm obtained a Loan of Rs. 1,50,000 from Y. The Net profit of the firm for the year ended March 31, 2017 after charging interest on Y’s Loan was Rs.85, 000. Prepare Profit & Loss Appropriation Account and Partners Capital Account. [8]
- 8. Open-ended1 minute1 pt
In the absence of deed …………….salary will be given to partners.
