CA Foundation partnership — practice questions
28 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation partnership in the app →Partnership in India is governed by thePartnership is defined as the relation between persons who have agreed to share the ___ of a businessIn the absence of a partnership deed, profits and losses are sharedIn the absence of a deed, interest on a partner's loan to the firm is allowed atIn the absence of a partnership deed, which of these is NOT allowed?The maximum number of partners in a firm (per Companies Act 2013 rules) isThe account prepared to distribute profit among partners is theA and B share profits 3:2. Net profit is ₹50,000. A's share isCapital ₹2,00,000; interest on capital at 10% p.a. for the full year isUnder the fixed capital method, the partners maintainUnder the fluctuating capital method, which item is NOT recorded in the capital account?Interest on drawings isDrawings of ₹10,000 made evenly through the year attract interest at 10% p.a. The interest on drawings is apprA partner's salary, when provided in the deed, isA, B and C are partners 2:2:1. C is guaranteed minimum ₹20,000. Firm profit is ₹80,000. C's actual share beforThe Profit and Loss Appropriation Account is an extension of thePersons who have entered into a partnership are individually calledWhich is an essential feature of partnership?A and B contribute ₹3,00,000 and ₹2,00,000. No deed exists. Profit ₹1,00,000 is shared asInterest on capital is calculated on theNet profit ₹90,000; A's salary ₹12,000; interest on capitals ₹18,000 total. Profit available for distribution If a partner's capital account shows a debit balance, it usually means the partner hasThe document containing the terms of partnership is theP and Q share 1:1. P is guaranteed ₹25,000 minimum by Q. Profit ₹40,000. After guarantee, Q getsRent paid to a partner for using their premises is'Guarantee of profit to a partner' means the partner getsOpening capital ₹1,00,000; additional ₹50,000 introduced after 6 months; interest at 10% p.a. Total interest oCollectively, partners carrying on a business are called a