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CA Foundation Partnership — practice questions

Explore 73 free Partnership questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Partnership questions and exercises with answers

Showing questions 1–30 of 73.

Under Section 4 of the Partnership Act, 1932, partners agree to share what?Read the answer and worked solution →Legally, an ordinary Indian partnership firm is best described as?Read the answer and worked solution →What is the real test of a partnership set by Indian courts?Read the answer and worked solution →Does the Partnership Act require the partnership agreement to be in writing?Read the answer and worked solution →A partner by agreement who takes no active part in running the firm is called?Read the answer and worked solution →Who lends his name to a firm but is not entitled to share its profits?Read the answer and worked solution →A person who induces others by words or conduct to believe he is a partner is?Read the answer and worked solution →Under Section 9, partners must render what to one another?Read the answer and worked solution →Who must indemnify the firm for loss caused by fraud in its business?Read the answer and worked solution →Changing the nature of a firm's business needs whose consent?Read the answer and worked solution →Ordinary differences among partners on routine matters are settled by?Read the answer and worked solution →With no agreement, can a working partner claim a salary from the firm?Read the answer and worked solution →With no deed or custom, interest on a partner's capital is?Read the answer and worked solution →Without agreement, a partner's advance beyond capital earns interest at?Read the answer and worked solution →A partner earns profit from a business competing with his firm. To whom is it due?Read the answer and worked solution →With no agreement on ratio, partners share profits and losses?Read the answer and worked solution →A put in ₹3 lakh and B ₹1 lakh with no deed. Profit is ₹90,000. B's share?Read the answer and worked solution →Three partners with no deed and unequal capitals lose ₹60,000. Each bears?Read the answer and worked solution →Agreed interest on capital is ₹20,000 but divisible profit is ₹15,000. Maximum payable?Read the answer and worked solution →A partner lends ₹50,000 beyond capital with no rate agreed. One year's interest?Read the answer and worked solution →A partner advanced ₹80,000 on 1 April, no rate agreed. Interest to 30 September?Read the answer and worked solution →Profit ₹1,50,000; agreed interest on capital A ₹20,000, B ₹10,000; B's salary ₹20,000; rest equal. A's total?Read the answer and worked solution →Firm earns ₹60,000 before a partner's ₹50,000 loan (default rate, a year). Two equal partners: each gets?Read the answer and worked solution →Profit ₹1,00,000 before A's agreed salary of ₹20,000; balance equal. B receives?Read the answer and worked solution →If a firm continues without settling an outgoing partner's account, he may claim?Read the answer and worked solution →A retired partner's ₹2,00,000 dues stay unpaid a year. He opts for interest at the Act's rate. Amount?Read the answer and worked solution →On settlement of a dissolved firm, losses are first set off against?Read the answer and worked solution →After capital is repaid on dissolution, any surplus is divided in?Read the answer and worked solution →Which claim comes first on a dissolved firm's assets?Read the answer and worked solution →After profits and capital are used up, a ₹50,000 loss remains. Partners share 3:2. The 2-part partner bears?Read the answer and worked solution →

Worked practice questions

Under Section 4 of the Partnership Act, 1932, partners agree to share what?

  1. Capital contributions
  2. Salaries and wages
  3. Personal property
  4. Profits of a business
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Correct answer: D. Profits of a business

The statutory definition makes an agreement to share business profits the core of a partnership.

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Legally, an ordinary Indian partnership firm is best described as?

  1. No entity apart from partners
  2. A registered body corporate
  3. A perpetual-succession entity
  4. A separate juristic person
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Correct answer: A. No entity apart from partners

A general partnership firm has no legal personality distinct from the partners who make it up.

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What is the real test of a partnership set by Indian courts?

  1. Firm registration
  2. Written deed
  3. Equal capital
  4. Mutual agency
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Correct answer: D. Mutual agency

Courts ask whether a partner can bind the others as their agent, which is mutual agency.

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More Accounting topics

Final Accounts of Sole ProprietorsAccounting ConceptsBills of Exchange and Promissory NotesCompany AccountsDepreciation and AmortisationInventoriesBank Reconciliation StatementPartnership Accounts