Start learning →

CA Foundation Partnership Accounts — practice questions — page 2

Explore 60 free Partnership Accounts questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

Practise Partnership Accounts with Quill →

Partnership Accounts questions and exercises with answers

Showing questions 31–60 of 60.

Which is NOT a way a new partner can buy into a business?Read the answer and worked solution →How is a new partner admitted into an existing partnership?Read the answer and worked solution →A new partner pays old partners directly for part of their interest. What is the effect on the firm's cash?Read the answer and worked solution →A (Rs 30,000) and B (Rs 20,000) get Rs 15,000 each from C for 1/3 and 1/2 of their interest. C's capital?Read the answer and worked solution →A new partner brings his sole business with assets Rs 9 lakh and liabilities Rs 3 lakh. His capital credit is?Read the answer and worked solution →Equal partners A and B admit C as an equal partner. What share does each then hold, roughly?Read the answer and worked solution →A and B hold 50% each and admit C as an equal partner. How much equity does each of A and B sell to C?Read the answer and worked solution →A holds 60% and B holds 40%. Each sells 25% of his equity to C. What does C own?Read the answer and worked solution →A, B, C hold 50%, 30%, 20%. Each sells 20% of his own equity to D. A's remaining share is?Read the answer and worked solution →A bonus paid to a new partner in an equal partnership is borne how?Read the answer and worked solution →What shows the book value of a partner's interest in the firm?Read the answer and worked solution →A retiring partner withdraws exactly his capital balance. Effect on remaining partners' capital?Read the answer and worked solution →If a retiring partner's interest is bought by a remaining partner, the price paid is what?Read the answer and worked solution →Any gain on selling a retiring partner's interest to a continuing partner belongs to whom?Read the answer and worked solution →On a partner's death, where does the balance of his capital account go?Read the answer and worked solution →On the date of a partner's death, what is done with year-to-date net income?Read the answer and worked solution →A firm paid Rs 50 lakh for a business whose net assets at fair value were Rs 38 lakh. Goodwill is?Read the answer and worked solution →What kind of asset is goodwill?Read the answer and worked solution →Which goodwill is attributable solely to the efforts or reputation of an owner?Read the answer and worked solution →Which goodwill continues to accrue even without a specific owner?Read the answer and worked solution →Can advertising spend that builds a firm's reputation be capitalised into goodwill?Read the answer and worked solution →Which statement about an Indian LLP is correct?Read the answer and worked solution →Which Act is stated not to apply to Indian LLPs?Read the answer and worked solution →What does perpetual succession mean for an LLP?Read the answer and worked solution →What is the upper limit on partners in an Indian LLP?Read the answer and worked solution →What is the minimum number of members needed to start an LLP?Read the answer and worked solution →What minimum capital is needed to form an LLP?Read the answer and worked solution →Which authority registers and controls LLPs in India?Read the answer and worked solution →An LLP partner's liability is limited to what?Read the answer and worked solution →In an LLP, is a partner liable for another partner's unauthorised actions?Read the answer and worked solution →

Worked practice questions

Which is NOT a way a new partner can buy into a business?

  1. Buying from old partners
  2. Investing in the firm
  3. Contributing own assets
  4. Lending to a bank
Show answer and solution

Correct answer: D. Lending to a bank

A new partner buys in by purchase from existing partners, by investment, or by contributing assets from an existing business.

Open this question →

How is a new partner admitted into an existing partnership?

  1. By partners' agreement
  2. By a bank's order
  3. By auditor's decision
  4. By drawing of lots
Show answer and solution

Correct answer: A. By partners' agreement

Admission rests on agreement among the existing partners, with no standard method.

Open this question →

A new partner pays old partners directly for part of their interest. What is the effect on the firm's cash?

  1. Cash rises
  2. Cash falls
  3. No effect
  4. Goodwill rises
Show answer and solution

Correct answer: C. No effect

The payments go to the partners directly, not to the business, so only capital balances move between partners.

Open this question →

How to practise

  1. Choose a Partnership Accounts question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Accounting topics

Final Accounts of Sole ProprietorsAccounting ConceptsBills of Exchange and Promissory NotesCompany AccountsDepreciation and AmortisationInventoriesPartnershipBank Reconciliation Statement