CA Foundation Partnership — practice questions
102 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 aUnder Section 4 of the Indian Partnership Act, 1932, 'partnership' is the relation between persons who have agThe true test of the existence of a partnership is:Under Section 5, the relation of partnership arises from:Regarding profits and losses in a partnership:Under Section 6, the receipt by a lender of money of a share of profits of a business:With respect to a minor and a partnership firm:The maximum number of partners permitted in a partnership firm (under the Companies (Miscellaneous) Rules, 201Which statement distinguishing a partnership firm from a joint-stock company is correct?Under Section 7, a 'partnership at will' is one where:Where a partnership entered into for a fixed term is continued after the expiry of that term, it becomes a:A partnership formed for a single adventure or undertaking is a 'particular partnership', and it is dissolved:Regarding a partnership deed:An active (ostensible) partner who retires from the firm:A sleeping (dormant) partner:A 'nominal partner' is one who:A 'partner in profits only':An incoming partner admitted into an existing firm is:An outgoing (retiring) partner remains liable to third parties for the firm's acts:Under Section 28, a person who by words or conduct represents himself, or knowingly permits himself to be reprA 'sub-partner' (a person with whom a partner shares his own share of profits):Which correctly distinguishes partnership from co-ownership?The name under which the business of a partnership is carried on is called the:In determining the existence of a partnership under Section 6, the sharing of profits is:Unlike a company which enjoys perpetual succession, in a partnership the death or insolvency of a partner:Under Section 9, the general duties of partners require them to:Under Section 10, a partner who commits fraud in the conduct of the firm's business must:Under Section 11(2), a partnership contract may validly provide that a partner shall not carry on any businessUnder Section 12(c), a change in the NATURE of the firm's business requires:Under Section 12(d), every partner (whether active or sleeping) has the right to:Under Section 13(a), in the absence of a contrary agreement or usage, a partner is:Under Section 13(b), in the absence of agreement, partners share profits and losses:Under Section 13(c), where a partner is entitled to interest on the capital he subscribed, such interest is paUnder Section 13(d), a partner who makes a payment or advance beyond his agreed capital is entitled to interesUnder Section 13(e), the firm must indemnify a partner for payments and liabilities incurred:Under Section 13(f), a partner must indemnify the firm for loss caused by his:Under Section 14, which of the following is regarded as property of the firm?Property belonging exclusively to a partner but used for the firm's business:Under Section 16(a), where a partner derives a secret profit from a transaction of the firm or from use of theUnder Section 16(b), if a partner carries on a business of the same nature as and competing with the firm, he Under Section 18, with respect to the business of the firm, a partner is:Under Section 19, the 'implied authority' of a partner is the authority to do acts that:In the absence of a contrary usage, the implied authority of a partner does NOT empower him to:Under Section 20, a restriction on a partner's implied authority binds a third party only if:Under Section 21, in an emergency a partner has authority to:Under Section 22, to bind the firm, an act or instrument by a partner must be done or executed:Under Section 23, an admission or representation made by a partner binds the firm if it is:Under Section 24, notice to a partner who habitually acts in the firm's business operates as notice to the firUnder Section 17, after a change in the constitution of the firm, the mutual rights and duties of the partnersThe proportion in which partners share profits, in the absence of agreement, bears what relation to their capiWhere one partner is better acquainted with the firm's accounts in a transaction with another partner for saleUnder the Indian Partnership Act, 1932, registration of a firm is:Under Section 58, the statement for registration of a firm must be signed by:On the accepted view, registration of a firm is complete when:A key consequence of non-registration under Section 69 is that an unregistered firm:Under Section 69, a partner of an unregistered firm:Which right is NOT affected by non-registration of a firm?Under Section 39, the 'dissolution of a firm' means the dissolution of partnership:Which statement distinguishes dissolution of a firm from dissolution of partnership?Under Section 40, dissolution by agreement requires:Under Section 41, a firm is COMPULSORILY dissolved when:Under Section 42, subject to contract, a firm may be dissolved on the happening of which contingency?Under Section 43, a partnership at will may be dissolved by:Where a Section 43 notice of dissolution mentions no date, the firm is dissolved as from:Which of the following is a ground for dissolution by the COURT under Section 44?A partner suffers a temporary illness (typhoid) and cannot work for a few weeks. This is:Which of the following is NOT a ground for dissolution by the court under Section 44?Under Section 45, after dissolution the partners continue to be liable to third parties for acts done as if thUnder the proviso to Section 45, even without public notice, no liability for post-cessation acts attaches to:Under Section 47, after dissolution the authority of partners to bind the firm continues only:Under Section 48, in settling accounts after dissolution, losses (including capital deficiencies) are paid firUnder Section 48, the assets of the firm (after dissolution) are applied in which order?Under Section 49, where there are joint (firm) debts and separate (partner) debts, the firm's property is applPublic notice is NOT required in the case of:A notice of dissolution of a partnership at will, once given: