CBSE Class 12 (Commerce) Accounting for Partnership Firms: Fundamentals — practice questions
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Practice CBSE Class 12 (Commerce) Accounting for Partnership Firms: Fundamentals in the app →Individually the persons in a partnership are called partners; collectively they are called what?What is the minimum number of persons needed to form a partnership?What maximum number of partners has the Central Government prescribed for a firm?Is an oral agreement between partners a valid basis for a partnership?Rohit and Sachin jointly buy a plot to hold it. What is their legal position?Which feature means each partner is both principal and agent for the others?A group of persons join only for a charitable activity. Is it a partnership?How is the liability of a partner for the firm's acts described?Which statement about a partnership firm's legal status is correct?What is the written document containing the terms of a partnership called?Does the Partnership Act require the agreement to be in writing?Clauses of a partnership deed can be changed only with whose consent?A partnership deed should preferably be registered with which authority?Which item is normally written in a partnership deed?Which clause is a usual part of a partnership deed?If the deed is silent on a matter, which law decides it?The deed is silent on profit sharing. How are profits shared?Mohan put in Rs. 20,000 and Shyam Rs. 50,000 with no deed. Mohan's profit share?With no mention in the deed, can a partner claim interest on capital?If the deed is silent, is interest charged on partners' drawings?A partner lends money to the firm and the deed is silent. What interest rate applies?Shyam lent the firm money and claims 10 per cent; the deed is silent. His valid rate?Can an active partner claim a salary when the deed says nothing on it?A partner earns a private profit from using the firm's name. What must he do?A partner runs a competing business. What must he do with its profit?How many methods of maintaining partners' capital accounts are there?Under the fixed capital method, where are drawings and interest on capital recorded?How many accounts per partner are kept under the fixed capital method?Which partner account can show either a debit or a credit balance?A partner's current account has a debit balance. Where does it appear in the balance sheet?Under which method does the capital account balance change every year?Which capital account may show a debit balance?Which capital method always shows a credit balance in the capital account?Which account is described as an extension of the Profit and Loss Account?Where does the Profit and Loss Appropriation Account begin?Which of these is an appropriation of profit in a partnership firm?Charging interest on drawings has what main effect?When is interest on capital mostly provided in a deed?Mohini brought Rs. 3,00,000 and interest on capital is 10 per cent. Her interest?Rashmi has Rs. 2,00,000 capital, interest at 10 per cent for a full year. Interest?Capital Rs. 2,00,000 on April 1; extra Rs. 1,00,000 added August 1. Interest at 6 per cent for the year to MarMonthly drawings are taken on the first day of each month. Average period for interest?Fixed monthly drawings at the end of each month: interest period is how long?Aashish draws Rs. 10,000 on the first of each month; interest at 8 per cent. Interest for the year?What does a guarantee of profit to a partner ensure?Rahul is guaranteed Rs. 50,000 profit but his 1/4 share of Rs. 1,60,000 is smaller. His deficiency?Mohit and Rohan share 2:1 and guarantee Rahul. Mohit's share of the Rs. 10,000 deficiency?Mohit and Rohan share 2:1; Rahul gets 1/4 of Rs. 1,60,000 with Rs. 50,000 guaranteed. Rahul's final profit?If one partner alone gives the guarantee, who bears the whole deficiency?Only Rakshita guarantees; Rs. 5,000 is the deficiency. Her payout from a Rs. 60,000 share?Deficiency Rs. 5,000 is borne by Madhulika and Rakshita in 2:3. Rakshita's cost?What is a past adjustment in partnership accounts?Interest on capital was omitted: Rameez Rs. 3,000, Zaheer Rs. 6,000, profits equal. Net adjustment for Zaheer?Rs. 9,000 of omitted interest on capital is shared equally by two partners. Each is charged how much?A partner's capital account is fixed. Where is his share of profit credited?Where do partners' capital accounts appear in the balance sheet?Interest on capital is allowed on capital for what period?If the deed is silent, how are losses shared?In a sole proprietorship, where does net profit go?