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Tamil Nadu HSC (Class 12) Accounts of Partnership Firms - Fundamentals — practice questions

Explore 21 free Accounts of Partnership Firms - Fundamentals questions in Tamil Nadu HSC (Class 12) Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

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Accounts of Partnership Firms - Fundamentals questions and exercises with answers

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Partnership firms in India are governed by which statute?Read the answer and worked solution →In the absence of a partnership deed, profits and losses are shared by the partners:Read the answer and worked solution →In the absence of an agreement, interest on a loan advanced by a partner to the firm is allowed at:Read the answer and worked solution →According to the textbook, the maximum number of partners in a partnership firm is:Read the answer and worked solution →A partnership deed is:Read the answer and worked solution →Which item is shown in the profit and loss appropriation account rather than the profit and loss account?Read the answer and worked solution →The profit and loss appropriation account is which type of account?Read the answer and worked solution →In the absence of a partnership deed, a partner who works full time in the firm is entitled to:Read the answer and worked solution →Under the fixed capital method, the partner's capital account:Read the answer and worked solution →A partner's current account is credited with:Read the answer and worked solution →Interest on a loan advanced by a partner is closed by transferring it to the:Read the answer and worked solution →Interest on capital is allowed to partners:Read the answer and worked solution →A partner withdraws a fixed sum in the MIDDLE of every month. The average period for interest on drawings is:Read the answer and worked solution →A partner withdraws a fixed sum at the END of each quarter. The average period is:Read the answer and worked solution →Which method of computing interest on drawings suits different amounts withdrawn at different intervals?Read the answer and worked solution →When the date of a drawing is not given, the textbook computes interest for an average period of:Read the answer and worked solution →In the profit and loss appropriation account, interest on partners' drawings appears on the:Read the answer and worked solution →Under the fluctuating capital method, the share of profit credited to a partner is recorded in the:Read the answer and worked solution →When computing interest on capital, the balance in a partner's current account is:Read the answer and worked solution →A partner withdraws Rs 1,000 at the beginning of every month. Interest on drawings is 5 per cent per annum. The interest is:Read the answer and worked solution →A partner withdraws Rs 4,000 at the end of each quarter. Interest on drawings is 6 per cent per annum. The interest is:Read the answer and worked solution →

Worked practice questions

Partnership firms in India are governed by which statute?

  1. The Indian Partnership Act, 1932
  2. The Indian Companies Act, 2013
  3. The Limited Liability Act, 2008
  4. The Indian Contract Act, 1872
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Correct answer: A. The Indian Partnership Act, 1932

1. A partnership firm is formed when two or more persons agree to carry on a business together. 2. The textbook states that in India partnership firms are governed by the Indian Partnership Act, 1932. 3. Registration of a partnership firm under that Act is optional rather than compulsory, though registration brings benefits. 4. The Limited Liability Partnership Act, 2008 governs LLPs instead, and the book notes that the 1932 Act does not apply to an LLP. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.1_

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In the absence of a partnership deed, profits and losses are shared by the partners:

  1. Equally among all the partners
  2. In their capital ratio
  3. In proportion to their drawings
  4. In proportion to time devoted
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Correct answer: A. Equally among all the partners

1. Where there is no deed, or the deed is silent, the provisions of the Act apply. 2. Section 13(b) provides that profits and losses are to be shared by the partners equally. 3. The number of partners, the size of their capitals and the time each devotes make no difference to this default. 4. The book repeats the rule in its Points to remember: in the absence of an agreed ratio, profits and losses are shared equally. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.4_

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In the absence of an agreement, interest on a loan advanced by a partner to the firm is allowed at:

  1. 5 per cent per annum
  2. 8 per cent per annum
  3. 6 per cent per annum
  4. 12 per cent per annum
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Correct answer: C. 6 per cent per annum

1. Most entitlements vanish when there is no deed, but interest on a partner's loan is the exception. 2. Section 13(d) of the Indian Partnership Act, 1932 allows interest on such a loan at 6 per cent per annum. 3. The textbook repeats this figure in its Points to remember and applies it in its worked illustration on the absence of a deed. 4. By contrast, no interest on capital, no interest on drawings and no salary are allowed without a deed. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.4 and §3.9_

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