| 1 |
In the absence of a partnership deed, how are profits shared among partners? |
Accountancy/Book Keeping
Nature of partnership and partnership deed |
Easy |
| 2 |
Which feature of partnership means that each partner can bind the firm by acts done in the ordinary course of… |
Accountancy/Book Keeping
Nature of partnership and partnership deed |
Easy |
| 3 |
X and Y are partners with no deed. X has advanced a loan of ₹50,000 to the firm and asks for interest at 10% … |
Accountancy/Book Keeping
Nature of partnership and partnership deed |
Medium |
| 4 |
Ravi and Mohan run a firm without a deed. Ravi works full time and claims a monthly salary, while Mohan objec… |
Accountancy/Book Keeping
Nature of partnership and partnership deed |
Medium |
| 5 |
A firm with no deed suffered a loss of ₹20,000 before considering interest on a partner's loan of ₹40,000. Wh… |
Accountancy/Book Keeping
Nature of partnership and partnership deed |
Hard |
| 6 |
Under the fixed capital method, where is a partner's share of profit recorded? |
Accountancy/Book Keeping
Fixed and fluctuating capital |
Easy |
| 7 |
How many accounts are maintained for each partner under the fluctuating capital method? |
Accountancy/Book Keeping
Fixed and fluctuating capital |
Easy |
| 8 |
Under the fixed capital method, which item is recorded in the partner's Capital Account? |
Accountancy/Book Keeping
Fixed and fluctuating capital |
Medium |
| 9 |
Capitals are fluctuating. A partner's opening capital is ₹50,000; interest on capital ₹5,000, salary ₹6,000, … |
Accountancy/Book Keeping
Fixed and fluctuating capital |
Medium |
| 10 |
Capitals are fixed. A partner's current account opens with a credit of ₹4,000. During the year he is credited… |
Accountancy/Book Keeping
Fixed and fluctuating capital |
Hard |
| 11 |
Interest on capital is usually allowed to partners in order to |
Accountancy/Book Keeping
Division of profit among partners |
Easy |
| 12 |
A partner withdrew equal amounts at the end of every month for a year. For how many months, on average, is in… |
Accountancy/Book Keeping
Division of profit among partners |
Easy |
| 13 |
A partner's capital on 1 April was ₹2,00,000. He introduced ₹50,000 more on 1 October. The deed allows 10% in… |
Accountancy/Book Keeping
Division of profit among partners |
Medium |
| 14 |
The profit before commission is ₹1,10,000. A partner is entitled to a commission of 10% of net profit after c… |
Accountancy/Book Keeping
Division of profit among partners |
Medium |
| 15 |
A partner withdrew ₹2,000 at the beginning of every month for 12 months. Interest on drawings is charged at 6… |
Accountancy/Book Keeping
Division of profit among partners |
Hard |
| 16 |
Where does interest on drawings appear in the Profit and Loss Appropriation Account? |
Accountancy/Book Keeping
Profit and Loss Appropriation Account |
Easy |
| 17 |
Which of these items is NOT shown in the Profit and Loss Appropriation Account? |
Accountancy/Book Keeping
Profit and Loss Appropriation Account |
Easy |
| 18 |
The Profit and Loss Appropriation Account is mainly prepared to |
Accountancy/Book Keeping
Profit and Loss Appropriation Account |
Medium |
| 19 |
Net profit is ₹90,000. Interest on capital is A ₹6,000 and B ₹4,000, B's salary is ₹12,000 and interest on A'… |
Accountancy/Book Keeping
Profit and Loss Appropriation Account |
Medium |
| 20 |
The deed allows interest on capital of ₹12,000 to P and ₹8,000 to Q as an appropriation of profit. Net profit… |
Accountancy/Book Keeping
Profit and Loss Appropriation Account |
Hard |
| 21 |
C is guaranteed a minimum profit of ₹20,000 by the firm. His actual share works out to ₹24,000. What adjustme… |
Accountancy/Book Keeping
Guarantee of profit to a partner |
Easy |
| 22 |
When a minimum profit is guaranteed to a partner by the firm, who bears the deficiency? |
Accountancy/Book Keeping
Guarantee of profit to a partner |
Easy |
| 23 |
A, B and C share profits 3:2:1. C is guaranteed ₹20,000 by the firm. The profit is ₹90,000. What amount does … |
Accountancy/Book Keeping
Guarantee of profit to a partner |
Medium |
| 24 |
A, B and C share profits 3:2:1. A alone guarantees C a minimum of ₹20,000. The profit is ₹90,000. What does B… |
Accountancy/Book Keeping
Guarantee of profit to a partner |
Medium |
| 25 |
P, Q and R share profits 2:2:1. R is guaranteed ₹30,000, the deficiency being borne by P and Q in the ratio 3… |
Accountancy/Book Keeping
Guarantee of profit to a partner |
Hard |
| 26 |
When an error in past profit distribution is corrected through partners' accounts, the total capital of the f… |
Accountancy/Book Keeping
Past adjustments |
Easy |
| 27 |
Past adjustments are usually recorded by passing |
Accountancy/Book Keeping
Past adjustments |
Easy |
| 28 |
A and B (capitals ₹60,000 and ₹40,000) share profits equally. Interest on capital at 10% was omitted last yea… |
Accountancy/Book Keeping
Past adjustments |
Medium |
| 29 |
In the same case (A and B with capitals ₹60,000 and ₹40,000, equal sharing, 10% interest omitted), what is th… |
Accountancy/Book Keeping
Past adjustments |
Medium |
| 30 |
Profit of ₹60,000 was wrongly shared equally between X and Y, instead of the agreed ratio 2:1. What adjustmen… |
Accountancy/Book Keeping
Past adjustments |
Hard |
| 31 |
Sacrificing ratio is calculated as |
Accountancy/Book Keeping
Change in profit-sharing ratio |
Easy |
| 32 |
On a change in profit-sharing ratio, accumulated reserves are distributed among partners in the |
Accountancy/Book Keeping
Change in profit-sharing ratio |
Easy |
| 33 |
A and B share profits 3:2. They decide to share equally in future. What is A's sacrifice? |
Accountancy/Book Keeping
Change in profit-sharing ratio |
Medium |
| 34 |
A and B change their ratio from 3:2 to 1:1. The firm's goodwill is ₹50,000. What is the adjustment entry? |
Accountancy/Book Keeping
Change in profit-sharing ratio |
Medium |
| 35 |
X, Y and Z share profits 5:3:2. They agree to share 2:3:5 in future. Which statement is correct? |
Accountancy/Book Keeping
Change in profit-sharing ratio |
Hard |
| 36 |
An increase in the value of an asset on revaluation is |
Accountancy/Book Keeping
Revaluation of assets and reassessment of liabilities |
Easy |
| 37 |
The profit or loss on revaluation is shared among |
Accountancy/Book Keeping
Revaluation of assets and reassessment of liabilities |
Easy |
| 38 |
On reconstitution, a provision for doubtful debts of ₹2,000 is created. How is it recorded? |
Accountancy/Book Keeping
Revaluation of assets and reassessment of liabilities |
Medium |
| 39 |
On revaluation, building rises by ₹20,000, stock falls by ₹5,000, a ₹2,000 provision for doubtful debts is cr… |
Accountancy/Book Keeping
Revaluation of assets and reassessment of liabilities |
Medium |
| 40 |
A firm has a debit balance of ₹12,000 in its Profit and Loss Account at the time of admitting a new partner. … |
Accountancy/Book Keeping
Revaluation of assets and reassessment of liabilities |
Hard |
| 41 |
Goodwill is classified as |
Accountancy/Book Keeping
Goodwill: nature and valuation |
Easy |
| 42 |
Profits of the last three years were ₹40,000, ₹50,000 and ₹60,000. What is goodwill at two years' purchase of… |
Accountancy/Book Keeping
Goodwill: nature and valuation |
Easy |
| 43 |
Which factor would normally increase the goodwill of a business? |
Accountancy/Book Keeping
Goodwill: nature and valuation |
Medium |
| 44 |
Average profit is ₹60,000, capital employed ₹4,00,000 and normal rate of return 10%. What is goodwill at thre… |
Accountancy/Book Keeping
Goodwill: nature and valuation |
Medium |
| 45 |
Super profit is ₹20,000 and the normal rate of return is 10%. What is goodwill by the capitalisation of super… |
Accountancy/Book Keeping
Goodwill: nature and valuation |
Hard |
| 46 |
The premium for goodwill brought in by a new partner is shared by the old partners in their |
Accountancy/Book Keeping
Admission of a partner |
Easy |
| 47 |
Goodwill already appearing in the books at the time of admission is written off among |
Accountancy/Book Keeping
Admission of a partner |
Easy |
| 48 |
A and B share profits 3:2. C is admitted for a 1/5 share, which he takes from A and B in their old ratio. Wha… |
Accountancy/Book Keeping
Admission of a partner |
Medium |
| 49 |
A and B share 3:2. C joins for a 1/5 share, taken in the old ratio, and brings his share of goodwill in cash.… |
Accountancy/Book Keeping
Admission of a partner |
Medium |
| 50 |
C brings ₹60,000 as capital for a 1/4 share. The combined capitals of A and B after all adjustments are ₹1,50… |
Accountancy/Book Keeping
Admission of a partner |
Hard |