Introduction to Partnership Accounts-Test 1

A draws Rs.1000 per month on the last day of every month. If the rate of interest is 5% p.a. then the total interest on drawings will be :

A and B are partners sharing profits and losses in the ratio of 4 : 1. C was a manager who received the salary of Rs.2000 p.m. in addition to a commission of 5% on net profits after charging such commission, Profits for the year is Rs.3,39,000 before charging salary. Find total remuneration of C :

In the absence of an agreement, partners are entitled to :

In absence of any agreement, partners are liable to receive interest on loans at the rate of :

A and B are partners A’s capital is Rs.10,000 and B’s Capital is Rs.6,000; Interest is payable @ 6% p.a. B is entitled to a salary of Rs.300 per month. Profit to the year before interest and salary to B is Rs.8,000. Profits between A and B will be divided :

Ram is a partner. He made drawings as follows :

July 1                    Rs.200

August 1               Rs.200

September 1        Rs.300

November 1         Rs. 50

February 1            Rs.100

If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is :

Fluctuating Capital Account is credited with :

Ram and Mohan, are partner’s. They draw for private use Rs.6,000 and Rs.4,000 respectively. Interest is changeable @ 6% per annum on drawings. What is the interest ?

As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at ______ % per annum :

Interest on Partners capital is :

A and B are partners having capital of Rs.50,000 and Rs.60,000 respectively. Interest on capital given @ 5% p.a. Profits for the year before appropriation is Rs.4,600 provide interest on capital out of profits. Interest allocated to partners is :

If there is no partnership deed then interest on capital will be charged at ____ p.a.

Interest on Drawings is :

Profit or loss on revaluation is shared among the old partners in _______ ratio.

In the presence of an agreement, interest on capital is to be provided from ______ ?

In the absence of an agreement, interest to be allowed on partner’s capital is ____ ?

Interest on drawings is treated as :

A partnership firm consisted of three partners A, B, C. If A pays Rs.10,000 against the liability of the firm from his private funds, then what will be the entry in the books of the firm ?

‘Salary Rs.5,000 paid to partner’.

The above item will appear in _______ .

A partner has given a loan of Rs.50,000 to the firm. He wants interest @ 15% p.a. on his loan. there was no agreement or partnership deed betweenthem. The partner ________ .

In the absence of any deed of partnership –

Net profit of the firm is Rs.5,000. Interest on capital and interest on drawings still not charged are Rs.5,000 and Rs.2,500 respectively. net profit available for the distribution among the partners after charging the above will be :

Insurance Premium paid by the firm on the life insurance policy of a partner is

Ram, Rahim, Singh and John are in partnership sharing profits and losses equally. They mutually agree to change their profit sharing ratio to 2: 2: 1:1. In this case John’s share would decrease by ______ share of profit and loss.

If opening capital of a partner in the firm is Rs.1,00,000 and closing capital is Rs.2,00,000. Interest on capital allowed during the year Rs.10,000 and interest on drawings charged during the year Rs.2,000. If total drawings were Rs.20,000, the amount of profit transferred to his capital account by the firm would be :

X and Y are partners. Given below is detail of items appearing in the Appropriation Account.

Particulars                                                    X (Rs.)                             Y(Rs.)

Interest on Capital                                       1,600                                1,800

Interest on Drawing                                        500                                   400

Remuneration to partners                            2,000                              3,000

Share of profit after Appropriation             8,000                              12,000

What was the net profit before appropriation ?

Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of  interest on capital), the amount of profit is distributed :

A, B and C are partners sharing profit and losses equally and A paid liability of Rs.10,000 out of his private funds. How will you record this in the books of the firm ?

Aryan and Gauri were partner in a firm sharing profits and losses in the ratio of 2 : 1. Their capital was Rs.90,000 and Rs.60,000 respectively. They were entitled for interest on capital @ 12% p.a. The firm earned a profit of Rs.84,000 after allowing interest on capitals. Profits will be distributed among them will be :

In a partnership firm, in case of insufficient profit i.e. net profit less than the amount of interest on capital, the amount of profit is distributed :