Introduction to Partnership Accounts-Test 4

An ordinary partnership firm can have

The interest on the capital accounts of partners is credited to

Interest payable on the capital of the partners is charged in :

When interest is to be allowed on the capitals of the partners, it is calculated on the

Interest on drawings of a partner is debited to

Which of the following items are added to previous year profit for finding profits for goodwill valuation

In the absence of an agreement to the contrary.

Unless the agreement states otherwise,

Unless the agreement states otherwise, the partners share profits and losses in

In which account is the interest payable on the capital of the partner charged ?

The current accounts of partners are opened when their capital accounts are

In fixed capital system of partnership

Which of the following shows the division of net income among partners at the end of the accounting year ?

In absence of a partnership deed, the provisions of Partnership Act, 1932 lay down which of the following rights and duties of a partner ?

1. Every partner has a right to take part in the conduct and management of the firm’s business
2. Every partner has the right to receive interest on loans and advances @ 8% unless otherwise agreed to by the parties
3. Every partner has a right to be indemnified for the expenses incurred by him in the firm’s business.

Select the correct answer using the codes below:

A, B, C and D are equal partners. A, B and D die together in a plane crash. This accident results in

In the absence of an agreement to the contrary, partners share profits and losses in

If the Goodwill A/c is raised in books of accounts, the amount is debited to

If the goodwill raised at the time of retirement of a partner is to be written off, then, the capital account of the remaining partners are debited in

Money value of the reputation of a concern measured in terms of its futures earning capacity.

Extra amount over and above the saleable value of the identifiable assets that could be fetched by selling an existing firm as a going concern.

A rate of returned normally expected by the shareholders on their investment

Amount of capital used by business concern to run its business activities.

When a goodwill account is raised at the time of admission of a new partner, credit is given to old partners in their

When new profit sharing ratio is deducted from the old profit sharing ratio, ________ is obtained.

A partner acts as _______ for a firm.

In the absence of an agreement to the contrary, the partners are entitled to _________ interest to loans to the firm, ________.

The current account of a partner __________ have a _______ balance.

A partnership can be formed only for a legal business.

The liability of partners is limited.

Partners are mutual agents for each other.