Accountancy Class-XII: A. Binding On All Partners

ACCOUNTANCY
Class-XII
Q1. In case of partnership the act of any partner is:
a. Binding on all partners
b. Binding on that partner only
c. Binding on all partner except that particular partner
d. None of the above
Q2. Following are essential elements of a partnership firm except:
a. At least two partners
b. There is an agreement between all partner
c. Equal share of profit and loss
d. Partnership agreement is for some business
Q3. The relation of partner with the firm is that of:
a. An owner
b. An agent
c. An owner and an agent
d. Manager
Q4. Which of the following is NOT an essential feature of a partnership?
a. There must be an agreement
b. There must be a business
c. The business must be carried on for profits
d. The business must be carried on by all the partners
Q5. Interest on capital will be paid to the partners if provided for in the
partnership deed but only out of:
a. Profit
b. Reserves
c. Accumulated profits
d. Goodwill
Q6. which one of the following items cannot be recorded in the profit and loss
appropriation account?
a. Interest on capital
b. Interest on drawings
c. Rent paid to partners
d. Partners salary
Q7. A and B are partners in a firm. They are entitled to interest on their capitals
but the net profit was not sufficient for this interest, then the net profit will be
distributed among partners in:
a. Agreed ratio
b. Profit sharing ratio
c. Capital ratio
d. Equally
Q8. The written agreement among the partners is called:
a. Partnership deed
b. Partnership bye-laws
c. Partnership constitution
d. A contract
Q9. The liability of the partners in a partnership firm under Indian partnership Act,
1932 is:
a. Limited
b. Unlimited
c. No liability
d. Depending on the situation
Q10. Interest on capital is allowed on:
a. The opening capital
b. The capital at the year end
c. Average capital of the year
d. The capital in the middle of the year
Q11. Pick the odd out of the following:
a. Rent to partner
b. Managers commission
c. Interest on partner's loan
d. Interested on partners' capital
Q12. Current accounts of partners are maintained if:
a. Capitals are fixed
b. Capitals are fluctuating
c. Capitals are fixed or fluctuating
d. It is decided by the partner
Q13.when guarantee is given to partner, deficiency on such guarantee will be
borne by:
a. All of the other partners
b. Partnership firm
c. Partner who gave the guarantee
d. None of the above
Q14. Which of the following is not dealt through profit and loss appropriation
account?
a. Interest on partner loan
b. Partner’s salary
c. Interest on partners' capital
d. Partners commission
Q15. Which of the following item will not be shown in the debit of profit and loss
appropriation Account?
a. Interest on capital
b. Commission to a partner
c. Interest on drawings
d. Salary to partner
Q16. In the absence of partnership agreement, interest on drawings of a partners
is changed
a. @8% per annum
b. @9% per annum
c. @12% per annum
d. No interest is changed
Q17. In the absence of partnership interest on loan of a partner is allowed
a. @8% per annum
b. @6% per annum
c. No interest is changed
d. @12% interest per annum
Q18. As per Indian partnership Act, 1932 if partnership deed does not exist
partners are entitled to:
a. Salary
b. Interest on capital
c. Equal profit share
d. Commission
Q19. Which of the following statement is correct?
a. Goodwill is a friction asset
b. Goodwill is a current asset
c. Goodwill is a wasting asset
d. Goodwill is an intangible asset
Q20. Excess amount that is a firm gets over and above the market value of assets
at the time of sale of its business is:
a. Profit
b. Super profit
c. Reserve
d. Goodwill
Q21. When goodwill is not a purchased goodwill ,
a. is not shown in the balance sheet
b. is shown in the balance sheet
c. May or may not show in the balance sheet
d. Is partly shown in the balance sheet
Q22. Weighted average profit method of calculating goodwill is useful when:
a. Profits are not similar over the years
b. Profits show a trend either rising of falling
c. Profits are higher in one year and lower in another
d. Profits are similar in all the years
Q23. Following are the factors affecting goodwill except:
a. Nature of business
b. Location of the customers
c. Technical know-how
d. Efficiency of management
Q24. Under capitalization method of valuation of goodwill, the formula for
calculating goodwill is:
a. Super profits multiplied by the rate of return
b. Average profits multiplied by the rate of return
c. Super profits divided by the rate of return
d. Average profits divided by the rate of return
Q25. Which of the following is not a feature of partnership?
a. An agreement, oral or written should exist among the partners
b. Agreement should be to carry on lawful business
c. All the partners should be to carry on lawful business
d. There should be at least two partners

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