1.Which one is not the feature of partnership?
(a) Sharing of profit
(b) Limited liability
(c) Two or more than two persons
(d) Agreement
Answer: (b) Limited Liability
2. The current account of the partners will always have _______.
(a) Credit balance
(b) Either of the two
(c) Debit balance
(d) None of the above
Answer: (b) Either of the two
3. Interest payable on the capital of the partners is recorded in _____.
(a) Realisation A/c
(b) Profit and loss appropriation A/c
(c) Profit and loss A/c
(d) None of the above
Answer: (b) Profit and loss appropriation A/c
4. In the absence of any agreement, the profits or losses of the firm are shared _______.
(a) In capital ratio
(b) In different proportions
(c) Equally
(d) None of the above
Answer: (c) Equally
5. Profit and loss appropriation account is prepared to ______.
(a) Find out net profit
(b) Find out divisible profit
(c) Create a reserve fund
(d) None of the above
Answer: (b) Find out divisible profit
6. When the time of withdrawals is not mentioned, interest on drawings is charged ______.
(a) For 8 months
(b) For 516 months
(c) For 12 months
(d) For 616 months
Answer: (a) For 8 months
7. In the absence of a partnership deed, partners are not entitled to receive ______.
(a) Commission
(b) Interest on Capital
(c) Salaries
(d) All of the above
Answer: (d) All of the above
8. Which accounts are opened when the capitals are fixed?
(a) Only current accounts
(b) Liability accounts
(c) Capital and current accounts
(d) Only capital accounts
Answer: (c) Capital and current accounts
9. The interest on capital accounts of partners under the fixed capital method is to be credited to ______.
(a) Profit and loss A/c
(b) Interest A/c
(c) Partner’s current A/c
(d) Partner’s capital A/c
Answer: (c) Partner’s current A/c
10. Partnership deed is also called ______.
(a) Articles of Association
(b) Principles of Partnership
(c) Articles of Partnership
(d) Prospectus
Answer: (c) Articles of Partnership
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