Which of the following is not an essential feature of partnership?
Ans – c) Explanation:- It is not necessary to contribute capital to become a partner in a partnership firm.
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Which Capital accounts with balances always show a credit balance?
Ans – a) Explanation:- In the case of the Fixed Capital Method. The Capital Account would always show a credit balance.
The profit & Loss Appropriation Account is prepared to
Ans – a) Explanation:- The Profit and Loss Appropriation Account is prepared to distribute Profit and loss for the year among the partners.
Relationship between the partners is of
Ans – b) Explanation:- The relationship among the partners is of Agent and the Principal. As an agent, a partner represents other partners and thereby, binds them through his acts. As a Principal, He is bound by the act of…
Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. The firm earned a profit of ₹ 30,000 during the year. Mohit’s share in the profit will be
Ans – c) Explanation:- In the absence of any written agreement for the Profit sharing ratio among the partners. The Provisions of partnership act 1932 is applied. Thus Profit is divided equally among the partners.
In the absence of a Partnership Deed, the profit of a firm is divided among the partners
Ans – c) Explanation:- in the absence of a partnership deed, The Provisions of Indian Partnership Act 1932 is Applied. The profit is divided equally among the partners.
Current Accounts of Partners are maintained if
Ans – a) Explanation:- Current accounts are maintained when Capitals are fixed. In order to maintain fixed capital all transactions or revenue nation such as interest on capital, drawings commission salary to parters and distribution of profits are shown in…
Pick the odd one out of the following:
Ans – b) Explanation:- a, c, d items belong to the partners. Only the manager’s commission belongs to other than a partner.
In the case of fixed capital, partners will have
Ans – d) Explanation:- In the case of the Fixed Capital Method. The Capital Account of Partners can either show a credit balance or zero balance. As only ‘additional capital’ and ‘drawings out of capital’ are shown in the capital…
In the absence of a Partnership Deed, Interest on Capital
Ans – d) Explanation:- In the absence of a partnership deed. The provisions of the Indian partnership Act 1932 Apply. Thus interest is not allowed on the partner’s capital.