Student Community

Archives Answers

Answer

Which of the following items is not dealt through the Profit and Loss Appropriation Account?

Ans – a) Explanation:- interest on Partner’s Loan is considered as a charge against profit. Thus it is recorded to the debit side of the Profit and Loss Account.

Anurag Pathak
April 4, 2023

When a guarantee is given to a partner by some partners, deficiency on such guarantee is borne by

Ans – c) Explanation:- When a guarantee is given by one partner or a few partners to the other partners. The Deficiency is borne by only those partners who gave the guarantee.

Anurag Pathak
April 4, 2023

Mohan, a partner, withdraws ₹ 20,000 on 1st April 2022 and ₹ 40,000 on 1st October 2022. Interest on Drawings @ 6% p.a. on 31st March 2023 will be

Ans – a) Explanation:-

Anurag Pathak
April 4, 2023

Interest on the capital of a partner is a

Ans – c) Explanation:- interest on the partner’s capital is only an expense to the firm. Just an expense is neither a loss nor a profit to the firm. If the Revenue of the firm is greater than the total…

Anurag Pathak
April 4, 2023

Ramesh, Rahul and Raman are partners. Raman withdrew ₹ 20,000 per month in the middle of the month. Interest on drawings charged for the year was ₹ 7200. The rate of interest on drawings is

Ans – d) Explanation:- in the absence of a partnership deed, the Indian Partnership Act 1932 Applies. The interest on the partner’s loan to the firm is charged @ 6% p.a.

Anurag Pathak
April 4, 2023

Mohan, Mayank, and Madan are partners, their Partnership Deed provides for interest on drawings at 8% p.a., Mayank withdrew a fixed amount in the middle of every month and his interest on drawings amounted to ₹ 24,000 at the end of the year. What was the amount of his monthly drawings?

Ans – a) Explanation:-

Anurag Pathak
April 4, 2023

Partner’s Drawing Account is closed

Ans – d) Explanation:- When Capitals are Fluctuating:- Partner’s Drawings reduce the capital. Thus Partner’s Drawings account is closed by transferring to the debit side of the Capital account. When Capitals are Fixed:- In the case of fixed capital, the…

Anurag Pathak
April 4, 2023

The product method is used for the calculation of

Ans – c) Explanation:- Product Method is one of the way to calculate interest on partner’s drawings.

Anurag Pathak
April 4, 2023

If the equal amount is withdrawn at the beginning of each month for personal use, the period for which interest will be charged will be

Ans – d) Explanation:- Average Month = 12 + 1/2 = 6.5 Months

Anurag Pathak
April 4, 2023

Mohan draws ₹ 10,000 p.m. on the last day of every month for his personal use. If interest is to be charged @ 5% p.a., interest chargeable from him in the accounting year will be

Ans – b) Explanation:- Average Month = 11 + 0/2 = 5.5 Months Interest on Mohan’s Drawings = 10000 * 12 * 5% * 5.5/12 = ₹ 2750

Anurag Pathak
April 4, 2023

Telegram Channel