Elevate Your Grades_College Tutoring Strategies
16. 1Which of the following is not incorporated in the Partnership Act ? P are to be..
1. Which of the following is not incorporated in the Partnership Act ?
A profit and loss are to be shared equally
B no interest is to be charged on capital
C all loans are to be charged interest @ 6% p.a.
D all drawings are to be charged interest
2. When is the Partnership Act enforced ?
A when there is no partnership deed
B where there is a partnership deed but there are differences of opinion between the partners
C when capital contribution by the partners varies
D when the partner’s salary and interest on capital are not incorporated in the partnership deed
3. Which one of the following items cannot be recorded in the appropriation account ?
A interest on capital
B interest on drawings
C rent paid to partners
D partner’s salary
4. How should interest charged on partners’ drawings be dealt with in partnership final accounts?
A credited as income in profit and loss account
B deducted from profit in allocating the profit among the partners
C added to profit in allocating the profit among the partners
D debited as an expense in the profit and loss account
5. Which of the following statement is true ?
A a minor cannot be admitted as a partner
B a minor can be admitted as a partner, only into the benefits of the partnership
C a minor can be admitted as a partner but his rights and liabilities are same of adult partner
D none of the above
6. Non-registration of a partnership gives rise to a number of disabilities such as :
(i) no partner can bring a suit in any court against the firm or his co-partners.
(ii) the firm cannot file a suit against third party for breach of contract.
Which of the above statement(s) is / are true ?
A (i) only
B (ii) only
C both (i) and (ii)
D neither (i) nor (ii)
7. In the absence of partnership deed, interest on partners’ loan is payable by the firm @
A 12% p.a.
B 6% p.a.
C 10% p.a.
D 16% p.a.
8. Ostensible partners are those who
A do not contribute any capital but get some share of profit for lending their name to the business
B contribute very less capital but get equal profit
C do not contribute any capital and without having any interest in the business, lend their name to the business
D contribute maximum capital of the business
17. Which of the following statements describes fixed costs? a. costs that remain constant on a per ...