Skip to content
p.paperbanao.
Continue

Punjab (PTB) · Chapter test · Free

2nd Year Principles of Accounting Chapter 6 TestPartnership Accounts Profit Distribution

30 marks · 40 minutes · 21 questions. Covers: CHAP 6: Partnership Accounts Profit Distribution.

Your school name

2nd Year Principles of Accounting Chapter 6 Test

2nd Year · Principles of Accounting · Punjab (PTB)

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 30Time: 40 minutes

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

  1. In the absence of an agreement, interest on loan advanced by a partner to the firm is allowed at the rate of:

    1. Six per cent

    2. Five per cent

    3. Twelve per cent

    4. Seven per cent

  2. The essential element of partnership is:

    1. There must be an agreement entered into by all the persons concerned

    2. The agreement must be to share the profits of a business

    3. The business must be carried on by all or any of them acting for all

    4. All of the above

  3. The current account of a partner:

    1. Will always have a credit balance

    2. Will always have a debit balance

    3. May have a debit balance or a credit balance

    4. None of these

  4. The interest on capital account in partnership is to credited to:

    1. Interest on capital a/c

    2. Profit & loss a/c

    3. Partner’s capital account

    4. Cash a/c

  5. Where a partner is entitled to interest on capital subscripted by him, such interest will be payable:

    1. Only out of profits

    2. Only out of capitals

    3. Out of profits or out of capitals

    4. None of these

  6. Current accounts of the partners should be opened when the capital are:

    1. Fluctuating

    2. Fixed

    3. Either fixed or fluctuating

    4. Variable

  7. Suppose the profit of partnership after charging manager’s commission is Rs.10560, then the amount of manager’s commission will be @5% on profit:

    1. Rs.503

    2. Rs.506

    3. Rs.500

    4. Rs.603

  8. In the absence of an agreement, interest on drawings is to be charged by the firm at the rate of:

    1. 5% p.a

    2. 2% p.a

    3. 4% p.a

    4. None of these

  9. What will be the closing entry for interest on capital account:

    1. Interest on capital account …..Dr To Cash account

    2. Interest on capital account    …… Dr To Partner’s capital account

    3. Interest on capital account    ……. Dr To Profit & loss account

    4. Profit & loss appropriation account …..Dr To Interest on capital account

  10. In the absence of an agreement, the partners are entitled to interest on capital at the rate of:

    1. 5% p.a

    2. 6%p.a

    3. 10% p.a

    4. None of these

Q2. Short questions (Attempt any 6 of 8 · 6 × 2 = 12)

  1. Write three duties of partners in partnership.

  2. What will be the closing entry for interest on capital in partnership?

  3. Write the three rights of partners in partnership.

  4. Write the four points of partnership agreement.

  5. What will be the journal entry for salary payable to partners?

  6. What is partnership agreement?

  7. Pass journal entry for capital introduced by different partners in partnership.

  8. What will the entry for distribution of loss among the partners?

Q3. Long questions (Attempt any 2 of 3 · 2 × 4 = 8)

  1. Calculate the interest payable to A and B for the year ending 31.12.2022.
    A and B started business on 1.1.2022 with capitals of Rs. 120,000 and 80,000 respectively. During the year A introduced Rs. 20,000 as additional capital on 1.7.2022. They withdrew Rs. 1000 p.m. for household expenses in lieu of profits. Interest on capital is to be allowed @ 10%.

  2. A and B are partners from 1st January, 2022 without any partnership agreement and they introduced capital of Rs. 70,000 and Rs. 40,000 respectively.  On 1st July, 2022 A advances Rs. 15000 by way of loan to the firm without any agreement as to interest. The profit and loss accounts for the year 2022 discloses a profit of Rs. 16,450; but the partners cannot agree upon question of interest or upon the basis of division of profits. You are providing to divide the profits between them giving reasons for your methods.

  3. A, B and C are partners with capitals of Rs. 40,000, Rs. 20,000 and Rs. 12,000 respectively and shares profits and losses equally. The net profit for the year 2022 before charging interest on capitals amounted Rs. 21,600. Show the amount of each partner gain from the firm (a) if no interest calculated on capital and (b) where 5% interest on capital is brought into account, before the adjustments of profits.