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Fundamentals Class 12 Accountancy MCQs PDF

The document contains 20 multiple choice questions about fundamentals of partnership accounts from a class 12 accountancy textbook. It tests understanding of key concepts like characteristics of a partnership firm, types of partners, essential elements of a partnership agreement, liability of partners, minimum number of partners required to form a partnership, and provisions around interest payment in the absence of a partnership deed. The questions cover topics like features of a partnership firm, essential elements of a partnership, types of partners like sleeping and ostensible partners, relationship of a partner with the firm, minimum number of partners, maximum number of partners allowed, liability of partners, essential features of a partnership agreement, provisions of the Indian Partnership Act, interest payment on partner's capital and

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8K views6 pages

Fundamentals Class 12 Accountancy MCQs PDF

The document contains 20 multiple choice questions about fundamentals of partnership accounts from a class 12 accountancy textbook. It tests understanding of key concepts like characteristics of a partnership firm, types of partners, essential elements of a partnership agreement, liability of partners, minimum number of partners required to form a partnership, and provisions around interest payment in the absence of a partnership deed. The questions cover topics like features of a partnership firm, essential elements of a partnership, types of partners like sleeping and ostensible partners, relationship of a partner with the firm, minimum number of partners, maximum number of partners allowed, liability of partners, essential features of a partnership agreement, provisions of the Indian Partnership Act, interest payment on partner's capital and

Uploaded by

Aryan Rawat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Fundamentals Class 12 Accountancy MCQs

Pdf
Select the Best Alternate and tally your answer with the Answers given at the end of the
book:
(i) Features or Characteristics of Partnership
1. Features of a partnership firm are :
(A) Two or more persons are carrying common business under an agreement.
(B) They are sharing profits and losses in the fixed ratio.
(C) Business is carried by all or any of them acting tor all as an agent.
(D) All of the above.

Answer
Answer: D

2. Following are essential elements of a partnership firm except: (CPT; June 2012)
(A) At least two persons
(B) There is an agreement between all partners
(C) Equal share of profits and losses
(D) Partnership agreement is for some business.

Answer
Answer: C

3. In case of partnership the act of any partner is : (C.S. Foundation Dec. 2012)
(A) Binding on all partners
(B) Binding on that partner only
(C) Binding on all partners except that particular partner
(D) None of the above

Answer
Answer: A

4. 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
Answer
Answer: B

5. Oustensible 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

Answer
Answer: C

6. Sleeping partners are those who


(A) take active part in the conduct of the business but provide no capital. However,
salary is paid to them.
(B) do not take any part in the conduct of the business but provide capital and share
profits and losses in the agreed ratio
(C) take active part in the conduct of the business but provide no capital. However,
share profits and losses in the agreed ratio.
(D) do not take any part in the conduct of the business and contribute no capital.
However, share profits and losses in the agreed ratio.

Answer
Answer: B

7. The relation of partner with the firm is that of:


(A) An Owner
(B) An Agent
(C) An Owner and an Agent
(D) Manager

Answer
Answer: C

8. What should be the minimum number of persons to form a Partnership :


(A) 2
(B) 7
(C) 10
(D) 20

Answer
Answer: A

9. Number of partners in a partnership firm may be :


(A) Maximum Two
(B) Maximum Ten
(C) Maximum One Hundred
(D) Maximum Fifty

Answer
Answer: D

10, Liability of partner is :


(A) Limited
(B) Unlimited
(C) Determined by Court
(D) Determined by Partnership Act

Answer
Answer: B

11. Which one of the following is NOT an essential feature of a partnership?


(A) There must be an agreement
(B) There must be a business
(C) The business must be carried on for profits
(D) The business must be carried on by all the partners

Answer
Answer: D

12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on
March, 31, 2012 are ₹80,000, ₹60,000 and ₹40,000 respectively. Their personal assets
are worth as follows : X — ₹20,000, Y — ₹15,000 and Z — ₹10,000. The extent of their
liability in the firm would be : (C.S. Foundation; June 2013)
(A) X — ₹80,000 : Y — ₹60,000 : and Z — ₹40,000
(B) X — ₹20,000 : Y — ₹15,000 : and Z — ₹10,000
(C) X — ₹1,00,000 : Y — ₹75,000 : and Z — ₹50,000
(D) Equal

Answer
Answer: B

13. Every partner is bound to attend diligently to his in the conduct of


the business.
(A) Rights
(B) Meetings
(C) Capital
(D) Duties

Answer
Answer: D

(ii) Partnership Deed


14. Forming a Partnership Deed is :
(A) Mandatory
(B) Mandatory in Writing
(C) Not Mandatory
(D) None of the Above

Answer
Answer: C

15. Partnership Deed is also called


(A) Prospectus
(B) Articles of Association
(C) Principles of Partnership
(D) Articles of Partnership

Answer
Answer: D

16. 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

Answer
Answer: D

17. 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

Answer
Answer: A

18. In the absence of Partnership Deed, the interest is allowed on partner’s capital:
(CPT; June 2011)
(A) @ 5% p.a.
(B) @ 6% p.a.
(C) @ 12% p.a.
(D) No interest is allowed

Answer
Answer: D

19. In the absence of a partnership deed, the allowable rate of interest on partner’s loan
account will be :
(A) 6% Simple Interest
(B) 6% p.a. Simple Interest
(C) 12% Simple Interest
(D) 12% Compounded Annually

Answer
Answer: B

20. A and B are partners in partnership firm without any agreement. A has given a loan
of ₹50,000 to the firm. At the end of year loss was incurred in the business. Following
interest may be paid to A by the firm :
(A) @5% Per Annum
(B) @ 6% Per Annum
(C) @ 6% Per Month
(D) As there is a loss in the business, interest can’t be paid

Answer
Answer: B

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