Chapter 1: Accounting for Partnership Basic Concepts — Online MCQ Test
ACCOUNTANCY · CLASS 12 SECOND PUC · Karnataka State Board
Practice Chapter 1: Accounting for Partnership Basic Concepts with a free chapter-wise online MCQ test.
This chapter covers: Partnership firm Indian Partnership Act 1932 Partnership Deed Profit sharing ratio Interest on Capital Interest on Drawings Past Adjustments Profit and Loss Appropriation Account F....
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Chapter 1: Accounting for Partnership Basic Concepts — Important Questions & Answers
Under the Indian Partnership Act, 1932, what is the minimum number of partners required to form a partnership?
- A. Minimum 2 partners
- B. Minimum 3 partners
- C. Minimum 4 partners
- D. Minimum 5 partners
Answer: A. Minimum 2 partners
According to the Indian Partnership Act, 1932, a partnership requires a minimum of 2 partners to be formed.
According to the Indian Partnership Act, 1932, a partnership requires a minimum of 2 partners to be formed.
What is a Partnership Deed?
- A. A legal document that defines the rights and obligations of partners
- B. A document filed with the Registrar of Companies
- C. A certificate issued by the government
- D. A bank document for opening partnership accounts
Answer: A. A legal document that defines the rights and obligations of partners
A Partnership Deed is a written agreement that outlines the terms and conditions under which partners will operate the business.
A Partnership Deed is a written agreement that outlines the terms and conditions under which partners will operate the business.
Under the Indian Partnership Act, 1932, what is the maximum number of partners allowed in a firm?
- A. 10 partners
- B. 20 partners
- C. 50 partners
- D. Unlimited partners
Answer: B. 20 partners
According to the Indian Partnership Act, 1932, the maximum number of partners is 20. This limit can vary for certain professional firms.
According to the Indian Partnership Act, 1932, the maximum number of partners is 20. This limit can vary for certain professional firms.
Which of the following is NOT a characteristic of a partnership as per the Indian Partnership Act, 1932?
- A. Unlimited liability of partners
- B. Limited liability of all partners
- C. Agency relationship between partners
- D. Mutual agency and co-ownership
Answer: B. Limited liability of all partners
In a general partnership, all partners have unlimited liability. Limited liability applies only to limited partners in a Limited Liability Partnership, which is different from a traditional partnership.
In a general partnership, all partners have unlimited liability. Limited liability applies only to limited partners in a Limited Liability Partnership, which is different from a traditional partnership.
Capital Account and Current Account are used when the partnership uses:
- A. Fixed Capital System
- B. Fluctuating Capital System
- C. Hybrid Capital System
- D. Variable Capital System
Answer: A. Fixed Capital System
In the Fixed Capital System, the Capital Account remains constant, and a separate Current Account records all adjustments like profit, loss, interest, and drawings.
In the Fixed Capital System, the Capital Account remains constant, and a separate Current Account records all adjustments like profit, loss, interest, and drawings.