Chapter Exam

Chapter 4: Partnership Accounts — Online MCQ Test

Q: In a partnership firm, the document that contains the terms and conditions of the partnership is called:

Answer: A. Partnership deed — A partnership deed is the written agreement that defines the rights, duties, and terms of the partners. It is the basic document governing the firm.

Q: If the partnership deed is silent about sharing of profits and losses, profits and losses are shared:

Answer: B. Equally — In the absence of an agreement, the Indian Partnership Act provides that profits and losses should be shared equally by all partners.

Q: A and B are partners sharing profits equally. A is entitled to Rs. 4,000 as salary and interest on capital is Rs. 2,000 each. Firm’s net profit before appropriation is Rs. 18,000. The divisible profit after appropriation items is:

Answer: A. Rs. 10,000 — Net profit of Rs. 18,000 less A's salary of Rs. 4,000 and interest on capital of Rs. 4,000 total gives Rs. 10,000 as the divisible profit.

Q: A partner's salary is allowed only if:

Answer: B. The partnership deed provides for it — A partner is not entitled to salary merely by being a partner. It can be paid only when the partnership deed specifically allows it.

ACCOUNTANCY · CLASS 12 INTERMEDIATE 2 YEAR · Telangana State Board

Practice Chapter 4: Partnership Accounts with a free chapter-wise online MCQ test for Telangana State Board CLASS 12 INTERMEDIATE 2 YEAR ACCOUNTANCY. This chapter covers: This chapter details partnership fundamentals deed provisions profit and loss appropriation account capital accounts fixed fluctuating systems interest on capital and drawings.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 4: Partnership Accounts — Important Questions & Answers (FAQ)

Frequently asked questions from Telangana State Board CLASS 12 INTERMEDIATE 2 YEAR ACCOUNTANCY — Chapter 4: Partnership Accounts, with answers and explanations. These are sample questions; the exam has its own separate question set.

In a partnership firm, the document that contains the terms and conditions of the partnership is called:

A. Partnership deed ✓
B. Profit and Loss Account
C. Balance Sheet
D. Cash Book

Answer: A. Partnership deed
A partnership deed is the written agreement that defines the rights, duties, and terms of the partners. It is the basic document governing the firm.

If the partnership deed is silent about sharing of profits and losses, profits and losses are shared:

A. In the ratio of capital
B. Equally ✓
C. According to drawings
D. According to age

Answer: B. Equally
In the absence of an agreement, the Indian Partnership Act provides that profits and losses should be shared equally by all partners.

If a partnership deed provides for interest on capital, it is usually calculated on:

A. Opening capital only
B. Average capital or capital balance as per agreement ✓
C. Closing capital only
D. Drawings only

Answer: B. Average capital or capital balance as per agreement
Interest on capital is calculated according to the terms of the partnership deed, commonly on the capital balance for the relevant period or on average capital if so agreed.

A and B are partners sharing profits equally. A is entitled to Rs. 4,000 as salary and interest on capital is Rs. 2,000 each. Firm’s net profit before appropriation is Rs. 18,000. The divisible profit after appropriation items is:

A. Rs. 10,000 ✓
B. Rs. 12,000
C. Rs. 14,000
D. Rs. 16,000

Answer: A. Rs. 10,000
Net profit of Rs. 18,000 less A's salary of Rs. 4,000 and interest on capital of Rs. 4,000 total gives Rs. 10,000 as the divisible profit.

A partner's salary is allowed only if:

A. The partner has invested more capital
B. The partnership deed provides for it ✓
C. The firm earns loss
D. The partner works part-time

Answer: B. The partnership deed provides for it
A partner is not entitled to salary merely by being a partner. It can be paid only when the partnership deed specifically allows it.