| 1 |
The maximum amount which each partner will draw from the business in anticipation of the share of profit is his: |
- A. Drawings
- B. Profit
- C. Loss
- D. Capital
|
| 2 |
The essential element of partnership is |
- A. There must be an agreement entered into by all the persons concerned
- B. The agreement must be to share the profits of a business
- C. The business must be carried on by all or any of them acting for all
- D. All of the above
|
| 3 |
Current accounts of the partners should be opened when the capitals are |
- A. Fluctuating
- B. Fixed
- C. Either fixed or fluctuating
- D. Variable
|
| 4 |
The interest on partners capital accounts is to be credited to |
- A. Partners capital accounts
- B. Profits and loss account
- C. Interest account
- D. Trading account
|
| 5 |
The debit balance of interest on loan account is transferred to: |
- A. Partner's capital account
- B. Profit & loss account
- C. Partner's loan account
- D. Trading account
|
| 6 |
In the absence of an agreement, profit and loss are divided by partners in the ratio of |
- A. Capital
- B. Time devoted by each partner
- C. Equally
- D. Interest on capital
|
| 7 |
Partnership act is |
- A. 1932
- B. 1912
- C. 1962
- D. 1984
|
| 8 |
In the absence of an agreement, interest on drawings is to be charged by the firm at the rate of: |
- A. 5% p.a.
- B. 6% p.a.
- C. 8% p.a.
- D. None of these
|
| 9 |
The current account of a partner |
- A. Will always have a credit balance
- B. Will always have a debit balance
- C. May have a debit balance or a credit balance
- D. None of these
|
| 10 |
Where a partner to entitled to interest on capital subscribed by him, such interest will be payable |
- A. Only out of profits
- B. Only out of capitals
- C. Out of profits or out of capitals
- D. None of these
|
