MCQ for CA Foundation Accounting Chapter 8 PARTNERSHIP ACCOUNTS

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 1 - Principal and Practice of Accounting - Chapter CHAPTER 8: PARTNERSHIP ACCOUNTS - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1  In the absence of an agreement, partners are entitled to

  1. Interest on Loan and Advances.
  2. Commission.
  3. Salary.

Answer: 1

Q:2  A, B and C had capitals of Rs 50,000; Rs 40,000 and Rs 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs 20,000, in addition to his capital contribution.

  1. Rs 26,267 for Partner B and C & Rs 27,466 for partner A.
  2. Rs 26,667 each partner.
  3. Rs 33,333 for A, Rs 26,667 for B and Rs 20,000 for C.

Answer: 1

Q:3  A & B are partners sharing profits and losses in the ratio 5:3. On admission, C brings Rs 70,000 cash and Rs 48,000 against goodwill. New profit sharing ratio between A, B and C are 7:5:4. Find the sacrificing ratio of A:B.

  1. 3:1.
  2. 4:7.
  3. 5:4

Answer: 1

Q:4  Following are the factors affecting goodwill except:

  1. Nature of business.
  2. Efficiency of management.
  3. Location of the customers.

Answer: 3

Q:5 A and B are partners sharing profits and losses in the ratio 5:3. They admitted C and agreed to give him 3/10th of the profit. What is the new ratio after C’s admission?

  1. 35:42:17.
  2. 35:21:24.
  3. 49:22:29.

Answer: 2

Q:6  A and B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C acquires 1/5 from A and 1/10 from B, new profit sharing ratio will be:

  1. 5:6:3.
  2. 2:4:6.
  3. 17:11:12.

Answer: 3

Q:7  A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs 30,000. Find the contribution of A and C to compensate B.

  1. Rs 20,000 and Rs 10,000.
  2. Rs 8,000 and Rs 4,000.
  3. They will not contribute anything.

Answer: 2

Q:8  A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively with the capital balance of Rs 50,000 for A and B, for C Rs 25,000. B declared to retire from the firm and balance in reserve on the date was Rs 15,000. If goodwill of the firm was valued as Rs 30,000 and profit on revaluation was Rs 7,050 then what amount will be transferred to the loan account of B.

  1. Rs 70,820.
  2. Rs 50,820.
  3. Rs 25,820.

Answer: 1

Q:9  Revaluation account is prepared at the time of

  1. Admission and retirement of a partner
  2. Death of a partner
  3. All of the above

Answer: 3

Q:10  If three partners A, B & C are sharing profits as 5:3:2, then on the death of a partner A, how much B & C will pay to A’s executer on account of goodwill. Goodwill is to be calculated on the basis of 2 years purchase of last 3 years average profits. Profits for last three years are: Rs 3,29,000; Rs 3,46,000 and Rs 4,05,000.

  1. Rs 2,16,000 & Rs 1,42,000.
  2. Rs 2,44,000 & Rs 2,16,000.
  3. Rs 2,16,000 & Rs 1,44,000.

Answer: 3

 

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