Business Partnership MCQs

By: Prof. Dr. Fazal Rehman | Last updated: May 21, 2025

129
Score: 0
Attempted: 0/129
Subscribe
1. : The relationship between two or more persons who have agreed to share the profit of a business, is called:



2. : In partnership, the number of partners should be at least:



3. : In partnership business, the number of partners should not exceed:



4. : Partnership is governed by the partnership act:



5. : The persons who have entered into partnership are collectively called:



6. : The persons who have entered into partnership are separately called:



7. : In general partnership, the liability of partners is:



8. : A partnership under which the liability of all partners is unlimited:



9. : Registration of partnership is:



10. : A partner who takes an active part in the organization of partnership:



11. : A person who does not take a vigorous part in the management of partnership business is called:



12. : Partnership is formed by the partners through:



13. : A person who has a major share in partnership business or more knowledge than others is called:



14. : A person who has a minor share in partnership capital or lesser knowledge than others is called:



15. : If there is no establishment made in the agreement about the duration of the organization, this represents:



16. : A partner who has not attained the age of majority is called:



17. : A person who lends his name to the firm is called:



18. : A partner who shares the profit of a firm but he is not responsible for the loss is called:



19. : A partner who is newly known to the firm with the agreement of all the partners is called:



20. : A person who goes out of a firm due to any reason is called:



21. : A partner can invest in the partnership business in the form of:



22. : How profit will be dispersed, if there is no agreement among partners:



23. : Profit or loss is distributed among partners through:



24. : In the absence of an agreement, salary is paid to a partner who:



25. : Partner’s contribution to the firm is called:



26. : In the absence of an agreement, interest on loan provided by partners is allowed at the rate of:



27. : In the absence of an agreement, interest on drawings made by a partner is charged at the rate of:



28. : Capital accounts of the partners are retained under:



29. : When the fixed capital method is adopted to record partners’ capital:



30. : Current account is opened under:



31. : A partner who takes an active part in the business but he is not known to all-purpose is called:



32. : A process under which only one account is preserved to record partner capital is called:



33. : When a new partner is self-confessed in the company, this process is called:



34. : Old profit sharing ratio, new profit sharing ratio is called:



35. : New profit sharing ratio / Old profit sharing ratio is called:



36. : When a new partner brings cash for goodwill, the amount should be debited to:



37. : When a new partner brings cash for goodwill in the firm, the amount should be credited to:



38. : When goodwill is raised in the books of account, it should be debited to:



39. : When goodwill is raised in the books of version, it should be shown in:



40. : When goodwill is written off, it should be written off in the:



41. : Interest on drawings is debited to:



42. : Interest on drawings is credited to:



43. : Under fixed capital method, if a partner draws some goods for his personal use, the entry should be:



44. : For Partnership business, interest on drawings is:



45. : Partnership & Co-ownerships are:



46. : The partnership agreement in written form is called:



47. : If some property is owned together by some persons without any on business, it is called:



48. : Revaluation account represents:



49. : Partners’ capital accounts represent:



50. : Loss on revaluation should be debited to:



51. : Profit & loss on revaluation is distributed among old partners in:



52. : Reserves are transferred to:



53. : Reserves are transferred to old partners in:



54. : When new partners decide to show their assets & liabilities except cash at their original amount after revaluation, which account is prepared:



55. : The owners of the partnership are called:



56. : In partnership, every partner acts for other partners as:



57. : The investment in partners’ capital accounts is credited to:



58. : Interest on partner capital a/c is credited to:



59. : In alteration of capital, surplus in capital account of any partner is:



60. : When goodwill is paid privately by a new partner, it should be debited to:



61. : Partner’s commission is debited to:



62. : Partner’s salary is debited to:



63. : Net profit in partnership is transferred:



64. : Net profit in partnership business is distributed in partners through:



65. : Goodwill is:



66. : Ahmad & Imran are sharing profit & loss in the ratio of 3:2. Rahman is admitted to 1/6th share in the future profit, new profits sharing ratio between Ahmad & Imran will be:



67. : If there is no G/W in last balance sheet and new partner brings his share of G/W in cash, it should be credited to old partners in:



68. : A and B are partners sharing profits & losses in the ratio of 3:2, they admit C into the firm for 3/7th share of profit, which he takes 2/7 from A and 1/7 from B. What will be the new profit ratio after admission?



69. : Accumulated profit & loss transferred to old partners at the time of admission in:



70. : The excess of actual earnings over normal return represents:



71. : If business is functioning under normal loss, it represents:



72. : A ratio in which the share of goodwill of retiring partner is spread in remaining partners is called:



73. : When goodwill is carried in cash by new partner, it represents:



74. : Profit on revaluation is transferred to:



75. : Profit & loss on adjustment at the time of parting of any partner should be transferred to:



76. : Increase in value of asset at the time of revaluation is credited to:



77. : Increase in value of obligation at the time of revaluation is debited to:



78. : When goodwill is raised in the books of account, this method represents:



79. : The balance of retiring partner capital account at the time of retirement is moved to:



80. : An interest is provided on balance of retiring partner after retirement at:



81. : A policy which is cooperatively taken on the lives of partners is called:



82. : Joint life policy amount is distributed among old partners in:



83. : On the death of any partner, amount of assets should be transferred to old partners (including deceased) in:



84. : On the death of any partner, the firm will receive from insurance company:



85. : When remaining partners want to show their assets and liabilities at original amounts after revision at the time of departure, it should be transferred to partners’ capital a/c in:



86. : End or close of partnership business represents:



87. : An account which is prepared to determine the net gain or loss on realization of assets or liabilities at the time of closure is called:



88. : When partners decide to dissolve the firm with their agreement it represents:



89. : Dissolution due to unsound mind of any partner is called:



90. : When assets are realized, they should be credited to:



91. : When unrecorded assets are realized, they should be credited to:



92. : When unrecorded charges are paid, these should be debited to:



93. : When provision for unsure debts is transferred at the time of dissolution, it should be credited to:



94. : When assets are sold at the time of disbanding, what entry will be passed?



95. : When liabilities are paid at the time of dissolution, what entry will be passed?



96. : At the time of dissolution, what entry would be passed?



97. : The balance of cash at the time of dissolution is transferred to:



98. : General reserve / Retained earnings are transferred to:



99. : Dissolution of partnership and dissolution of firm are:



100. : The balance of partners’ current accounts are transferred to:



101. : Assets are transferred to realization a/c at:



102. : Who gave the decision in the Garner vs. Murray case?



103. : When is the Garner vs. Murray rule applied?



104. : According to Garner vs. Murray, deficiency will be met by solvent partners in:



105. : According to Garner vs. Murray, solvent partners will fulfill their realization loss by:



106. : Realization account represents:



107. : The Garner vs. Murray case was decided by Mr. Joyce in:



108. : What entry will be passed when the deficiency of an insolvent partner is fulfilled by partners?



109. : When all partners become insolvent, what entry will be passed for outsider liabilities into realization a/c?



110. : If assets are sold for cash when all partners become insolvent, which account will be credited?



111. : When all partners become insolvent, from the realization money, first of all, are paid:



112. : When all partners become insolvent, the amount unpaid in creditors’ account is credited to:



113. : When all partners become insolvent, at the time of closing of different accounts, the deficiency account is transferred to:



114. : For dissolution expenses, what entry will be passed?



115. : The Garner vs. Murray rule is applied when there are:



116. : For application of Garner vs. Murray rule, there must be at least:



117. : When the fixed capital method is adapted to record partner capital accounts, the last agreed capital represents:



118. : When the fluctuating capital method is adapted to record partner capital accounts, the last agreed capital is calculated before including:



119. : According to the Garner vs. Murray decision, if a partner’s capital account shows debit balances, he will bear:



120. : The balance of the realization account is transferred to the capital account of the partners in:



121. : The credit balance of the realization account is credited to:



122. : If unrecorded assets are taken over by the partners at the time of dissolution, they are debited to:



123. : If unrecorded assets are taken over by the partners at the time of dissolution, they are credited to:



124. : If all the partners except one are insolvent, it refers to:



125. : Amalgamation represents:



126. : Amount due to retiring or deceased partner is presented in the balance sheet as:



127. : Partners’ capital accounts are affected due to:



128. : The partnership may come to an end due to:



129. : The private estate of insolvent partners in the Garner vs. Murray case is:



Related Posts:

All Copyrights Reserved 2025 Reserved by T4Tutorials