1. The relationship between two or more persons who have agreed to share the profit of a business, is called:
(a)Partnership
(b) Join stock company
(c) Sole proprietorship
(d) Cooperative society
Partnership
2. In partnership, number of partners should be at least:
(a) 1
(b) 3
(c) 20
(d) 2
2
3. In partnership business, number of buddies should not exceed than
(a) 15
(b) 20
(c) 2
(d) 25
20
4. Partnership is governed by partnership act:
(a) 1933 (c) 1832
(b) 1833 (d) 1932
1932
5 The persons who have entered into partnership are collectively called:
(a) Partners
(b) Share holders
(c) Company
(d) Firm
Firm
6. The persons who have entered into partnership are separately called:
(a) Partners
(b) Firm
(c) Agents
(d) Promoters
Partners
7. In general partnership, liability of partners is:
(a) Limited
(b) Unlimited
(c) Guaranteed
(d) Unguaranteed
Unlimited
8. A partnership under which liability of all partners is unlimited:
(a) Limited partnership
(b) Unlimited partnership
(c) General Partnership
(d) None of above
General Partnership
9. Registration of partnership is:
(a) Compulsory (b) Optional
(c) Necessary
(d) (a) & (c)
Optional
10. A partner who takes an active part in the organization of partnership:
a) Clever partner
(b) Active partner
(c) (b) & (c)
(d) Daren’t partner
Active partner
11. A person who does not take a vigorous part in the management of partnership business is called:
(a) Sleeping partner
(b) Daren’t partner
(c) Nominal partner
(d) None of these
Nominal partner
12. Partnership is formed by the partners through:
(a) Written agreement
(b) Verbal agreement
(c) Oral agreement
(d) (b) & (c)
Written agreement
13. A person who has major share 15 partnership businesses or more knowledge than others is called:
(a) Junior Partner
(b) Experienced partner
(c) Old partner
(d) Senior partner
Senior partner
14. A person who has minor share in partnership capital or lesser knowledge than others is called:
(a) Junior partner
(b) Senior partner
(c) New partner
(d) Nominal partner
Junior partner
15. If there is no establishment made in the agreement about duration organization, this represents: of
(a) Unlimited partnership
(b) Limited partnership
(c) Partnership at will
(d) General partnership
Partnership at will
16. A partner who has not attained the age of majority is called:
(a) Junior partner
(b) Immature partner
(c) Minor partner
(d) Young partner
Minor partner
17. A person who lends his name to the firm is called:
(a) General partner (b) Daren’t partner
(c) Sleeping partner
(d) Nominal partner
Nominal partner
18. A partner who shares the profit of a firm but he is not responsible for the loss is called:
(a) Estoppel partner
(b) Nominal partner
(c) Profit partner
(d) Quasi partner
Quasi partner
19. A partner who is newly known to the firm with the agreement of all the partners is called:
(a) Retiring partner
(b) Incoming partner
(c) Junior partner
(d) None of above
Incoming partner
20. A person who goes out of a firm due to any reason is called:
(a) Retiring partner
(b) Incoming partner
(c) Outgoing partner
(d) (a) & (c)
Retiring partner
21. A partner can invests in the partnership business in the form of:
(a) Cash
(b) Non-Cash assets
(c) (a) & (b)
(d) None of these
(a) & (b)
22. How profit will be dispersed, if there is no agreement among partners:
(a) Equally
(b) According to capital
(c) According to experience
(d) According to work
Equally
23. Profit or loss is distributed among partners through:
(a) Trading account
(b) Profit & Loss account
(c) Partners capital account
(d) Profit & Loss assumption account
Profit & Loss appropriation account
24. In the absence of agreement salary is paid to partner who:
(a) Takes active part in the business
(b) Not paid
(c) Shares loss of the business
(d) None of these
Not paid
25. Partners contribution to the firm is called:
(a) Share
(b) Capital
(c) Contribution
(d) Property
Capital
26. In the absence of an agreement interest on loan progressive by partners is allowed at the rate of
(a) Not paid
(b) 4%
(c) 5%
(d) 6%
6%
27. In the absence of an agreement Attention on drawings made by partner is charged at the rate of
(a) Not charged
(b) 4%
(d) 6%
(c) 5%
Not charged
28. Capital accounts of the partners are retained under:
(a) Fluctuating capital method (b) Fixed capital method
(c) General capital method
(d) (a) & (b)
(a) & (b)
29. When fixed capital method is adopted to record partners’ capital:
(a) Two accounts are opened
(b) Three accounts are opened
(c) Only one account is opened
(d) None of above
Two accounts are opened
30. Current account is opened under:”
(a) Fixed capital method
(b) Fluctuating capital method
(c) (a) & (b)
(d) None of these
Fluctuating capital method
31. A partner who takes an active part in the business but he is not known to all-purpose
(a) General partner
(b) Secret partner
(c) Nominal partner
(d) Daren’t partner
Secret partner
32. A process under which only one account is preserved to record partner capital is called
(a) Fixed capital method
(b) Fluctuating capital method
(c) Single account method
(d) None of above
Fixed capital method
33. When new partner is self-confessed in the company this process is called
(a) Retiring (
b) Admission
(c) Dissolution
(d) None of above
Admission
34. Old profit sharing ratio, new profit sharing ratio:
(a) Gaining ratio
(b) Sacrificing ratio
(c) Giving ratio
(d) None of these
Sacrificing ratio
35. New profit sharing ratio Old profit sharing ratio:
(a) Gaining ratio
(b) Sacrificing ratio
(c) Receiving ratio
(d) (a) & (c)
Gaining ratio
36. When a new partner brings cash for goodwill, the amount should be debited to:
(a) Goodwill a/c
(b) Cash a/c
(c) Partners capital accounts.
(d) None of these
Cash a/c
37. When a new partner brings cash for goodwill in the firm amount should be credited to:
(a) Goodwill a/c
(b) Cash a/c
(c) Partners capital a/c
(d) None of these
Goodwill a/c
38. When a good will is raised in the books of account it should be deducted to:
(a) Goodwill a/c
(b) Partners, capital a/c
(c) Cash a/c
(d) None of these
Goodwill a/c
39. When a good will is raised in the books of version it should be show in:
(a) Balance sheet
(b) Trading account
(c) Profit & loss account
(d) Profit & loss appropriation account
Balance sheet
40. When a good will is written off, should be written off in the:
(a) Old ratio
(b) New ratio
(c) Sacrificing ratio
(d) None of these
New ratio
41. Interest on drawings is debited to:
(a) Partners Capital accounts
(b) Partners’ drawings accounts
( (c) Profit & Loss appropriation account
(d) None of these
Partners’ Capital accounts
42. Interest on drawings is credited to:
(a) Partners’ capital accounts
(b) Partners’ drawings accounts
(c) Profit & loss appropriation account
(d) None of these
Profit & loss appropriation account
43. Under fixed capital method if a partner draws some goods for his personal use entry should be:
(a) Purchases Account to Partners Current Account
(b) Partner’s Current Account to Purchases Account
(c) Profit & Loss Appropriation A/c to Partner Capital Account
(d) Partners Capital Account to Profit & Loss Appropriation A/c
Partner’s Current Account to Purchases Account
44. For Partnership business, interest on drawings is:
(a) Income
(c) Expense
(b) Asset
(d) Liability
Income
45. Partnership & Co-ownerships are:
(a) Synonymous terms
(b) Antonymous terms
(c) Similar in meaning
(d) (a) & (c)
Antonymous terms
46. The partnership agreement in written form is called
(a) Partnership deed
(b) Partnership certificate
(c) Partnership document
(d) None of above
Partnership deed
47. If some property is owned together by some persons without any on business is called:
(a) Joint partnership
(b) Co-ownership
(c) Partnership
(d) None of these
48. Revaluation account represents:
(a) Nominal account (b) Real account
(c) Personal account
(d) None of above
49 Partners capital accounts represent:
(a) Nominal accounts
(b) Real accounts
(c) Personal accounts
(d) None of above
Personal accounts
50. Loss on revaluation should be debited 102
a) Old partners’ capital accounts
(b) New partner’s capital account
(c) Revaluation account
(d) None of above
Old partners’ capital accounts
51. Profit & loss on revaluation is distributed in old partners in:
(a) Old ratio
(b) New ratio
(c) Sacrificing ratio
(d) Gaining ratio
Old ratio
52. Reserves are transferred to:
(a) Old partners
(b) New partners
(c) Remaining partners
(d) Continuing partners
Old partners
53. Reserves are partners in: transferred to old
(a) Sacrificing ratio
(b) Gaining ratio
(d) New ratio
(c) Old ratio
Old ratio
54. When new partners decide to show their assets & liabilities except cash at their original amount after revaluation which account is prepared:
(a) Revaluation account
(b) Memorandum account revaluation
(c) Profit & loss appropriation account
(d) Partners’ capital accounts
Memorandum account revaluation
55. The owners of the partnership are called:
(a) Shareholders
(b) Proprietors
(c) Partners
(d) Agents
Partners
56. In partnership, every partner acts for other partners as:
(a) Principal
(b) Agent
(c) Employee
(d) Director
Agent
57. The investment in partners, capital accounts is credited to:
(a) Partners’ current accounts
(b) Partners’ capital accounts
(c) Partners’ investment accounts
(d) Profit & loss appropriation
Partners’ capital accounts account 58. Interest on partner capital a/c is credited to:
(a) Interest on capital account
(b) Partner’s capital account,
(c) Profit & loss appropriation account
(d) None of above
Partner’s capital account,
59. In alteration of capital, surplus in capital account of any partner is:
(a) Withdrawn
(b) Transferred to other partners
(c) Retained in the business
(d) None of above
Withdrawn
60. When goodwill is paid privately by new partner, it should be debited to:
(a) Goodwill a/c
(b) Cash a/c
(c) New partner’s capital a/c
(d) No entry
No entry
61. Partner’s commission is debited to:
(a) Partner’s capital account
(b) Profit & loss appropriation account
(c) Profit & loss account
(d) Trading account
Profit & loss appropriation account
62. Partner’s salary is debited to:
(a) Partner’s capital account
(b) P&L appropriation account (c) Profit & loss account
(d) None of these
Profit & loss account
63. Net profit in partnership is transferred
(a) Partner’s capital accounts
(b) Balance sheet
(c) Profit & loss appropriation account
(d) Profit & loss account
Profit & loss appropriation account
64. Net Profit in partnership business is distributed in partners through:
(a) Profit & loss appropriation account
(b) Partner’s capital accounts
(c) Partnership account
(d) Profit & loss account
Profit & loss
65. Goodwill is:
(a) Fictitious asset
(b) Current asset
(c) Intangible asset
(d) Tangible asset
Intangible asset
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 haring ratio between Ahmad & Imran will be:
(a) 3:2
(b) 1:1
(c) 2:3
(d) 1:2
3:2
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
old partners in: (a) Sacrificing ratio
(b) Gaining ratio
(d) New ratio
(c) Old ratio
Sacrificing ratio
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 in from 8. What will be the new profit ratio after admission?
(a) 3:2:2
(b) 2:3:2
(c) 2:2:3
(d) 11:9:15
11:9:15
69. Accumulated profit & loss transferred to old partners at the time of admission in:
(a) Old ratio,
(b) New ratio
(c) Gaining ratio
(d) Sacrificing ratio
Old ratio,
70. The excess of actual earnings over normal return represents:
(a) Profit
(b) Loss
(c) Goodwill
(d) Reserve
Goodwill
71. If business is functioning under normal loss, it represents:
(a) Normal goodwill
(b) Goodwill
(c) No goodwill
(d) Lesser goodwill
No goodwill
72. A ratio in which share of good will of retiring partner is spread in remaining buddies is called:
(a) Gaining ratio
(b) Sacrificing ratio
(c) Retiring ratio
(d) New ratio
Gaining ratio
73. When goodwill is carried in cash by new partner, it represents:
(a) Revaluation method
(b) Cash method
(c) Premium method
(d) Memorandum revaluation method
Premium method
74. Profit on revaluation is transferred to:
(a) Old Partners
(b) New Partners
(c) Remaining partners (d) Continuing partners
Old Partners
75. Profit & loss on adjustment at the time of parting of any partner should be transported to:
(a) Old partners
(b) Continuing Partners
(c) Remaining Partners
(d) None of above
Old partners
76. Increase in value of asset at the time of revaluation is credited to
(a) Asset a/c
(b) Revaluation a/c (c) Profit & loss a/c
(d) Balance sheet
Revaluation a/c
78. Increase in value of obligation at the time of revaluation is debited to:
(a) Revaluation a/c
(b) Liability a/c
(c) Profit & loss a/c
(d) Balance sheet
Revaluation a/c
79. When good will is raised in the books of account, this method represents:
(a) Premium method
(b) Revaluation method
(c) Memorandum. Revaluation method
(d) None of above
Premium method
The balance of retiring partner capital account at the time of retirement is moved to:
(a) His loan a/c
(b) His current a/c
(c) His Investment a/c
(d) None of above
His loan a/c
80. An interest is provided on balance of retiring partner after retirement at:
(a) 6%
(b) 7%
(c) 5%
(d) 4%
5%
81. A policy which is cooperatively taken on the lives of partners is called:
(a) Combined life policy
(b) Common life policy
(c) Joint life policy
(d) None of above
Joint life policy
82. Joint life policy amount is distributed among old partners in:
(a) New ratio
(b) Old ratio
(c) Sacrificing ratio
(d) Gaining ratio
Old ratio
83. On the death of any partner, amount of assets should be transferred to old partners (Including deceased) in:
(a) Old ratio
(b) New ratio
(c) Gaining ratio
(d) Sacrificing ratio
Old ratio
84. On the death of any partner, the firm will receive from insurance company:
(a) Full amount of policy
(b) Half amount of policy
(c) No amount of policy
(d) 1/3 amount of policy
Full amount of policy
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 ale in:
(a) New ratio
(b) Gaining ratio
(c) Sacrificing ratio
(d) Old ratio
New ratio
86. End or close of partnership business represents:
(a) Retirement
(b) Admission
(d) Termination
(c) Dissolution
Dissolution
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:
(a) Realization a/c
(b) Sale account
(c) Assets & liabilities a/c
(d) None of above
Realization a/c
88. When partners decide to dissolve the firm with their agreement it represents:
(a) Dissolution by court
(b) Dissolution by notice
(c) Dissolution by agreement
(d) None of above
Dissolution by agreement
89. Dissolution due to unsound mindedness of any partner is called:
a) Dissolution by court
(b) Dissolution by notice
(c) Dissolution by agreement
(d) None of above
Dissolution by court
90. When assets are realized, should be debited to
(a) Realization a/c
(b) Cash a/c (c) Assets a/(c)
(d) None of these
Cash a/c (c) Assets a/
91. When assets are realized should be credited to:
(a) Realization a/c
(b) Cash a/(c) (c) Assets a/c
(d) None of these
Realization a/c
92. When unrecorded assets are realized, should be credited to:
(a) Realization a/c
(b) Cash a/c
(d) Sales a/c
(c) Assets a/c
Realization a/c
93. When unrecorded charges are paid, these should be debited to:
(a) Realization a/c
(b) Cash a/c (c) Liabilities a/c
(d) Creditors a/c
Realization a/c
94. When provision for unsure debts is transferred at the time of dissolution, it should be credited to:
(a) Realization account
(b) Provision for doubtful debts account
(c) Debtors account
(d) None of above
Realization account
95. When assets are sold at the time of disbanding, what entry will be passed?
(a) Realization Account to Cash Account
(b) Cash Account to Realization Account
(c) Cash Account to Assets Account
(d) Cash Account to Sales Account
Cash Account to Realization Account
96. When liabilities are paid at-the time of dissolution what entry will be passed?
(a) Realization Account to Cash Account
(b) Cash Account to Realization Account
(c) Liabilities Account to Cash Account
(d) Creditors Account
Realization Account to Cash Account
97. The time of dissolution what entry would be passed?
(a) Cash Account to Assets Account
(b) Assets Account to Realization Account
(c) Cash Account to Realization Account
(d) Realization Account to Cash Account
Cash Account to Realization Account
98. Balance of cash ale is transferred the time of dissolution to:
(a) Realization a/c
(b) Partners’ capital a/c
(c) Balance sheet
(d) Partners’ loan a/c
Partners’ capital a/c
99. General reserve / Retained earnings are transferred to:
(a) Realization a/c
(b) Cash a/c
(c) Partners capital a/c
(d) Creditors a/c
Cash a/c
100. Dissolution of partnership, dissolution of firm:
(a) Synonymous terms
(b) Antonymous terms
(c) Similar terms
(d) None of above
Antonymous terms
101. The balance of partners’ current are transferred to:
(a) Realization a/c
(b) Firms a/c (c) Partners’ capital a/c
(d) None of these
Partners’ capital a/c
102. Assets are transferred to realization ale at:
(a) Book value
(b) Net realizable value
(c) Cost
(d) Market value
Book value
103. Who gave the decision of Garner vs. Murray case?
(a) Mr. Wilkins
(b) Mr. Joyce (
c) Mr. Thomas
Mr. Joyce (
104.When Garner vs. Murray rule is applied:
(a) Profit & loss ratio is not- given (b) P&L ratio is given
Deficiency ratio is not given (d) (a) & (c)
105. According to Garner vs. Murray, will be met by solvent partners in:
(a) Profit & loss sharing ratio
(b) Deficiency sharing ratio Last agreed capital ratio
(d) Current a/e balance ratio
106. According to Gamer vs. Murray, solvent partners will fulfill their realization loss by:
(a) Adjusting against capital
(b) Bringing cash
(c) (a) (b)
(d) None of above
Bringing cash
107. Realization account represents:
(a) Nominal account
(b) Real account
(c) Personal account
Nominal account
108. Garner vs. Murray case was decided by Mr. Joyce in:
(a) 1904
(b) 1804
(d) 1814
(c) 1914
1904
109. What entry will be passed, when deficiency of insolvent partner is fulfilled by partners?
(a) Solvent Partners’ Capitals A/c to Insolvent partner’s capitals
(b) Solvent Partners To cash account
(c) Cash Account To insolvent partner capital A/c
(d) Realization Account
Solvent Partners’ Capitals A/c to Insolvent partner’s capitals
110. When all partners become insolvent, what entry will be, passed to outsider liabilities into realization a/c:
(a) Realization Account to Liabilities Account
(b) Liabilities Account to Realization Account
(c) Creditors Account to Realization Account
(d) No entry
No entry
111. If assets are sold for cash, when all partners become insolvent, which account will be credited?
(a) Cash account
(b) Sales account
(c) Realization account.
(d) None of above
Realization account
112. When all partners become insolvent, from realization money first of all are paid:
(a) Dissolution expenses
(b) Outsiders’ liabilities
(c) Partners loan
(d) Partners’ capital
Dissolution expenses
113. When all partners become insolvent, the amount unpaid in creditors’ account is credited to:
(a) Realization a/c
(b) Cash a/c
(c) Creditor’s a/c
(d) Deficiency a/c
Deficiency a/c
114. When all partners become insolvent, at the time of closing of different accounts, deficiency account is transferred to:
(a) Realization a/(c)
(b) Cash a/(c)
(c) Partners’ Capital a/c
(d) Bad debts, a/c
Partners’ Capital a/c
115. For dissolution expenses, what entry will be passed?
(a) Realization Account to Cash Account
(b) Expenses Account to Cash Account
(c) Dissolution Account to Cash Account
(d) Cash Account to Realization Account
Realization Account to Cash Account
116. Garner vs. Murray rule is applied when there are:
(a) Two partners
(b) More than two partners
(c) One partner
(d) None of above
More than two partners
117. For application of Garner vs. Murray rule, there must be at least:
(a) Two partners
(b)Three partners
(c) Four partners
(d) None of above
(d) One partner
Three partners
118. When fixed capital method is adapted to record partner capital accounts, last agreed capital represents:
(a) Current accounts balances
(b) Capital accounts balances
(c) Profit & loss appropriation account balance
(d) None of above
Capital accounts balances
119. When fluctuating capital method is adapted to record partner capital accounts, last agreed capital is calculated before including:
(a) Realization loss
(b) Revenue loss
(c) Net loss
(d) Commission
Realization loss
120. According to Gamer vs. Murray decision, if partner’s capital account shows debit balances, he will bear:
(a) Total loss
(b) No loss
(c) Half loss
(d) None of these
No loss
121. The balance, of realization account is transferred to the capital account of the partners in:
(a) Profit sharing ratio
(b) Capital ratio
(c) Equal ratio
(d) None of above
Profit sharing ratio
122. The credit balance of realization account is credited to:
(a) Profit & loss account
(b) Profit & loss appropriation account
(c) Partners’ capital accounts
(d) Cash account
Partners’ capital accounts
123. If unrecorded assets are taken over by the partners at the time of dissolution, are debited to:
(a) Realization account
(b) Partners capital accounts
(c) Assets account
(d) None of above
Partner capital accounts
124. If unrecorded assets are taken over by the partners at are credited to: the time of dissolution
(a) Realization a/c
(b) Partners capital a/c
(c) Assets a/(c)
(d) None of above
Realization a/c
125. If all the partners except one are insolvent it refers to:
(a) Dissolution by agreement (b) Compulsory dissolution
(c) Dissolution by court
(d) None of above
Compulsory dissolution
126. Amalgamation represents:
(a) Merger of different firms b) Formation of new firm
( (c) Dissolution of old firm
(d) (a) &(b)
(a) &(b)
127. Amount due to retiring or deceased partner is presented in the balance sheet as:
(a) Capital
(b) Loan
(c) Asset
(d) None of these
Loan
128. Partners’ capital accounts are effected due to:
(a) Retirement of a partner
(b) Admission of a partner
(c) Death of a partner (d) All of the above
All of the above
129. The partnership may come to an end due to:
(a) Death of a partner
(b) Admission of a partner
(c) Retirement of a partner
(d) All of the above
All of the above
130. Private estate of insolvent partners in Garner vs. Murray case is:
(a) Considered
(b) Ignored
(c) Included
(d) None of above
Ignored