Partnership Accounts – 25 Easy MCQs

Here are the 25 Solved MCQs of the Partnership Accounts. These MCQs will develop your concept and help to improvise your exams preparation. A soft copy of these MCQs is also available.

Partnership Accounts (1-10 MCQs)

  1. In the absence of an agreement to the contrary, the partner shall
    1. Not be paid salaries
    2. Be paid salaries
    3. Both of the above
    4. None of the above
  2. Partner’s current accounts are opened when their capital accounts are
    1. Fluctuating
    2. Zero
    3. Fixed
    4. All of the above
  3. In the absence of an agreement to the contrary, partners share profits and losses in
    1. Equal ratio
    2. The ratio of their capitals in the beginning of the year
    3. The ratio of their capitals in the end of the year
    4. The ratio of average capital
  4. The interest on the capital accounts of partners is credited to
    1. Cash flow statement
    2. Profit and loss account
    3. Interest account
    4. Partner’s capital account
  5. When interest is to be allowed on the capitals of the partners, it is calculated on the capital
    1. In the beginning of the year
    2. At the end of the year
    3. Average capital
    4. Capital at the endless drawing, if any
  6. The current account of a partner
    1. Have a credit balance
    2. Have a debit balance
    3. Both of the above
    4. None of the above
  7. X, Y and Z shares profits and losses in the ratio of 4:3:1. D is admitted into partnership for 1/8th share, the sacrificing ratio of X, Y and Z is
    1. 3/8:2/8:1/8
    2. Equal
    3. 3/8:4/8:3/8
    4. 4:3:1
  8. A, B and C are partners in the ratio of 1/2 :2/5:1/10. What will be new ratio of the remaining partners, if Z retires
    1. 4:1
    2. 2:1
    3. 3:1
    4. 5:1
  9. On the admission of a new partner, the increase in the value of an asset is credited to
    1. Capital account
    2. Asset account
    3. Old partner’s capital account
    4. Profit and loss adjustment account
  10. X, Y and Z are equal partners. Z, Y and D die together in a plane crash. This accident results in
    1. Dissolution of firm as well as dissolution of partnership
    2. Dissolution of partnership
    3. Dissolution of firm
    4. None of the above

Quiz with Answers

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Partnership Accounts

Quiz with Answers

1 / 25

In the absence of an agreement to the contrary, the partner shall

2 / 25

Partner’s current accounts are opened when their capital accounts are

3 / 25

In the absence of an agreement to the contrary, partners share profits and losses in

4 / 25

The interest on the capital accounts of partners is credited to

5 / 25

When interest is to be allowed on the capitals of the partners, it is calculated on the capital

6 / 25

The current account of a partner

7 / 25

X, Y, and Z shares profits and losses in the ratio of 4:3:1. D is admitted into a partnership for 1/8th share, the sacrificing ratio of X, Y, and Z is

8 / 25

A, B, and C are partners in the ratio of 1/2:2/5:1/10. What will be the new ratio of the remaining partners, if Z retires

9 / 25

On the admission of a new partner, the increase in the value of an asset is credited to

10 / 25

X, Y, and Z are equal partners. Z, Y, and D die together in a plane crash. This accident results in

11 / 25

Loss arising from insolvency of a partner is to be borne by other partners

12 / 25

When a firm is dissolved, profit or loss on realization is shared by the partners

13 / 25

Premium paid on the joint-life policy of a partner is

14 / 25

Provision of bad and doubtful appearing in the books at the time of dissolution of the firm is treated

15 / 25

The amount received from the insurance company on the maturity of the joint-life policy is distributed amongst the partners

16 / 25

An incoming partner brings his share of goodwill in cash, it should be adjusted by crediting to

17 / 25

Decrease in the value of a liability, due to the retirement of a partner, is credited to

18 / 25

An amount realized from the unrecorded asset on the dissolution of a firm is credited to

19 / 25

On dissolution, all assets are transferred to realization account at

20 / 25

The liabilities not taken over the new firm after the sale of the business of partnership should be

21 / 25

When two firms amalgamate, general reserve is transferred to

22 / 25

Goodwill raised at the time of admission of a new partner, should be written off in

23 / 25

A realization account is a

24 / 25

The balance in joint life policy reserve account should be transferred to

25 / 25

On joint life policy of partners, the amount received from the insurance company in excess of its surrender value should be credited to partners’ account

Partnership Accounts (11 -25 MCQs)

  1. Loss arising from insolvency of a partner is to be borne by other partners
    1. Equal
    1. In the ratio of their capital
    1. Borne by other partners
    1. In the profit-sharing ratio
  2. When a firm is dissolved, profit or loss on realization is shared by the partners
    1. In the profit-sharing ratio
    1. In the ratio of their capital balance
    1. Equal ratio
    1. All of the above
  3. Premium paid on the joint life policy of a partner is
    1. Debited to respective partners account
    1. Credited to income statement
    1. Debited to profit and loss account
    1. Debited to respective partners account
  4. Provision of bad and doubtful appearing in the books at the time of dissolution of firm is treated
    1. Bad debts account
    1. Realization account
    1. Debtors account
    1. Capital account
  5. The amount received from insurance company on the maturity of joint life policy is distributed amongst the partners
    1. In the profit-sharing ratio
    1. Equally
    1. In the ratio of capital of partner
    1. None of these
  6. An incoming partner brings his share of good will in cash, it should be adjusted by crediting to
    1. His capital account
    1. Goodwill account
    1. Old partner(s) account
    1. Income statement
  7. Decrease in the value of a liability, due to the retirement of a partner, is credited to
    1. Realization account
    1. Goodwill account
    1. Liability account
    1. Profit and loss adjustment account
  8. An amount realized from the unrecorded asset on the dissolution of a firm is credited to
    1. Revaluation account
    1. Cash account
    1. Realization account
    1. Liability account
  9. On dissolution, all assets are transferred to realization account at
    1. Market value
    1. Book value
    1. Cost or market value, whatever is less
    1. Cost or market value, whatever is high
  10. The liabilities not taken over the new firm after the sale of the business of partnership should be
    1. Debited to the realization account
    1. Debited to the capital accounts of the partners
    1. Credited to the capital accounts of the partners
    1. Credited to the realization account
  11. When two firms amalgamate, general reserve is transferred to
    1. Partner’s account
    1. New firms account
    1. Revaluation account
    1. Firms account
  12. Goodwill raised at the time of admission of a new partner, should be written off in
    1. Old profit-sharing ratio
    1. Gaining ratio
    1. New profit-sharing ratio
    1. Sacrificing ration
  13. Realization account is a
    1. Nominal account
    1. Personal account
    1. Real account
    1. Fictitious account
  14. The balance in joint life policy reserve account should be transferred to
    1. Main partner’s account
    1. All the partner’s account
    1. Remaining partner’s account
    1. Deceased partner’s account
  15. On joint life policy of partners, the amount received from the insurance company in excess of its surrender value should be credited to partners’ account
    1. In the profit-sharing ratio
    1. In the ratio of capitals
    1. Equally
    1. In the ratio of their practice
Partnership Accounts
Partnership Accounts

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