MCQ Questions Chapter 2 Accounting for Partnership Basic Concepts Class 12 Accountancy

MCQ Class 12

Question. Aman and Vimal are partners in a firm. Aman says that goodwill is an asset so it has a  realisable value. Vimal says that goodwill is an intangible asset, so it has no realisable value. Solve the issue.
(a) Aman is correct. Goodwill is asset, so it has realisable value.
(b) Vimal is correct. Goodwill is intangible asset, so it has no realisable value.
(c) Goodwill is an intangible asset, it may have some realisable value or it can be nil.
(d) Goodwill is a loss, it has negative value. 

Answer

C

Question. The capital balance of a partner at the end of the year (after adjusting for his drawings ₹ 3,500 and his share in the profit ₹ 2,300) is ₹ 12,000. Interest on capital is payable to him at 5% per annum. What will be the amount of interest on capital?
(a) ₹ 660
(b) ₹ 600
(c) ₹ 540
(d) None of these   

Answer

A

Question. Asha and Bipasha are partners in a firm. They share profits in the ratio of 1:1. In this year, they suffered a loss. They maintain capital accounts under fluctuating account method. Pass journal entry to transfer the loss to the capital accounts of Asha and Bipasha.
(a) Profit and Loss Appropriation A/c       Dr
             To Asha’s Capital A/c
             To Bipasha’s Capital A/c
(b) Asha’s Capital A/c                             Dr
             To Bipasha’s Capital A/c
(c) Asha’s Capital A/c                              Dr
Bipasha’s Capital A/c                              Dr
             To Profit and Loss A/c
(d) None of the above     

Answer

C

Question. Loan has been given by wife of a partner to the firm. Now partner wants interest @ 6% per annum as per Partnership Act, 1932 while partnership deed is silent. Solve this issue.
(a) Provide 6% per annum interest as Partnership Act says
(b) Provision of interest on loan @ 6% per annum of the Partnership Act does not apply
(c) Provide 10% interest to solve the issue
(d) None of the above   

Answer

B

Question. If firm gives guarantee to a partner then who will sacrifice for this guarantee?
(a) All partners equally
(b) Only that partner who has maximum profit
(c) All partners in profit or loss sharing ratio
(d) All of the above 

Answer

C

Question. When fluctuating capital method is used, which of the following items are shown in debit side of partners’ capital account?
(a) Opening debit balance of capital account
(b) Drawings
(c) Interest on drawings
(d) All of these 

Answer

D

Question. A and B were partners in a firm. They share their profits in the ratio of 2:1. A withdraws an amount of ₹ 2,000 on 1st July, 2021. Journalise it.
(a) Profit and Loss Appropriation A/c       Dr    2,000
             To A’s Capital A/c                                                2,000
(b) A’s Capital A/c                                     Dr     2,000
             To Profit and Loss A/c                                          2,000
(c) A’s Drawings A/c                                  Dr     2,000
             To Cash/Bank A/c                                                2,000
(d) A’s Capital A/c                                     Dr      2,000
             To A’s Drawings A/c                                              2,000   

Answer

C

MCQ Questions Chapter 2 Accounting for Partnership Basic Concepts Class 12 Accountancy

We hope you liked the above provided MCQ Questions Chapter 2 Accounting for Partnership Basic Concepts Class 12 Accountancy with solutions. If you have any questions please ask us in the comments box below.