Partnership Accounts – Introduction to Partnership Accounts & LPP 0 Partnership Accounts - Introduction to Partnership Accounts & LPP 1 / 30 Q.30 Under super profit basis goodwill is calculated by No.of years purchased multiplied with average profits No.of years purchased multiplied with super profits Summation of the discounted value of expected future benefits Super profit divided with expected rate of return 2 / 30 Q.29 The capital of A and B sharing profits and losses equally are Rs.90,000 and Rs.30,000 respectively .They value the goodwill of the firm at Rs.84,000 , which was not recorded in the books .If the goodwill is raised now,by what amount each partner 's capital account will be debited Rs.21,000 & Rs.63,000 Rs.42,000 & Rs.42,000 Rs.63,000 & Rs 21,000. None of these 3 / 30 Q.28 total capital employed in the firm Rs.16,00,000 ; reasonable rate of return 15% ; profits for the year Rs.24,00,000 .the value of goodwill using capitalization method is Rs.1,64,00,000 Rs.24,00,000 Rs.1,44,00,000 Rs.84,00,000 4 / 30 Q.27 the P&L account for the 4 years are losses Rs.20,000 ;losses Rs.5,000 ;profits Rs.1,96,000 ; Rs.1,52,000 .The average capital employed in the business is Rs.4,00,000 .the rate of interest expected from capital invested is 12% .the remuneration of partners is entitled to be Rs.2,000 p.m .the value of goodwill on the basis of two year's purchase of super profit based on there average of four years is Rs.18,000 Rs.17,500 Rs.17,000 Rs.16,500 5 / 30 Q.26 what constitutes firm's property property belonging to a partner who enters into an existing partnership any property used for the purpose of the business of the firm fixed asset brought in by partner to the common stock of firm the property acquired by partner out of money ,withdrawn from the firm's bank account for personal use 6 / 30 Q.25 which of the following is not the right of a partner of a partner. ,which he cannot claim as a matter of right right of take part in business right of have access to account books rights to share profits right to receive remuneration 7 / 30 Q.24 unless otherwise agreed , every partner has right to prevent the introduction of a new partner without the consent of majority of the existing partners to retire with the consent of majority of the partner not to be expelled from the firm by decision of all other partners None of these 8 / 30 Q.23 An unregistered firm cannot claim set on set off in excess of Rs.100 set on & set off None of these 9 / 30 Q.22 Which of the following is correct ? A partnership firms has a separate legal entity apart from its partners two firms can form a new partnership the partners of individual or individual firm can form a partnership None of these 10 / 30 Q.21 The maximum limit on number of members of a joint Hindu family carrying on family banking business is 10 20 50 no limit 11 / 30 Q.20 Agreement to share profits implies an agreement to share losses does not necessarily mean an agreement to share losses must be coupled with an agreement to share losses is same as agreement to share losses 12 / 30 Q.19 For a valid partnership ,there must be sharing of profits sharing of losses sharing of profits & losses None of these 13 / 30 Q.18 Profit and Loss Appropriation Account is prepared to Jointly and severely unlimited To show the distribution of the profit among partners Partners Equal ratio 14 / 30 Q.17 Every partner is bound to attend diligently to his___in the conduct of the business Rights Meetings Capital Duties 15 / 30 Q.16 How would you close the Partner's Drawing account By transfer to Capital or Current Account debit side By transfer to Capital Account credit side By transfer to Current Account credit side Either (b) or (c) 16 / 30 Q.15 Where will you record interest on drawing ? Debit side of Profit & Loss Appropriation account Credit side of Profit & Loss Appropriation account Credit side of Profit & Loss account Debit side of Current /Capital account only 17 / 30 Q.14 In the absence of any agreement ,partners are liable to Salary Commission interest on Loan & Advance Profit share in capital ratio 18 / 30 Q.13 Ram & Rahim partners sharing profits and losses in the ratio of their effective capital.They had Rs.2,00,000 and Rs.1,20,000. respectively in their capital accounts as on 1st january,2012.Ram introduced a further capital of Rs.20,000 on 1st April,2012 and another Rs.10,000 on 1st july,2012.on 30th September,2012 Ram withdrew Rs.80,000.On 1st july,2012,Rahim introduced further capital of Rs.60,000.Calculate the profit sharing ratio of the Ram & Rahim 4:3 3:4 2:3 3:2 19 / 30 Q.12 _____is limited to a specific venture. Express partnership Partnership at will Implied partnership Joint venture 20 / 30 Q.11 Partnership can be formed for the purpose of carrying______ Charitable activies Social activities Business All of the above 21 / 30 Q.10 Foreign Nationals cannot be a partner in LLP. TRUE FALSE 22 / 30 Q.9 A Limited Liability Partnership whose contribution exceeds Rs ________ is required to annually get its accounts audited by any Chartered Accountant in practice. 40 Lakh 1 Lakh 25 Lakh 50 Lakh 23 / 30 Q.8 B & C share profit & losses in the ratio 5:3.D is admitted to the firm and brings Rs.70,000 cash and Rs.48,000 as goodwill. New profit sharing ratio is 7:5:4.Find the sacrificing ratio as B:C 3:1 4:7 5:4 2:1 24 / 30 Q.7 A, B & C share profit & losses in the ratio 3: 2:1.they decide to change their profit sharing ratio to 2:2:1.To give effect to this new profit sharing ratio they decide to value goodwill at Rs.30,000.Pass necessary entries .If goodwill not appearing in the old balance sheet and should appear in the new balance sheet B's Capital account -Dr 2,000 ,C's Capital account-Dr 1000 , To A's Capital account -3,000 Goodwill account- Dr 30,000 ,To A's Capital account -Dr 15,000. To B's Capital account -Dr 10,000 ,C's Capital account-Dr 5000 A's Capital account -Dr 12,000 B's Capital account -Dr 12,000 ,C's Capital account-Dr 6000 , To Goodwill account -3,000 A's capital account Dr Rs.3,000 To B'Capital account -2,000 ,To C 's Capital account 1,000 25 / 30 Q.6 The profits and losses for the last years are 2001-02 losses Rs.10,000 ; 2002-03 losses Rs.2,500 ; 2003-04 Profits Rs.98,000 & 2004-05 Profits Rs.76,000.The average capital employed in the business is Rs.2,00,000 The rate of interest expected from capital invested is 12% .The remuneration of the partners is estimated to be Rs.1,000 per month .Calculate the value of goodwill on the basis of 4 years purchase of super profits based on the annuity of 4 years Take discounting rate as 10% Rs.13,500 Rs.13,568 Rs.13,668 Rs.13,868 26 / 30 Q.5 The profits of last five years are Rs.85,000: Rs.90,000: Rs.70,000: Rs.1,00,000 & Rs.80,000.find the value of goodwill , if it is calculated on average profit of the last five years on the basis of 3 years of purchase Rs.85,000 Rs.2,55,000 Rs.2,75,000 Rs.2,85,000 27 / 30 Q.4 If a fixed amount is withdrawn on the middle day of every quarter of a calendar year , the interest on total amount of drawing will be calculated for 4.5 months 6 months 5 months 6.5 months 28 / 30 Q.3 The partnership relation exists when joint owner of some property share profit & loss arising from the property a person receives a share of profit as a part of his remuneration two friends A (age 19 years) , B (17 years) decide to from a partnership A & B agreed to sell clothes for their joint account & share the profits 29 / 30 Q.2 The maximum number of partners in a firm carrying on banking business cannot exceed 5 10 20 15 30 / 30 Q.1 Guarantee given to a partner A by the other partners B & C means In case of loss A will not contribute towards that loss In case of insufficient profits A will receive only the minimum guarantee amount In case of loss or insufficient profits A will withdraw the minimum guarantee amount All the above Your score is LinkedIn Facebook Twitter VKontakte