12th class Principles of Accounting MCQS Set 2

The maximum amount which each partner will draw from the business in anticipation of the share of profit is his:

Loss

Capital

Profit

Drawings

A person who is elected to run the club

Secretary

Treasurer

President

Chairperson

Depreciation

IS a regular loss

All of these

Reduces value of asset gradually

Reduces productive activity

Non-profit making organizations are established for

To manufacture goods

Charitable or religious purpose

To help the rich people

Profit

It sets out the terms on which partners agreed to form a partnership

a and “b”

Partnership deed

None of these

Partnership agreement

A new partner may be admitted to a partnership

With the consent of any one of the partners

With the consent of two third of the old partners

With the consent of all the old partners

Without consent of old partners

In the absence of an agreement to the contrary, the partners

Are entitled for interest on capital at the bank rate, only when there are profits

Are entitled for 6% interest on their capitals, only when there are profits

Are not entitled for any interest on their capitals

Are entitled for 9% interest on their capitals, only when there are profits

The company which can be formed by at least seven members,

Sole proprietorship

Public company

Partnership

Private company

The debit balance of interest on loan account is transferred to:

Partner’s loan account

Trading account

Profit & loss account

Partner’s capital account

In case of retirement, when goodwill is raised but written off is credited to:

Retiring partners capital A/c

All partners capital A/c

Remaining partners capital A/c

Goodwill A/c