12th class Principles of Accounting MCQS Set 4

In the absence of an agreement, the partners are entitled to interest on capital at the rate of:

6% p.a.

10% p.a.

5% p.a.

None of these

Depreciation is charged on

Current assets only

All of these

Both fixed assets and current assets

Fixed assets only

Depreciation which occurs due to certain inherent normal causes in known as:

Seasonal depreciation

Internal depreciation

External depreciation

All of these

Receipts and payments account shows

Debit and credit balances of ledgers

Assets and liabilities

Incomes and expenditures

Cash receipts and payments

Suppose A, B & C are partners, sharing profits in the ratio of 2:2:1 respectively, What will be the new ratio if C retires in the absence of an agreement?

2:01

2:03

2:02

1:02

In case of dissolution, when all the partners are solvent, closing of various assets are credited to:

Profit and loss account

Revaluation account

Assets account

Realization account

Partnership agreement cantinas

Name of partnership business

Ratio in which profits and losses are to be shared by partners

Nature of partnership business

All of the above

Net worth is equal to,

Liabilities – Assets

Liabilities + Capital

Capital + Assets

Assets – Liabilities

In the absence of an agreement, interest on drawings is to be charged by the firm at the rate of:

8% p.a.

5% p.a.

None of these

6% p.a.

Suppose A, B & C are partners, sharing profits in the ratio of 1/2,3/10,2/10 respectively, What will be the new ratio if B retires and his share is taken up by A and C in the ratio of 2:1.

10:03

5:07

5:03

7:03