Question: For transfer of Profit from Profit and Loss Appropriation account to Reserve account, which account to be credited
- a) Reserve Account
- b) Profit and Loss Appropriation account
- c) Profit and Loss Adjustment Account
- d) Profit and Loss account
Answer: Reserve Account
Question: What is Goodwill
- a) Intangible fixed asset
- b) Fixed Assets
- c) Current Assets
- d) None of the options
Answer: intangible fixed asset
Question: formula for calculation of Goodwill by Capitalisation of Super Profit Method.
- a) Goodwill = Super Profit x 100/Normal rate of return
- b) Goodwill = Capitalised value of Average Profits - Net Assets
- c) Goodwill = Capitalised value of Average Profits - Net Liabilities
- d) None of the options
Answer: Goodwill = Super Profit x 100/Normal rate of return
Question: Formula of Goodwill by Capitalisation of Average Profits Method.
- a) Goodwill = Capitalised value of Average Profits - Net Assets
- b) Goodwill = Super Profit x 100/Normal rate of return
- c) Goodwill = Capitalised value of Average Profits - Net Liabilities
- d) None of the options
Answer: Goodwill = Capitalised value of Average Profits - Net Assets
Question: Where would you record the interest on capital when capitals are fixed?
- a) Partners current account
- b) Partners Capital account
- c) Partners Salary account
- d) None of the options
Answer: Partners current account
Question: Under capitalization method of goodwill valuation, which of the following formulas is used to calculate the value of whole business?
- a) Value of whole business=Profit / Reasonable rate of return X 100
- b) Value of whole business= Total assets / Reasonable rate of return X 100
- c) Value of whole business= Equity-Net assets
- d) None of the options
Answer: Value of whole business=Profit / Reasonable rate of return X 100
Question: New investment by any partner in the partnership type of business is _______ to the partners capital account
- a) Credited
- b) Debited
- c) Credit and Debit Both
- d) None of the options
Answer: credited
Question: In the general form of partnership, liabilities of partners are
- a) Unlimited
- b) Limited
- c) Limited to the Business capital
- d) None of the options
Answer: Unlimited
Question: The decision is Garner Vs Murray was given in
- a) 1904
- b) 1905
- c) 1933
- d) 1804
Answer: 1904
Question: Balance of realization Account is transferred to the capital Account of the partners in
- a) Profit sharing ratio
- b) Interest ratio
- c) Capital ratio
- d) Equally
Answer: Profit sharing ratio
More Questions....................................
Question: At the time of dissolution all the assets of firm are transferred to the realization Account
- a) Book value
- b) Market value
- c) Cost value
- d) None of the options
Answer: Book value
Question: When a partner dies, firm will receive the
- a) Full amount of policy
- b) 1/2 amount of policy
- c) 1/4 amount of policy
- d) 3/4 amount of policy
Answer: Full amount of policy
Question: Section 37 of partnership act provided interest on the amount left by retiring or decreased partner at
- a) 6%
- b) bank rate
- c) 0.1
- d) 0.05
Answer: 6%
Question: When good will is brought in cash by new partner, method is known as
- a) Premium method
- b) Revolution method
- c) Memorandum revolution method.
- d) None of the options
Answer: Premium method
Question: Revolution Account is a
- a) Nominal Account
- b) Personal Account
- c) Real Account
- d) Cash Account
Answer: Nominal Account
Question: For any decrease in the value of liability, revolution Account is to be
- a) Credited
- b) Debited
- c) Both (Cr.) & (Dr.)
- d) None of the options
Answer: Credited
Question: A is drawing Rs. 500 regularly on the 16thof every month, he will have to pay interest in a year on Rs. 6000 for the total period of @ given rate of interest
- a) 6 months
- b) 5 months
- c) 7 months
- d) 12 months
Answer: 6 months
Question: Old profit sharing ratio minus new profit sharing ration is equal to
- a) Sacrificing ratio
- b) Ratio of gain
- c) Capital ratio
- d) None of the options
Answer: Sacrificing ratio
Question: Upon the sale of an established business its good will
- a) Marketable value
- b) Not marketable value
- c) Both Marketable value and Not marketable value
- d) None of the options
Answer: Marketable value
Question: A credit balance on a partners current Account is.
- a) Part of capital
- b) Fixed capital
- c) A current asset
- d) Long - term liability
Answer: Part of capital
Question: For the firm interest on drawing is
- a) Income
- b) Expense
- c) Liability
- d) None of the options
Answer: Income
Question: Every partner has a right to be consulted in all matters affecting the business of
- a) Partnership
- b) Sole - tradership
- c) JSC
- d) None of the options
Answer: Partnership
Question: The agreement among partners which set out the terms on which they had agreed to form a partnership is called
- a) Partnership deed
- b) Partnership at - will
- c) Arbitration clause
- d) None of the options
Answer: Partnership deed
Question: A person who receives a share of profits from one of the regular partner is called
- a) Sub - partner
- b) Secret partner
- c) Quasi
- d) partner in profit only
Answer: Sub - partner
Question: A person who declares by word of mouth as partner of the firm is called
- a) Estopple partner
- b) Active partner
- c) Dormant partner
- d) Nominal partner
Answer: Estopple partner
Question: If no provision is made in agreement regarding the duration of the partnership
- a) Partnership at - will
- b) Limited partnership
- c) Particular partnership
- d) None of the options
Answer: Partnership at - will
Question: The persons who have entered into a partnership business are individually called
- a) Partners
- b) Vender
- c) Agents
- d) A firm
Answer: Partners
Question: Loss on realization is distributed among partners
- a) According to profit and loss ratio
- b) According to capital ratio
- c) As decided among them
- d) None of the options
Answer: According to profit and loss ratio
Question: If a partner takes over an asset of the firm, his capital account
- a) Will be debited with the amount as agreed
- b) Will be credited with the market value of the asset
- c) Will be debited with book value of the asset
- d) None of the options
Answer: Will be debited with the amount as agreed
Question: At the time of dissolution
- a) Non cash assets are transferred to realization Account
- b) All the assets are transferred to realization
- c) Only current assets are transferred to realization Account
- d) Only liquid and current asset are transferred to realization Account
Answer: Non cash assets are transferred to realization Account