McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
| 101. |
Drawings of the partners are: |
| A. | debited to profit & loss a/c |
| B. | credited to profit & loss a/c |
| C. | credited to capital a/c |
| D. | debited to capital a/c |
| Answer» D. debited to capital a/c | |
| 102. |
A partners has to pay interest on drawings what is the entry in the personal A/c of the partner? |
| A. | credit partners capital a/c |
| B. | credit partners current a/c |
| C. | debit the partners current a/c |
| D. | debit partners current a/c |
| Answer» D. debit partners current a/c | |
| 103. |
Salary paid to partner should be: |
| A. | debited to his current a/c |
| B. | credited to his current a/c |
| C. | credited to profit & loss appropriation a/c |
| D. | none of above |
| Answer» D. none of above | |
| 104. |
Interest on capital Account: |
| A. | debited to profit & loss a/c |
| B. | credit to profit & loss a/c |
| C. | debit to profit & loss and credited to partners capital a/c |
| D. | only credited to partners capital a/c |
| Answer» C. debit to profit & loss and credited to partners capital a/c | |
| 105. |
At the time of admission of a new partner the firm is: |
| A. | dissolved |
| B. | continued |
| C. | not effected |
| D. | re-organized |
| Answer» A. dissolved | |
| 106. |
At the time of admission an incoming partner contributes as goodwill: |
| A. | in cash |
| B. | does not pay cash |
| C. | may or may not pay cash for goodwill |
| D. | none of these. |
| Answer» C. may or may not pay cash for goodwill | |
| 107. |
Goodwill is valued as two years purchase of the average profits of three previous years are Rs. 15000, the value of goodwill be: |
| A. | rs. 15000 |
| B. | rs. 30000 |
| C. | rs. 20000 |
| D. | rs. 50000 |
| Answer» B. rs. 30000 | |
| 108. |
Value of goodwill agreed upon Rs. 30000 on C, S admission and allowing him ¼ share of total profit Goodwill is brought in cash, the amount of goodwill be as: |
| A. | rs. 30000 |
| B. | rs. 7500 |
| C. | rs. 150000 |
| D. | rs. 120000 |
| Answer» B. rs. 7500 | |
| 109. |
Goodwill of the firm is valued Rs. 30000. C an incoming partner purchase ¼ share of total profit Goodwill be raised in the books. |
| A. | rs. 30000 |
| B. | rs. 7500 |
| C. | rs. 120000 |
| D. | rs. 7000 |
| Answer» A. rs. 30000 | |
| 110. |
An incoming partner pays his share of goodwill in cash, and profit sharing ration of old partner is changed, Goodwill be distributed among old partners: |
| A. | as their old profit ratio |
| B. | according to new ration |
| C. | according to sacrifice ratio |
| D. | none of these |
| Answer» C. according to sacrifice ratio | |
| 111. |
At the time of admission of a new partner, general reserve is: |
| A. | debited to capital of old partners |
| B. | credited to capital of old partners |
| C. | allowed to remain is balance sheet |
| D. | debited to current account |
| Answer» B. credited to capital of old partners | |
| 112. |
A new partner may be admitted to a partnership: |
| A. | with the consent of all partners |
| B. | with the consent of two third of old partners |
| C. | with the consent of any one of the partners |
| D. | without consent of old partners |
| Answer» A. with the consent of all partners | |
| 113. |
At the time of a new partner Goodwill: |
| A. | belongs to all partners, new and old |
| B. | belongs only to the new partners who is going to be admitted |
| C. | belongs only to the old partner who have credited it |
| D. | none of the above. |
| Answer» C. belongs only to the old partner who have credited it | |
| 114. |
In the revaluation account a decrease in the value of plant and machinery: |
| A. | appears on the debit side |
| B. | appears on the credit side |
| C. | appears on the debit side of good will account |
| D. | does not appear at all |
| Answer» A. appears on the debit side | |
| 115. |
In the revaluation account an increase in the value of land and building: |
| A. | appears on the debit side |
| B. | appears on the credit side |
| C. | appears on the credit side of good will account |
| D. | does not appear at all |
| Answer» B. appears on the credit side | |
| 116. |
The partnership may come to an end due to the: |
| A. | death of a partner |
| B. | insolvency of partner |
| C. | by giving notice |
| D. | all of the above |
| Answer» D. all of the above | |
| 117. |
In case of retirement of a partner full good will is credited to the accounts of: |
| A. | all partners |
| B. | only retiring partner |
| C. | only remaining partner |
| D. | none of the above |
| Answer» A. all partners | |
| 118. |
Revaluation account is operated to find out gain or loss at the time of: |
| A. | admission of a partner |
| B. | retirement of a partner |
| C. | death of a partner |
| D. | all of above |
| Answer» D. all of above | |
| 119. |
Partners equity is effected due to: |
| A. | retirement of a partner |
| B. | admission of a partner |
| C. | death of a partner |
| D. | all of above |
| Answer» D. all of above | |
| 120. |
The accounting procedure at the retirement of partner is valued: |
| A. | revaluation of assets and liabilities |
| B. | ascertaining his share of goodwill |
| C. | finding the amount due to him |
| D. | all of above |
| Answer» D. all of above | |
| 121. |
If the remaining partner want to continue the business, after the retirement of a partner, a new partnership agreement: |
| A. | necessary |
| B. | not necessary |
| C. | optioned |
| D. | none of above |
| Answer» A. necessary | |
| 122. |
An account operated to ascertain the loss or gain at the death of a partner is called: |
| A. | realization account |
| B. | revaluation account |
| C. | execution account |
| D. | deceased partner a/c |
| Answer» B. revaluation account | |
| 123. |
Amount due to outgoing partner is shown in the balance sheet as his: |
| A. | liability |
| B. | asset |
| C. | capital |
| D. | loan |
| Answer» D. loan | |
| 124. |
The loss or gain an account of revaluation at the time of retirement of a partner is shared by: |
| A. | remaining partners |
| B. | retiring partner |
| C. | all partners |
| D. | none of above |
| Answer» C. all partners | |
| 125. |
On the retirement of a partner any reserve being should be transferred to the capital account of: |
| A. | all partners in the old profit sharing ratio |
| B. | remaining partners in the new profit sharing ratio |
| C. | neither the retiring partner, nor the remaining partner |
| D. | none of above |
| Answer» A. all partners in the old profit sharing ratio | |
| 126. |
Retirement or death of a partner. |
| A. | is dissolution of partnership agreement |
| B. | is dissolution of a firm |
| C. | may or may not be a dissolution of partnership agreement |
| D. | none of above |
| Answer» A. is dissolution of partnership agreement | |
| 127. |
If all the partners, but one are insolvent it is: |
| A. | dissolution of an agreement |
| B. | dissolution of firm |
| C. | may or may not cause dissolution |
| D. | none of above |
| Answer» B. dissolution of firm | |
| 128. |
If all the partners, but one, are solvent it is: |
| A. | dissolution of partnership agreement |
| B. | dissolution of firm |
| C. | may or may not cause dissolution |
| D. | none of above |
| Answer» B. dissolution of firm | |
| 129. |
At the time of dissolution: |
| A. | all the assets are transferred to realization a/c |
| B. | only current assets are transferred to realization a/c |
| C. | non cash assets are transferred to realization a/c |
| D. | only liquid and current asset are transferred to realization a/c |
| Answer» C. non cash assets are transferred to realization a/c | |
| 130. |
At the time of dissolution non – cash assets are credited with: |
| A. | market value |
| B. | book value |
| C. | as the agreed amount among the partners |
| D. | cost or market whichever is low |
| Answer» B. book value | |
| 131. |
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 above |
| Answer» A. will be debited with the amount as agreed | |
| 132. |
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 above |
| Answer» A. according to profit and loss ratio | |
| 133. |
Loss on realization is: |
| A. | debited to partners capital a/c |
| B. | credited to partners capital a/c |
| C. | debited to realization a/c |
| D. | credited to realization a/c |
| Answer» A. debited to partners capital a/c | |
| 134. |
When all partners are insolvent creditors will be: |
| A. | paid fully |
| B. | paid rate ably |
| C. | taken over by the partners |
| D. | paid by government |
| Answer» B. paid rate ably | |
| 135. |
The persons who have entered into a partnership business are individually called: |
| A. | realization a/c |
| B. | partners capital a/c |
| C. | sundry debtors |
| D. | provision for bad debts a/c |
| Answer» A. realization a/c | |
| 136. |
The persons who have entered into a partnership business are individually called: |
| A. | vender |
| B. | agents |
| C. | partners |
| D. | a firm |
| Answer» C. partners | |
| 137. |
If no provision is made in agreement regarding the duration of the partnership: |
| A. | limited partnership |
| B. | partnership at will |
| C. | none |
| D. | particular partnership |
| Answer» B. partnership at will | |
| 138. |
A person who declares by word of mouth as partner of the firm is called: |
| A. | active partner |
| B. | estople partner |
| C. | dormant partner |
| D. | nominal partner |
| Answer» B. estople partner | |
| 139. |
A person who receives a share of profits from one of the regular partner is called: |
| A. | secret partner |
| B. | quasi |
| C. | partner in profit only |
| D. | sub – partner |
| Answer» D. sub – partner | |
| 140. |
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. | none of these |
| D. | arbitration clause |
| Answer» A. partnership deed | |
| 141. |
Every partner has a right to be consulted in all matters affecting the business of: |
| A. | sole-tradership |
| B. | partnership |
| C. | jsc |
| D. | both (a) and (b) |
| Answer» B. partnership | |
| 142. |
For the firm interest on drawing is: |
| A. | expense |
| B. | income |
| C. | liability |
| D. | none |
| Answer» B. income | |
| 143. |
A credit balance on a partner’s current A/c is. |
| A. | fixed capital |
| B. | part of capital |
| C. | a current asset |
| D. | long – term liability |
| Answer» B. part of capital | |
| 144. |
Old profit sharing ratio minus new profit sharing ration is equal to: |
| A. | sacrificing ratio |
| B. | ratio of gain |
| C. | capital ratio |
| D. | none |
| Answer» A. sacrificing ratio | |
| 145. |
A is drawing Rs. 500 regularly on the 16th of every month, he will have to pay interest in a year on Rs. 6000 for the total period of @ given rate of interest): |
| A. | 5 months |
| B. | 6 months |
| C. | 7 months |
| D. | 12 months |
| Answer» B. 6 months | |
| 146. |
For any decrease in the value of liability, revolution A/c is to be: |
| A. | debited |
| B. | credited |
| C. | both (cr.) & (dr.) |
| D. | neither (dr.) & (cr.) |
| Answer» B. credited | |
| 147. |
Revolution A/c is a: |
| A. | real a/c |
| B. | personal a/c |
| C. | cash a/c |
| D. | nominal a/c |
| Answer» D. nominal a/c | |
| 148. |
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 |
| Answer» A. premium method | |
| 149. |
Section 37 of partnership act provided interest on the amount left by retiring or decreased partner at: |
| A. | 5% |
| B. | 10% |
| C. | 6% |
| D. | bank rate |
| Answer» C. 6% | |
| 150. |
When a partner dies, firm will receive the: |
| A. | 1/2 amount of policy |
| B. | 1/4 amount of policy |
| C. | 3/4 amount of policy |
| D. | full amount of policy |
| Answer» D. full amount of policy | |
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