Students should refer to Worksheets Class 12 Accountancy Accounting for Partnership Basic Concepts Chapter 2 provided below with important questions and answers. These important questions with solutions for Chapter 2 Accounting for Partnership Basic Concepts have been prepared by expert teachers for Class 12 Accountancy based on the expected pattern of questions in the class 12 exams. We have provided Worksheets for Class 12 Accountancy for all chapters on our website. You should carefully learn all the important examinations questions provided below as they will help you to get better marks in your class tests and exams.
Accounting for Partnership Basic Concepts Worksheets Class 12 Accountancy
Question. Aman and Vimal are partners in a firm. Aman says that goodwill is an asset so it has a realisable value. Vimal says that goodwill is an intangible asset, so it has no realisable value. Solve the issue.
(a) Aman is correct. Goodwill is asset, so it has realisable value.
(b) Vimal is correct. Goodwill is intangible asset, so it has no realisable value.
(c) Goodwill is an intangible asset, it may have some realisable value or it can be nil.
(d) Goodwill is a loss, it has negative value.
Answer
C
Question. The capital balance of a partner at the end of the year (after adjusting for his drawings ₹ 3,500 and his share in the profit ₹ 2,300) is ₹ 12,000. Interest on capital is payable to him at 5% per annum. What will be the amount of interest on capital?
(a) ₹ 660
(b) ₹ 600
(c) ₹ 540
(d) None of these
Answer
A
Question. Asha and Bipasha are partners in a firm. They share profits in the ratio of 1:1. In this year, they suffered a loss. They maintain capital accounts under fluctuating account method. Pass journal entry to transfer the loss to the capital accounts of Asha and Bipasha.
(a) Profit and Loss Appropriation A/c Dr
To Asha’s Capital A/c
To Bipasha’s Capital A/c
(b) Asha’s Capital A/c Dr
To Bipasha’s Capital A/c
(c) Asha’s Capital A/c Dr
Bipasha’s Capital A/c Dr
To Profit and Loss A/c
(d) None of the above
Answer
C
Question. Loan has been given by wife of a partner to the firm. Now partner wants interest @ 6% per annum as per Partnership Act, 1932 while partnership deed is silent. Solve this issue.
(a) Provide 6% per annum interest as Partnership Act says
(b) Provision of interest on loan @ 6% per annum of the Partnership Act does not apply
(c) Provide 10% interest to solve the issue
(d) None of the above
Answer
B
Question. If firm gives guarantee to a partner then who will sacrifice for this guarantee?
(a) All partners equally
(b) Only that partner who has maximum profit
(c) All partners in profit or loss sharing ratio
(d) All of the above
Answer
C
Question. When fluctuating capital method is used, which of the following items are shown in debit side of partners’ capital account?
(a) Opening debit balance of capital account
(b) Drawings
(c) Interest on drawings
(d) All of these
Answer
D
Question. A and B were partners in a firm. They share their profits in the ratio of 2:1. A withdraws an amount of ₹ 2,000 on 1st July, 2021. Journalise it.
(a) Profit and Loss Appropriation A/c Dr 2,000
To A’s Capital A/c 2,000
(b) A’s Capital A/c Dr 2,000
To Profit and Loss A/c 2,000
(c) A’s Drawings A/c Dr 2,000
To Cash/Bank A/c 2,000
(d) A’s Capital A/c Dr 2,000
To A’s Drawings A/c 2,000
Answer
C
CASE STUDY BASED QUESTIONS :
Amit and Mahesh were partners in a fast food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹ 1,20,000 and ₹ 80,000 respectively.
At the end of first year, their profit was ₹ 1,20,000 before allowing the remuneration of ₹ 3,000 per quarter to Amit and ₹ 2,000 per half year to Mahesh. Such a promising performance for first year was encouraging, therefore, they decided to expand the area of operations.
For this purpose, they needed a delivery van, a few scotties and an additional person to support. Six months into the accounting year, they decided to admit Sundaram as a new partner and offered him 20% as a share of profits along with monthly remuneration of ₹ 2,500.
Sundaram was asked to introduce ₹ 1,30,000 for capital and ₹ 70,000 for premium for goodwill. Besides this, Sundaram was required to provide ₹ 1,00,000 as loan for two years. Sundaram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner.
Question. Remuneration will be transferred to …………… of Amit and Mahesh at the end of the accounting period.
(a) Capital account
(b) Loan account
(c) Current account
(d) None of these
Answer
C
Question. Upon the admission of Sundaram, the sacrifice for providing his share of profits would be done
(a) by Amit only
(b) by Mahesh only
(c) by Amit and Mahesh equally
(d) by Amit and Mahesh in the ratio of 3:2
Answer
D