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Accounting for Partnership MCQ Questions & Answers - Accountancy Class 12

Accounting for Partnership MCQs : This section focuses on the "Accounting for Partnership" in Accountancy Class 12. These Multiple Choice Questions (MCQs) should be practiced to improve the Accountancy Class 12 skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

Which of the following are features of a partnership?

A. It is an association of two or more persons
B. A partnership is established by an agreement
C. Partners must share the profit and loss of the business
D. All of the above

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Question 2

Partnership is based on mutual agreement and in a partnership, they agree to share capital, profits and loss of the business.

C. Can be true or false
D. Can not say

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Question 3

The partners are _________ to receive interest on capital.

A. entitled
B. not entitled
C. owner
D. None of the above

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Question 4

Which of the following are true?

A. There will be no interest charged on drawings made by the partners
B. The partners are not entitled to receive salary or commission, unless otherwise stated in partnership deed
C. The profit sharing ratio will be the same irrespective of their capital contribution in the partnership
D. All of the above

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Question 5

Partnership is defined as per the Indian Partnership Act, ________.

A. 1925
B. 1930
C. 1932
D. 1937

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Question 6

If no agreement is made by partners then interest on loan will be given @ _________

A. 5% p.a.
B. 6% p.a.
C. 7% p.a.
D. no interest

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Question 7

Profit will be divided in ________ in the absence of partnership deed.

A. 0.0423611111111111
B. 0.0430555555555556
C. 0.0840277777777778
D. equal ratio

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Question 8

In a partnership, liability of all partners is _________

A. unlimited
B. limited
C. according to capital
D. decided by company act

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Question 9

Maximum number of partners in a partnership firm can be _______.

A. 50
B. 60
C. 70
D. no limit

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Question 10

Partnership deed may be _______

A. oral
B. written
C. duplicate
D. either written or oral

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