In the absence of a partnership deed, profits of the firm will be shared by the partners in 

(a)

Equal ratio

(b)

Capital ratio

(c)

Both (a) and (b)

(d)

None of these

In the absence of an agreement among the partners, interest on capital is

(a)

Not allowed

(b)

Allowed at bank rate

(c)

Allowed @ 5% per annum

(d)

Allowed @ 6% per annum

As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is

(a)

8% per annum

(b)

12% per annum

(c)

5% per annum

(d)

6% per annum

Which of the following is the incorrect pair?

(a)

Interest on drawings – Debited to capital accouunt

(b)

Interest on capital - Credited to capital account

(c)

Interest on loan - Debited to capital account

(d)

Share of profit - Credited to capital account

In the absence of an agreement, partners are entitled to 

(a)

Salary

(b)

Commission

(c)

Interest on loan

(d)

Interest on capital

Profit after interest on drawings, interest on capital and remuneration is Rs. 10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

(a)

Rs. 50

(b)

Rs. 150

(c)

Rs. 550

(d)

Rs. 500

The balance in the appropriation account is transferred to the partner's capital account in the ________

(a)

agree ratio

(b)

sacrifice ratio

(c)

profit sharing ratio

(d)

old ratio

Capital account balance of the sole proprietor alone as shown in the balance sheet of ________

(a)

Sole proprietorship

(b)

Partnership

(c)

Joint Hindu family

(d)

Company

Amount invested by partners in the partnership business is called __________

(a)

Owner's capital

(b)

Partner's capital

(c)

Profit and loss appropriation

(d)

None of these

Which of the following method, the capital of the partners is not altered and it remains generally fixed?

(a)

Fixed capital method

(b)

Fluctuating capital method

(c)

Both 'a' and 'b'

(d)

None of these

All the transactions between the partner and the firm are recorded in the _________

(a)

capital account

(b)

drawings account

(c)

profit and loss account

(d)

revaluation account

The rate of interest on capital is generally agreed by the partners and is mentioned in the _________

(a)

capital account

(b)

profit and loss account

(c)

partnership deed

(d)

none of these

Interest on capital is to be calculated on the capitals at the beginning for the ____________

(a)

particular period

(b)

relevant period

(c)

average period

(d)

all of these

Period of interest refers to the period from the date of drawings to the closing date of the __________

(a)

opening year

(b)

closing year

(c)

previous year

(d)

accounting year

Product method can be used in all situations as an alternative to ____________

(a)

average period

(b)

direct method

(c)

both 'a' and 'b'

(d)

none of these