Partnership Class Quiz

What is the definition of a partnership?

If a partnership deed is silent regarding the rate of interest on capital, the interest is paid at a rate of 6% per annum.

What is the document called that outlines the agreement between partners in a partnership firm?

In the absence of a partnership deed, partners are not entitled to receive a _________ from the firm.

Match the following terms related to partnership firms with their corresponding descriptions:

What is the total amount of salary paid to A?

The interest on drawings is calculated at 5% per annum.

What is the meaning of goodwill in the context of a business?

Goodwill results in an increase in both ______ and ______ of the enterprise.

What is the profit-sharing ratio of X and Y before Z's admission?

Z's admission will result in a new profit-sharing ratio of 5:3:4.

What is the total capital brought in by Z for his share in the firm?

The goodwill of the firm is valued at ______ years’ purchase of the average super profits.

Match the following items with their respective amounts after adjustments related to Z's admission:

Based on the given information, how is Z's share of goodwill calculated?

The average profits of the last four years are ₹12,000.

The average profit of the firm in the content example is ₹______.

What is the amount of the average super profits used to calculate the goodwill of the firm?

What is the goodwill of the firm based on the given information?

In the second example, the average profit for calculating goodwill is determined using the last 5 years' profits.

What is the average profit for the second example, where X and Y are partners and are taking Z into partnership?

The goodwill of the firm in the second example is calculated as ______ times the average profit.

In the second example, what is the amount of depreciation to be charged on the motorbike purchased on April 1, 2023?

Match the following terms with their respective definitions:

The motorbike purchased on April 1, 2023, is a relevant factor in calculating goodwill in the second example.

What was the total amount of liabilities for the firm on March 31st, 2023?

The creditors received the entire amount due to them in cash.

What was the total amount realized from the sale of investments?

The total amount realized from the debtors was ______ less than the amount due from them.

Match the following assets with their respective realization amounts:

Which of the following is NOT a characteristic of a company?

A company can issue shares at a discount.

What are the two primary types of shares issued under the Companies Act 2013?

The premium received on the issue of shares is shown on the ______ side of the balance sheet.

Match the following terms with their descriptions:

A private company can have an unlimited number of members.

What is the key benefit for shareholders in a company with limited liability?

Which of these is NOT a typical source of funds for a company?

What type of goodwill is created over a period of time due to the attributes of a running business?

Goodwill is considered a physical asset of a business.

What is the profit for the year mentioned in the accounting particulars?

According to Lord Eldon, goodwill is the probability that the old customers will resort to the ______ place.

How much interest on capital is considered in the given particulars for A?

Match the following terms related to goodwill with their descriptions:

Self generated goodwill can be recorded in the books of accounts.

What is the total amount transferred to A's current account as profit in the accounting particulars?