1. The written agreement of partnership is called:

A. Partnership deed  

B. Articles of association

C. Memorandum of association

D. Certificate of incorporation

 

2. An incoming partner pays his share of goodwill in cash. Goodwill be distributed among old partners in their:

A. Old Profit Sharing Ratio

B. New Profit Sharing Ratio

C. Sacrificing Ratio

D. None of the above

 

3. Salary paid to partner should be:

A. Debited to his Current Account

B. Credited to his Current Account

C. Credited to Profit and Loss Appropriation Account

D. None of the above

 

4. Exiting Goodwill will be distributed among old partners in their:

A. Old Profit Sharing Ratio

B. New Profit Sharing Ratio

C. Sacrificing Ratio

D. None of the above

 

5. Which of the following is not recorded in the partners’ current accounts?

A.  Drawings 

B.  Interest on Drawings 

C.  Partners salaries

D.  Administrative expenses

 

6. In the absence of an agreement, partners are entitled to:

A. Salary

B. Share of profit in ratio of capital

C. Interest on drawings

D. Commission

 

7. In a general partnership the assets of  the firm are:

A. Jointly owned by all partners in equal proportion

B. Jointly owned by all partners based on their capital account

C. owned by the limited partner

D. owned by the active partner

 

8. In a limited partnership, the liability of the limited partner in respect of debts is:

A. unlimited

B. limited to the full extent of his property

C. limited to the amount of their capital

D. limited to the amount of his share in partnership assets

 

9. Fluctuating capital account is credited with __________ 

A. Interest on capital.

B. Share of Profit.

C. Salaries or remuneration of the partners.

D. All of the above.

 

10. The Profit on revaluation account is:

A. credited to the Old partners’ Capital account

B. credited to the New Partner’s Capital account

C. debited to the Old partners’ Capital account

D. debited to the New partner’s Capital account

 

11. The firm earned profits during last four years amounting OMR18,000, OMR8,500 (loss), OMR30,000 and OMR16,500 respectively. The value of goodwill on the basis of one and ahalf year’s purchase of average profits of last four years will be:

A. OMR14,000

B. OMR27,375

C. OMR21,000

D. None of the above

 

 

12. A & B are partners sharing profits and losses in the ratio 5:3. On  admission, C brings OMR 70,000 cash and OMR 48,000 against goodwill. New profit sharing ratio between A, B and C are 7:5:4. The sacrificing  ratio among A:B will be :

A. 3:1

B. 4:7

C. 5:4

D. 2:1

 

13. Asiya and Bushra are partners in a firm sharing profits in the ratio of 3:2. They admitted Sharifa for 1/4 share in the profits of the firm. Sharifa brings OMR 50,000 for her capital and OMR 10,000 as goodwill.

 

What is the amount of Goodwill that will be credited to Asiya’ Capital a/c?

A. OMR 10,000

B. OMR 6,000

C. OMR 4,000

D. OMR 2,500

 

14. Amir and Salim were partners in a firm sharing profits and losses in 3:1 ratio. They admitted Karim for 1/4 share of profits. Karim brought OMR 60,000 as capital and his share of goodwill in cash. The Goodwill of the firm was valued at OMR 80,000 on Karim's admission. What is Karim’s Share of goodwill?

A. OMR 15,000

B. OMR 80,000

C. OMR 20,000

D. OMR 60,000

Answer rating: 100% (QA)

1 The written agreement of partnership is called Partnership deed Hence option A is correct option 2 ... View the full answer