Quiz  /  Partnership Gate & PSU MCQ Questions With Answers

  • 1. 
    The main purpose of preparing P&L Appropriation A/C of a Partnership concern is to

  • Calculate & Distribute the Divisible Profit & Loss
  • Distribute the Dividends
  • Distribute the Capital
  • None of the above

  • 2. 
    In partnership, partners liabilities are

  • Limited
  • Unlimited
  • Limited to the capital invested
  • Limited to the amount mentioned

  • 3. 
    The word 'relation' in Section 3(1) of Partnership Act 1961 refers to _____.

  • Partners consists among relatives
  • Relationship between partners
  • Existence of agreement between partners
  • Partners must not be related to each other

  • 4. 
    "Jojo and Koko jointly owns a house. They decided to rent out the house for RM1000 monthly. The profit from the rent is divided equally between them. They decided to use the profit from the rent to set up a bakery."From the above statement, are Jojo and Koko partners with regards to the bakery business?

  • Yes
  • No

  • 5. 
    Under Fluctuating Capital Method, Which account is maintained for each partner?

  • Current Account
  • P&L Appropriation Account
  • Capital Account
  • None of the above

  • 6. 
    If drawings are made at the beginning of each month, Interest on drawing is calculated at what rate?

  • 6%
  • 6.5%
  • 5%
  • 5.5%

  • 7. 
    The following statements are the similarities between sole-proprietorship and partnership business EXCEPT _____.

  • the liability is unlimited
  • the setting up of business requires a formal agreement
  • there is no separate legal entity between the members and the business
  • the business is registered under Registration of Business Act 1956

  • 8. 
    The partners and the partnership firm is considered as one single entity.

  • True
  • False

  • 9. 
    The Written Agreement of Partnership is called as

  • Partnership Firm
  • Partnership Deed
  • Partnership Document
  • Partnership File

  • 10. 
    Under Fixed Capital method, under which account adjustments related to partners are maintained?

  • Capital Account
  • Current Account
  • Both
  • None

  • 11. 
    To start a partnership business, what should be the minimum number of partners?

  • 2
  • 10
  • 4
  • 20

  • 12. 
    "A partnership business is carried by one partners for the other partners"The above statement refers to which characteristics of partnership in Section 3(1) of Partnership Act 1961.

  • Business
  • With view of profit
  • In common
  • Persons

  • 13. 
    What is the partnership written agreement known as?

  • Partnership Contract
  • Partnership Act
  • Agreement
  • Partnership Deed

  • 14. 
    The registration of partnership business is governed by ____.

  • Partnership Act 1961
  • Registration of Partnership Act 1956
  • Registration of Business Act 1956
  • Companies Act 1965

  • 15. 
    4. Which of the following item is recorded in Partner's Current Account?

  • Loan From Partner
  • Partner's Salary paid
  • Bank Interest
  • Drawings of goods

  • 16. 
    If drawings are made in middle of each month, Interest on drawing is calculated at what rate?

  • 6%
  • 5%
  • 5.5%
  • 6.5%

  • 17. 
    A minor who entered into a partnership business will still be liable for debts and obligations of the firm.

  • True
  • False

  • 18. 
    A partnership may only be formed by a written agreement.

  • True
  • False

  • 19. 
    Which of the followings are the usual clause of Partnership Agreement

  • Firm's name
  • Place of business
  • Nature of partnership business
  • All of above

  • 20. 
    What type of agreement is used to form a partnership business?

  • Written agreement
  • Oral Agreement
  • Written or Oral Agreement
  • No Agreement required

  • 21. 
    5. Which of the following item will appear on the credit site of the Profit And Loss Appropriation Account?

  • Interest On Capital
  • Interest On Drawings
  • Partners' Drawings
  • Partners' Salaries
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