List of practice Questions

A, B and C are partners sharing profits in the ratio of 3:2:1. D is admitted into firm for\(\frac{1}{4}\)th share of profit, which he gets \(\frac{1}{8}\) from A and \(\frac{1}{8}\) from B. Calculate new profit sharing ratio of all the partners.

Select the partner(s) who will compensate the deceased partner for the share of goodwill at the time of death.

Select out of the following that is not considered as one of the modes of reconstitution of a partnership firm.

Profits made on Revaluation of Assets and Reassessment of Liabilities is distributed among whom?

Salary of a partner is shown in

Select the conditions required for computing interest on drawings using average period method:
A. Equal amount of drawings
B. Fixed interval of drawings
C. Varying amounts of drawings
D. Different interval of drawings
E. Rate of Interest
Choose the correct answer from the options given below:

The content of Partnership deed includes:
A. Name and address of all partners
B. Method of settlement of disputes among partners
C. Deed once made cannot be altered
D. Rules regarding operation of Bank account
E. Verbal agreement between partners is considered as deed
Choose the correct answer from the options given below:

Match List I with List II

LIST I		LIST II
A	Only Capital A/c exist	I	Credited to partner's capital account
B	Capital account balance remain unchanged	II	Debited to Partner's Capital Account
C	Fresh/additional capital brought in by partner	III	Fixed Capital Account
D	Permanent withdrawal	IV	Fluctuating Capital Account

Choose the correct answer from the options given below:

Arrange the following in the context of "Buy Back of Shares".
A. Articles of Association must authorise Buy Back of share
B. Buy Back should be completed within 12 months
C. Maintaining debt equity ratio of not more than 2:1 after Buy Back
D. Passing Special Resolution in annual general meeting
E. Filing solvency declaration with registrar and SEBI
Choose the correct answer from the options given below:

Securities premium cannot be used:

Balance of Share Forfeiture account is shown in the Balance Sheet under the item:-

When a company reserve a portion of its uncalled capital to be called in the event of winding up, such uncalled capital is known as:-

The process of receiving minimum subscription of 90% of the entire issue must be completed within _____ days from date of issue of prospectus

Identify that will lead to dissolution of partnership

Arrange the following in the context of dissolution of partnership firm.
A. Payment of loan from Partners
B. Payment of secured outsider's liabilities
C. Realisation of assets into cash
D. Settlement of partner's capital
E. Payment of unsecured outsider's liability
Choose the correct answer from the options given below:

Match List I with List II

LIST I		LIST II
A	Horizontal Analysis	I	Common size statement
B	Vertical Analysis	II	Comparative statement
C	External Analysis	III	Access to all published and unpublished information
D	Internal analysis	IV	Access only to published information

Choose the correct answer from the options given below:

Unrecorded assets when taken over by a partner on dissolution are shown in:

Arrange the following in the context of Cash Flow Statement
A. Calculation of cash flow from Operating Activities
B. Calculation of cash flow from Financing Activities
C. Calculations of net increase/decrease in cash and cash equivalent during the year
D. Calculation of cash flow from Investing Activities
E. Calculation of net profit before tax and extraordinary item
Choose the correct answer from the options given below:

Match List I with List II

LIST I		LIST II
A	Employee benefit expenses	I	Investing activity
B	Dividend received	II	Operating activity
C	Loan raised	III	Extraordinary item
D	Proceeds from earthquake disaster management	IV	Financing activity

Choose the correct answer from the options given below:

Particulars	Amount (₹)
Inventory at the beginning	40,000
Credit Purchase	1,60,000
Inventory at the end	38,000
Trade payable at the beginning	14,000
Trade payable at the end	14,500

Cash paid for inventory is:

Identify the way by which the clauses of partnership deed can be altered.

Which of the following option regarding issue and redemption of debenture is not possible in general?

Calculate the Normal Rate of Return if normal profit is ₹30,000, Assets 5,30,000 and liabilities ₹30,000, while calculating the value of goodwill of the firm at the time of admission of a partner. 1. 5.6% 2.6% 3.5.3% 4.5%

A newly admitted partner has the right to -

In the absence of partnership agreement, mutual relations of partners are governed by the ________