Partnership Firms – Fundamentals Solutions – TS Grewal’s Edition 2021

Interest on loan taken by a partner is recorded on___________ of Profit and Loss Account.

Interest on Capital are under the Fixed Capital Account method is credited to ___________.

In the absence of partnership deed rate of interest on partner loan will be_________.

If drawings of equal amount are made in the beginning of every month for 9 month ending 31stMarch, then interest on drawing will be calculated for an average period for _________Months.

The maximum numbers of partners in case of limited liability partnership is __________.

In case of guarantee of minimum profit to a partner deficiency of guaranteed partner is from shared by the remaining partner in ____________.

If partner’scapital is fixed interest on drawing will be recorded on __________.

Profit and Losses are to be shared in __________ irrespective of their capital contribution.

Interest at the rate of_______ is to be allowed on a partner’s loan to the firm.

In the absenceof the date of withdrawal, interest should be charged for __________ month on the whole amount.

Manager’s commission is a___________ against profits.

Interest on partner’s loan is not credited to the partner’s ________.

Goodwill is an __________ assets.

A and B are Partners .A drew Rs 32,000 .If the rate of Interest on Drawing is 12% per annum then ______ will amount of interest on drawing .

Liability of the partner is limited.

Under the Fixed Capital method, any addition to capital will be shown in Partner’s Capital Account.

Interest on loan advanced by a partner to the firm shall be paid even if there are losses in the business.

In the absence of Partnership deed, partners are entitled to interest on capital.

Unless otherwise specified, the partners have to share profits and losses in proportion of the capital contributed by them.

Business of the firm can be conducted even by one partner.

Current account of partners are maintained under the fluctuating capital account.

It is compulsory to have a partnership agreement in writing.

Private assets of the partners cannot be used to meet the liability of the firm in case firm’s assets are insufficient to meet its liabilities.

When new partner share of profit is more than the guaranteed profit then he is given only the guaranteed amount of profit.

The net profit of the firm is Rs. 8,00,000 partners are entitled to salary Rs. 1,00,000 p.a. if 10% of divisible profit to be transferred to general reserve then amount will beRs. 80,000.

Drawing against capital means drawing by a partner out of his/her expected share in the profit of the current year.

Capital in the beginning is calculated by subtracting drawing and adding profit distributed.

In the absence of partnership deed mutual relations are governed by the Indian partnership act 1932.

Interest as a charge means interest on capital is to be allowed whether the firm has earned profit or incurred loss.

Manager’s commission is shown in Profit and Loss Appropriation Account.

In case of fixed capital account method drawing out of capital is shown in partner current account.

When a partnership firm gives a loan to its partner then interest on loan will be debited in profit and loss account.

Fixed capital always shows Debit balance.

When the Partnership agreement is silent about the treatment of interest on capital then it will be treated as charge on profit.

Sleeping partner are those who do not take part in conduct of the business.

A body corporate can be a partner in partnership firm.

Registration of partnership is optional.

The nature of Profit and Loss Account is real.

A drew Rs 50,000 during the year. If the rate of Interest on Drawing is 10% then _____ will be the amount of Interest on Drawing.