Accounting for Partnership
26 Board Accountancy previous year questions on Accounting for Partnership — options free on every question; 3 include the answer & explanation free, the rest unlock with PYQ Pass.
In the absence of partnership deed, partner
shall not be paid salaries
Correct option: B – shall not be paid salaries
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In the absence of a Partnership Deed, the provisions of the Indian Partnership Act, 1932 apply.
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As per the Act, no partner is entitled to salary for taking part in the conduct of the business unless it is expressly agreed in the partnership deed.
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Therefore, when there is no partnership deed, partners are not paid any salary.
Option A – shall be paid salaries
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Salary to a partner is not automatic.
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It is payable only if it is clearly mentioned in the partnership deed.
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Hence, A is wrong.
Option C – active partner shall be paid salaries
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Even an active (working) partner is not entitled to salary without an agreement.
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So, C is also wrong.
Option D – none of these
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Since Option B is correct, this option cannot be correct.
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Therefore, D is wrong.
Hence, the correct answer is Option B – shall not be paid salaries.
At the time of admission of partner, Workmen Compensation Claim exceeding Compensation Fund is transferred to:
Debit of revaluation account
At the time of admission of a partner, all increase in liabilities is recorded through the Revaluation Account. Workmen Compensation Fund already exists to meet expected claims. If the actual claim exceeds the existing fund, the excess amount represents an additional liability. Increase in liability is debited to Revaluation Account and credited to Workmen Compensation Claim Account. This ensures the adjustment is borne by old partners in their old profit-sharing ratio.
Therefore, the excess claim is transferred to the Debit of Revaluation Account.
Therefore, Option C is correct.
Match the items given in List I with those in List II
| List I (Different Accounts) | List II (Related Transactions) |
| 1) Profit and Loss A/c | a) Dissolution of Partnership |
| 2) Profit and Loss Appropriation A/c | b) Dissolution of Firm |
| 3) Revaluation A/c | c) Interest on Loan to Partner |
| 4) Realisation A/c | d) Transfer to Reserve |
1(c), 2(d), 3(a), 4(b)
| List I (Different Accounts) | List II (Related Transactions) |
| 1) Profit and Loss A/c | Interest on Loan to Partner |
| 2) Profit and Loss Appropriation A/c | Transfer to Reserve |
| 3) Revaluation A/c | Dissolution of Partnership |
| 4) Realisation A/c | Dissolution of Firm |
Therefore, Option D is correct.
Interest on partner's drawings in the absence of a partnership deed is:
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To become a partner it is essential to be
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In the absence of partnership deed, interest on drawings is charged at:
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For the firm, interest on partner's drawing is a/an
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When the capital accounts are fixed, additional capital introduced by the partner is:
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Identify the correct statement from the given below:
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Which one is not the feature of partnership ?
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Which of the following items are recorded in the Profit and Loss Appropriation Account of a partnership firm?
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What should be the minimum number of persons to form a partnership"
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In case of Fixed Capital Account, interest on drawings are:
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The relation of partner with the firm is that of
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Which is the correct statement, in respect of the Revaluation Account?
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In partnership, preparation of partnership agreement is
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In the absence of any agreement, the profits and losses of the
Partnership firm are divided :-
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The liability of partners is:
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When the date of drawing is not specified, interest on drawings are calculated for:
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Which accounts are opened when the capitals are fixed?
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Choose the correct option :
(i) In the absence of partnership deed, interest on partner's capital is allowed -
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In which year did the Partnership Act come into force ?
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In the case of a guarantee of profit, the sequence of steps to be followed is:
(A) Divide the profit in the given ratio
(B) Prepare profit and loss appropriation account as usual
(C) Deduct the deficiency from the guaranteeing partner and add the same to the guaranteed partner
(D) Find the deficiency
Choose the correct answer from the options given below:
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Current Account is :-
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When capital is fixed, the capital accounts of partners show
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In the absence of partnership deed, partners are not entitled to get
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