Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. Any partner who investments in the business but does not take active part in the businessis:
a. secret partner
b. sleeping partner
c. active partner
d. nominal partner
Q. The written agreement of partnership is called:
a. partnership deed
b. articles of association
c. memorandum of association
d. certificate of incorporation
Q. Under fixed capital methods, profit will be credited to:
a. capital account
b. drawings
c. current a/c
d. profit & loss
Q. The members of partnership firm are individually called as:
a. director
b. investor
c. partner
d. manager
Q. Liability of partners in a partnership business is:
a. limited
b. un-limited
c. limited & unlimited
d. none of these
Q. Capital of the partners are maintained by:
a. fixed capital method
b. fluctuating capital methods
c. by any two above methods
d. none of them.
Q. Drawings of the partners are:
a. debited to profit & loss a/c
b. credited to profit & loss a/c
c. credited to capital a/c
d. debited to capital a/c
Q. A partners has to pay interest on drawings what is the entry in the personal A/c of thepartner?
a. credit partners capital a/c
b. credit partners current a/c
c. debit the partners current a/c
d. debit partners current a/c
Q. Salary paid to partner should be:
a. debited to his current a/c
b. credited to his current a/c
c. credited to profit & loss appropriation a/c
d. none of above
Q. Interest on capital Account:
a. debited to profit & loss a/c
b. credit to profit & loss a/c
c. debit to profit & loss and credited to partners capital a/c
d. only credited to partners capital a/c
Q. At the time of admission of a new partner the firm is:
a. dissolved
b. continued
c. not effected
d. re-organized
Q. At the time of admission an incoming partner contributes as goodwill:
a. in cash
b. does not pay cash
c. may or may not pay cash for goodwill
d. none of these.
Q. Goodwill is valued as two years purchase of the average profits of three previous yearsare Rs. 15000, the value of goodwill be:
a. rs. 15000
b. rs. 30000
c. rs. 20000
d. rs. 50000
Q. Value of goodwill agreed upon Rs. 30000 on C, S admission and allowing him ¼ shareof total profit Goodwill is brought in cash, the amount of goodwill be as:
a. rs. 30000
b. rs. 7500
c. rs. 150000
d. rs. 120000
Q. Goodwill of the firm is valued Rs. 30000. C an incoming partner purchase ¼ share of totalprofit Goodwill be raised in the books.
a. rs. 30000
b. rs. 7500
c. rs. 120000
d. rs. 7000