Test On Partnership Fundamentals

1. X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profit before interest on partner's capital was Rs.6,00,000 and Z demanded minimum profit of Rs.5,00,000 as his financial position was not good. However, there was no written agreement on this point.

Other partners will pay Z the minimum profit and will share the loss in capital ratio

Other partners will pay Z the minimum profit and will share the loss equally.

X and Y will take Rs.50,000 each and Z will take Rs.5,00,000.

Rs.2,00,000 to each of the partners.

Since there was no written agreement on the minimum profit that Z should receive, the partners will divide the profit equally among themselves. Therefore, each partner (X, Y, and Z) will receive Rs.2,00,000.

Explanation

Since there was no written agreement on the minimum profit that Z should receive, the partners will divide the profit equally among themselves. Therefore, each partner (X, Y, and Z) will receive Rs.2,00,000.

2. Chotu withdraws Rs. 800 at the beginning of every month for the six months ending 31st Sept 2019. Hence,his interest on drawings at 15% p.a for the period of six months would be

360

330

720

210

Chotu withdraws Rs. 800 at the beginning of every month for the six months ending 31st Sept 2019. The total amount withdrawn by Chotu over the six months would be 800 * 6 = Rs. 4800. The interest on the drawings at 15% p.a for the period of six months would be 4800 * 15/100 * 6/12 = Rs. 360. Therefore, the correct answer is 360.

Explanation

Chotu withdraws Rs. 800 at the beginning of every month for the six months ending 31st Sept 2019. The total amount withdrawn by Chotu over the six months would be 800 * 6 = Rs. 4800. The interest on the drawings at 15% p.a for the period of six months would be 4800 * 15/100 * 6/12 = Rs. 360. Therefore, the correct answer is 360.

3. P and Q were partners in a firm sharing profits and losses in the ratio 3:2.They admit R for 1/6th share in profits and guaranteed that his share will not be less than 25000.Total profit of the firm were 90,000 Calculate share of profit for each partner when guarantee is given by P.

P= 35000, Q= 30,000, R= 25,000

P =39000, Q = 26,000, R = 25,000

P = 35000, Q = 10,000, R = 25,000

P = 40000, Q = 25,000, R = 25,000

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Explanation

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4. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March, 31,2019 are Rs.80,000, Rs.60,000 and Rs.40,000 respectively. Their personal assets are worth as follows : X — Rs.20,000, Y— Rs. 15,000 and Z— Rs. 10,000. The extent of their liability in the firm would be :

X— Rs. 80,000 : Y— Rs.60,000 : and Z— Rs.40,000

X— Rs.20,000 : Y— Rs.15,000 : and Z— Rs.10,000

X— Rs. 1,00,000 : Y— Rs.75,000 : and Z— Rs.50,000

Equal

The extent of their liability in the firm would be X— Rs.20,000 : Y— Rs.15,000 : and Z— Rs.10,000. This is because the personal assets of each partner are subtracted from their capital balances to determine their net capital in the firm. Therefore, X's liability in the firm would be Rs.80,000 - Rs.20,000 = Rs.60,000, Y's liability would be Rs.60,000 - Rs.15,000 = Rs.45,000, and Z's liability would be Rs.40,000 - Rs.10,000 = Rs.30,000. Thus, the extent of their liability in the firm is X— Rs.20,000 : Y— Rs.15,000 : and Z— Rs.10,000.

Explanation

The extent of their liability in the firm would be X— Rs.20,000 : Y— Rs.15,000 : and Z— Rs.10,000. This is because the personal assets of each partner are subtracted from their capital balances to determine their net capital in the firm. Therefore, X's liability in the firm would be Rs.80,000 - Rs.20,000 = Rs.60,000, Y's liability would be Rs.60,000 - Rs.15,000 = Rs.45,000, and Z's liability would be Rs.40,000 - Rs.10,000 = Rs.30,000. Thus, the extent of their liability in the firm is X— Rs.20,000 : Y— Rs.15,000 : and Z— Rs.10,000.