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Partnership and Not-for-Profit Accounting

Test your knowledge of partnership accounting and not-for-profit organization accounting. Topics include revaluation, goodwill, gaining ratio, capital accounts, income and expenditure accounts, and receipts and payments accounts.

25 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

In the absence of the partnership deed, interest on drawings is

  1. charged from the partners
  2. charged from profit
  3. not charged from the partners
  4. None of these
Question 2 Multiple Choice (Single Answer)

In a not-for-profit organisation, the account which is prepared is known as

  1. income and expenditure A/c
  2. profit and loss A/c
  3. revaluation A/c
  4. realisation A/c
Question 3 Multiple Choice (Single Answer)

Subscription is the main source of income for a

  1. private company
  2. not-for-profit organisation
  3. partnership firm
  4. None of these
Question 4 Multiple Choice (Single Answer)

The gaining ratio is calculated as

  1. old ratio - new ratio
  2. sacrificing ratio + old ratio
  3. new ratio - old ratio
  4. None of these
Question 5 Multiple Choice (Single Answer)

Current A/c is prepared when

  1. the capital is fixed
  2. the capital is fluctuating
  3. the capital is both fixed and fluctuating
  4. None of these
Question 6 Multiple Choice (Single Answer)

Interest on capital A/c is a

  1. real A/c
  2. personal A/c
  3. nominal A/c
  4. None of these
Question 7 Multiple Choice (Single Answer)

Donation received is shown in receipts and payments A/c on

  1. debit side
  2. credit side
  3. assets side
  4. liability side
Question 8 Multiple Choice (Single Answer)

Land and building are valued at Rs. 1,00,000. On admission of a partner, it is appreciated by 12.5%. By how much the revaluation A/c would be credited?

  1. Rs. 25000
  2. Rs. 50,000
  3. Rs. 1,12,500
  4. Rs. 12,500
Question 9 Multiple Choice (Single Answer)

Revaluation A/c is also known as

  1. profit and loss appropriation A/c
  2. profit and loss adjustment A/c
  3. profit and loss A/c
  4. None of these
Question 10 Multiple Choice (Single Answer)

The liability of Workmen's Compensation Reserve is Rs. 16000 and on admission of a partner, it is determined at Rs. 12000. Rs. 4000 would be credited in

  1. revaluation A/c
  2. realisation A/c
  3. all partners' capital A/c
  4. old partners' capital A/c
Question 11 Multiple Choice (Single Answer)

In a non-profit organisation, the income and expenditure A/c is prepared to

  1. ascertain profit or loss
  2. ascertain surplus or deficit
  3. ascertain assets
  4. ascertain liabilities
Question 12 Multiple Choice (Single Answer)

In receipts and payments a/c

  1. all the expenses and income is shown
  2. only the cash receipts and cash payments are shown
  3. all the assets are shown
  4. liabilities are shown
Question 13 Multiple Choice (Single Answer)

Life membership fee is

  1. added to income
  2. added to investment
  3. added to capital fund
  4. None of these
Question 14 Multiple Choice (Single Answer)

A partner's salary and commission is/are

  1. charges against profit.
  2. appropriation out of profits.
  3. charges against assets
  4. none of these
Question 15 Multiple Choice (Single Answer)

The interest on capital under fixed capital method is credited to

  1. revaluation A/c
  2. partner's capital A/c
  3. partner's current A/c
  4. None of these
Question 16 Multiple Choice (Single Answer)

The object of not-for-profit organisations is

  1. to make profit
  2. to serve the society
  3. to acquire assets
  4. none of these
Question 17 Multiple Choice (Single Answer)

Which of the following is not an intangible asset?

  1. Patents
  2. Goodwill
  3. Land and Buildings
  4. Trade Marks
Question 18 Multiple Choice (Single Answer)

Super profits are

  1. actual profits
  2. normal profits
  3. excess of actual profits over normal profits
  4. none of these
Question 19 Multiple Choice (Single Answer)

Interest on partner's loan is a

  1. charge against profit.
  2. appropriation out of profit
  3. appropriation out of assets
  4. none of these
Question 20 Multiple Choice (Single Answer)

There is a claim for damages which is now accepted on admission of a partner. It would be debited in

  1. revaluation A/c
  2. partner's capital A/c
  3. partner's loan A/c
  4. none of above
Question 21 Multiple Choice (Single Answer)

Ajay is a partner in a firm and he has granted a loan to the firm of Rs 1,50,000 on 1st April 2005. What interest would he get if the books are closed on 31st December 2005 in absence of any the partnership deed?

  1. Rs 5,000
  2. Rs 6000
  3. Rs 6,750
  4. No interest to be provided
Question 22 Multiple Choice (Single Answer)

Goodwill is not affected by

  1. location
  2. number of partners
  3. quality
  4. efficient management
Question 23 Multiple Choice (Single Answer)

Average profit is calculated as

  1. total of goodwill / number of years
  2. total products of profits / total of weights
  3. total of profits / number of years
  4. none of above
Question 24 Multiple Choice (Single Answer)

Goodwill can be brought by a new partner in

  1. cash
  2. kind
  3. Both cash and kind
  4. None of above
Question 25 Multiple Choice (Single Answer)

When capital is fixed, additional capital bought by a partner is credited in

  1. partner's current A/c
  2. partner's capital A/c
  3. revaluation A/c
  4. none of above
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