Quantitative Aptitude

Partnership

842 Questions
All Capital changes, admission, and withdrawal 249 Compound partnership and time-weighted capital 186 Absolute profit or percentage difference to ratio 126 Simple partnership 100 Working and sleeping partners 79 Retirement and gaining ratio 63 Interest on capital and fixed allowances 39

Partnership Questions

Multiple choice maths fundamental concept of ratio and proportion division problem dividing a quantity in a given ratio problems on ratios

A, B and C enter into a partnership investing Rs.$35000$, Rs.$45000$ and Rs.$55000$. Find their respective shares in annual profit of $40,500$.

  1. $Rs.10,500,\,Rs.13,500,\,Rs.16,500$
  2. $Rs.11,500,\,Rs.13,500,\,Rs.16,500$
  3. $Rs.10500,\,Rs.12500,\,Rs.16,500$
  4. $Rs.10,500,\,Rs.13,500,\,Rs.14,500$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$A:B:C=35000:45000:55000=7:9:11$
A"s share $=\dfrac{7}{27}\times40500=Rs.10,500$


B"s share $=\dfrac{9}{27}\times40500=Rs.13,500$

C"s share $=\dfrac{11}{27}\times40500=Rs.16,500$

Multiple choice maths fundamental concept of ratio and proportion division problem dividing a quantity in a given ratio problems on ratios

Anand and Deepak started a business investing Rs.$22,500$ and Rs.$35,000$ respectively. Out of a total profit of Rs.$13,800$. Deepak"s share is

  1. $Rs.8450$
  2. $Rs.9400$
  3. $Rs.8500$
  4. $Rs.8400$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Ratio of their shares $=22500:35000$
$=9:14$
Deepak"s share $=Rs.\begin{pmatrix}13800\times \dfrac{14}{23}\end{pmatrix}=Rs.8400$

Multiple choice maths fundamental concept of ratio and proportion division problem dividing a quantity in a given ratio problems on ratios

Kamal started a business investing Rs.$9000$. After five months, Sameer joined with a capital of $Rs.8000$. If at the end of the year, they earn a profit of $Rs.6970$, then what will be the share of Sameer in the profit?

  1. $Rs.2370$
  2. $Rs.2380$
  3. $Rs.2390$
  4. $Rs.2280$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Now as per question, Kamal invested for $12$ months and Sameer invested for $7$ months.
So, Kamal:Sameer=$\begin{pmatrix}9000\times12\end{pmatrix}:\begin{pmatrix}8000\times7\end{pmatrix}$
$=108.56=27:14$
Sameer ratio in profit will be $=6970\times \dfrac{14}{41}=Rs.2380$

Multiple choice mathematics and statistics banks and simple interest introduction to interests introduction to interest introduction to interest payments

Anil invests Rs 3,000 for a year and Sunil joins him with Rs 2,000 after 4 months. After the year they receive a return of Rs 2,600. Sunil's share is

  1. Rs 800

  2. Rs 1,000

  3. Rs 750

  4. Rs 900
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$Ratio\quad in\quad which\quad they\quad should\quad share\quad their\quad profits=Raio\quad of\quad investments\times \quad Time\quad period$

$=\frac { 3000\times 12 }{ 2000\times 8 } =\frac { 3\times 3 }{ 2\times 2 } =\frac { 9 }{ 4 } $
Sunils share will be$=\frac { 4 }{ 13 } \times 2600=800$
Sunils share will be Rs800,

Multiple choice book keeping and accountancy partnership accounts (preliminary) adjustment of distributable profits final accounts of partnership firms profit-loss appropriation account

Interest on capital will be paid to the partners if provided for in the agreement but only from following _______________.

  1. Profits

  2. Reserves

  3. Accumulated Profits

  4. Goodwill
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interest on Capital: If the partnership deed is silent on interest on partner's capital, then according to the Partnership Act of 1932, no interest on capital should be given to the partners of the firm. However, interest on capital is given only out of the profits, if mutually agreed by all the partners.

Multiple choice book keeping and accountancy partnership accounts (preliminary) adjustment of distributable profits final accounts of partnership firms profit-loss appropriation account

A, B and C are partners in a firm. Though there is no provision in the partnership deed for interest on capital, this has been provided in the account @ 10% p.a. for the two years ended on 31 Dec., 2013. Their fixed capitals on which interest was calculated were throughout A Rs. 15,000, B Rs. 12,000 and C Rs. 9,000. Their profit sharing ratios were 2007 - 5:3:2 and 2008 - 2: 2: 1. The necessary adjustment entry will be made as:

  1. C's current a/c Dr. 360

    To A's current a/c 240

    To B's current a/c 120

  2. A's current a/c Dr. 240

    B's current a/c Dr. 120

    To C's current a/c 360

  3. A's current a/c Dr. 120

    B's current a/c Dr. 240

    To C's current a/c 360

  4. C's current a/c Dr. 360

    To A's current a/c 120

    To B's current a/c 240
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interest on capital (10%) for 2 years: A=3000, B=2400, C=1800. Total=7200. Profit sharing 2007 (5:3:2) and 2008 (2:2:1). Calculating the net effect of wrongly credited interest versus the profit adjustment shows C should be debited 360, while A and B are credited.

Multiple choice book keeping and accountancy partnership accounts (preliminary) adjustment of distributable profits final accounts of partnership firms profit-loss appropriation account

One of the partner contributed Rs.30,000 in the firm-How much interest he will get on the capital contributed ________.

  1. Nill

  2. 6% of 30,000

  3. 5% of 30,000

  4. Income of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Partners usually introduce some amount time to time as the capital in firm and the only reaosn behind it is to expand the business.

Since the partner has introduced Rs30,000 as additonal capital and firms does not pays interest on such amounts. The only situation when interest has to be paid is the time when a loan has been taken by the firm from any of its partner.
 

Multiple choice book keeping and accountancy partnership accounts (preliminary) adjustment of distributable profits final accounts of partnership firms profit-loss appropriation account

A and B are partners A's capital is Rs. 10,000 and B's capital is Rs. 6,000. Interest on capital is payable @ 6% p.a. B is entitled to a salary of Rs. 300 per month. Profit to the year before interest and salary to B is Rs. 8,000. Profits between A and B will be divided:

  1. Rs. 1,720 to A and Rs.1,720 to B

  2. Rs. 2000 to A and Rs.1440 to B

  3. Rs. 1440 to A and Rs.2000 to B

  4. None
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Profit after interest and remuneration :-
= Profit before interest and remuneration - Interest - remuneration
= Rs-8,000 - (600 + 360) - (3,600)
= Rs-3,440.

Distributing profit is equal ratio among partners = Rs-3,440 / 2
                                                                                = Rs-1,720 to each partner. 
Working notes:-
Interest on capital = Capital x rate of interest 
A:-
= 10,000 x 6/100
= Rs-600
B:-
= 6,000 x 6/100
= Rs-360. 
B's remuneration = Rs-300 x 12
                             = Rs-3,600

Multiple choice book keeping and accountancy partnership accounts (preliminary) adjustment of distributable profits final accounts of partnership firms profit-loss appropriation account

X and Y are partners with the capital of Rs. 50,000 and Rs. 30,000 respectively. Interest payable on capital is 10% p.a. Find the interest on capital for both the partners when the profits earned by the firm is Rs. 4,800?

  1. Rs. 5,000 and Rs. 3,000.

  2. Rs. 3,000 and Rs. 1,800.

  3. No interest will be paid to the partners.

  4. None of the above.

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Interest on capital = capital x rate
X :-
= 50,000 x 10/100
= RS-5,000. 
Y:-
= 30,000 x 10/100
= RS-3,000.

Apportioned in the ratio of interest to be allowed to the extent of profits available:-
X:-
= 5,000
-------------- x 4,800
 8,000
= RS-3,000.
Y:-
= 3,000 
------------- x 4,800
  8,000
= RS-1,800.
Multiple choice book keeping and accountancy partnership accounts (preliminary) adjustment of distributable profits final accounts of partnership firms profit-loss appropriation account

M and N are partners in a firm. M has given a loan of Rs. 8,000 to the firm on 1st July, 2017. The partnership deed is silent upon the question of provision of interest on partner's loan. Compute the amount of interest payable on the loan advanced by M to the firm, assuming the books are closed on 31st March each year.

  1. Rs. 460

  2. Rs. 360

  3. Rs. 560

  4. Rs. 480
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount of loan given by M to the firm (on 1st July, 2017) = Rs. 8,000
Period (from 1st July, 2017 to 31st March, 2018) = 9 months
Interest rate = 6% p.a.
Interest on M's loan = 8,000 x 6/100 x 9/12 = 360

Multiple choice book keeping and accountancy partnership accounts (preliminary) adjustment of distributable profits final accounts of partnership firms profit-loss appropriation account

A and B are partners having capital of Rs. 5,000 and Rs. 6,000 respectively. Interest on capital is given @ 5% p. a. Profits for the year before the appropriation is Rs. 4.600 provide interest on capital out of profits. Interest allocated to partners is:

  1. Rs. 3,000 and Rs. 2,500

  2. Rs. 2,090 and Rs. 2,509

  3. Rs. 2,500 and Rs. 2,091

  4. Rs. 600 and Rs. 300
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Interest on capital = capital x rate
A :-
= 50,000 x 5/100
= RS-2,500.
B:-
= 60,000 x 5/100
= RS-3,000.

Apportioned in the ratio of interest to be allowed to the extent of profits available:-
A:-
= 2,500
-------------- x 4,600
   5,500
= RS-2,090.
B:-
= 3,000 
------------- x 4,600
  5,500
= RS-2,509.
Multiple choice

Samarth started a business investing Rs. 55000. After 4 months, Vishal joined him with a capital of Rs. 40000. At the end of the year, the total profit was Rs. 33957. What is the difference between the share of profits of Samarth and Vishal?

  1. Rs. 11088

  2. Rs. 22781

  3. Rs. 11781

  4. Rs. 22869

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Samarth's investment = 55000 * 12 = 660000. Vishal's investment = 40000 * 8 = 320000. Ratio = 66:32 = 33:16. Total parts = 49. Profit share difference = (33-16)/49 * 33957 = (17/49) * 33957 = 17 * 693 = 11781.

Multiple choice

Three partners shared the profit in a business in the ratio of 5 : 7 : 8. They had invested for 14 months, 8 months, and 7 months, respectively. What was the ratio of their investments?

  1. 5 : 7 : 8

  2. 28 : 49 : 64

  3. 38 : 28 : 21

  4. 20 : 49 : 64

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Investment * Time = Profit. Let investments be I1, I2, I3. I1*14 : I2*8 : I3*7 = 5 : 7 : 8. I1 = 5/14, I2 = 7/8, I3 = 8/7. Multiplying by 56 (LCM of 14, 8, 7): I1 = 20, I2 = 49, I3 = 64.

Multiple choice

A is working and B is a sleeping partner in a business. A invests Rs. 12,000 and B invests Rs. 20,000. A receives 10% of the profits for managing, the rest being divided in proportion to their capitals. Out of a total profit of Rs. 9600, the money received by A is

  1. Rs. 3240

  2. Rs. 3600

  3. Rs. 4200

  4. Rs. 4500

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A gets 10% of 9600 = 960. The remaining 8640 is divided by capital ratio 12000:20000 = 3:5. A's share of the remainder is 3/8 * 8640 = 3240. Total for A = 960 + 3240 = 4200.