Partnership Accounts

JKSSB Finance Accounts Assistant · Accountancy & Book-Keeping · 24 practice questions with answers and explanations: 6 Easy, 11 Medium, 7 Hard.

Sample questions

Sample Easy question 1

Partnership firms in India are governed by the Indian Partnership Act of:

  1. 1932
  2. 1956
  3. 1872
  4. 2008
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Answer: A. The Indian Partnership Act, 1932. (2008 is the LLP Act; 1872 the Contract Act; 1956 the old Companies Act.)

Sample Medium question 2

A, B, and C have capitals of ₹40,000, ₹60,000, and ₹80,000 respectively but have no partnership agreement regarding profit-sharing. If the firm earns ₹90,000 profit, each partner's share is:

  1. ₹20,000, ₹30,000, ₹40,000 (capital ratio)
  2. ₹30,000 each (equal share)
  3. ₹45,000, ₹30,000, ₹15,000
  4. ₹10,000, ₹30,000, ₹50,000
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Answer: B. Without an agreement, profits are shared equally regardless of capital contribution: 90,000 ÷ 3 = ₹30,000 each.

Sample Hard question 3

When a new partner is admitted to a firm, what typically happens to the old partners' profit-sharing ratio?

  1. It is adjusted to accommodate the new partner's share
  2. It always remains unchanged
  3. It is always set to equal shares
  4. It becomes irrelevant
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Answer: A. Admission of a new partner usually requires recalculating the existing partners' profit-sharing ratios.

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