Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions YD5WYBXZFC
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Match the following items.

Column 1 Column 2
i) Partnership Deed A) Nil
ii) Balance sheet B) A document
iii) Interest On drawings C) 6%pa
iv) Interest on partner's loan D) A statement

 

Options:

 i) – C, ii) – D, iii) – B, iv) – A

i) – A, ii) – B, iii) – C, iv) – D

 i) – D, ii) – A, iii) – B, iv) – C

i) – B, ii) – D, iii) – A, iv) – C

Correct Answer:

i) – B, ii) – D, iii) – A, iv) – C

Explanation:

* Partnership Deed- Partnership deed is a written legal document that contains an agreement made between two individuals who have the intention of doing business with each other and share profits and losses.

* Balance sheet- A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholder equity.

* Interest On drawings- No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed.

* Interest on partner's loan- If the Partnership Deed does not specify the rate of interest payable on loan by a partner, the rate at which interest on loan will be paid is 6 percent on any loan advanced by the partner to the firm. Interest on loan will be paid to the partners even if the firm incurs a loss.

CUET Questions