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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Match the following items.

Column 1 Column 2
A) Partnership Deed I) Nil
B) Profit sharing in absence of agreement II) Written agreement
C) Interest on drawings in absence of agreement III) 6% p.a.
D) Interest on partner's loan in absence of agreement IV) Equal

Choose the correct answer from the options given below.

Options:

A-III, B- IV, C-II, D-I

A-I, B- IV, C-II, D-III

A-II, B- IV, C-I, D-III

A-I, B-II, C-III, D-IV

Correct Answer:

A-II, B- IV, C-I, D-III

Explanation:

The correct answer is option 3- A-II, B- IV, C-I, D-III .

Column 1 Column 2
A) Partnership Deed II) Written agreement
B) Profit sharing in absence of agreement IV) Equal
C) Interest on drawings in absence of agreement I) Nil
D) Interest on partner's loan in absence of agreement III) 6% p.a.

 

* 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.

* Profit sharing in absence of agreement- Profits and losses are shared equally among the partners int he absence of any agreement.

* 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.

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