NCERT Class 12 Accountancy Chapter 2 Accounting for Partnership : Basic Concepts Extra Questions and Answers
Class 12 Accountancy Chapter 2 Extra Questions and Answers – Accounting for Partnership : Basic Concepts. Here in this Page Class XII Students can Learn Extra Questions & Answer 1st Chapter Accountancy Part I fully Inside.
We Provided Here Accounting for Partnership : Basic Concepts Accountancy Chapter 2 MCQ Questions, Very Short Type Questions and Short Type Questions.
Class 12 Accountancy Chapter 2 Extra Question with Answer – Accounting for Partnership : Basic Concepts
Accountancy Chapter 2 Accounting for Partnership : Basic Concepts Class 12 Inside 3 marks, 2 Marks & And 1 Marks Important Questions and Answers.
Board |
NCERT |
Class |
12 |
Book Title |
Accountancy Part I |
Chapter |
2 |
Chapter Name |
Accounting for Partnership : Basic Concepts |
Topic |
Extra Questions |
Very short question with solution
(Q1) How are mutual relations of partners governed in the absence of partnership deed?
Ans: In the absence of partnership deed, the mutual relations of partners are governed by partnership Act, 1932.
(Q2) State the provisions of Indian partnership Act, in-case of absence of partnership deed regarding payment of remuneration to a partner for services reduced.
Ans: Incase of absence of partnership deed, a partner is not entitle to receive any such remuneration for the services rendered by him/her.
(Q3) What do you mean by appropriation out of profit?
Ans: Appropriation of profits refers to the process of distributing profits to various heads like – interest on capital, etc.
(Q4) Define the meaning of charge against profit.
Ans: Charge against profit is the deduction of expenses from the profits earned during the year for calculation of net profit or loss for the year.
(Q5) Mention any one importance of having a partnership Deed.
Ans: One importance of partnership Deed is that it helps to settle any kind of disputes among the partners as it laids down all the terms and conditions of a partnership firm beforehand.
(Q6) Mention any two contents of partnership Deed.
Ans: Any two contents of partnership Deed are – method of valuation of goodwill, name and address of the firm.
(Q7 Mention any two rights of a partner in a partnership firm.
Ans: Two rights of a partner in a partnership firm are as follows:
(i) Every partner has the right to take part in the conduct of the business.
(ii) Every partner has a right to disallow the admission of a new partner.
(Q8) What kind of liability does a partner has in a partnership firm?
Ans: A partner has an unlimited liability in a partnership firm, i.e. – personal property of a partner can be claimed to pay the liability of the firm.
(Q9) Mention any one point of difference between profit & loss A/c and profit & loss Appropriation account.
Ans: One point of difference between P/l A/c and P/l Appropriation A/c are as follows:
Profit and loss account is prepared to ascertain the net profit or loss of the firm, whereas profit & loss appropriation A/c is prepared to distribute the net profit of the year to the partners.
(Q10) Mention any one characteristics of profit and loss appropriation account.
Ans: One characteristics of profit & loss appropriation account are as follows –
It is prepared by only partnership firm and is a nominal account in nature.
In case you are missed :- NCERT Extra Questions for Reconstitution of a Partnership Firm – Admission of a Partner
(Q11) Define the firm “Mutual Agency” as a feature of partnership firm.
Ans: The term ‘Mutual Agency” in partnership means that very partner works as principal for himself as will a other partners.
(Q12) Define partner’s current account.
Ans: Partner’s current account is maintained for each partner where all the items likes – interest on capital, drawings, share of profits or loss etc are recorded when the partner’s capital remains —-.
(Q13) In-case of fixed capital method the account where interest on drawings is recorded?
Ans: Interest on drawings is recorded on the debit side of current account when fixed capital is maintained in a partnership firm.
(Q14) Mention two items that may appear on the debit side of a partner’s fixed capital account.
Ans: Two items that appears on the debit side of a partners fixed capital account are – withdrawn of capital business and closing balance of capital.
(Q15) What do you mean by fixed capital of partner’s?
Ans: Fixed capital of partners means capital of partners do not change unless additional capital is invested or a part of the existing capital is withdrawn permanently as per the agreement among the partners.
(Q16) Why are salary & commission paid to partners recorded in P/l appropriation A/c in a partnership firm?
Ans: Salary & commission paid to partners are debited to P/l appropriation A/c because these items are not charged against the profit rather they are an appropriation of profit.
(Q17) If a fixed amount is withdrawn on 15th day of every month or at the middle of the month, for how many months the interest on drawings will be calculated?
Ans: In case a fixed amount is withdrawn at the middle of every month, then the interest on drawings is calculated for 6 months.
(Q18) Name the method for calculating interest on drawings if different amounts withdrawn on different dates?
Ans: The method for calculating interest on drawings for different amounts withdrawn on different dates is product method.
(Q19) If a fixed amount is withdrawn on the last day of every quarter, for period the interest on total drawings will be calculated?
Ans: Incase a fixed amount is withdrawn on the last day of every quarter, the period for calculation of interest on drawings in 4.5 months.
(Q20) Mention any 2 items that appears on the credit side of P/L appropriation A/c.
Ans: Two items that appear credit side of P/L appropriation A/c are – profit of partners and interest on drawings.
Short Answer Question with Solution (3/4 Marks)
(Q1) Mention any four rights of a partnership firm.
Ans. Four rights of a partner in a partnership are as follows:
(i) Every partner has the right to inspect the books of accounts and have a copy of it.
(ii) Every partner is the joint owner of the property of the partnership firm.
(iii) A partner has a right to receive interest on the loan given by him to the firm at an agreed rate or at 6% incase such rates are not agreed upon.
(iv) If a partner incurs expenses or makes payment on behalf of the firm, then he has a right to be indemnified by the firm.
(Q2) Distinguish between profit and loss A/c and profit and loss appropriation account (4 marks)
Ans: The four point of difference between P/L A/C and P/L appropriation A/c are as follows:
Basis | Profit and loss account | Profit & loss appropriation A/c |
(i) Stage of preparation | (i) It is prepared after treading A/c and starts with gross profit, shown by trading account. | (i) It is prepared after profit and loss account and starts with the net profit shown by P/L account. |
(ii) Objective | (ii) It is prepared to know the net profit or loss | (ii) It is prepared to distribute net profits of the year among the partners. |
(iii) Charge or appropriation of profits | (iii) Expenses debited to this account is a charge against profit. | (iii) Expenses debited to this account is an appropriation of profit. |
(iv) Partnership agreement | (iv) This account is not prepared as per the conditions of partnership agreement except for interest on loan from partners. | (iv) This account is prepared on the basis of partnership agreement. |
In case you are missed :- NCERT Extra Questions for Dissolution of Partnership Firm
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