Accounts - Principles of Accounts Questions
Question 2761:
In a partnership business, the net profit serves as opening figure for ____
- A Trading account
- B Profit and loss account
- C Current account
- D Appropriation account
Question 2762:
In the absence of a partnership<br/>agreement, profits and losses are shared ____
- A In the ratio of capital
- B Equally
- C In the ratio of drawings
- D According to services rendered
Question 2763:
Interest on a partner's drawings is<br/>debited to the ____
- A Partner's current account and credited to the profit and loss appropriate account
- B Profit and loss appropriation account and credited to the partner's current account
- C Profit and loss account and credited to the partner's account
- D Partner's current account and credited to the profit and loss account.
Question 2764:
Partners’ share of profit is credited to _____
- A A partner’s current account
- B A partner’s capital account
- C The profit and loss account
- D The profit and loss appropriation account
Question 2765:
Which of the following is a strong featureof partnership?
- A The life of the partnership is generallyassumed to be indefinite.
- B The owners are liable personally for alldebts of the business.
- C The transfer of ownership interest is<br/>frequent and easy to accomplish
- D The partnership is complex to form<br/>because of many legal and reporting<br/>requirements.