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In the absence of… (Class 12 Accountancy SQP 2023-24, Q11)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2023-24: question 11

From the official CBSE sample question paper for 2023-24, section A, question 11, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q11 · 1 mark · MCQAccounting for Partnership: Basic Concepts

In the absence of an agreement, partners are entitled to:
i) Profit share in capital ratio.
ii) Commission for making additional sale.
iii) Interest on Loan & Advances by them to the firm.
iv) Salary for working extra hours.
v) Interest on Capital.

Choose the correct option:

  1. (A)Only i), iv) and v).
  2. (B)Only ii) and iii).
  3. (C)Only iii).
  4. (D)Only i) and iii).

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

What does the Partnership Act say about salary and commission when the deed is silent?

Hint 2

Profit sharing is equal, not in capital ratio.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Without an agreement the Act gives no salary, commission or interest on capital, and profits are shared equally, not in capital ratio.

  2. The only right listed is interest at 6% p.a. on loans and advances by partners: item (iii). Option (C).

    1 mark

Answer: (C) Only iii).

Where the marks are

  • Only interest on partners' loans is allowed by the Act (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Accounting for Partnership: Basic Concepts, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.