This quiz on the Partner capital A/c with 20 practice questions. Test your knowledge about the concepts of partner capital A/c with this MCQ practice test. This quiz contains questions 1-20 covering what is partner capital account, format of partner capital account, what items comes in partner capital A/c etc. The quiz suits well for conceptual clarity for your board exams
CBSE MCQ class 12 accounts
The below MCQ test is designed as per the latest syllabus prescribed by CBSE board. With the rise in weightage of MCQ questions, the practice of MCQ questions becomes very important. The quiz is equally useful for students of CUET exams.
How to attempt the quiz
One by one go through the below questions and select the right option. Do all the questions and in the end press submit. Instantly you will get your score and the explanation against each question. Go through your mistakes and reattempt the quiz any number of times as needed.
MCQ Quiz - Practice Questions
MCQ Quiz
Question 1
Partners' Capital Accounts are maintained:
A
Correct Answer: For each partner separately
A partnership firm maintains separate Capital Account for each partner as each partner has separate transactions with the firm.
Question 2
Partners' Capital Accounts can be maintained by:
B
Correct Answer: Fixed Capital Method or Fluctuating Capital Method
Capital Accounts of partners may be maintained following either Fixed Capital Accounts Method or Fluctuating Capital Accounts Method.
Question 3
Under Fixed Capital Accounts Method, how many accounts are maintained for each partner?
B
Correct Answer: Two accounts - Capital and Current
Under Fixed Capital Accounts Method, two accounts are maintained for each partner: Capital Account and Current Account.
Question 4
Under Fluctuating Capital Accounts Method, how many accounts are maintained for each partner?
C
Correct Answer: One account - Capital Account only
Under Fluctuating Capital Accounts Method, only one account i.e., Capital Account is maintained for each partner.
Question 5
In Fixed Capital Method, Capital Account balance:
B
Correct Answer: Remains same except when capital is introduced or withdrawn
Balance in Fixed Capital Account does not change except when additional capital is introduced or capital is withdrawn.
Question 6
In Fluctuating Capital Method, Capital Account balance:
C
Correct Answer: Changes with every transaction of partner with firm
Under Fluctuating Capital Method, all transactions are transferred to Capital Account, so balance fluctuates with every transaction.
Question 7
In Fixed Capital Method, drawings against profit are recorded in:
B
Correct Answer: Current Account
Drawings against profit are debited to Current Account in Fixed Capital Method. Drawings against capital are debited to Capital Account.
Question 8
In Fluctuating Capital Method, drawings against profit are recorded in:
C
Correct Answer: Capital Account
In Fluctuating Capital Method, all transactions including drawings against profit are transferred to Capital Account.
Question 9
Interest on capital is credited to which account under Fixed Capital Method?
B
Correct Answer: Current Account
Under Fixed Capital Method, interest on capital is credited to Current Account as it's not a capital transaction.
Question 10
Interest on capital is credited to which account under Fluctuating Capital Method?
C
Correct Answer: Capital Account
Under Fluctuating Capital Method, interest on capital is credited to Capital Account along with all other transactions.
Question 11
Salary to partners is credited to which account under Fixed Capital Method?
C
Correct Answer: Current Account
Under Fixed Capital Method, salary to partners is credited to Current Account as it's an appropriation, not capital transaction.
Question 12
Share of profit is transferred to which account under Fixed Capital Method?
B
Correct Answer: Current Account
Under Fixed Capital Method, share of profit is transferred to Current Account as it's not a capital transaction.
Question 13
Share of loss is debited to which account under Fixed Capital Method?
C
Correct Answer: Current Account
Under Fixed Capital Method, share of loss is debited to Current Account along with other appropriations and charges.
Question 14
Additional capital introduced is recorded in which account under Fixed Capital Method?
C
Correct Answer: Capital Account
Additional capital introduced is credited to Capital Account in Fixed Capital Method as it's a capital transaction.
Question 15
Drawings against capital are recorded in which account under Fixed Capital Method?
C
Correct Answer: Capital Account
Drawings against capital are debited to Capital Account in Fixed Capital Method as they reduce the partner's capital.
Question 16
Interest on drawings is debited to which account under Fixed Capital Method?
B
Correct Answer: Current Account
Under Fixed Capital Method, interest on drawings is debited to Current Account as it's a charge on the partner.
Question 17
In Fluctuating Capital Method, salary to partners is credited to:
C
Correct Answer: Capital Account
In Fluctuating Capital Method, all transactions including salary to partners are transferred to Capital Account.
Question 18
In Fluctuating Capital Method, share of profit is transferred to:
C
Correct Answer: Capital Account
In Fluctuating Capital Method, share of profit is transferred to Capital Account along with all appropriations.
Question 19
In Fluctuating Capital Method, interest on drawings is debited to:
C
Correct Answer: Capital Account
In Fluctuating Capital Method, interest on drawings is debited to Capital Account like all other partner transactions.
Question 20
Fixed Capital Account Can have:
B
Correct Answer: Credit balance
Capital Account under Fixed Capital Method will have a credit balance as capital remains invested in the firm.
