Deck 4: Accounting for Branches and Partnerships

Question 1

Branch Trading &Profit & Loss A/c is only a _________ account not forming part of the full accounting system.

A)single
B)memorandum
C)capital
D)double

Answer 1

memorandum

Question 2

In final account system, Branch Trading and Profit & Loss A/c is prepared at ________

A)invoice price
B)cost price
C)cost & invoice price
D)market price

Answer 2

cost & invoice price

Question 3

Under Final A/c system, the profit or loss made by the branch is determined by preparing

A)branch stock a/c
B)branch debtors a/c
C)branch adjustment a/c
D)branch trading & profit &loss a/c

Answer 3

branch trading & profit &loss a/c

Question 4

The Branch Account prepared under Final Account System is the nature of:

A)nominal account
B)real account
C)personal account
D)general account

Question 5

Dependent branch makes:

A)cash sales only
B)credit sales only
C)cash & credit sales
D)instalment sales

Question 6

All branch expenses such as rent, salary are paid by H.O in case of:

A)independent branch
B)local branch
C)dependent branch
D)foreign branch

Question 7

Branch Trading & Profit & Loss A/c is prepared to incorporate all _____

A)revenue items
B)capital items
C)asset items
D)past items

Question 8

The difference between goods sent by H.O. and received by branch is known as _______

A)goods in transit
B)goods in warehouse
C)goods in production
D)goods in godown

Question 9

The stock reserve for unrealised profit will be ________ to the H.O profit & Loss A/C

A)debited
B)credited
C)first credited then debited
D)not shown

Question 10

____________ account is prepared to adjust the loads included in the value of opening stock and closing stock.

A)branch stock
B)branch adjustment
C)stock reserve
D)branch p&l

Question 11

____________ account shows the shortage or surplus of stock.

A)branch adjustment
B)branch stock
C)goods sent to branch
D)branch p&l

Question 12

The profit included in surplus or shortage of stock is transferred to ______ account

A)branch stock
B)branch expenses
C)branch adjustment
D)branch p&l

Question 13

The balance of branch adjustment account is transferred to _________ account

A)branch stock
B)branch p&l
C)branch debtors
D)branch expenses

Question 14

An ordinary partnership business can have:

A)not more than 50 partners
B)not more than 20 partners.
C)any number of partners.
D)any number than 2 partners.

Question 15

In the absence of an agreement profit and loss are divided by partners in the ratio of:

A)capital
B)equally
C)time devoted by each partners
D)none of these.

Question 16

In the absence of an agreement, Interest on loan advanced by the partner to the firm is allowed at the rate of:

A)6%
B)5%
C)12%
D)9%

Question 17

Current accounts of the partners should be opened when the capitals are:

A)fluctuating
B)fixed
C)either fixed or fluctuating
D)none of these

Question 18

Investment in partnership is made by introducing:

A)cash
B)none - cash assets
C)cash or non - cash assets
D)none of these.

Question 19

Any partner who investments in the business but does not take active part in the business is:

A)secret partner
B)sleeping partner
C)active partner
D)nominal partner

Question 20

The written agreement of partnership is called:

A)partnership deed
B)articles of association
C)memorandum of association
D)certificate of incorporation

Question 21

Under fixed capital methods, profit will be credited to:

A)capital account
B)drawings
C)current a/c
D)profit & loss

Question 22

The members of partnership firm are individually called as:

A)director
B)investor
C)partner
D)manager

Question 23

Liability of partners in a partnership business is:

A)limited
B)un-limited
C)limited & unlimited
D)none of these

Question 24

Capital of the partners are maintained by:

A)fixed capital method
B)fluctuating capital methods
C)by any two above methods
D)none of them.