Deck 8: Royalty Accounting and Partnership Firms

Question 1

Recoupment of shortworking can be restricted or unrestricted

A)True
B)False
C)none
D)all

Answer 1

True

Question 2

Calculate units manufactured during the year. Units Sold - 500, Opening stock - 100.Closing stock - 200

A)500
B)700
C)550
D)600

Answer 2

600

Question 3

Minimum Rent in the first year Rs 1,00,000 and will be increased by Rs 10,000 p.a. for three years and then after by 10% per year. What is the amount at the end of 6th year?

A)Rs 100000
B)Rs 157300
C)Rs 168000
D)Rs 200000

Answer 3

Rs 157300

Question 4

Royalty is Rs 64,000, Minimum rent Rs 80,000. Strike is for 3 months with no work done, Minimum rent to be reduced in proportion of time, find the amount paid to Landlord.

A)Rs 60000
B)Rs 80000
C)Rs 64000
D)Rs 100000

Question 5

What is the example of wasting assets

A)Land
B)Mine
C)Stock
D)Fixed Assets

Question 6

Who is the person take the property on the lessee agreement

A)Lessor
B)Lessee
C)Payee
D)None of these

Question 7

Royalty is an ………………….to lessee

A)Income
B)Expense
C)Both
D)None

Question 8

When the lessor receives payment, the credits-

A)Lessee account
B)Royalty account
C)Short workings account.
D)all

Question 9

The balance of royalty?s receivable account is transferred to -

A)Profit and loss account
B)Royalties suspense account
C)Production account.
D)all

Question 10

The balance of royalty payable account is transferred to-

A)Profit and loss account
B)Royalties suspense account
C)Production account
D)all

Question 11

Under the average clause, the loss is suffered by both insurer and insured in the ratio ofrisk covered

A)True
B)False
C)none
D)all

Question 12

………………..account is credited when lessor receive an amount

A)Lessee Account
B)Lessor Account
C)Profit and Loss Account
D)Income

Question 13

Royalty is an income to lessee

A)True
B)False
C)none
D)all

Question 14

Fixed payment made for the used of an assets is called Financial Lease

A)True
B)False
C)none
D)all

Question 15

Patent Royalty is based in Sales of a Product

A)True
B)False
C)none
D)all

Question 16

Shortworking is Excess of Minimum Rent over Actual Production

A)True
B)False
C)none
D)all

Question 17

Royalty is Rs 44,000, Minimum rent Rs 50,000. Strike is for 2 months with no work done, Minimum rent to be reduced in proportion of time, find the amount paid to Landlord.

A)Rs 5000
B)Rs 50000
C)Rs 44000
D)Rs 6000

Question 18

Short working is a type of taxes paid by the lessee

A)True
B)False
C)none
D)all

Question 19

Recoupment is always necessary in royalties

A)True
B)False
C)none
D)all

Question 20

A person who take property on lease is called customer

A)True
B)False
C)none
D)all

Question 21

Royalty accounting is covered under Companies Act 1956

A)True
B)False
C)none
D)all

Question 22

Partnership firm is constituted under the….

A)indian partnership act 1932
B)indian partnership act 1955
C)the association of persons act 1932
D)the indian association act 1955

Question 23

The maximum number of Partners which can be allowed as partners in a firm are…

A)40
B)20
C)25
D)30

Question 24

The limit on the number of partners is indirectly placed by…

A)the partnership act
B)the association of persons act
C)the companie\s act
D)the corporate associations act

Question 25

In peicemeal distribution of cash, the first external liabilities to be paid are…

A)government dues
B)partners\ loans
C)preferential creditors
D)secured creditors