12th Class Accountancy Fundamentals of Partnership Question Bank

done Assertion and Reason - Accounting for Partnership Firm : Fundamental Total Questions - 5

• question_answer1)

  Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer:

  Assertion (A): Interest on Loan and rent paid to partner are recorded in profit and loss account.

  Reason (R): Interest on loan and rent paid to partner are charge against profit.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer2)

  Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer:

  Assertion (A): Partnership is a business entity which is not separate from its partners in any circumstances.

  Reason (R): Partners are mutual agents of each other so far as the business of the firm is concerned.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer3)

  Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer:

  Assertion (A): Salary and commission to partner are recorded in profit and loss appropriation account.

  Reason (R): Salary and commission paid to partners is an appropriation of profits.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer4)

  Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer:

  Assertion (A): it is considered desirable to make the Partnership agreement in writing.

  Reason(R): Partnership agreement serves as an evidence in the court of Law.

   
  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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• question_answer5)

  Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer:

  Assertion (A): If the partnership deed is silent, profits and losses are shared equally by partners.

  Reason (R): If partnership deed is silent, interest @6%p.a. will be charged on drawing made by partners.

   
  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
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