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question_answer1)
Assertion (A) : |
When partners Capitals are Fixed, it means that the capitals of the partners remain unchanged unless additional capital is introduced or withdrawal is made from the existing capital. |
Reason (R) : |
Withdrawal from the capital for personal use will not be treated as drawings whether Capitals are fixed or fluctuating. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Both Assertion and Reason are not correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer2)
Assertion (A) : |
Commission payable to the partner on Sales ORon the net profit of the firm, will be shown in Profit and Loss Appropriation Account. |
Reason (R) : |
All appropriations are shown in the Profit and Loss Appropriation Account |
Choose the Correct Option from the following;
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct but Reason is not correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer3)
Assertion (A) : |
Net profit (after all charge items) is to be transferred to the Profit and Loss Appropriation Account. In Profit and Loss Appropriation Account, after providing all appropriations to the partners, balance (remaining profit) if any will be distributed among the partners in their profit sharing ratio. Profit and Loss Appropriation Account will not show loss. |
Reason (R) : |
Profit and Loss Appropriation Account will not show loss because, appropriations can not be allowed more than the profits. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct but Reason is not correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer4)
Assertion (A) : |
In the absence of provision in the partnership deed, loan given to a partner by the firm without any agreement to interest on loan. It is treated as interest free loan. |
Reason (R) : |
In the absence of provision in the partnership deed, interest on loan to partner should be charged @6% p.a. |
Choose the Correct Option from the following :
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct but Reason is not correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer5)
Assertion (A) : |
When partners capitals are fluctuating, Salary of a partner should be shown in the credit side of Partner's Capital Account. |
Reason (R) : |
All Appropriations are shown in the credit side of Partners Capital Account irrespective of capitals are fixed or fluctuating. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct but Reason is not correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer6)
Assertion (A) |
Whether partner's capital is fixed or fluctuating, withdrawal of capital will reduced the capital of that partner immediately. |
Reason (R) : |
Drawings against the anticipated profit will not reduce the capital immediately. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer7)
Assertion (A) : |
Partners are both 'Agents' and 'Principals'. |
Reason (R) : |
As an agent, a partner represents other partners and binds them through his acts. As a principal, he is bound by the act of other partners. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer8)
Assertion (A) : |
As an appropriation. Interest on capital is allowed only when there is profit, but in case of loss, interest on capital is not given to any partner. |
Reason (R) : |
Interest on capital can be allowed as a charge, in such case, it will be allowed even if firm is in loss. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer9)
Assertion (A): |
When Partners Capitals are fixed, balance of Current Account does not change when a partner introduces additional capital or some part of capital is withdrawn by him. |
Reason (R): |
Amount of capital and other appropriations are shown in the credit side of Partners Current Account. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer10)
Assertion (A) : |
Personal assets of the partners can be used to meet the firm's liability, if firm's assets are insufficient to meet its liabilities. |
Reason (R) : |
As per Law, a partnership firm is not a separate legal entity from its partners. |
Choose the Correct Option from the following:
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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question_answer11)
Assertion (A) : |
Rent is paid for the use of Asset of a partner in the business. Rent paid is an expense for the business, It is a charge against the profit so it is shown in profit and loss account. |
Reason (R) : |
When Rent paid to partner is treated as an appropriation, it is shown in the credit side Profit and Loss Appropriation Account. |
Choose the Correct Option from the following :
A)
Assertion and Reason both are correct and Reason is the correct explanation of assertion done
clear
B)
Assertion and Reason both are correct but Reason is not correct explanation of assertion done
clear
C)
Only Assertion is correct done
clear
D)
Reason is correct but Assertion is not correct done
clear
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