FINANCIAL ACCOUNTING - MCQS - Study For Buddies

## Thursday, May 20, 2021

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FINANCIAL ACCOUNTING
(FA)
MCQS - PIECEMEAL DISTRIBUTION OF CASH AMONG PARTNERS

PIECEMEAL DISTRIBUTION OF CASH AMONG PARTNERS

1. A and B are partners in proportion of 2:1. Their capital is Rs.50,000 and 40,000 respectively. If cash installment received is of Rs. 15,000.

(a) Only B will get Rs. 15,000
(b) A and B will get Rs. 10,000 and Rs. 5,000 resp.
(c) A will get Rs. 10,000 and remaining Rs. 5,000 will be distributed equally among A and B.
(d) Only A will get Rs. 15,000

2. A, B and C are partner's sharing profit and loss in equal proportion. Their capital is Rs. 30,000, Rs. 25,000 and Rs. 15,000 respectively. If cash installment is Rs. 25,000.

(a) will be distributed equally among each partner.
(b) C will be paid Rs. 15,000 and remaining Rs. 10,000 will be paid to B.
(c) A and B will be paid Rs. 15,000 and Rs. 10,000 respectively.
(d) Only A will be paid Rs. 25,000.

3. P ,Q and R are three partners sharing profit and loss in proportion of 5:3:2 and having capital of Rs. 1,00,000 each. On dissolution of firm, installment money of Rs. 50,000 will be distributed among P, Q and R.

(a) in proportion of profit and loss
(b) in equal proportion
(c) Rs. 30,000 to Q and Rs. 20,000 to R
(d) Only to R Rs. 50,000

4. When piecemeal distribution of cash is done according to surplus capital method.

(a) Partner having the highest capital, gets first
(b) All partners get in profit sharing ratio
(c) All partners get equal amount
(d) Partner whose capital is more in proportion of his profit sharing ratio, gets first.

5. A, B and C are three partners sharing profit and loss in 5:3:2 ratio. Their capital is Rs. 1,00,000, Rs:1,00,000 and Rs. 50,000 resp. A and C has given loan to firm which is Rs. 50,000 and Rs. 40,000 resp. On event of dissolution of firm, Loan of A and C will be:

(a) will be paid in proportion of their loan amount.
(b) credited in capital A/c
(c) will be paid in proportion of their capital
(d) paid first

6. In piecemeal distribution according to surplus capital Method, final deficit of each partner.

(a) will be in ratio of capital
(b) will not be in ratio of capital
(c) will be in ratio of profit and loss
(d) will not be in ratio of profit and loss

7. A and B are partners sharing profit and loss on equal basis and having capital of Rs. 40,000 and Rs. 25,000 resp. Balance sheet shows General Reserve Rs. 26,000 and debit balance of profit and loss A/c Rs. 13,000. The net capital of A and B will be

(a) Rs. 40,000 and Rs. 25,000
(b) Rs. 46,500 and Rs. 31,500
(c) Rs. 48,000 and Rs. 30,000
(d) Rs. 56,000 and Rs. 35,000

8. X, Y and Z are partners in ratio of 5:3:2. After distribution of final installment, capital deficit of each is Rs. 4,800, Rs. 3,000 and Rs. 2,200. All partners are solvent. In this situation

(a) X will bring Rs. 200 and pay to Z
(b) current situation will be accepted
(c) Z will bring Rs. 200 and will pay to X
(d) Y will bring Rs. 400 and X and Z will get Rs. 200 each

9. On event of dissolution of firm, it is decided for piecemeal distribution of cash. Books of Account show secured debt of Rs. 1,00,000 against mortgage of machinery. Rs. 80,000 realised from machinery. In this situation.

(a) Rs. 1,00,000 will be entirely considered as unsecured.
(b) Rs. 1,00,000 will be paid first as secured debt.
(c) Rs. 80,000 will be paid first as secured debt and Rs. 20,000 as unsecured debt.
(d) Rs. 80,000 will be paid first and Rs. 20,000 will be paid in last installment

10. At the time of dissolution of firm, cash balance is Rs. 15,000. First installment reed is of Rs. 65,000. Reserve for dissolution exp. is to be kept for Rs. 5,000. Bills discounted in bank are for Rs.20,000 for which reserve is to make. The net amount available for distribution will be -

(a) Rs. 80,000
(b) Rs. 55,000
(c) Rs. 60,000
(d) Rs. 75,000

11. Under Garner. Vs Murray case, the insolvency loss should be borne by solvent partners according to

(a) capital ratio
(b) profit sharing ratio
(c) final claim ratio

12. Proportionate capital method is otherwise called

(a) relative capital method
(b) maximum loss method
(c) balance method

13. Under the maximum Loss method of piece-meal distribution of cash, the notional maximum loss is divided in __________.

(a) fixed capital ratios
(b) capital ratios after making adjustments
(c) profit sharing ratios

14. The piece-meal distribution of cash should be done in a manner that the amount finally left unpaid is

(a) in capital ratio
(b) in profit sharing ratio
(c) neither of the two

15. Realization made in parts is called

(a) Distribution of capital
(b) Piece-meal distribution
(c) Equal share

16. In order to find out additional capital of any partner as per surplus capital method, consider the capital of a particular partner whose proportional capital compared to other partner's capital is..

(a) more
(b) Zero
(c) less
(d) None of these

17. As per surplus capital method, after paying outside liabilities and partner's Loan the balancing amount of cash..

(a) is distributed among the partners as per their profit and loss sharing ratio.
(b) is paid in context to the excess capital of a partner having highest capital.
(c) is paid to a particular partner having highest capital on the basis of profit and loss sharing ratio.
(d) is equally distributed amongst partners without considering profit and loss sharing ratio as well as the payable capital to each partner.

18. Before distributing cash amongst partner's whatever profit or loss and reserves as per the balance sheet......

(a) will not be distributed amongst partners;
(b) Will be distributed amongst partners as per their profit and loss sharing ratio.
(c) Will be distributed amongst Partner in context to each partner's capital.
(d) Will be distributed equally amongst partners.

19. A,B and C are partners sharing profits and losses in the ratio of 3:2:1. If the capital of partner A, B And C are Rs. 30,000; Rs. 30,000 and. Rs. 20,000 respectively the which partner's capital should be considered as base?

(a) B's capital
(c) No one's capital
(b) C's capital
(d) A's capital

20. If there is a debit balance of any one partner's capital account the same will be distributed among the remaining partners:

(a) as per the ratio of their capital
(b) as per their profit and loss sharing ratio
(c) Nil (will not be distributed)
(d) None of the above

21. An amount of Rs. 20,000 was kept a side for the dissolution expenses, but the actual amount of expenses comes to Rs. 16,000, then:

(a) Rs. 4,000 will be deducted from the Last installment.
(b) Rs. 4,000 will be added the last installment.
(c) Rs. 16,000 will be deducted from the last installment.
(d) Rs. 20,000 will be deducted from the first installment and Rs. 4,000 will be added to the last installment.

22. After discharging all the debt at the time of dissolution of a firm of partners A, B and C; there was a surplus amount of Rs. 4,000 against first installment and second installment was realised by Rs. 26,000. Their profit and loss sharing ratio is 2:1:2. The capital of the each partner was Rs.30,000; Rs. 20,000 and Rs. 30,000 respectively. The piecemeal distribution of cash among the partners will be as follows :

(a) B will get Rs. 1,000 each from first installment and second installment and remaining surplus amount will be distributed among all partners as per their profit - sharing ratio.
(b) B will get entire amount of the first installment and Rs. 1,000 against second installment. Remaining surplus amount will be distributed among all partners as per their profit sharing ratio.
(c) The whole amount will be distributed among all partners in the ratio of 3:2:3.
(d) The surplus amount of first installment and the second installment amount will be distributed among all partners in proportion of 2 :1:2.

23. A, B and C are partner's in a firm sharing profits and losses equally. The partners capitals are: A Rs. 65,000, B Rs. 55,000 and C Rs. 75,000. B's Loan Rs. 18,000. If first installment in realised by Rs. 28,000 the same will be distributed as follows.

(a) B's loan will be paid by Rs. 18,000 and A will get Rs. 10,000 against his capital.
(b) B's loan will be paid by Rs. 18,000 and Rs. 10,000 will be paid towards C's capital.
(c) The entire amount Rs. 28,000 will be paid to partner B only.
(d) B's loan will be paid up to the extent of Rs. 8,000 and A and C each will get Rs. 10,000 against their capitals.

24. A, B and C are the partners sharing profit/ loss in the ratio of 3:4:2 respectively. Their capitals are Rs. 28,000, Rs. 14,000 and Rs. 12,000 respectively. On selling of assets, the first installment of Rs. 9,000 is received. The same will be distributed among the partners by maximum loss method as follows: will get Rs. 9,000

(a) A, B and C each will get Rs. 3,000.
(b) B will get Rs. 9,000.
(c) C will get Rs. 9,000.

25. Ajay, Vijay and Suresh are the partners sharing profits and losses in the ratio of 3:2:1. Their capitals at the time of payment of the last installment are Rs. 18,000, Rs.15,000 and Rs. 8,000 respectively. Last installment of Rs. 7,100 was received Rs. 200 was spent out of Rs. 1,500 kept as reserve for dissolution expenses. The realization loss will be.

(a) Rs. 16,800, Rs. 11,200 and Rs. 5,600
(b) Rs. 11,200, Rs. 16,800 and Rs. 5,600
(c) Rs. 11,300, Rs. 11,300 and Rs. 11,300
(d) Rs. 5.600, Rs. 11 200 and Re 16,800

26. Purvi and Monika are partners sharing profits and losses in the proportion of 3:2 having the capitals of Rs. 37,500 and Rs. 15,000 respectively. They decided to dissolve the partnership firm. On that day purvi loan stood at Rs. 7,500. Realization expenses amounted to Rs. 1,500. First installment of Rs. 46,500 was received. As per maximum loss method the realization loss will be distributed as under:

(a) Rs. 3,000 and Rs. 6,000
(b) Rs. 6,000 and Rs. 3,000
(c) Rs. 9,000 and Rs. 6,000
(d) Rs. 7,500 and Rs. 7,500

27. The capitals of the partners are as follows:

A: Rs. 8,000; B: Rs. 4,000; C Rs. 3,000

If the installment of Rs. 3,300 is received the same will be distributed among the partners as under as per the maximum loss method:

(a) A will get Rs, 3,300 but B and C will not get at all.
(b) Each partner will get Rs. 1,100.
(c) A will not get at all but B will get Rs. 3,000 and C will get Rs. 300.
(d) C will get Rs. 3,300 but A and B will not get at all.

28. A, B and C are the partner's sharing profits and losses in the ratio of 4:3:3. Their capital were Rs. 30,000, Rs. 40,000 and Rs. 50,000 respectively. The firm was dissolved. After discharging all the debts, Rs.40,000 was realised from the sale proceeds of the assets. Then, as per the maximum loss method what amount would be received by B ?

(a) Rs. 17,500
(b) Rs.15,000
(c) Rs. 12,000
(d) Nil

29. Anil, Bipin and Kirit are the partner's sharing profits and losses in the ratio of 3:2:1. Their capitals are Rs. 45,000, Rs.50,000 and Rs. 40,000 respectively. They dissolve the firm. After discharging all the debts, Rs. 45,000 were realised from the sale of assets. Then, what amount would be received by Bipin and Kirit ?

(a) Rs. 25,000 and Rs. 20,000
(b) Rs. 22,500 and Rs. 22,500
(c) Rs. 20,000 and Rs. 25,000
(d) Rs. 30,000 and Rs. 15,000

30. Amit, Samit and Gamit are sharing profits and losses in the ratio of 3:4:2 respectively. Their capitals are Rs. 84,000, Rs. 42,000 and Rs. 36,000 respectively. On selling of assets, the first installment of Rs. 27,000-isreceived. According to maximum loss method:

(a) Samit will get Rs. 27,000
(b) Gamit will get Rs. 27,000
(c) Amit, Samit and Gamit each will get Rs. 9,000
(d) Amit will get Rs. 27,000

31. In piecemeal distribution according to Surplus Capital Method, final deficit of each partner-

(a) Will not be in ratio of capital
(b) Will be in ratio of profit and loss
(c) Will not be in ratio of profit and loss
(d) Will be in ratio of capital

32. A, B and C are partners sharing Profit- Loss in the ratio of 3:4:2 respectively. Their capitals are Rs. 36,400, Rs. 18,200 and Rs. 15,600 respectively. on selling of Assets the first installment of Rs. 11,700 is received. This installment will be distributed among the partners by Maximum Loss Methods as follows:

(a) A gets Rs. 11,700
(b) A, B and C each gets Rs. 3,900
(c) B gets Rs. 11,700 %
(d) C gets Rs. 11,700