Partnership and LLP Accounts

Which document is created to outline the rights and duties of partners?
a) Memorandum of Association
b) Articles of Association
c) Partnership Deed
d) LLP Agreement

In the absence of a partnership deed, partners share profits and losses:
a) Equally
b) In capital ratio
c) Based on age
d) Based on experience

Which account is not prepared under the Fixed Capital method?
a) Capital Account
b) Drawing Account
c) Current Account
d) Profit and Loss Account

Interest on drawings is charged to:
a) Profit and Loss Account
b) Capital Account
c) Partner’s Current/Capital Account
d) Cash Account

Which account is debited when goodwill is brought in cash by a new partner?
a) Goodwill Account
b) Cash Account
c) Old Partners’ Capital Accounts
d) Profit and Loss Account

In LLP, liability of partners is:
a) Unlimited
b) Joint and several
c) Limited to their contribution
d) Unlimited for active partners only

What is the minimum number of designated partners required in an LLP?
a) 1
b) 2
c) 3
d) 5

Revaluation account is prepared at the time of:
a) Admission
b) Retirement
c) Death of a partner
d) All of the above

When a partner retires, his share of goodwill is debited to:
a) Revaluation Account
b) Remaining Partners’ Capital Accounts
c) Cash Account
d) Goodwill Account

Profit-sharing ratio after admission of a partner is calculated using:
a) Sacrificing ratio
b) Capital ratio
c) Gaining ratio
d) Time ratio

On the death of a partner, his capital account is credited with:
a) Share of future profits
b) Share of revaluation gain
c) Share in accumulated reserves
d) All of the above

Which of the following is shown on the credit side of Revaluation Account?
a) Increase in asset value
b) Decrease in liability
c) Increase in liability
d) Both a and b

LLP stands for:
a) Limited Liability Party
b) Limited Legal Partnership
c) Limited Liability Partnership
d) Local Liability Partnership

Which is not a feature of LLP?
a) Separate legal entity
b) Unlimited liability
c) Perpetual succession
d) Governed by LLP Act, 2008

Which account is affected when profit is distributed among partners?
a) Profit and Loss Account
b) Profit and Loss Appropriation Account
c) Capital Account
d) Revaluation Account

When a partner is admitted for a share in future profits, it is called:
a) Reconstitution of firm
b) Dissolution of firm
c) Amalgamation
d) Reconstruction

Goodwill is distributed among old partners in:
a) New ratio
b) Sacrificing ratio
c) Equal ratio
d) Capital ratio

Which method is used for calculating interest on drawings?
a) Product Method
b) Balance Method
c) Gross Method
d) FIFO Method

Revaluation Account is a:
a) Nominal Account
b) Real Account
c) Personal Account
d) None

Which Act governs the accounting of LLPs in India?
a) Companies Act
b) Partnership Act
c) LLP Act, 2008
d) Income Tax Act