[CUET] Practice Mock Test of Fundamentals of Parntership (Partner’s Loan to Firm) HOT Post author:Anurag Pathak Post published:October 29, 2025 Post category:Uncategorized Post comments:0 Comments [CUET] Practice Mock Test of Fundamentals of Partnership (Partner’s Loan to Firm) HOT for Class 12 CBSE, ISC 0% 12345678910 You have 10 minutes to complete the Test. After completion, you would get your final result immediately. Your time is up. [CUET] Mock Practice Test of Fundamentals of Partnership (Partner's Loan to Firm) Higher Order Thinking 1 / 10 Assertion (A): Interest on partner’s loan is paid even if the firm incurs a loss. Reason (R): It is an appropriation of profit. Both A and R are true, and R is the correct explanation of A A is false, but R is true Both A and R are true, but R is not the correct explanation of A A is true, but R is false Explanation: Interest on loan is a charge, not an appropriation. 2 / 10 A partner gave a loan of ₹50,000 to the firm and also contributed ₹1,00,000 as capital. The deed allows 10% interest on loan and 12% on capital. The firm earned ₹5,000 profit. How much interest will be paid? ₹5,000 ₹10,000 ₹12,000 ₹15,000 Explanation: Interest on loan (charge) = ₹5,000. Interest on capital (appropriation) not paid due to insufficient profit. 3 / 10 Assertion (A): Interest on the partner’s loan is calculated using compound interest. Reason (R): Compound interest ensures higher returns for the partner. A is true, but R is false Both A and R are true, and R is the correct explanation of A Both A and R are false Both A and R are true, but R is not the correct explanation of A Explanation: Interest is calculated on simple interest basis unless otherwise agreed. 4 / 10 Assertion (A): Partner’s loan is shown under liabilities in the firm’s balance sheet. Reason (R): The firm is obligated to repay the loan to the partner. A is false, but R is true A is true, but R is false Both A and R are true, but R is not the correct explanation of A Both A and R are true, and R is the correct explanation of A 5 / 10 Assertion (A): A partner’s loan is repaid before capital at the time of dissolution. Reason (R): Loan is an external liability for the firm. Both A and R are true, but R is not the correct explanation of A A is false, but R is true Both A and R are true, and R is the correct explanation of A A is true, but R is false Explanation: Interest is credited to the loan account, not capital account. 6 / 10 Which journal entry is correct when interest on partner’s loan is due? Profit and Loss A/c Dr. To Partner’s Loan A/c Interest on Capital A/c Dr. To Partner’s Loan A/c Interest on Loan A/c Dr. To Partner’s Loan A/c Partner’s Capital A/c Dr. To Interest on Loan A/c 7 / 10 Assertion (A): Interest on partner’s loan is credited to the partner’s capital account. Reason (R): It increases the partner’s capital in the firm. Both A and R are false A is true, but R is false Both A and R are true, and R is the correct explanation of A Both A and R are true, but R is not the correct explanation of A Explanation: Interest is credited to the loan account, not capital account. 8 / 10 Which of the following best explains why interest on partner’s loan is treated as a charge and not an appropriation? It is paid from capital It is a contractual obligation, not dependent on profits It is paid only when profits are available It is paid before calculating net profit Explanation: Interest on loan is a liability and must be paid irrespective of profits. 9 / 10 A partner gave a ₹1,00,000 loan to the firm on 1st July. The firm closes its books on 31st March. The partnership deed is silent on interest. What amount of interest will be paid? ₹3,000 ₹4,500 ₹9,000 ₹6,000 Explanation: Interest @6% p.a. for 9 months = ₹1,00,000 × 6% × 9/12 = ₹4,500 10 / 10 A firm has incurred a net loss of ₹20,000. It has to pay ₹6,000 as interest on a partner’s loan. What will be the net loss transferred to partners’ capital accounts? ₹6,000 ₹20,000 ₹14,000 ₹26,000 Explanation: Interest on loan is a charge. Net loss = ₹20,000 + ₹6,000 = ₹26,000. Your score isThe average score is 0% 0% Restart quiz You Might Also Like CUET Mock Test of Fundamentals of Partnership (Rules in the Absence of Partnership Deed) – 3 October 16, 2025 [CUET] Mock Test of Fundamentals of Partnership (Partner’s Loan to the firm) Class 12 CBSE, ISC October 29, 2025 [CUET] Mock Test of Fundamentals of Partnership (Profit & Loss Appropriation A/c (Part – 1) October 17, 2025 Leave a Reply Cancel replyCommentEnter your name or username to comment Enter your email address to comment Enter your website URL (optional) Save my name, email, and website in this browser for the next time I comment.
CUET Mock Test of Fundamentals of Partnership (Rules in the Absence of Partnership Deed) – 3 October 16, 2025
[CUET] Mock Test of Fundamentals of Partnership (Partner’s Loan to the firm) Class 12 CBSE, ISC October 29, 2025
[CUET] Mock Test of Fundamentals of Partnership (Profit & Loss Appropriation A/c (Part – 1) October 17, 2025