[CUET] Practice Mock Test of Fundamentals of Parntership (Partner's Loan to Firm) HOT

[CUET] Practice Mock Test of Fundamentals of Parntership (Partner’s Loan to Firm) HOT

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Post published:October 29, 2025
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[CUET] Practice Mock Test of Fundamentals of Partnership (Partner’s Loan to Firm) HOT for Class 12 CBSE, ISC

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

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?

₹14,000

₹6,000

₹26,000

₹20,000

2 / 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 paid before calculating net profit

It is a contractual obligation, not dependent on profits

It is paid only when profits are available

3 / 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?

₹12,000

₹5,000

₹10,000

₹15,000

4 / 10

Which journal entry is correct when interest on partner’s loan is due?

Interest on Loan A/c Dr. To Partner’s Loan A/c

Partner’s Capital A/c Dr. To Interest on Loan A/c

Interest on Capital A/c Dr. To Partner’s Loan A/c

Profit and Loss A/c Dr. To Partner’s Loan A/c

5 / 10

Assertion (A): Interest on the partner’s loan is calculated using compound interest.

Reason (R): Compound interest ensures higher returns for the partner.

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

Both A and R are false

A is true, but R is false

6 / 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.

A is true, but R is false

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

7 / 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 true, but R is false

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

8 / 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?

₹4,500

₹9,000

₹6,000

₹3,000

9 / 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 true, and R is the correct explanation of A

Both A and R are false

A is true, but R is false

Both A and R are true, but R is not the correct explanation of A

10 / 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.

A is true, but R is false

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

Your score is

The average score is 0%

You have 10 minutes to complete the Test. After completion, you would get your final result immediately.

Your time is up.

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