Profit Sharing Quiz - CBSE Class 11 Accountancy

Free practice quiz: Profit Sharing (CBSE Class 11 Accountancy). 30 multiple-choice questions with answers and explanations. Play online, no sign-up needed.

This CBSE Class 11 Accountancy practice quiz has 30 multiple-choice questions on Profit Sharing. Try the 5 sample questions below (tap an option to check yourself), then play the full quiz online. No sign-up needed.

Sample questions

1. In a partnership, how is the profit distributed among partners if no specific agreement exists?

   1. Equally among all partners
   2. Based on investment ratio
   3. Based on the seniority of partners
   4. Based on percentage of work done
   Show answer

   Answer: A. Equally among all partners

2. In a partnership, if partners agree to change their profit-sharing ratio, which of the following conditions must be met?

   1. Written agreement
   2. No changes in capital
   3. Approval from all partners
   4. Only one partner must agree
   Show answer

   Answer: C. Approval from all partners

3. Which of the following is a method for calculating profits shared among partners?

   1. Cost plus method
   2. Least squares method
   3. Time-based ratio
   4. Pro-rata basis
   Show answer

   Answer: D. Pro-rata basis

4. In a partnership, what is the primary basis for profit-sharing?

   1. According to capital contribution
   2. Equally among partners
   3. Based on the time invested
   4. As per the partnership agreement
   Show answer

   Answer: D. As per the partnership agreement

5. What is the primary factor determining a partner's share of profit?

   1. Time spent
   2. Initial investment
   3. Profit-sharing ratio
   4. Experience
   Show answer

   Answer: C. Profit-sharing ratio

More questions in this quiz

Answers and explanations are in the full quiz.

1. Which of the following statements is true regarding the profit sharing ratio in a partnership?
2. If a new partner joins a partnership, what is the impact on the profit-sharing ratio?
3. When two partners agree to change their profit-sharing ratio, what document should be updated?
4. In a partnership where the ratio of sharing profits is altered, how is goodwill generally treated?
5. What is the primary purpose of profit sharing in a partnership?
6. When a new partner is admitted into a partnership, how is the goodwill typically treated in terms of profit sharing?
7. What factors can determine a fair profit-sharing ratio in a partnership?
8. If a partnership agreement states that profits are to be shared equally, what happens if one partner contributes significantly more capital than the others?
9. How does a partnership's change in profit-sharing ratio affect the existing goodwill among partners?
10. In a partnership, profit sharing ratio is usually decided by which method?
11. In a partnership, how is the share of profit for each partner calculated when the profit sharing ratio changes?
12. What does the term 'salaries to partners' imply in partnership accounts?
13. When partners decide to share profits based on their contribution of capital, what type of profit sharing ratio is this?
14. If a new partner joins a partnership, what must they compensate the existing partners for?
15. If one partner is entitled to a salary of Rs. 50,000, how does it affect the distribution of profit among partners?
16. What is the impact of a partner withdrawing from a partnership on profit-sharing?
17. What adjustment is made at the time of admitting a new partner regarding profit sharing?
18. If a partnership agreement states that profits are shared based on the capital employed, which of the following statements is true?
19. Which of the following is a method to calculate the share of profits among partners?
20. What adjustment is made to the capital accounts for the profits shared amongst partners?
21. If a partnership agreement states a 3:2 profit-sharing ratio between partners A and B, what fraction of the profit does partner A receive?
22. What adjustments are made to profit-sharing ratios when a new partner joins an existing partnership?
23. Which of the following statements is true about changing the profit-sharing ratio in an existing partnership?
24. What does a partnership agreement typically specify?
25. In a partnership agreement, which of the following can be a reason for a changing profit-sharing ratio?

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