Practise 38 real Federal Board questions on Partnership Accounts from 2023 to 2026. See the answer and explanation as soon as you answer.
Partnership Accounts is one of the 10 main chapters in our Federal Board I.Com Accounting question bank (12th class), and about 10% of its real questions come from it. Tayyari Karo has 38 real questions on this chapter from 2023 to 2026; 20 are multiple choice and marked instantly, and the rest are short and long questions with a model answer. By difficulty: 22 medium, 15 hard, 1 easy.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
In the absence of an agreement, interest on drawings is to be charged by the firm at the rate of:
Answer: A. 0% (zero)
In the absence of a partnership agreement, no interest is charged on partners' drawings by default under the Partnership Act.
Partners current accounts should be opened when capital accounts are:
Answer: A. Fixed
Current accounts are maintained alongside fixed capital accounts so that drawings, interest, salary and profit share don't disturb the fixed capital balances.
According to the decision of "Garner vs Murrey" rule, the loss of insolvent partner is to be shared by solvent partners in the:
Answer: C. Capital ratio
The Garner vs Murray rule requires the deficiency (capital loss) of an insolvent partner to be shared by solvent partners in the ratio of their last agreed capitals, not the profit-sharing ratio.
The end or termination of partnership is called:
Answer: D. Dissolution
Dissolution refers to the complete termination/winding up of a partnership business.
Mr. A drew cash Rs.1000 from business for 3 months, the amount of interest on drawing @ 6% p.a. will be:
Answer: C. 15
Interest = Principal × Rate × Time = 1000 × 6% × 3/12 = 15.
Current account of the partners should be opened when the capitals are:
Answer: B. Fixed
Under the fixed capital method, partners' capital accounts remain unchanged and a separate current account records drawings, interest, salary and share of profit.
Briefly explain "Garner Vs Murray" decision.
The Garner vs Murray rule applies on dissolution of a firm when a partner is unable to pay their share of the deficiency (loss) due to insolvency. It states: (1) solvent partners must first bring in cash to cover their own share of the realization loss; and (2) the deficiency caused by the insolvent partner is then borne by the solvent partners in the ratio of their capitals (as last agreed/adjusted before the loss), not their profit-sharing ratio.
What rules are applicable in the absence of agreement in partnership? (any three)
In the absence of a partnership agreement, the Partnership Act provides: (1) Profits and losses are to be shared equally among all partners, irrespective of their capital contribution. (2) No interest is allowed on capital contributed by partners. (3) No salary or remuneration is payable to any partner for taking part in the business. (Also: no interest is charged on drawings, and interest on a partner's loan to the firm, if any, is allowed at 6% p.a.)
| Session | Questions |
|---|---|
| 2026 Annual | 6 |
| 2025 1st Annual | 5 |
| 2025 2nd Annual | 6 |
| 2024 Annual | 9 |
| 2023 Annual | 12 |
38 real Federal Board (FBISE) Accounting questions on Partnership Accounts from 2023 to 2026, for 12th class. Each one shows the session it came from.
No. We could not find an official FBISE marking scheme for these papers, so the answers and explanations are written by Tayyari Karo for practice. Check anything important with your teacher or textbook.
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