Partnerships is one of 9 topics in the Grade 12 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. A partnership is best described as:
A business owned by two or more people who combine capital and effort and share in profits and losses
A business owned by a single individual
A business whose shares are traded on the JSE
A government-owned enterprise
Answer: A business owned by two or more people who combine capital and effort and share in profits and losses — A partnership involves two or more partners who agree, via a partnership agreement, to run a business together and share its profits and losses.
Easy
2. Each partner typically maintains which two separate accounts?
A Capital account and a Current account
A Debtors account and a Creditors account
A Sales account and a Purchases account
A Bank account and a Petty Cash account
Answer: A Capital account and a Current account — The Capital account records a partner's stable capital contribution, while the Current account records the fluctuating share of profit, interest, salary, and drawings during the year.
Medium
3. What is the purpose of a partnership's Appropriation Account?
To show how the total net profit is divided among the partners according to the partnership agreement
To calculate the partnership's gross profit
To record purchases of inventory
To list the partnership's non-current assets
Answer: To show how the total net profit is divided among the partners according to the partnership agreement — The Appropriation Account allocates net profit among the partners, typically via interest on capital, salaries, and a final profit-sharing ratio, as set out in the partnership agreement.
