CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 3 – Reconstitution of Partnership Firm: Admission of a Partner
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CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 3 – Reconstitution of Partnership Firm: Admission of a Partner
Question 1.
A, B and C are partners in a firm. If D is admitted as a new partner, then:
(a) Old firm is dissolved
(b) Old firm and old partnership is dissolved
(c) Old Partnership is reconsitituted
(d) None of these
Answer
Answer: (c) Old Partnership is reconsitituted
Question 2.
A, Band Care three partners sharing profits and losses in the ratio of 4:3:2. D is admitted for 1/10 share, the new ratio will be :
(a) 10 : 7 : 7 :4
(b) 5 : 3 : 2 : 1
(c) 4 : 3 : 2 : 1
(d) None of these
Answer
Answer: (c) 4 : 3 : 2 : 1
Question 3.
In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners :
(a) Profit sharing ratio
(b) Capital ratio
(c) Sacrificing ratio
(d) None of these
Answer
Answer: (c) Sacrificing ratio
Question 4.
Share of goodwill brought by new partner in case is shared by old partners in :
(a) Sacrificing Ratio
(b) Old Ratio
(c) New Ratio
(d) Equal Ratio
Answer
Answer: (a) Sacrificing Ratio
Question 5.
Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by:
(a) Spicer and Pegler
(b) ICAI
(c) Lord Elton
(d) AICPA
Answer
Answer: (c) Lord Elton
Question 6.
Sacrificing ratio is ascertained at the time of:
(a) Death of a partner
(b) Retirement of a partner
(c) Admission of a partner
(d) None of these
Answer
Answer: (c) Admission of a partner
Question 7.
X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :
(a) ₹ 2,50,000
(b) ₹ 50,000
(c) ₹ 1,00,000
(d) ₹ 1,25,000
Answer
Answer: (c) ₹ 1,00,000
Question 8.
If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it will the transferred to:
(a) Profit & Loss Appropriation A/c
(b) All Partners’ Capital A/cs
(c) Old Partners’ Capital A/cs
(d) Revaluation A/c
Answer
Answer: (c) Old Partners’ Capital A/cs
Question 9.
A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner for 1/3 rd share in the profits of the firm. The new profit sharing ratio of A, B and C would be :
(a) 3 : 2 : 1
(b) 3 : 2 : 2
(c) 3 : 2 : 3
(d) 6 : 4 : 5
Answer
Answer: (d) 6 : 4 : 5
Question 10.
State the ‘true’ statement:
(a) Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner
(b) The new partner is liable for the past losses of the firm
(c) In case the new partner is unable to bring in cash for goodwill, Goodwill Account may be raised in the firm’s books as per AS-26
(d) When a partner is admitted, there is dissolution of firm
Answer
Answer: (a) Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner
Question 11.
Balance sheet prepared after new partnership agreement, assets and liabilities are recorded at:
(a) Original Value
(b) Revalued Figure
(c) At Realisable Value
(d) Either of (a) or (b)
Answer
Answer: (b) Revalued Figure
Question 12.
Assets and Liabilities are shown at their revalued values in :
(a) New Balance Sheet
(b) Revaluation A/c
(c) All Partner’s Capital A/c’s
(d) Realisation A/c
Answer
Answer: (a) New Balance Sheet
Question 13.
X and Y share profits in the ratio of 3 : 2 Z was admitted as a partner who gets 1/5 share. Z acquires 3/20 from X and 1/20 from Y. The new profit sharing ratio will be :
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 :4
Answer
Answer: (a) 9 : 7 : 4
Question 14.
Excess of the credit side over the debit side of Revaluation account is:
(a) Profit
(b) Loss
(c) Gain
(d) Expense
Answer
Answer: (a) Profit
Question 15.
Which of the following assets is compulsorily revalued at the time of admission of a new partner :
(a) stock
(b) Fixed Assets
(c) Investment
(d) Goodwill
Answer
Answer: (d) Goodwill
Question 16.
A and B are partners. C is admitted with 1/5 share. C brings 7 1,20,000 as his share towards capital. The total net worth of the firm is :
(a) ₹ 1,00,000
(b) ₹ 4,00,000
(c) ₹ 1,20,000
(d) ₹ 6,00,000
Answer
Answer: (d) ₹ 6,00,000
Question 17.
The opening balance of Partner’s Capital Account is credited with:
(a) Interest on Capital
(b) Interest on Drawings
(c) Drawings
(d) Share in loss
Answer
Answer: (a) Interest on Capital
Question 18.
If the incoming partner brings the amount of goodwill in cash and also a balance exists in Goodwill A/c, then the Goodwill A/c is written off among the old partners:
(a) In new profit-sharing ratio
(b) In old profit-sharing ratio
(c) In sacrificing ratio
(d) In gaining ratio
Answer
Answer: (b) In old profit-sharing ratio
Question 19.
A and B share profits and losses in the ratio of 3 : 1.C is admitted into partnership for 1/4 share. The sacrificing ratio of A and B is :
(a) Equal
(b) 3 : 1
(c) 2 : 1
(d) 3 : 2
Answer
Answer: (b) 3 : 1
Question 20.
A and B share profits and losses in the ratio of 3:4. C was admitted for 1/5 th share. New profit sharing ratio will be:
(a) 3 : 4 : 1
(b) 12 : 16 : 7
(c) 16 : 12 : 7
(d) None of these
Answer
Answer: (b) 12 : 16 : 7
Question 21.
A and B are partners sharing profites in the ratio of 3 : 1. They admit C for 1/4 share in future profits. The new profit sharing ratio will be:
(a) A\(\frac {9}{16}\), B\(\frac {3}{16}\), C\(\frac {4}{16}\)
(b) A\(\frac {8}{16}\), B\(\frac {4}{16}\), C\(\frac {4}{16}\)
(c) A\(\frac {10}{10}\), B\(\frac {2}{16}\), C\(\frac {4}{16}\)
(d) A\(\frac {8}{16}\), B\(\frac {9}{16}\), C\(\frac {10}{16}\)
Answer
Answer: (a) A\(\frac {9}{16}\), B\(\frac {3}{16}\), C\(\frac {4}{16}\)
Question 22.
Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be :
(a) ₹ 12,000
(b) ₹ 10,000
(c) ₹ 15,000
(d) None of these
Answer
Answer: (a) ₹ 12,000
Question 23.
Formula of Sacrificing ratio is:
(a) New Ratio – Old Ratio
(b) Old Ratio – New Ratio
(c) Gain Ratio – Sacrificing Ratio
(d) New Ratio – Sacrificing Ratio .
Answer
Answer: (b) Old Ratio – New Ratio
Question 24.
The accumulated profits and reserves are transferred to:
(a) Realisation A/c
(b) Partner’s Capital A/cs
(c) Bank A/c
(d) Savings A/c
Answer
Answer: (b) Partner’s Capital A/cs
Question 25.
Share of goodwill brought in cash by the new partner is called:
(a) Assets
(b) Profit
(c) Premium
(d) None of these
Answer
Answer: (c) Premium
Question 26.
A, B and C are equal partners. D is admitted to the firm for non-ourth share. D brings ₹ 20,000 as capital and ₹ 5,000 being half of the premium for goodwill. The value of goodwill of the firm is :
(a) ₹ 10,000
(b) ₹ 40,000
(c) ₹ 30,000
(d) None of these
Answer
Answer: (b) ₹ 40,000
Question 27.
The amount of goodwill is paid by new partner :
(a) for the payment of capital
(b) for sharing the profit
(c) for purchase of assets
(d) None of these
Answer
Answer: (b) for sharing the profit
Question 28.
Z is admitted in a firm for a 1/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in :
(a) Old profit-sharing ratio
(b) New profit-sharing ratio
(c) Sacrificing ratio
(d) Capital ratio
Answer
Answer: (c) Sacrificing ratio
Question 29.
On the admission of a new partner, the decrease in the value of assets is debited to:
(a) Revaluation Account
(b) Assets Account
(c) Old Partners’ Capital Accounts
(d) None of these
Answer
Answer: (a) Revaluation Account
Question 30.
Profit or Loss on Revaluation is borne by:
(a) Old Partners
(b) New Partners
(c) All Partners
(d) Only Two Partners
Answer
Answer: (a) Old Partners
Question 31.
At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:
(a) All Partner’s Capital Accounts
(b) New Partner’s Capital Account
(c) Old Partners’. Capital Accounts
(d) None of these
Answer
Answer: (c) Old Partners’. Capital Accounts
Question 32.
When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to:
(a) Goodwill Account
(b) Cash Account
(c) Capital Account of new partner
(d) None of these
Answer
Answer: (b) Cash Account
Question 33.
On the admission of a new partner, increase in the value of assets is debited to which account ?
(a) Revaluation Account
(b) Assets Account
(c) Old Partners’ Capital Accounts
(d) None of these
Answer
Answer: (b) Assets Account
Question 34.
The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partners’ Capital Accounts in their :
(a) Old profit-sharing ratio
(b) New profit-sharing ratio
(c) Equal ratio
(d) Capital ratio
Answer
Answer: (a) Old profit-sharing ratio
Question 35.
When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited :
(a) Partner’s Capital
(b) Goodwill
(c) Cash
(d) Reserve
Answer
Answer: (b) Goodwill
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