CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Admission Of A Partner Quiz 10 - MCQExams.com

Ramesh and Suresh are partners sharing profits and losses in the ratio of 2:1 respectively. Ramesh capital is Rs 1,02,000 and Suresh capital is Rs 73,They admit Mahesh and agree to give him 1/5th share in future profits. Mahesh bring Rs 14,000 as share of goodwill. He agrees to contribute capital in the new profit sharing ratio. How much capital should be brought by Mahesh?
  • Rs 43,750
  • Rs 45,000
  • Rs 47,250
  • Rs 48,000
A, B and C are partners in the firm sharing profits and losses in 3: 1:They admit D as a partner and the new profit and loss ratio of A, B, C and D become 4 : 3: 2:D brings in the necessary amount for goodwill. Goodwill of the firm is valued at Rs. 3,00,In this case ______. 
  • A will be credited with Rs. 60,000
  • A will be credited with Rs. 30,000
  • B will be debited with Rs. 60,000
  • D will be debited with Rs. 60,000
A and B are in partnership sharing profits and losses in the ratio of 3:The capitals of A and B remaining after adjustments are Rs. 48,000 and Rs. 36,000 respectively. They admit 'C' as a partner who contributes Rs.21,000 as capital for a 1/5th share of profits to be acquired equally from both A and B. The capital accounts of old partners are to be adjusted by the proportion of C's capital to his share in the business. Calculate the amount of actual cash to be paid off or brought in by A will be ________. 
  • Rs.5,000
  • Rs.6,000
  • Rs.4,500
  • None of these
A and B are partners with the capital Rs. 1,00,000 and Rs. 80,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 40,000 is revalued as Rs. 70,What will be value of goodwill in the books after the admission of C?
  • Rs. 1,10,000.
  • Rs. 70,000.
  • Rs. 40,000.
  • Rs. 30,000.
Unless provided otherwise, it is presumed that __________. 
  • sacrificing ratio is the same as the old profit sharing ratio
  • new profit sharing ratio of old partners is the same as old profit sharing ratio
  • new profit sharing ratio of old partners is equal
  • (a) & (b)
X and Y are partners in a partnership firm sharing profits in the ratio of 5:3 respectively. Z was admitted on the following terms: Z would pay Rs.1,00,000 as capital and Rs. 32,000 as Goodwill, for a 1/5th share of profit. Machinery would be appreciated by 10% (book value Rs. 1,60,000), and the building is depreciated by 20% (Rs.4,00,000). Unrecorded debtors are of Rs. 2,500 would be bought into books note, and creditors are amounting to Rs. 5,500 died and need not pay anything tolls estate. Find the distribution of profit/loss on revaluation between X, Y and Z? 
  • Loss-35000:21000:0
  • Loss-28000:16800 :11200
  • Profits-.35000:21000:0
  • Profit-28000:16800:11200
X and Y shared profit and losses in the ratio of 3:With effect from 1st April they agreed to share profits equally. The goodwill of the firm was valued at Rs 30,The necessary single adjusting entry will involve.
  • Debit Y and Credit X by Rs 3,000
  • Debit X and Credit Y with Rs 3,000
  • Debit X and Credit Y with Rs 300
  • Debit Y and Credit X with Rs 300
A and B are in partnership with Rs.30,000 and Rs. 20,000 as their respective Capitals. They admitted C as a partner for 1/6th share in profits. The amount of C's share In the Capital of the firm if he is asked to bring in Capital in proportion to his profit sharing ratio will be ________. 
  • Rs.10,000
  • Rs.8,333
  • Rs.16,667
  • None of these
A and B shares profit and losses equally. They admitted C as equal partner and assets were revalued as follows: Goodwill at Rs.60,000 (book value NIL). Stock at Rs. 40,000 (book valuer Rs. 24,000); Machinery at Rs. 1,20,000 (book value Rs. 1,10,000). C is to bring in Rs. 40,000 as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not remain in the books. Find the profit/Loss on revaluation to be shared among A, B and C? 
  • 43,000: 43,000 : 0
  • 13,000: 13,000: 0
  • 28,667 : 28,667 : 28,667
  • 8,667 : 8,667 : 8,667
A, B and C were equal partners of a firm with goodwill Rs. 1,20,000 shown in the balance sheet and they agreed to take D as an equal partner on the term that he should bring Rs. 3,20,000 as his capital and goodwill, his share of goodwill was evaluated at Rs. 1,20,000 and the goodwill account is to be written off before admission. What will be the treatment for goodwill?
  • Write off the goodwill of Rs. 1,20,000 in old ratio.
  • Cash bought in by D for goodwill will be distributed amount old partners in sacrificing ratio.
  • Both (a) & (b)
  • None of these
P and Q are partners sharing Profits in the ratio of 2:R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 40,000 as his capital for 1/4th share and pays Rs. 18,000 for goodwill, half of which is to be withdrawn by P and Q. How much cash can P & Q withdraw from the firm (if any)? 
  • Rs. 6,000: Rs. 3,000. 
  • Rs. 12,000 : Rs. 6,000. 
  • NIL. 
  • None of the above. 
X and Y partners sharing profits in the ratio of 3:They admit Z as a partner who pays Rs.8,000 as Goodwill the new profit sharing ratio being 2: 1: 1 among X, Y and Z respectively. The amount of goodwill is credited to ____.  
  • X and Y as Rs. 6,000 and Rs. 2,000 respectively
  • X only
  • Y only
  • None of the above
Accumulated profits/losses & reserves on the retirement of a partner are shared by the partners in their __________. 
  • Capital ratio
  • New profit sharing ratio
  • Old profit sharing ratio
  • Gaining ratio
Partners Capital A/c is debited _________. 
  • to record the profit on revaluation
  • to record the General Reserve
  • to record the P & L A/c (Dr.)
  • to record the shortage of capital brought in
A, B and C are partners yeah profits sharing ratio of 4 : 3: 2.B retires and Goodwill of Rs. 10,800 was valued. If A & C share future profits in the ratio of 5 : 3, then the amount of goodwill to be shared between A and C will be _______. 
  • Rs. 1,850 and Rs. 1,959
  • Rs. 1,650 and Rs. 1,750
  • Rs. 2,000 and Rs. 1,600
  • Rs. 1,950 and Rs. 1,650
Retiring Partners share of goodwill is debited to remaining partners in their _________. 
  • capital ratio
  • new profit sharing ratio
  • old profit sharing ratio
  • gaining ratio
Under super profit method goodwill is calculated by ___________. 
  • no. of years purchased multiplied with average profits
  • no. of years purchased multiplied with super profits
  • summation of the discounted multiplied with super profits
  • super profit divided with expected rate of return
A and B share profits in the ratio of 3:C is admitted. A and B will in future get a 2/6th and 3/6th share of profit. The share of C will be ______. 
  • 8/30
  • 3/30
  • 5/30
  • None of these
Accumulated profits/losses & reserves are shared by the old partners in their ________.
  • Capital ratio
  • New profit sharing ratio
  • Sacrificing ratio
  • Old profit sharing ratio
Profit/Loss on revaluation of assets & liabilities is shared by the old partners in their _______.
  • Capital ratio.
  • New profit sharing ratio.
  • Sacrificing ratio.
  • Old profit sharing ratio.
Revaluation Account is debited _______. 
  •  due to an increase in Provision for doubtful debts
  • due to an increase In value of Land & Building
  • due to an decrease in amount of creditors
  •  to transfer loss on revaluation
In case, revaluation account is not prepared, the assets & liabilities appears in the books of a reconstituted firm at their _______. 
  • Old book values
  • Market value
  • Revalued figures
  • Realizable value
Opening Capital $$=$$Rs. $$5,00,000$$
Profits during the year $$=$$Rs. $$1,00,000$$
Calculate the Average Capital of the year.
  • Rs. $$55,000$$
  • Rs. $$5,50,000$$
  • Rs. $$9,167$$
  • Rs. $$50,000$$
Under capitalisation of super profit method, goodwill is calculated by ___________. 
  • no. of years purchased multiplied with average profits
  • no. of years purchased multiplied with super profits
  • summation of the discounted multiplied with super profits
  • super profit divided with expected rate of return
Total Capital Employed in the firm Rs. 16,00,000.
Reasonable Rate of Return 15%.
Profits for the year Rs. 24,00,000.
The value of goodwill using capitalization method is _________. 
  • Rs.1,64,00,000
  • Rs. 24,00,000
  • Rs. 1,44,00,000
  • Rs. 84,00,000
The profits and losses for the last 4 years are Losses Rs. 20,000; Losses Rs. 5,000; Profits Rs. 1,96,000 & Profits Rs. 1,52,000.The average capital employed in the business is Rs. 4,00,The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs. 2,000 per month. The value of goodwill from two years' purchase of super profits based on the average of four years is __________. 
  • Rs. 18,000
  • Rs. 17,500
  • Rs. 17,000
  • Rs. 16.500
A firm has an average profit of Rs 60,Rate of return on capital employed is 12.5% p.a. Total capital employed is Rs 4,00,Goodwill is to be calculated on the basis of two years purchase of super profit. Find the amount of goodwill?
  • Rs 20,000
  • Rs 15,000
  • Rs 10,000
  • None
The profits for Year I are Rs 4,000; for Year ll is Rs.52,200, and for Year lll is Rs. 62,Closing stock for Year ll and Year lll includes the defective items of Rs. 4,400 and Rs. 12,400 respectively which were considered as having market value NIL. The value of goodwill on average profit method is ________. 
  • Rs. 47,400
  • Rs. 35,400
  • Rs. 27,400
  • Rs. 34,600
Under annuity, basis goodwill is calculated by __________. 
  • no. of years purchased multiplied with average profits
  • no. of years purchased multiplied with super profits
  • summation of the discounted multiplied with super profits
  • super profit divided with expected rate of return
The following particulars are available in respect of the business carried on by a partnership firm:
Trading Results:
Year I             Loss         Rs. 10,000
Year Il            Loss         Rs. 12,000
Year Ill           Profit        Rs. 1,50,000
Year IV          Profit        Rs. 1,20,000
The value of goodwill on the basis of 5 years purchase of the average profit of the business is _________. 
  • Rs.2,50,000
  • Rs. 3,10,000
  • Rs, 20,000
  • Rs.3,40,000
X and Y are partners in a firm with the capital of Rs. 18,000 and Rs. 20,Z was admitted with 1/3rd share of profit and brings Rs. 24,000 as capital, calculate the amount of goodwill.
  • Rs 24,000
  • Rs 20,000
  • Rs 15,000
  • Rs 10,000
The profits and losses for the last years are:  l year Losses Rs.20,000; ll year Losses Rs. 5,000; lll year profits Rs.1,96,000 & IV year profits Rs. 1,52,The average capital employed in the business is Rs. 4,00,The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs, 2,000 per month. The value of goodwill by four years purchase of super profits based on the annuity of the four years. ( Take discounting rate as 10%) is ________.
  • Rs. 27,000
  • Rs. 27,136
  • Rs. 27,336
  • Rs. 27,729
Goodwill is to be calculated at one and a half years purchase of average profit for the last 5 years. The firm earned the profit during the first 3 years as, Rs. 20,000 , Rs. 18,000 and 2,000 and 5,000 in last 2 years, goodwill amount will be:
  • Rs. 12,000
  • Rs. 10,000
  • Rs. 15,000
  • None of the above
What do you mean by purchasing years?
  • No. of years in which goodwill is purchased.
  • No. of years the goodwill is expected to remain.
  • Both of these
  • None of these
A firm has an unrecorded investment of Rs 5,Entry in the firms journal on an admission of a partner will ________.
  • Revaluation A/c dr. 5,000 to unrecorded investment A/C 5,000
  • Unrecorded investment A/c dr. 5,000 To Revaluation A/c 5,000
  • Partner's capital A/c dr. 5,000 to unrecorded investment 5,000
  • None of these
The profit of last four years are:
2000Rs.40,000
2001Rs.50,000
2002Rs.60,000
2003Rs.50,000
The value of goodwill on the basis of three purchases years of average profit based on last four years:
  • Rs.1,00,000
  • Rs.1,50,000
  • Rs.2,00,000
  • None
What is the extra amount over and above the values of the identifiable assets in a going concern is known as?
  • Goodwill
  • Revaluation profit
  • Super profit
  • Surplus
A and B are partners of a firm sharing profits in the ratio of 3:C was admitted for the 1/5th share of profit in the firm. For this, the machinery would be appreciated by 10% (book value Rs 80,000) and the building would be depreciated by 20% (book value Rs 2,00,000). Unrecorded debtors of Rs. 1,250 would be brought in the books and a creditor of Rs. 27,500 died and the firm does not need to pay anything to him. What will be the profit/loss on revaluation?
  • Loss Rs. 3,250
  • Loss Rs. 2,350
  • Profit Rs. 3,250
  • Profits Rs. 2,350
A firm earned the net profit during the last 3 years:
2004Rs. 17,000
2005Rs. 20,000
2006Rs. 23,000
 The capital employed Rs. 80,000 return on capital employed 15% calculated the value of goodwill on the basis of two years purchase of average super profit earned:
  • Rs 16,000
  • Rs 20,000
  • Rs 30,000
  • Rs 40,000
What do you mean by super profit?
  • Total profit/number of years
  • Weighted profit /number of years
  • Average profit -normal profit
  • None
Goodwill is to be calculated at 1.5 years of purchase of average profit for last 6 years. Profit earned during the first is Rs. 30,000, Rs. 20,000 and Rs. 29,000 and losses suffered of Rs. 5000, Rs. 3000 and 2000 in the last three years. Goodwill be:
  • Rs 10,000
  • Rs 15,000
  • Rs 20,000
  • Rs 25,000
A firm earned the net profit during the last 3 years as follow:
2001Rs. 15,000
2002Rs. 20,000
2003Rs. 25,000
The capital investment in the firm is rs 1,00,Having regard to the risk involved 15% is the fair return on basis of 2 years purchase of average Super profit earned during 3 years is:
  • Rs 8,000
  • Rs 10,000
  • Rs 12,000
  • Rs 15,000
In the event of amalgamation of partnership firms, the goodwill of each partner is credited to the partners of the respective firms in ________________.
  • Old profit sharing ratio
  • New profit sharing ratio
  • Capital ratio
  • Gaining ratio
When the goodwill is raised at its full value and written off at retirement of a partner, the remaining partners share goodwill in _________.
  • old profit sharing ratio
  • new profit sharing ratio
  • gaining ratio
  • sacrificing ratio
How unrecorded assets are treated at the time of retirement of a partner?
  • Credited to revaluation account.
  • Credited to the capital account of retiring partner only.
  • Debited to revaluation account.
  • Credited to partner's capital account.
If vendors are issued fully paid shares of Rs 1,00,000 in consideration of net assets of Rs 80,000, the balance of Rs 20,000, will be debited to
  • Profit and Loss A/c
  • Goodwill A/c
  • Capital Reserve A/c
  • Capital A/c
The articles of association can be altered by ___________ .
  • A resolution of the board of directors
  • An ordinary resolution in general meeting
  • A special resolution in general meeting
  • Obtaining permission from the Company Law Board
In endowment life policy, the amount is payable _____________________.
  • On the death of the policy-holder
  • At the end of the period specified
  • On death of the holder or expiry of period, whichever is earlier
  • On death of the holder or expiry of period, whichever is later
A new partner is admitted in the firm for getting additional capital and skill.
  • True
  • False
A, B and C are partners sharing profits equally. A retires and goodwill appearing in the books at Rs.3,000 is valued a Rs.6,A will get the credit of Rs. ________.
  • 2,000
  • 3,000
  • 500
  • 1000
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Practice Class 12 Commerce Accountancy Quiz Questions and Answers