CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Admission Of A Partner Quiz 2 - MCQExams.com

If normal profit is $$Rs.50000$$, average profit is $$Rs.75000$$ than calculate Goodwill for $$2$$ years of purchase under super profit method_______.
  • $$Rs.45000$$
  • $$Rs.50000$$
  • $$Rs.55000$$
  • $$Rs.48500$$
Under which of the following method Goodwill account is raised in the books of accounts.
  • Premium Method
  • Revaluation Method
  • Realisation Method
  • None of above
Which of the following method is followed when incoming partner brings his share of Goodwill in cash___________.
  • Premium Method
  • Revaluation Method
  • Realisaton Method
  • None of Above
Debit Balance in Revaluation Account is __________.
  • Loss on revaluation
  • Profit on Revaluation
  • Balance on Revaluation
  • None of the above
Which of the following are the modes of Reconstitution for a firm?
  • Admission of a partner
  • Retirement of a Partner
  • Death of a Partner
  • All of the above
Suppose partner A dies after 3 month from the date of B/s admission ,his share in profits was 1/4.
it was decided to calculate his share of profits till death on last years profit Rs. 10000.
calculate profit share of deceased partner share of profit till the date of death.
  • Rs. 600
  • Rs. 550
  • Rs. 650
  • Rs. 625
If Partnership deed is absent than the amount due to Retiring partner is settled as under ______________ .
  • Immediate payment
  • Transferred to loan account
  • Both
  • Only A
When a new partner is admitted or old partner retires or dies the, firm undergoes _______.
  • Reconstitution
  • Amalgamation
  • Internal reconstruction
  • None.
A & B are partners and their PSR is 3 : 2 , they admitted C for 1/5 share than new ratio will be ?
  • 12:8:5
  • 5:8:12
  • 5:3:2
  • 3:2:3
Incoming partner agree that, _______ account be raised in the books of the firm by giving the necessary credit to the old partners for their sacrifice.
  • Goodwill
  • Cash
  • Capital
  • None of above
Ram and Shyam are Partners in 1:1, Rohit got admitted and New Ratio agreed for 5:3:Then calculate Sacrifice Ratio.
  • 1:1
  • 2:1
  • Only Shyam made sacrifice for 1/5 th Share
  • None
When the business is sold to a company, the purchase consideration received is transferred to _________.
  • Assets account
  • Capital accounts of the partner's
  • Bank account
  • Realisation account
On the admission of a new partner, the decrease in the value of assets is debited to:
  • Asset Account
  • Profit & Loss Adjustment Account
  • Old Partner's Capital Account
  • None of the above
Sacrificing ratio is used at the time of _____________ .
  • Admission of a partner
  • Retirement of a partner
  • Death of a partner
  • Dissolution of firm
A and B are partners in the ratio of 2 :They admit C for 1/4 share who contributes Rs. 30,000 for his share of goodwill. The total value of the goodwill of the firm is _________.
  • $$Rs. 30,000$$
  • $$Rs. 90,000$$
  • $$Rs. 1,20,000$$
  • $$Rs. 1,50,000$$
A, B and C are partners sharing profits in the ratio of 4 : 3 :Their capitals on 30th June, 2014 are A - Rs. 10,000, B - Rs. 6,000 and C - Rs. 2.The current account balances are, A- Rs. 8,000 (Cr.), B - Rs. 3,000 (Cr.) and C - Rs. 9,000 (Dr.). Loss arising from the insolvency of C will be shared by A and B in:
  • equal ratio
  • the ratio of 4:3
  • the ratio of 5 : 3
  • the ratio of 2 :1
The reconstitution of a partnership firm may take place in the following way:
  • By introduction of a partner
  • By retirement of a partner
  • By insolvency of a partner
  • All the above
A and B are partners sharing profit and losses equally with capitals of Rs.7000 each. They admit C as a partner with 1/4th share in the profits of the firm. C brings Rs.8000 as his share of capital. The necessary journal entry to record goodwill be ___________________.
  • As capital a/c  Dr.     5,000
    Bs capital a/c  Dr.     5,000
                     To Goodwill a/c      10,000
  • Goodwill a/c    Dr.      10,000
                      To As capital a/c       5,000
                      To Bs capital a/c        5,000
  • C's capital a/c        Dr.      10,000
               To As capital a/c                 5,000
               To Bs capital a/c                  5,000
  • C's capital a/c         Dr.      2,500
                    To A's capital a/c                  1,250
                    To B's capital a/c                  1,250   
A, B and C are partners sharing profits in the ratio of 3 : 2 : 3, their capitals on 30th June, 2014 are A Rs. 10,000, B Rs. 5,000 and C Rs. 6,000 (Dr.). C becomes insolvent and loss due to his insolvency will be shared by A and B in _____________
  • equal ratio.
  • the ratio of 3 : 2.
  • the ratio of 2 : 1.
  • the ratio of 1 : 2.
X and Y are partners in a firm sharing profits and losses in the ratio of 3 :They admit Z as a partner with 1/4th share of profit. Z acquires his share from X and Y in the ratio of 2 :Z's share of goodwill is calculated at Rs.Z is not in position to bring any amount for goodwill. What additional entry will be required if after Z's admission, it is decided that the goodwill account should not appear in the Balance Sheet of new firm ?
  • X's capital a/c Dr. 10,400

    Y's capital a/c Dr. 7,600

    Z's capital a/c Dr. 6,000

    To Goodwill a/c   24,000
  • Goodwill a/c Dr. 24,000

    To X's capital a/c 10,400

    To Y's capital a/c   7,600

    To Z's capital a/c   6,000
  • X's capital a/c Dr. 10,400

    Y's capital a/c Dr. 7,600

    To Z's capital a/c 18,000
  • None of the above
A and B are sharing profits and losses in the ratio of 4 :C is admitted as a new partner for 1/3rd share of profits for which he pays Rs. 30,000 as goodwill. If A and B agree to share future profits equally, then the amount of goodwill to be credited to A would be :
  • Rs. 30,000
  • Rs. 90,000
  • Rs. 48,000
  • Rs. 42,000
Which of the following may be utilized by a limited company for the redemption of redeemable preference shares?
  • General Reserve
  • Dividend Equalisation Fund
  • Profit and Loss account balance
  • Workmen Compensation Fund
  • All of these
Goodwill is regarded as an___________ asset.
  • intangible
  • tangible
  • fixed
  • capital
According to the provisions of _____________ unless it is otherwise provided in the partnership deed a new partner can be admitted only when the existing partners unanimously agree for it.
  • Negotiable Instruments Act, 1881
  • Indian Contract Act, 1872
  • Sale of Goods Act, 1930
  • Partnership Act, 1932
The capitalised value attached to the differential profit capacity of a business is called _________.
  • asset
  • goodwill
  • trademark
  • copyright
Following are the factors affecting goodwill except: 
  • Nature of business
  • Efficiency of management
  • Technical know how
  • Location of the customers
A partner may retire with the consent of:
  • Two partners
  • Ten partners
  • Majority of the partners
  • None of the above
Partnership may also stand reconstituted on _________ of a partner, if the remaining partners decide to continue the business of the firm as usual.
  • retirement
  • death
  • admission
  • both a and c
Ram, Mohan and Sohan are partners in a firm sharing profits in the ratio 3:2:With effect from April 1, 2007 they decided to share profits equally as Sohan brings in additional capital.
This is an example of ______________.
  • Retirement of an existing partner
  • Death of a partner
  • Change in the profit sharing ratio among the existing partner
  • Admission of a new partner
The value of the reputation of a firm in respect of the profits expected in future over and above the normal profits is ________.
  • goodwill
  • patent
  • copyrights
  • trademark
____________ means withdrawal by a partner from the business of the firm which may be due to his bad health, old age or change in business interests.
  • Death of a partner
  • Retirement of an existing partner
  • Admission of a new partner
  • Change in the profit sharing ratio among the existing partner
The _______ of actual profits over the normal profits is termed as super profits.
  • shortage
  • excess
  • minimum
  • maximum
Accumulated profits are transferred to capital account in ______ratio. 
  • old profit sharing ratio
  • new profit sharing ratio
  • sacrifice ratio
  • gain ratio
Accumulated profits are distributed among the partners by transferring it to their _________account.
  • Capital
  • Drawing
  • Loan
  • Salary
Who is entitled to have share in accumulated profits?
  • New partner
  • Employee
  • Old partner
  • Creditor
Under average profits method, goodwill is valued at agreed number of ________ purchase of the average profits of the past few years.
  • months
  • years
  • days
  • both a and c
Accumulated Profits are transferred to ________________.
  • General reserve
  • Profit & Loss A/c
  • Capital balance
  • Drawing A/c
what are accumulated profits ?
  • Profits not transferred to profit & loss
  • Profits not transferred to Reserve
  • Profits not transferred to capital accounts
  • Profits not transferred to cash accounts
Normal Profit = ________________
  • Normal Rate of Return/100
  • Capital Employed/100
  • Capital Employed X Normal Rate of Return/100
  • Super Profit/100
A new partner can be admitted only with the __________.
  • Majority decision
  • Unanimous decision of all the partners
  • Approval of registrar of firms
  • Consent of managing partner
Money value of the reputation of business is known as ______.
  • Copyright
  • Goodwill
  • Patents
  • Trademark
When a new partner is admitted into a firm, which of these is not required ______________.
  • Public notice of admission of a new partner
  • Distribution of existing reserve and funds
  • Revaluation of assets and liabilities
  • Revaluation of goodwill of the firm
Interest on capital allowed to a partner is debited __________.
  • Profit and Loss A/c
  • Revaluation A/c
  • Profit and Loss Appropriation A/c
  • General reserve A/c
Monetary value of business reputation is called _______.
  • Liability
  • Goodwill
  • Premises
  • Bank balance
Which of these statements is true?
  • Goodwill at the time of retirement of a partner is credited to remaining partner's capital A/c in sacrificing ratio.
  • Goodwill at the time retirement of a partner is credited to remaining partner's capital A/c in gaining ratio.
  • Goodwill at the time of retirement of a partner is debited to remaining partner's capital A/c in sacrificing ratio.
  • Goodwill at the time of retirement of a partner to the extent of retiring partner's share is debited to remaining partner's capital A/c in gaining ratio.
Interest allowed on the capital of partner is charged to ________.
  • profit and loss A.c
  • profit and loss appropriation A/c
  • profit and loss adjustment
  • revaluation A/c
P and Q are two partners sharing profit and loss equally. P draws Rs. 2,000 at the end of each month for 6 months whereas Q draws Rs. 4,000 at the beginning of each month for six months. Assuming that interest on drawing is to be charged @ 5% p.a interest on drawing of Q will be _____.
  • Rs. 350
  • Rs. 380
  • Rs. 410
  • Rs. 301
A new partner, along with other partners get ____________.
  • right to share future profit of the firm
  • right to share future assets of the firm
  • both (a) and (b)
  • either (a) or (b)
On admission of A, a new partner, the value of closing stock was brought down by Rs.6,The revaluation a/c will be ______.
  • Debited by Rs. 6000
  • Debited by Rs. 6500
  • Debited by Rs. 650
  • Debited by Rs. 655
Profit or loss on revaluation of assets and liabilities is transferred to __________.
  • capital a/c of a new partner
  • capital a/c of all partner
  • capital a/c of old partner
  • capital a/c of senior partner
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