CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Admission Of A Partner Quiz 3 - MCQExams.com

To which account is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner?
  • Partners current capital A/c
  • Partners fixed capital A/c
  • Revaluation A/c
  • Profit and loss adjustment A/c
Decreased in liability at the time of retirement of a partner is _________.
  • debited to revaluation A/c.
  • credited to revaluation A/c.
  • debited to profit and loss A/c.
  • debited to goodwill A/c.
Decrease in assets at the time if retirement of a partner is ________.
  • credited to revaluation A/c.
  • debited to revaluation A/c.
  • debited to profit and loss A/c.
  • debited to goodwill A/c.
How are unrecorded assets treated at the time of retirements of  partners?
  • Debit to Revaluation A/c
  • Credited to Revaluation A/c
  • Credit to partners Capital A/c
  • Credited to capital A/c of retiring partners only
Increase in liability at the time of retirement of a partner is _________.
  • credited to revaluation A/c
  • debited to revaluation A/c
  • debited to profit and loss A/c
  • debited to goodwill A/c
A company purchased a new Plant and Machinery worth $$RS. 1$$ crore from $$XYZ$$ Associates and issued him $$1100000$$ equity shares of $$Rs. 10$$ each. The excess of consideration over and above the purchase price will be treated as ___________.
  • goodwill
  • discount
  • premium
  • capital reserve
On death of a partner, the representative of the deceased partner are entitled to share profit from _________.
  • beginning of the financial year upto the date of death.
  • from date of death to the date of finalization of A/c.
  • for the full year.
  • for six month.
___________ account is opened for revaluation of assets and liabilities at the time of admission of a partner into a firm.
  • Profit and loss A/c
  • Revaluation A/c
  • Realization A/c
  • Profit and loss appropriation A/c
The amount which a new partner pays for the sacrifice made by other partners is called _______.
  • capital reserve
  • goodwill
  • reserve capital
  • reserve
Upon a admission of Champak Lal in a partnership firm as a new partner for 1/4th share of profit, the goodwill of the firm is valued at Rs.40,Goodwill to be brought in cash by Champak will be ______.
  • Rs.40,000
  • Rs.10,000
  • Rs.30,000
  • Rs.20,000
As per AS 26 only _____will be recorded in books of account .
  • hidden goodwill
  • full goodwill
  • purchased goodwill
  • all of the above
Which of these is not found in case of retirement /death of a partner?
  • Revaluation A/c
  • Realization of assets
  • Distribution of goodwill
  • Gaining ratio
Goodwill brought in by a new partner is a _______.
  • tangible asset
  • fictitious asset
  • dummy asset
  • intangible but real asset
X,Y and Z are three partners in a firm.They are sharing profit and loss in the ratio of 3:2:On 11th Jan Y died. The firm decided to value goodwill based on 3 years purchase of weighted average of 5 years profit. The trading profit of the firm for the pass five years before changing interest on capital was as under rs.10,000, Rs.9000,Rs.11000,Rs.7000, Rs.The capital of the firm stood Rs.50,000 and Interest on capital is given at 8%.What is the total goodwill of the firm?
  • Rs.15,000
  • Rs.10,000
  • Rs.21,000
  • Rs.32,000
Which of these terms is not true in respect of goodwill?
  • Real Assets
  • Intangible Assets
  • Fixed Assets
  • Fictitious Assets
When goodwill is to be after the admission of a partner in which ratio it is transferred to capital account of the partners?
  • Sacrificing ratio
  • Equally
  • New profit sharing ratio
  • Old profit sharing ratio
When goodwill is revalued at the time of admission of a partner, how goodwill is distributed amongst the old partners? 
  • Equally.
  • Capital ratio.
  • Sacrifice ratio.
  • New profit sharing ratio.
X,Y and Z are three partners in a firm. They are sharing profit and loss in the ratio of 2:2:Y retires from the firm on 31st March. The firm decided not to raise goodwill A/c in the books of a/c. What entry will be  made for the treatment of goodwill at the time of retirement of Y?
  • Debit X and Z ,Credit Y (for share of Y in the gaining ratio)
  • Goodwill A/c Dr, Credit Y's Capital A/c
  • Goodwill A/c Dr,Credit X,Y and Z Capital A/c
  • Goodwill A/c Dr. Credit X and Z A/c
___________ is the real test of determination of partnership.
  • Mutual agent
  • Sharing of profit and loss
  • Registration
  • Liability
  • Partnership deed
A and B are two partners sharing profit and loss equally. Their capital A/c stood at Rs.30,000 and Rs.25,000 respectively on 31st March,On 1st April C is admitted for 1/3rd share of profit for which he brings Rs.12,000 as his share of goodwill. On the date of his admission, stock was appreciated by Rs.11,000 and provisions for bad debts also increased by Rs.2,Old partners decided that C's capital should be in accordance with his share of profit sharing ratio. What adjustment will be required to make their capital in proportion to their profit sharing ratio?
  • A to bring Rs.2500, B to be refunded Rs.2500
  • A to be refunded Rs.2500, B to bring Rs.2500
  • A to bring Rs.5500, B to be refunded Rs.5500
  • A to be refunded Rs.5500, B to bring Rs.5500
When a new partner is admitted into the firm the old partners stand to ___________.
  • Sacrifice in sacrificing ratio
  • loss in profit sharing ratio
  • not affected at all
  • only one partner gain other lose
Which of the following is the odd one?
  • General reserve A/c
  • Profit and Loss A/c
  • Dividend equalization reserve A/c
  • Goodwill A/c
As per super profit method goodwill = ____________.
  • Actual profit multiplied by No. of years of purchase
  • Normal profit multiplied by No. of years of purchase
  • Maintainable profit multiplied by No. of years of purchase.
  • Super profit multiplied by No. of years of purchase.
A and B are two partners in a firm having share capital of Rs. 13,000 and Rs.17,000 respectively. C is admitted for 1/3rd share of profit for which he is to bring Rs.20,000 for his share of capital. What is the goodwill of the firm?
  • $$Rs.9,000$$
  • $$Rs.10,000$$
  • $$Rs.8,000$$
  • $$Rs.11,000$$
X & Associates is a partnership firm, it intends to revalue its goodwill, average profit for the past five years is Rs. 15,000 per annum and goodwill is being valued 5 years purchase of super profit. What would be the value of the goodwill of the firm if normal profit of the firm is Rs.12,000?
  • Rs.15,000
  • Rs.30,000
  • Rs.20,000
  • Rs.25,000
Consequent upon admission of a new partner in a firm the value of the goodwill is valued at Rs.60,But there exists a goodwill account in the balance sheet which stood at Rs.48,000 what would be treatment of goodwill at the time of admission of a new partner. If memorandum revaluation method is followed, after admission of a new partner?
  • Rs.12,000 would be debited to all the partner's capital account in their new profit sharing ratio
  • Rs.60,000 would be debited to old partner's capital account in their old profit sharing ratio
  • Rs.48,000 would be debited to all the partner's capital account in their new profit sharing ratio
  • Rs.48,000 would be credited to all the partner's capital account in their new profit sharing ratio
A, B and C are sharing profit and loss in the ratio of 3:2:1, D is admitted into the firm with 1/7th share of profit which he purchases from A.How the goodwill brought in by D would be distributed amongst the old partners on the facts given in question?
  • 3:2:1
  • Equally
  • In capital ratio
  • Only A would get goodwill
Partnership is defined as a relationship between persons who have agreed to share the profit of a business carried on by ________ or any one of them acting for _________.
  • All,all
  • Seniormost ,all
  • Managing partners,all
  • All,Managing partner
Select the odd one :
  • An agreement
  • Equal capital contribution
  • Existence of business
  • Association of two or more persons
__________ is not essential requirement of a partnership. 
  • An association of two or more persons
  • Existence of a contract
  • Sharing of profit
  • Mandatory registration
The liability of a partner of a firm is ____________.
  • limited.
  • limited to the share capital contributed.
  • unlimited
  • restricted to the amount stated in partnership deed.
Registration of firm is complete as soon as ___________________.
  • Application for registration is filed with the Registrar of the firm
  • Entry of firm is made in the Register of firms by the Registrar of firms
  • Registration order is dispatched by Register of firms by the Registrar of firm
  • Registration order is received by the firm
The partnership defines business in an ___________.
  • Exhaustive manner
  • Inclusive manner
  • Exclusive manner
  • Illustrative manner
Application of Registration of firm is to be signed by _______________.
  • All the partners
  • Authorised Agents of the partners
  • Both a and b
  • Either a or b
When a partnership firm is continued even after the expiry of the fixed term it is called ________.
  • Partnership at will
  • Contract partnership
  • Perpetual partnership
  • Fixed partnership
A third party with whom a partner has agreed to share the profit accruing to him from a partnership is known as _________.
  • Partner in profits
  • Dormant partner
  • Nominal partner
  • Sub- partner
The status of a partnership firm for the purpose of taxation is ________.
  • not distinct from partners.
  • legal entity distinct from partners.
  • not clear.
  • same as that of a partner.
Any statement, intimation or notice recorded or noted in the register of firms, is conclusive proof of any facts mentioned therein against ___________________.
  • all the partners of the firm
  • any person by whom or on whose behalf such statement, intimation or notice was signed
  • all persons dealing with the firm
  • firm
Reconstitution of a partnership firm necessitates ______.
  • Re-determination of right and duties of each partner
  • Seeking certificate of registration afresh
  • Injection of fresh capital into the firm
  • None of these
Intimation of discontinuance of business at any place or begin to carry on business at any place can be given to Registrar of firms by _____________.
  • any partner
  • agent of firm
  • either a or b
  • both a and b
Registrar of firms is appointed by ___________________.
  • Central Government
  • Local Government
  • State Government
  • High Court
____________ is a valid partnership.
  • Partnership between two Joint Hindu Families
  • Partnership between two firms
  • Partnership between partners of two firms
  • One major and one minor person
An application for registration of firm does not contain which of the following particulars ____________________.
  • Name and place of the firm
  • Names and addresses of each partner
  • Circumstances when a partnership will be dissolved
  • Duration of partnership
Reconstitution of a partnership firm may arise due to which of these events?
  • Admission, retirement, death of a partner
  • Expulsion, insolvency of any partner
  • Transfer of interest by a partner
  • All or any of the above events
Which of these events does not cause reconstitution of the firm?
  • Admission of a partner
  • Death
  • Retirement of partner
  • Illness of a partner
A partnership at Will is created when ________.
  • The duration of the partnership is not fixed
  • There is no provision as to when and how the partnership will come to an end
  • Both (a) and (b)
  • Either (a) or (b)
____________ cannot make a valid partnership.
  • Husband and wife
  • Father in law and Son in law
  • Father and his minor son
  • Grand father and major grand son
The test of expulsion in good faith are __________.
  • Expulsion in the interest of the firm
  • Notice of expulsion given to the partner
  • Expelled partner given opportunity to be heard
  • All the three
A company can be a partner in firm if __________.
  • Authorized by its Memorandum of Association
  • Authorized by articles of association
  • Authorized by Central Government
  • None of the cases
A partnership firm is compulsorily dissolved under which of these circumstances.
  • On the death of a partner
  • On insolvency of any partner
  • On running into losses
  • If the business of the firm becomes unlawful due to the happening of some event
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Accountancy Quiz Questions and Answers