CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Admission Of A Partner Quiz 5 - MCQExams.com

A partner can retire from the firm with the ___________________.
  • Majority decision
  • Consent of all partners
  • Approval of ROC
  • Approval of Managing partner
Which of these statements is true in relation to a minor partner?
  • A partnership firm can e started with a minor person as partner
  • He can be admitted into the firm for profit only
  • Can be a partner for sharing business profits and losses
  • Can be admitted for salary and Commission only
A partner of a partnership firm cannot claim which of these rights
  • Interest on capital
  • Salary
  • Commission on sale
  • All the three
AB are two partners. C is admitted for 1/3 rd share of profit. At the time of his admission the partners decided to revalue the assets and liabilities as under; Stock up by Rs.5000,sundry creditors reduced by Rs.3000,provision for doubtful debts increased by Rs.2000,building of Rs.4000 was also accounted for.. What is the profit or loss on revaluation of assets and liabilities 
  • Rs.6000
  • Rs.3000
  • Rs.5000
  • Rs.4000
A person can be admitted as partner only ________
  • with majority decision
  • with the consent of all the existing partners
  • with the consent of Sr.partner
  • with the approval of court
Select the odd one out.
  • No requirement for minimum number of members.
  • No limit on number of members.
  • Governed by Hindu law.
  • Minor cannot be admitted.
The onus of proving the fact that a minor had no knowledge of his being a partner of a firm until a particular date after the expiry of six months of his attaining majority falls upon ________________.
  • Minor himself
  • Senior partner
  • All the partners
  • The person asserting that fact
Which of these rights are not available to a transferee under the Partnership Act
  • to inspect books of account
  • to interfere in firms day to day business
  • to transfer immovable property of the firm
  • all the three
A purchase goods from B on three months credit. Before making payment B is declared insolvent and nothing is recovered from his estate. The contract stand __________.
  • discharged by operation of law.
  • discharged by lapse of time.
  • discharged b mutual consent.
  • rendered illegal.
On admission of C as a new partner in a firm, the goodwill brought in by C Rs. 10,000 was credited to A and B's Capital A/c Rs. 6000 and Rs. 4000 respectively. What is the sacrificing ratio of A and B.
  • 1:1
  • 3:2
  • 2:3
  • 1:3
A firm has a policy of valuing goodwill at 2 years purchase of average profit of last three years.From the following details estimate the goodwill of the firm
Profit for the year 2006 Rs.20,000 which includes an insurance claim of Rs.40,000 received
Loss for the year 2007 Rs.80,000 includes VRS payment of Rs.110,000
Profit for the year 2008 Rs. 105,000 which includes profit on sale of fixed assets Rs.25,000
  • Rs.60,000
  • Rs.90,000
  • Rs.75,000
  • Rs.80,000
Which of these ratio is used to assess liquidity position of a firm 
  • Debt equity ratio
  • Capital employed to net profit
  • Capital gearing ratio
  • Current ratio
Calculate the value of goodwill of the firm under annuity method.
Super profit Rs. 10,000
No. of years over which super profit is to be paid =5 years.
Rate of annuity 5% per annum.
  • Rs. 40,000
  • Rs. 45,000
  • Rs. 43,300
  • Rs. 41,000
An admission or report made by a partner concerning the affairs of the firm is evidence against the firm only when __________.
  • it is made in the ordinary course of business
  • its is made with the knowledge of all the partners
  • it is made with the connivance of remaining partners
  • it is made with the approval of all the partners
ABC are three partners sharing profit and loss equally.The firm decides to give only 1/5th share of profit to C in future due to his illness. on the date of change in the profit sharing ratio the goodwill of the firm was valued Rs.What entry would be made to give effect to this change in the profit sharing ratio
  • A's Capital A/c Dr. Rs.2500, B's Capital A/c Dr. Rs.3500, C's Capital A/c Cr. Rs.6000
  • A's Capital A/c Dr. Rs.4000, B's Capital A/c Dr. Rs.2000, C's Capital A/c Cr. Rs.6000
  • A's Capital A/c Dr. Rs.3000, B's Capital A/c Dr. Rs.3000, C's Capital A/c Cr. Rs.6000
  • A's Capital A/c Dr. Rs.2000, B's Capital A/c Dr. Rs.4000, C's Capital A/c Cr. Rs.6000
Any asset taken over by a partner at the time of dissolution of the firm is debited to ____________________.
  • Realization A/c
  • Revaluation A/c
  • Concerned Partner's Capital A/c
  • All Partners' Capital A/c
Huge expenditure incurred at the time of launching of a new product in market is a / an.......
  • Revenue expenditure
  • Capital expenditure
  • Loss
  • Deferred Revenue expenditure
If the average profit is 15000 and normal profit is Rs.10,000 and goodwill is to be valued at 5 years purchase of super profit, what would be the goodwill of the firm
  • Rs.75,000
  • Rs.25,000
  • Rs.30,000
  • Rs.50,000
Select the odd one..........
  • Remission
  • Agency
  • Completed gift
  • Admission
Profit or loss on revaluation A/c is transferred to ( in case of Admission of a partner)
  • All the partner current capital A/c
  • All the partner fixed capital A/c
  • Old partners current capital A/c
  • Old partners fixed capital
A third party is affected by restrictions or limitations on implied authority of a partner.........
  • In all the situations
  • Only in exceptional cases
  • Only when he has notice of it
  • None of these
When goodwill account is written off after admission of a new partner, Capital A/c of
  • Old partner is debited in old ratio
  • All partners is debited in new ratio
  • Old partners is debited in sacrificing ratio
  • Old partners is credited in new ratio
Match the following:
AB
1Goodwill1Non-depreciable
2Land2Non-cash expense

3Called up3Intangible
4Depreciation4Capital
  • (1, 4), (2,3), (3, 2), (4, 1)
  • (1, 2), (2,3), (3, 4), (4, 1)
  • (1, 4), (2, 2), (3,1), (4, 3)
  • (1,3), (2,1), (3,4), (4,2)
ABC Associates is a partnership firm, it intents to revalue its goodwill, average profit for the past five year are Rs.15,000 p.a, goodwill is being valued  3 years purchase of average profit. The goodwill  of the firm would be valued at 
  • Rs.15,000
  • Rs.45,000
  • Rs.20,000
  • Rs.7,500
Which of these rights are not available to a transferee under the Partnership Act.
  • To inspect books of account
  • To interfere with the conduct of the business
  • To ask far copy of accounts
  • All the three
Notice for dissolution of a Partnership firm, when the partnership firm is at will can be..........
  • Withdrawn with the consent of others
  • Not be withdrawn
  • Withdrawn with the approval of Registrar of firms
  • Withdrawn with the approval of senior partner only
Which of these ratio is used to assess liquidity position of a firm
  • Debt equity ratio
  • Capital employed to net profit
  • Capital gearing ratio
  • Current ratio
$$X$$ is a partner of $$XYZ$$ Associates a partnership at will. $$X$$ gave a notice for dissolution of the firm. $$X$$ now intends to withdraw the notice of dissolution. Which of these course of action is suggested to $$X$$ ? 
  • seek order for revocation of notice from the Registrar of firms
  • Get approval of the remaining partners
  • get approval of at least one more partner
  • submit an undertaking to not to give such notice in near future
The rate of interest prescribed under section 13, for when a partner advances money more than the amount of capital for the business of the partnership, is _____________.
  • six percent
  • nine percent
  • twelve percent
  • fifteen percent
When a property is purchased from partnership funds in the name and for the benefit of a partner, the said property ______.
  • Remains firms property
  • becorne personal property of the partner
  • become joint property of partners
  • remain vested with the firm
When there is the admission of a partner, it is known as _________.
  • Reconstitution of the partnership
  • Dissolution of the partnership firm
  • Both A and B
  • None
A partner can get remuneration from the firm only _______________________.
  • there is adequate profit
  • there is adequate cash profit
  • there is specific provision to this effeet in the partnership agreement
  • the partner is whole time partner
$$X$$ a partner allowed his private property to be used for firms business. The property of $$X$$ 
  • Automatically becomes firms property
  • become firms property if the partner show an intention of doing so
  • cannot become property of firm unless permitted by Registrar of firm
  • can be treated as fiirms poperty if firm is dissolved for the purpose of payment of outside liability
X,Y and Z are three partners in firm, having capital Rs.100,000 , Rs.75,000 and Rs.50,000 respectively. During the years 2009-10 the firm made a profit of Rs.90,How the profit will be distributed amongst the three partners
  • Rs.40,000,Rs.30,000 and Rs.20,000 to X,Y,and Z respectively
  • Rs.30,000 to each partner
  • Rs.20,000,Rs 30,000 and Rs.40,000 to X,Y& Z respectively
  • According to seniority
A partner has a right to indemnity for the acts done in _________________.
  • the ordinary & proper conduct of the business
  • an emergency
  • Both (a) and (b)
  • only (b) and not (a)
There will be minimum ____ partners in a partnership firm.
  • 2
  • 10
  • 50
  • 100
Goodwill of the partnership business is the property of the _______.
  • Firm
  • Senior partner
  • Managing partner
  • none of these
Match the following.
AB
$$1$$.Patents and copyright$$1$$.Admission of partner
$$2$$.Raising goodwill$$2$$.Conservation
$$3$$.Forfeiture$$3$$.Fictitious Assets
$$4$$.Provision for discount on debtors$$4$$.Shares
  • $$(1, 4), (2, 3), (3, 2), (4, 1)$$
  • $$(1, 2), (2, 3), (3, 4), (4, 1)$$
  • $$(1, 4), (2, 2), (3, 4), (4, 3)$$
  • $$(1, 3), (2, 1), (3, 4), (4, 2)$$
The property of the firm includes all property________.
  • acquired by or for the firm
  • for the purpose or in the course of business of the firm
  • property purchased with money belonging to the firm
  • all the above
In settling the accounts of the firm after dissolution, the goodwill of the firm can be sold ____________.
  • separately
  • along with other assets
  • Either (a) or (b)
  • cannot be sold
$$XYZ$$ Associates a registered firm closes its business at Delhi, the notice thereof to the Registrar of firms can be given by _______.
  • any partner
  • agent of the firm
  • either (a) or (b)
  • Legal Advisor of the firm
The concept of partnership commensurate with _______.
  • principal and agent
  • co-owners property
  • joint owners of property
  • all the above
A firm has goods worth Rs. $$120,000$$ available for sale. If the firm intends to earn a profit of $$20\%$$ of total sales. What should be the total selling price of the goods available for sale
  • Rs$$140,000$$
  • Rs$$150,000$$
  • Rs$$144,000$$
  • Rs$$139,000$$
Goodwill, Trade Marks, Patents and Copyright constitutes __________.
  • property of the firm
  • property of the managing partner
  • property of the partner having the highest share in the profits
  • property of the partner having the lowest share in the profits
Which of the following is an example of real asset
  • Building A/c
  • Goodwill A/c
  • Patent A/c
  • Copyright A/c
An action for indemnity against a partner can be brought by ______.
  • the firm only
  • an individual partner
  • either (a) or (b)
  • neither (a) nor (b)
X and Y enters into a Joint venture for sale of antique items, X send goods worth Rs 60000 to Y 3/4 of which were sold by Y for Rs 90000 and remaining were taken over by him at the same gross profit margin at which the goods were sold to the outside customers less 20% discount on such value. What is the profit on this particular Joint Venture
  • Rs 50000
  • Rs 60000
  • Rs 54000
  • Rs 45000
Unrecorded liabilities at the time of admission of a partner is....
  • Debited to Revaluation A/c
  • Credited to Revaluation A/c
  • Credited to partners Capital A/c
  • Credited to the capital A/c of retiring partner only
A,B and C are three partner sharing profit and loss in the ratio of 2:3:1, B retires from the firm. hat is the new profit sharing ratio of the remaining partners. What is the gaining ratio of the remaining partners.
  • 2:1
  • 1:2
  • 2:3
  • 4:3
If there is no agreement between the partners a partner is entitles to have __
  • Salary
  • Interest on capital
  • Commission on sales
  • Interest on loan or advance given to the firm
0:0:1


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