MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 10 - MCQExams.com
CBSE
Class 12 Commerce Accountancy
Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner
Quiz 10
Find the goodwill of the firm using capitalization method from the following information:
Total Capital Employed $$Rs.8,00,000$$;
Reasonable Rate of Return $$15\%$$;
Profits for the year $$Rs.12,00,000$$.
Report Question
0%
$$Rs.82,00,000$$
0%
$$Rs.12,00,000$$
0%
$$Rs.72,00,000$$
0%
$$Rs.42,00,000$$
Explanation
Calculation of goodwill under capitalization basis-
Capital employed = Rs. 800000
Normal value of business = Average profit/capitalization rate
Normal value of business = Rs. 120000/ 15%
Normal value of business = Rs. 8000000
Goodwill = Normal value of business - capital employed
Goodwill = Rs. 8000000 - Rs. 800000
Goodwill = Rs. 7200000
When required amount of premium for goodwill is not brought in by new partner, goodwill account is created in the books of the firm by debiting goodwill account and crediting partners capital account in ______.
Report Question
0%
New profit sharing ratio.
0%
Old profit sharing ratio.
0%
Sacrificing ratio.
0%
Capital ratio.
Find the goodwill of the firm using capitalization method from the following information:
Capital employed $$Rs.4,80,000$$;
Rate of normal return - $$15\%$$;
Profits for the year $$Rs.90,000$$.
Report Question
0%
$$Rs.4,20,000$$
0%
$$Rs.3,11,000$$
0%
$$Rs.1,20,000$$
0%
$$Rs.2,20,000$$
Explanation
Calculation of goodwill under capitalization basis-
Capital employed = Rs. 480000
Normal value of business = Average profit/capitalization rate
Normal value of business = Rs. 90000/ 15%
Normal value of business = Rs. 600000
Goodwill = Normal value of business - capital employed
Goodwill = Rs. 600000 - Rs. 480000
Goodwill = Rs. 120000
Find the goodwill from the following information:
Capital employed - Rs. 11,00,000
Rate of normal return - Rs. $$10\%$$
Future Maintainable profit - Rs. 2,00,000
No. of year purchases - 3 years
Report Question
0%
Rs. 6,00,000
0%
Rs. 2,70,000
0%
Rs. 9,00,000
0%
Rs. 3,70,000
A,B & C Care sharing profits in $$4:3:2$$ ratio. B retires. In A & C shares profits of B in $$5:3$$, then find the new profit sharing ratio.
Report Question
0%
$$47:25$$
0%
$$17:11$$
0%
$$31:11$$
0%
$$14:21$$
Explanation
Old ratio (A, B and C) = 4 : 3 : 2
B's share = 3/9
Share of B taken by A = (3/9) * (5/8) = 5/24
Share of B taken by C = (3/9) * (3/8) = 3/24
New profit sharing ratio = Old ratio + Share taken from B
A's new share = (4/9) + (5/24) = 47 : 72
C's new share = (2/9) - (3/24) = 25 : 72
Therefore, new profit sharing ratio of A and C = 47 : 25
A & B are partners sharing profit & losses in the ratio of 3:They take C as a partner for 1/4th share. Calculate future profit sharing ratio.
Report Question
0%
3:2:4
0%
9:6:4
0%
9:6:5
0%
6:4:4
Explanation
New PSR = 1 - 1/4 = 3/4
A = 3/4 * 3/5 = 9/20
B= 3/4 * 2/5 = 6/20
C= 1/4 *5/5 = 5/20
In which of the following case the need for the valuation of goodwill in a firm may arise?
(I) Admission of new partner
(II) While changing profit sharing ratio
(III) Retirement of partner
(IV) death of partner
Select the correct answer from the options given below
Report Question
0%
(I) & (III) only
0%
(I) , (III) & (IV)
0%
(I) , (II) & (III) only
0%
All (I) to (IV)
N, S & Z are partners. They withdraw a fixed sum of Rs. $$2,000$$ per month as follows:
N draws at the beginning of each month, S withdraws at the middle of each month and Z withdraws at the end of each month. Rate of interest on drawings is $$8\%$$ p.a. Interest on drawings for the $$3$$ partners respectively will be.
Report Question
0%
$$87, 80$$ & $$73$$
0%
$$1,040,$$ $$960$$ & $$880$$
0%
$$880, 960$$ & $$1,040$$
0%
$$867, 800$$ & $$733$$
Explanation
Calculation of interest on drawings:
$$A=2,000\times 12\times 8\%\times \dfrac{6.5}{12}=1,040$$
$$B=2,000\times 12\times 8\%\times \dfrac{6}{12}=960$$
$$C=2,000\times 12\times 8\%\times \dfrac{5.5}{12}=880$$.
A & B were partners sharing profits & losses in the ratio of 3:C was admitted to the firm on the following terms:
C would provide Rs 1,00,000 as a capital and pay Rs 20,000 as goodwill for his 1/3rd share in future profits. Goodwill account would not appear in the books. A, B & C would share profits equally. Which of the following journal is correct in relation to premium for goodwill Rs 20,000 brought in by new partner?
Report Question
0%
0%
0%
0%
A, B & C are equal partners. D is admitted to the firm for one-fourth share. D brings Rs 40,000 capital and Rs 10,000 being half of the premium for goodwill. The value of goodwill of the firm is ________.
Report Question
0%
Rs. 20,000
0%
Rs. 80,000
0%
Rs. 40,000
0%
None of the above
Explanation
D bought Rs 10000 as half of the premium for goodwill.
Full amount of his share of goodwill 10000*2 =Rs 20000
Value of goodwill of the firm = 20000 * 4/1
= Rs 80000
A, B & C are partners sharing profits and losses in the ratio 6:3:3, they agreed to take D into partnership for 1/8th share of profits. Find the new profit sharing ratio.
Report Question
0%
12 : 27 : 36 : 42
0%
14 : 7 : 7: 4
0%
1 : 2 : 3 : 4
0%
7 : 5 : 3 : 1
Explanation
A, B & C partners in a firm sharing profits and losses in the ratio of 4:3:B decided to retire from the firm B gives his share to A only. What is the gain ratio?
Report Question
0%
1/3:0
0%
1/9:0
0%
11:7
0%
2:1
Explanation
Old share ( A, B and C ) = 4: 3 : 2
B's share = 3/9
Share of B taken by A only = 3/9
New profit sharing ratio of A = Old share + Share taken from B
= (4/9) + (3/9)
= (7/9)
Gaining ratio = New share - Old share
= (7/9) - ( 4/9)
= ( 3/9)
Therefore, gaining ratio of A is 1/3:0
In the given question, C is not getting any share of B at his retirement, therefore only A will gain here.
A & B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C requires 1/5 from A and 1/10 from B, new sharing ratio will be:
Report Question
0%
5:6:3
0%
2:4:6
0%
18:24:38
0%
17:11:12
N & Z are partners sharing profits and losses in the ratio 5:They admitted S and agreed to give him 3/10th of the profit. What is the new ratio after S's admission?
Report Question
0%
34:20:12
0%
42:22:29
0%
35:21:24
0%
35:42:17
Explanation
S's share = 3/10. Total share = 1.
Remaining share = 1 - 3/10 = 7/10.
N's share = 5/8 X 7/10 = 35/80.
Z's share = 3/8 X 7/10 = 21/80.
S' share = 3/10 X 8/8 = 24/80.
N:Z:S = 35:21:24.
Hence, the correct option is C.
A, B & C share profits and losses in the ratio of $$1:1:1$$. B retired from business and his share is purchased by A & C in $$40:60$$ ratio. New profit sharing ratio between A & C would be ________.
Report Question
0%
$$1:1$$
0%
$$2:3$$
0%
$$7:8$$
0%
$$3:5$$
Explanation
Old ratio (A, B and C) = 1 : 1 : 1
B's share = 1/3
B's share taken by A = (1/3) * (4/10) = 4/30 or 2/15
B's share taken by C = (1/3) * (6/10) = 6/30 or 3/15
New ratio = Old ratio + Share taken from B
A's new share = (1/3) + (2/15) = 7/15
C's new share = (1/3) + (3/15) = 8/15
Therefore, new profit sharing ratio between A and C is 7 : 8
A and B are partners sharing profits in the ratio of $$7 : 3$$. A surrenders $$1/7$$th of his share and B surrenders $$1/3$$rd of his share in favour of C, a new partner. The new profit sharing ratio and sacrificing ratio will be _________.
Report Question
0%
NR $$1 : 3 : 1$$, SR $$1 : 1$$
0%
NR $$2 : 2 : 1$$, SR $$1 : 1$$
0%
NR $$3 : 1 : 1$$, SR $$7 : 3$$
0%
NR $$3 : 1 : 1$$, SR $$1 : 1$$
Explanation
Old ratio (A and B) = 7 : 3
Sacrifice ratio of A = (7/10) * (1/7) = 1/10
Sacrifice ratio of B = (3/10) * (1/3) = 1/10
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (7/10) - (1/10) = 6/10
B's new ratio = (3/10) - (1/10) =2/10
C's share = A's sacrifice + B's sacrifice
= (1/10) + (1/10) = (2/10)
New profit sharing ratio = 6 : 2 : 2 or 3 : 1 : 1
Sacrificing ratio of A and B = 1 : 1
A and B are partners sharing profits in the ratio of $$4: 1$$. C is admitted for $$1/4$$th share in profits which he acquires wholly from A. The new profit sharing ratio will be _________.
Report Question
0%
$$4 : 11 : 5$$
0%
$$10 : 5 : 5$$
0%
$$8 : 7 : 5$$
0%
$$11 : 4 : 5$$
Explanation
Old share (A and B) = 4 : 1
C is admitted for 1/4 Share
A sacrifices in favour of C = 1/4
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (4/5) - (1/4) = 11/20
B's new share = (1/5) - 0 = 1/5 or 4/20
C's share = 1/4 or 5/20
Therefore, new profit sharing ratio of A, B and C = 11 : 4 : 5
A and B are partners sharing profits and losses in the ratio of $$3: 2$$. They admit C into the partnership for one-fourth share of the profits while A and B as between themselves are sharing profits & losses equally. The new profit sharing ratio will be _______.
Report Question
0%
NR $$3 : 3 : 2$$, SR $$1 : 9$$
0%
NR $$4 : 2 : 2$$, SR $$9 : 1$$
0%
NR $$3 : 3 : 2$$, SR $$9 : 1$$
0%
None of these
Explanation
Old ratio (A and B) = 3 : 2
C is admitted for 1/4 share
Let the combined share of A, B and C = 1
Combined share of A and B after C's admission = 1 - C's share
= 1 - (1/4) = 3/4
New share :
A = (3/4) * (1/2) = 3/8
B = (3/4) * (1/2) = 3/8
C = 1/4
Therefore, A : B : C = 3/8 : 3/8 : 1/4
= 3 : 3 : 2
Sacrificing ratio = Old ratio - New ratio
A's sacrifice = (3/5) - (3/8) = 9/24
B's sacrifice = (2/5) - (3/8) = 1/24
Therefore, sacrificing ratio of A and b is 9 : 1
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.
Report Question
0%
Debit Y and Credit X by Rs 3,000
0%
Debit X and Credit Y with Rs 3,000
0%
Debit X and Credit Y with Rs 300
0%
Debit Y and Credit X with Rs 300
Explanation
Earlier Goodwill was shared among X and Y in ratio 3:2
i.e. 30000*3/5=18000
30000*2/5=12000
With effect from 1st April, goodwill is to be shared equally
30000*1/2= Rs.15000 each.
X = 18000-3000=15000
Y= 12000+3000=15000
Hence, Y's A/c will be credited by 3000 and X's A/c will be debited.
Accumulated profits/losses & reserves are shared by the old partners in their ________.
Report Question
0%
Capital ratio
0%
New profit sharing ratio
0%
Sacrificing ratio
0%
Old profit sharing ratio
Explanation
Profits
and
losses
of
previous
years which are not distributed to the
partners
are called
accumulated profits
and
losses
. Any
reserve
and
accumulated profits
and
losses
belong to the
old partners
and hence these should be distributed to the
old partners
in the
old profit sharing
ratio.
A and B are two partners sharing profits in the ratio of $$3: 2$$. They admit C into partnership as a partner. A gives 1/3rd of his share while B gives $$1/10$$th from his share. The new profit sharing ratio will be __________.
Report Question
0%
$$3 : 4 : 3$$
0%
$$6 : 1 : 3$$
0%
$$2 : 4 : 3$$
0%
$$10 : 9 : 6$$
Explanation
Old ratio (A and B) = 3 : 2
Sacrificing ratio = Old ratio * surrender ratio
A's sacrifice = (3/5) * (1/3) = 1/5
B's sacrifice = (2/5) * (1/10) = 1/25
New ratio = Old ratio - sacrificing ratio
A's new ratio = (3/5) - (1/5) = 2/5
B's new ratio = (2/5) - (1/25) = 9/25
C's share = A's sacrifice + B's sacrifice
= (1/5) + (1/25)
= 6/25
New profit sharing ratio = A : B : C
= 2/5 : 9/25 : 6/25
= 10 : 9 : 6
A and B are partners sharing profits in the ratio of $$3: 2$$. They admit C who takes $$2/7$$th from A and $$1/7$$th from B. The new profit sharing ratio will be _______.
Report Question
0%
$$15 : 9 : 11$$
0%
$$15 : 11 : 9$$
0%
$$11 : 9 : 15$$
0%
$$9 : 11 : 15$$
Explanation
Old ratio (A and B) = 3 : 2
C is admitted for 3/7 th share
A's sacrifice in favour of C = 2/7
B's sacrifice in favour of C = 1/7
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (3/5) - (2/7) = 11/35
B's new share = (2/5) - (1/7) = 9/35
C's share = A's sacrifice + B's sacrifice
= (2/7) + (1/7)
= 3/7 or 15/35
Therefore, new profit sharing ratio of A, B and C is 11 : 9 : 15
A, B and C are partners in the ratio of $$3: 2: 1$$. W is admitted with a $$1/6$$th share in profits. C would retain his original share. The new profit sharing ratio will be ______.
Report Question
0%
$$8 : 12 : 5 : 5$$
0%
$$10 : 6 : 4 : 4$$
0%
$$12 : 8 : 5 : 5$$
0%
None of these
Explanation
Old ratio (A, B and C) = 3 : 2 : 1
W is admitted for 1/6th share
A's contribution in favour of W = 3/30 (note 1)
B's
contribution in favour of W = 2/30
(note 1)
New ratio = Old ratio - Sacrificing ratio
A's new share = (3/6) - (3/30) = 12/30
B's new share = (2/6) - (2/30) = 8/30
C's share = 1/6 or 5/30 (it remains unchanged)
W's share = 1/6 or 5/30
Therefore, new profit sharing ratio of A, B C and W is 12 : 8 : 5 : 5
Notes:
1. In silent question, A and B will contribute in favour of in old ratio.
A and B are partners sharing profits in the ratio of $$3: 2$$. C is admitted into the firm for $$1/5$$th share in the profit which he acquires equally from A and B. The new profit sharing ratio will be ________.
Report Question
0%
$$3 : 5 : 2$$
0%
4
:
4
:
2
4:4:2
0%
$$5 : 3 : 2$$
0%
6
:
2
:
2
Explanation
Old ratio (A and B) = 3 : 2
C is admitted for 1/5 th share
A's sacrifice in favour of C = (1/5) * (1/2) = (1/10)
B's sacrifice in favour of C = (1/5) * (1/2) = (1/10)
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (3/5) - (1/10) = 5/10 or 1/5
B's new share = (2/5) - (1/10) = 3/10
C's share = A's sacrifice + B's sacrifice
= (1/10) + (1/10)
= 2/10
Therefore, new profit sharing ratio of A, B and C is 5 : 3 : 2
Accumulated profits/losses & reserves on the retirement of a partner are shared by the partners in their __________.
Report Question
0%
Capital ratio
0%
New profit sharing ratio
0%
Old profit sharing ratio
0%
Gaining ratio
Explanation
The
retiring partner
is entitled to
his share
of
profits
or
losses
in old ratio that have arisen till the date of
his retirement
.
Accumulated
profits
or
losses
are transferred to the capital account of all
partners
including
retiring
or deceased
partners in their
old
profit sharing
ratio.
A and B are partners sharing profits in the ratio of $$1 : 2$$. They admit C for $$1/5$$th share and decide to share future profits equally. The new profit sharing ratio will be _______.
Report Question
0%
$$2 : 2 : 1$$
0%
$$3 : 1 : 1$$
0%
$$1 : 3 : 1$$
0%
None of these
Explanation
Old ratio (A and B) = 1 : 2
C is admitted for 1/5 share of profit
Let the combined share of all partners after C's admission = 1
Combined share of A and B in the new firm = 1 - C's share
= 1 - (1/5)
= (4/5) * (1/2)
= 4/10 each
New ratio of A, B and C = 4/10, 4/10 and 1/5
= 4 : 4 : 2 or 2 : 2 : 1
A, B and C share profits as $$1/2$$ to A,$$1/3$$ to B, $$1/6$$ to C. B retires, and his share is taken up by A and C in the ratio of $$1 : 3$$. The new profit sharing ratio will be ________.
Report Question
0%
$$\displaystyle \frac{1}{2} : \frac{1}{6}$$
0%
$$5 : 7$$
0%
$$7 : 5$$
0%
none of these
Explanation
Old ratio (A, B and C) = 1/2 : 1/3 : 1/6 or 3 : 2 : 1
Share of B = 2/6
Share of B taken by A = (2/6) * (1/4) = 2/24
Share of B taken by C = (2/6) * (3/4) = 6/24
New ratio = Old ratio + Share taken from B
A's new ratio = (3/6) + (2/24) = 14/24
C's new ratio = (1/6) + (6/24) = 10/24
Therefore, new ratio of A and C = 14 : 10 or 7 : 5
A, B and C are partners sharing profits in the ratio of $$1/2, 1/3$$ and $$1/6$$. B retires. A and C decide to share future profits in the ratio of $$3: 2$$. The gaining ratio will be ______.
Report Question
0%
$$3 : 2$$
0%
$$2 : 3$$
0%
$$7 : 3$$
0%
$$3 : 7$$
Explanation
Old ratio (A, B and C) = 1/2 : 1/3 : 1/6 or 3 : 2 : 1
New ratio (A and C) = 3 : 2
Gaining ratio = New ratio - Old ratio
A's gain = (3/5) - (3/6) = 3/30 or 1/10
C's gain - (2/5) = (1/6) = 7/30
Therefore, gaining ratio of A and C = 3 : 7
A, B and C are partners sharing profits in the ratio of $$1/2, 2/5$$ and $$1/10$$. B retires and his share is taken up by A and C in the ratio of $$1 : 5$$. The new profit sharing ratio of A and C will be __________.
Report Question
0%
$$\displaystyle \frac{1}{2} : \frac{1}{10}$$
0%
$$13 : 17$$
0%
$$17 : 13$$
0%
none of these
Explanation
Old ratio (A, B and C) = 1/2 : 2/5 : 1/10 or 5 : 4 : 1
Share of B = 4/10
Share of B taken by A = (4/10) * (1/6) = 4/60 or 1/15
Share of B taken by C = (4/10) * (5/6) = 20/60
New ratio = Old ratio + Share taken from B
A's new ratio = (5/10) + (4/60) = 34/60
C's new ratio = (1/10) + (20/60) = 26/60
Therefore, new ratio of A and C = 34 : 26 or 17 : 13
A, B and C share profits in the ratio of $$4/9, 1/3$$ and $$2/9$$. B retires. The new ratio, if A purchases B's share, will be __________.
Report Question
0%
$$4 : 2$$
0%
$$2 : 7$$
0%
$$7 : 2$$
0%
none of these
Explanation
Old ratio (A, B and C) = 4/9 : 1/3 : 2/9 or 4 : 3 : 2
B's share = 3/9 purchased by A
New share = Old share + Share taken from B
A's new share = (4/9) + (3/9) = 7/9
C's new share = (2/9) + 0 2/9
Therefore, new profit sharing ratio of A and C = 7 : 2
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 12 Commerce Accountancy Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page