When $$A$$ and $$B$$, sharing profits and losses in the ratio of $$3:2$$, admit $$C$$ as a partner giving him $$1/5^{th}$$ share of profits. This will given by $$A$$ and $$B$$ __________ .

In the ratio of their capitals.

$$A$$ and $$B$$ sharing profits and losses in the ratio of $$2/3^{rd}$$ and $$1/3^{rd}, admit $$ C as a partner giving him $$1/4^{th}$$ share. The new profit-sharing ratio will be :

$$A -\,1/2$$, $$B- \,1/4$$, $$C- \,1/4$$

$$A- \,1/3$$, $$B- \,1/3$$, $$C- \,1/4$$

$$A- \,3/8$$, $$B- \,3/8$$, $$C- \,2/8$$

MCQ Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 12

X, Y, Z are equal partners in a firm. Z retires from the firm. The new profit sharing ratio between X and Y is

1 : 2

$1:2$ . Find the gaining ratio.

0%
$3:2$
0%
$2:1$
0%
$4:1$
0%
Only Y gains by $1/3$

The balance of joint life policy account as shown in the balance sheet represent ___________.

0%
the surrender value of a policy
0%
annual premium of JLP
0%
total premium paid by the firm
0%
amount receivable on the maturity of the policy

Hari, Roy and Prasad are partners in the ratio of 3:5:1 respectively. Roy wants to retire. His share is being purchased by Prasad. What would be the new ratio of Hari and Prasad respectively?

0%
1:2
0%
2:1
0%
3:5
0%
Equal

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

0%
Profit and Loss A/c
0%
Goodwill A/c
0%
Capital Reserve A/c
0%
Capital A/c

Tick the correct answer.
______ is an intangible asset.

0%
Goodwill
0%
Stock
0%
Building
0%
Cash

X

$X$ and

Y

$Y$ shared profits and losses in the ratio of

3 : 2

$3:2$ with effect from

1^{s t}

$1^{st}$ April,2018 they agreed to share profits equally. The goodwill of the firm was valued at

R s . 60, 000

$Rs. 60,000$ . The necessary single adjustment entry will be :

0%
Dr. $Y$ and Cr. $X$ with $Rs. 6,000$ .
0%
Dr. $X$ and Cr. $Y$ with $Rs. 6,000$ .
0%
Dr. $X$ and Cr. with $Rs. 600$ .
0%
Dr. $Y$ and Cr. $X$ with $Rs. 600$ .

When a new partner brings cash for goodwill, the amount is credited to the __________ .

0%
Premium for Goodwill Account
0%
Capital Account of the new partner
0%
Cash Account
0%
None of the above

When

A

$A$ and

B

$B$ , sharing profits and losses in the ratio of

3 : 2

$3:2$ , admit

C

$C$ as a partner giving him

1 / 5^{t h}

$1/5^{th}$ share of profits. This will given by

A

$A$ and

B

$B$ __________ .

0%
Equally
0%
In the ratio of their profits.
0%
In the ratio of their capitals.
0%
None of these

A

$A$ and

B

$B$ sharing profits and losses in the ratio of

2 / 3^{r d}

$2/3^{rd}$ and

1 / 3^{r d}, a d m i t

$1/3^{rd}, admit$ C as a partner giving him

1 / 4^{t h}

$1/4^{th}$ share. The new profit-sharing ratio will be :

0%
$A -\,1/2$ , $B- \,1/4$ , $C- \,1/4$
0%
$A- \,1/3$ , $B- \,1/3$ , $C- \,1/4$
0%
$A- \,3/8$ , $B- \,3/8$ , $C- \,2/8$
0%
None of these

According to Section

37

$37$ of the Indian Partnership Act, 1932, the interest payable to the representative of deceased partner on the amount left by him will be ______________ .

0%
$6\%p.a$
0%
$10\%p.a$
0%
The Bank Rate
0%
None of these

In the event of death of partner, the amount of General Reserve is transferred to partner's capital Accounts in ______________ .

0%
The new profit-sharing ratio.
0%
The old profit-sharing ratio.
0%
The capital ratio.
0%
None of these

Verma and Sharma are partners in a firm sharing profits and losses in the ratio of

5 : 3

$5:3$ . They admitted Ghosh as a new partner for

1 / 5^{t h}

$1/5^{th}$ share of profits. Ghosh is to bring in

R s . 20, 000

$Rs. 20,000$ as capital and

R s . 4, 000

$Rs. 4,000$ as his share of goodwill premium. Give the necessary Journal entries, when goodwill is paid privately.

0%
Cash A/c Dr. 4000
To Goodwill A/c 4000
0%
Goodwill A/c Dr. 4000
To Cash A/c 4000
0%
Goodwill A/c Dr. 4000
To Verma's Caital A/c 2500
To Sharma's Capital A/c 1500
0%
No entry is required.

Deepak, Farukh and Lilly were partners in a firm sharing profits in the ratio of

3 : 2 : 1

$3 : 2 : 1$ . On

28.2.2015

$28.2.2015$ Farukh retired from the firm. On Farukh's retirement there was a balance of

R s 12, 000

$Rs 12,000$ in Workmen's Compensation Reserve which was no more required. On Farukh's retirement this amount will be:

0%
Debited to the capital accounts of the partners in their profit sharing ratio.
0%
Credited to the capital accounts of the partners in their profit sharing ratio.
0%
Credited to the capital accounts of Deepak and Lilly in their profit sharing ratio.
0%
Credited to the capital account of Farukh.

Goodwill means ____________.

0%
good name or reputation of the business
0%
it is an intangible real asset
0%
the capacity of a business to earn profits in future
0%
All the Above

Gaining ratio is equal to _________.

0%
New ratio $-$ Old ratio
0%
New ratio $+$ Old ratio
0%
New ratio $\times$ Old ratio
0%
New ratio $+$ Sacrificing ratio

The formula of capitalisation method is ___________.

0%
$\dfrac {Profit (adjusted)}{100}$
0%
$\dfrac {\text {Total Profit}}{\text {Adjusted Profit}}$
0%
$\dfrac {\text {Adjusted Profit}}{\text {Total Profit}}\times 100$
0%
$\dfrac {Profit (Adjusted)}{\text {Normal rate of Return}}\times 100$

According to the value of goodwill, the type of customers may be divided into ________________.

0%
Cats, dogs and mice
0%
Cats and mice
0%
Dogs and mice
0%
Dogs and horses

Under the memorandum revaluation method ___________.

0%
the new partner does not bring cash for his share of goodwill
0%
the new partner brings cash for his share of goodwill
0%
goodwill is raised in the books, and then is immediately written off
0%
None of the Above

A admitted as a new partner for 1/ 4 share of future profits, fails to bring in cash of Rs. 5,000 towards goodwill but the existing (old) partners B and C sharing profits in the ratio of 3 : 2 raise goodwill account at its full value. Therefore, partners will be credited for goodwill as:

0%
B = Rs. 3,000, C = Rs. 2,000, A = Nil
0%
B = Rs. 9,000, C = Rs. 6,000, A = Rs. 5,000
0%
B = Rs. 12,000, C = Rs. 8,000, A = Nil
0%
B = Rs. 2,250, C = Rs. 1,500, A = Rs. 1,250

The ratio at which the continuing partners take up the retiring partner's share is _________.

0%
gaining ratio
0%
sacrificing ratio
0%
profit sharing ratio
0%
loss sharing ratio

A and B are partners sharing profits in the ratio of 7:C is admitted for 3/7 share in the profits, the new profit sharing ratio among the partners will be ____________________.

0%
A : B : C :: 14 : 6 : 15
0%
A : B : C :: 7 : 6 : 7
0%
A : B : C :: 7 : 3 : 3
0%
A : B : C :: 5 : 3 : 3

Ram and Shyam are partners in a firm with capital of Rs 4,80,000 and Rs 3,10,000, respectively. They admitted Ganesh as a partner with l/4th share of profit. Ganesh brings Rs 3,00,000 as his capital. Ganesh's share of goodwill will be __________.

0%
$Rs.1,10,000$
0%
$Rs.27,500$
0%
$Rs.17,500$
0%
$Rs.70,000$

Capital employed in a business is Rs. 1,50,Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill as per Capitalisation Method would be:

0%
Rs. 1,00,000
0%
Rs. 1,50,000
0%
Rs. 2,00,000
0%
Rs. 3,00,000

___________ method is followed when the new partner does not bring in his share of goodwill in cash.

0%
Premium
0%
Revaluation
0%
Reconstruction
0%
Both a and b

An example of an intangible asset is:

0%
Goodwill
0%
Debit balance of Profit and Loss Account
0%
Preliminary expenses
0%
Deferred revenue expenditure

The need for valuation of goodwill arises at the time of _______ of a business.

0%
purchase
0%
sale
0%
agreement
0%
closure

If the business is centrally located or is at a place having heavy customer traffic, then the goodwill tends to be ______.

0%
low
0%
high
0%
same
0%
medium

The important methods of valuation of goodwill are:

0%
Average Profits Method
0%
Super Profits Method
0%
Capitalisation Method
0%
All of the above

Under super profit basis, goodwill is calculated by:

0%
No. of years purchased multiplied with average profits
0%
No. of years purchased multiplied with super profits
0%
Summation of the discounted value of expected future benefits
0%
Super profit divided with expected rate of return

Under average profit basis, goodwill is calculated by:

0%
No. of years purchased multiplied with past average profits
0%
No. of years purchased multiplied with past super profits
0%
Summation of the discounted value of expected future benefits
0%
Super profit divided with expected rate of return

CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 12 - MCQExams.com

0:0:2

Practice Class 12 Commerce Accountancy Quiz Questions and Answers

CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 12 - MCQExams.com

0:0:2

Practice Class 12 Commerce Accountancy Quiz Questions and Answers

Support mcqexams.com by disabling your adblocker.