CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 14 - MCQExams.com

A, B & C partners in a firm sharing profits losses in the ratio of 4:3:B decided to retire from the firm. Calculate the new profit sharing ratio of A & C if B gives his share to A & C in the original ratio of A & C. 
  • 7:2
  • 25:11
  • 11:7
  • 2:1
A, B & C are partners sharing profits and losses in the ratio of 3:2:B retired from the firm. What is the gain ratio of the partners A and C?
  • 3:2
  • 3:1
  • 3:7
  • 2:1
P, Q and R share profit and losses in the ratio of 4:3:2 respectively. Q retires and P and R decided to share future profits and losses in the ratio of 5:Then immediately H is admitted of 3/10 shares of profits half of which was gifted by P and remaining shares was taken by H equally form P and R. Calculate the new profit sharing ratio after H's admission and gain ratio of P and R. 
  • New profit sharing ratio = 4:3:3 and Gain Ratio = 13:11
  • New profit sharing ratio = 3:3:4 and Gain Ratio = 11:13
  • New profit sharing ratio = 4:4:3 and Gain Ratio = 13:11
  • New profit sharing ratio = 5:3:2 and Gain Ratio = 11:13
A, B & C partners sharing profits losses in the ratio of 4:3:B decided to retire from the firm. Calculate the new profit sharing ratio of A & C if B gives his share to A & C in ratio of 3:1.
  • 7:2
  • 25:11
  • 11:7
  • 2:1
X, Y & Z are partners sharing profits and losses in the ratio of 3:2:Y retired from the firm. New profit sharing ratio between X & Z is 5:What is the gain ratio of the partners X & Z?
  • 3:2
  • 3:1
  • 3:7
  • 3:5
A, B & C are sharing profits in 4:3:2 ratio. B retires. If A & C shares profits of B in 5:3, then find the new profit sharing ratio. 
  • 47:25
  • 17:11
  • 31:11
  • 14:21
Decrease in assets at the time of retirement of partner is _________.
  • debited to Goodwill A/c
  • debited to Profit & Loss A/c
  • debited to Revaluation A/c
  • credited to Revaluation A/c
Increase in assets at the time of retirement of partner is _______.
  • debited to Goodwill A/c
  • debited to Profit & Loss A/c
  • debited to Revaluation A/c
  • credited to Revaluation A/c
A, B & C partners in a firm sharing profits, losses in the ratio of 4:3:B decided to retire from the firm. Calculate the new profit sharing ratio of A and C if B gives his share to A only.
  • 7:2
  • 25:11
  • 11:7
  • 7:3
A, B & C are partners sharing profits & losses in the ratio of 3:2:B retired from the firm. Partners A & C decided to take his share in 3:1 ratio. What is the new ratio of the partners A & C?
  • 3:2
  • 3:1
  • 3:7
  • 2:1
A, B & C partners in a firm sharing profits, losses in the ratio of 4:3:B decided to retire from the firm. B gives his share to A and C in the original ratio of A & C. What is the gain ratio?
  • 4:2
  • 25:11
  • 11:7
  • 2:1
Find the goodwill from the following information:
Capital employedRs. $$8,25,000$$
Rate of normal returnRs. $$10\%$$
Future Maintainable profitRs. $$1,50,000$$
Annuity factorRs. $$3.17$$
  • Rs. $$4,75,500$$
  • Rs. $$2,61,525$$
  • Rs. $$3,13,975$$
  • Rs. $$2,13,975$$
A firm of X,Y & Z has a total capital investment of Rs.$$3,60,000$$. The firm earned net profit during the last four years as Rs.$$56,000$$, Rs.$$64,000$$, Rs.$$96,000$$ and Rs.$$80,000$$. The fair return on the net capital employed is $$15\%$$. Value of goodwill if it is based on $$3$$ years purchase of the average super profits of past $$4$$years.
  • Rs.$$37,500$$
  • Rs.$$50,000$$
  • Rs.$$60,000$$
  • Rs.$$40,000$$
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$$12,00,000$$
  • Rs.$$82,00,000$$
  • Rs.$$12,00,000$$
  • Rs.$$72,00,000$$
  • Rs.$$42,00,000$$
The net profits after tax of Z & Co. for the past $$5$$ years are as follows.
YearProfit
$$2007-2008$$$$2,56,000$$
$$2008-2009$$$$2,64,000$$
$$2009-2010$$$$3,76,000$$
$$2010-2011$$$$4,86,000$$
$$2011-2012$$$$5,30,500$$
The capital employed is Rs. $$16,00,000$$. Rate if normal return is $$15\%$$. Calculate the value of the goodwill on the basis of annuity method on super-profits basis, taking the present value of an annuity of Rs. $$1$$ for the $$4$$ years at $$15\%$$ as $$2.855$$.
  • Rs. $$7,65,000$$
  • Rs. $$8,67,800$$
  • Rs. $$5,70,000$$
  • Rs. $$4,06,838$$
Which of the following formula is/are used for valuation goodwill under super profit basis?
  • Goodwill $$=$$ Super profit * No. of years purchases.
  • Goodwill $$=$$ Super profit * annuity factor.
  • Goodwill $$=$$ $$\dfrac{Super profit}{Capitalisation rate} X 100$$.
  • All of the above.
The profits and losses for the last years are:
$$2011-2012$$ Losses Rs. $$10,000$$
$$2012-2013$$ Losses Rs. $$2,500$$
$$2013-2014$$ Profits Rs. $$98,000$$
$$2014-2015$$ Profits Rs. $$76,000$$
The average capital employed in the business is Rs. $$2,00,000$$. The rate of return expected from capital invested is $$12\%$$. The remuneration of partners is estimated to be Rs. $$1,000$$ per month not charged in the above losses/profits. Calculate the value of goodwill on the basis of two years purchase of super profits based on the average profit of $$4$$ years.
  • Rs. $$9,000$$
  • Rs. $$8,750$$
  • Rs. $$8,500$$
  • Rs. $$8,250$$
A & B are partners for $$5:3$$.They take C and new profit sharing ratio was $$4:3:1$$. Memorandum revaluation A/c is opened to show assets and liabilities at original values. How profits will be shared?
  • In the first part of the Memorandum Revaluation A/c profit will be sharred in the ratio of $$4:3:1$$ by A,B & C respectively and in the second part profit will be written back in the ratio of $$5:3$$ by A and B respectively.
  • In the first part of the Memorandum Revaluation A/c profit will be shared in the ratio of $$4:3:1$$ by A,B &C respectively and in second part profit will written back in the sacrifying ratio
  • In first part of Memorandum Revaluation A/c profit will be shared in the ratio of $$5:3$$ by A & B respectively and in second part profit will written back in the ratio of $$4:3:1$$ by A,B &C respectively
  • None of the above
A, B & C partners in a firm sharing profits losses in the ratio of 4:3:B decided to retire from the firm. B gives his share to A & C in ratio of 3:What is the gain ratio?
  • 7:2
  • 3:1
  • 11:7
  • 2:1
A,B, & C are equal partners. D is admitted to the firm for $$1/4$$th share. D brings Rs.$$20,000$$ capital and Rs.$$5,000$$ being half of the premium for goodwill.
The value of goodwill of the firm is
  • Rs.$$10,000$$
  • Rs.$$40,000$$
  • Rs.$$20,000$$
  • None of the above
The profits and losses for the last years are:
YearProfit/(loss)
$$2001-2002$$$$(20,000)$$
$$2002-2003$$$$(5,000)$$
$$2003-2004$$$$1,96,000$$
$$2004-2005$$$$1,52,000$$
The average capital employed in the business is Rs. $$4,00,000$$. The rate of interest expected from capital invested is $$12\%$$. The remuneration of partners is estimated to be Rs. $$2,000$$p.m. not charged in the above losses/profits. Calculate the value of goodwill on the basis of $$2$$ years purchase of super profits based on the average of four years.
  • Rs. $$18,000$$
  • Rs. $$17,500$$
  • Rs. $$17,000$$
  • Rs. $$16,500$$
Profits & losses for the last years are:
$$2011-2012$$ Losses Rs. $$10,000$$
$$2012-2013$$ Losses Rs. $$2,500$$
$$2013-2014$$ Profits Rs. $$98,000$$
$$2014-2015$$ Profits Rs. $$76,000$$
The average capital employed in the business is Rs. $$2,00,000$$. The rate of interest expected from capital invested is $$12\%$$. The remuneration of partners is estimated to be Rs. $$1,000$$ per month. Calculate the value of goodwill on the basis of four years purchase of super profits based on the annuity of the four years. Take discounting rate as $$10\%$$.
  • Rs. $$13,500$$
  • Rs. $$13,568$$
  • Rs. $$13,668$$
  • Rs. $$13,868$$
A & B shares profit & losses equally. They admit C as an equal partner and assets were revalued as follow: Goodwill at Rs. $$30,000$$(book value NIL). Stock at Rs. $$20,000$$(book value Rs. $$12,000$$); Machinery at Rs. $$60,000$$(book value Rs. $$55,000$$). C is to bring in Rs. $$20,000$$ as his capital and the necessary cash towards his share of Goodwill. Goodwill Account will not be shown in the books. Find the profit/loss on revaluation to be shared among A, B & C.
  • $$21,500 : 21,500 : 0$$
  • $$6,500 : 6,500 : 0$$
  • $$14,333 : 14,333 : 14,333$$
  • $$4,333 : 4,333 : 4,333$$
H & M are partners in a firm sharing profits and losses in the ration of $$2:5$$. They admit K as a new partner who will get $$1/6$$th share in the profits of the firm. Calculate new profit sharing ration among H, M & K.
  • $$10:25:7$$
  • $$7:25:10$$
  • $$25:10:7$$
  • $$10:7:25$$
A & B shares profit & losses equally. They admit C as an equal partner and goodwill was valued at Rs.$$30,000$$ (book value NIL). C is to bring in Rs.$$20,000$$ as his capital and the necessary cash towards his share of goodwill. Goodwill Account will not remain in the books. What will be the final effect of goodwill in the partners' capital account?
  • A & B's account credited with Rs.$$5,000$$ each.
  • All partner's account credited with Rs.$$10,000$$ each
  • Only C's account credited with Rs.$$10,000$$ as cash bought in for goodwill
  • Final effect will be nil in each partner
A & B are partners sharing profits in the ratio $$5:3$$, they admitted C giving him $$3/10$$th share of profit. If C acquires $$1/5$$ from A and $$1/10$$th from B, new profit sharing ratio will be _________.
  • $$5:6:3$$
  • $$2:4:6$$
  • $$18:24:38$$
  • $$17:11:12$$
X & Y share profits & losses as $$1:2$$. They agree to admit Z (who is also in business on his own) as a third partner.
At the time of admission of Z goodwill was appearing in balance sheet at Rs.$$14,000$$ which was revalued at Rs.$$18,000$$. Z brings the following assets into the partnership:
Goodwill- Rs.$$6,000$$ Furniture-Rs.$$2,800$$, Stock-Rs.$$13,600$$
After admission of Z, goodwill will appear at _______ in the balance sheet.
  • Rs.$$14,000$$
  • Rs.$$18,000$$
  • Rs.$$24,000$$
  • Rs.$$26,000$$
A,B & C were equal partners with goodwill $$Rs.1,20,000$$ in the balance sheet and they agreed to take D as an equal partner on the term that he should bring $$Rs.1,60,000$$ as his capital and goodwill, his share of goodwill was evaluated at $$Rs.60,000$$ and the goodwill account is to be written off before admission. What will be the treatment for goodwill?
  • Write off the goodwill of $$Rs.1,20,000$$ in old ratio.
  • Cash brought in by D for goodwill will be distributed among old partners in sacrificing ratio.
  • Both (A) & (B).
  • None of the above.
A & B are sharing profits in the ratio of $$5:3$$. C was admitted on the following terms:
New profit sharing ratio wiill be $$7:5:3$$
Machinery would be appreciated by $$10\%$$ (book value Rs.$$1,80,000$$)
Building would be depreciated by $$6\%$$ (book value Rs.$$1,50,000$$)
To create provision for bad debts $$5\%$$ on Debtors of Rs.$$40,000$$
Find the distribution of profit/loss on revaluation between A & B
  • Profit $$4,083$$ & $$2,917$$
  • Profit $$2,625$$ & $$4,375$$
  • Profit $$2,917$$ & $$4,083$$
  • Profit $$4,375$$ & $$2,625$$
R & S are in partnership sharing profit and losses at the ratio $$3:2$$. They take T as a new partner. Calculate the new profit sharing ratio, if R & S agree to sacrifice $$1/10$$th share to T in the ratio of $$2:3$$.
  • $$27:18:5$$
  • $$28:17:5$$
  • $$5:4:1$$
  • $$19:19:12$$
0:0:1


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