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CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 15 - MCQExams.com

A,B & C are equal partners. They decided to take D who brought in Rs.36,000 as goodwill. The new profit sharing ratio is 3:3:2:2. The journal entry for goodwill will be-

A Capital A/c      Dr.
B Capital A/c      Dr.
C Capital A/c      Dr.
   To D Capital A/c		6,000
6,000
24,000




36,000
Cash A/c      Dr.
   To A Capital A/c
   To B Capital A/c
   To C Capital A/c		36,000




6,000
6,000
24,000
Cash A/c      Dr.
   To A Capital A/c
   To B Capital A/c
   To C Capital A/c		36,000




24,000
6,000
6,000
Goodwill A/c     Dr.
   To A Capital A/c
   To B Capital A/c
   To C Capital A/c		36,000




12,000
12,000
12,000
  • A
  • B
  • C
  • D
N & Z are partners in a firm sharing profits and losss in the ratio of 3:2. S joins the firm for 1/3rd share. and is to pay Rs.5,000 as premium for goodwill but cannot pay anything. As between N and Z, they decided to share profits and losses equally. It was agreed that goodwill has to be adjusted through partner's capital account.
Required journal entry-

N Capital A/c      Dr.
Z Capital A/c      Dr.
   To S A/c		4,000
1,000



5,000
S Capital A/c      Dr.
   To N Capital A/c
   To Z Capital A/c		5,000



4,000
1,000
S Capital A/c      Dr.
   To N Capital A/c
   To Z Capital A/c		5,000



1,000
4,000
Premium for Goodwill A/c      Dr.
   To N Capital A/c
To Z Capital A/c		20,000



8,000
12,000
  • A
  • B
  • C
  • D
If one of the partner of a partnership firm comprising 2 partners dies, then _________.
  • firm will dissolve
  • partnership profits will change, no effect on firm
  • both (A) & (B)
  • none of these
Choose the correct answers from the alternatives given.
Unless otherwise agreed, a retiring partner can _______. 
  • carry on competing business
  • use the firms name
  • represent himself as carrying on firms business
  • solicit the old customers
A & B are sharing profits and losses in the ratio of 3:2. C joins the firm for 1/3rd share and is to pay Rs.20,000 as permium for goodwill but cannot pay anything. As between A & B, they decided to share profits and losses equally. Required journal entry

A Capital A/c      Dr.
B Capital A/c      Dr.
     To Coodwill A/c		36,000
24,000



60,000
Goodwill A/c      Dr.
   To A Capitla A/c
   To B Capital A/c 		60,000




36,000
24,000

Goodwill A/c         Dr,
   To A Capital A/c
To B Capital A/c		60,000




30,000
30,000
Premium for Goodwill A/c        Dr.
    To A Capital A/c
    To B Capital A/c		60,000



24,000
36,000
  • A
  • B
  • C
  • D
A & B are partners sharing profits and losses in the ratio of 3:2. C joins the firm for 1/3rd share, and is to pay Rs.40,000 as premium for goodwill but cannot pay anything. As netween A and B, they decided to share profits and losses equally. Goodwill already appearing in balance sheet is 1,00,000 Required journal entry

A Capital A/c      Dr.
B Capital A/c      Dr.
   To Goodwill A/c		72,000
48,000



1,20,000
Goodwill A/c      Dr.
   To A Capital A/c
   To B Capital A/c		1,20,000



72,000
48,000
Goodwill A/c      Dr.
   To A Capital A/c
   To B Capital A/c		20,000



12,000
8,000
Premium for Goodwill A/c      Dr.
   To A Capital A/c
   To B Capital A/c		20,000



8,000
12,000
  • A
  • B
  • C
  • D
A & B are sharing profits & losses in the ratio of 3:2. C is coming as a new partner who pays Rs.25,000 as premium fro goodwill. The profit sharing ration among A,B & C is equal. If premium money is retained in business which of the following journal entry is correct for sharing permium for goodwill?
A Capital A/c                     Dr.
B Capital A/c                     Dr.
   To Premium for Goodwill A/c		20,000
5,000



25,000
Premium for Goodwill A/c         Dr.
   To A Capital A/c
   To B Capital A/c		25,000



5,000
20,000
Premium for Goodwill A/c     Dr.
   To A Capital A/c
   To B Capital A/c		25,000



20,000
5,000
Premium for Goodwill A/c     Dr.
   To A Capital A/c
   To B Capital A/c		25,000



15,000
10,000
  • A
  • B
  • C
  • D
A & B were partners sharing profits & losses in the ratio of 3:1. 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?

Premium for Goodwill A/c      Dr.
B Capital A/c                         Dr.
   To A Capital A/c		20,000
5,000



25,000
Premium for Goodwill A/c      Dr.
   To A Capital A/c
   To B Capital A/c		20,000



15,000
5,000
Premium for Goodwill A/c      Dr.
   To A Capital A/c
   To B Capital A/c		20,000



10,000
10,000
Premium for Goodwill A/c      Dr.
A Capital A/c           Dr.
   To B Capital A/c		20,000
5,000



25,000
  • A
  • B
  • C
  • D
A & B are partners with capitals of Rs.10,000 and Rs.20,000 respectively and sharing profits equally. They admitted C as their third partner with 1/4th profits on the payment of Rs.12,000. The amount of hidden goodwill is ___________.
  • Rs.6,000
  • Rs.10,000
  • Rs.8,000
  • None of the above
The net profits of a business, after providing for income tax for the last 5 years were: Rs 80,000, Rs 1,00,000, Rs 1,20,000, Rs 1,25,000 and Rs 2,00,000 respectively. The capital employed in the business is Rs 10,00,000 and the normal rate of return is 10%. Calculate the value of the goodwill on the basis of the annuity method taking the present value of annuity of Rs 1 for 5 years at 10% is 3.7907.
  • Rs 84,768
  • Rs 95,768
  • Rs 94,768
  • Rs 60,000
R & S are in partnership sharing profit and losses at the ratio 3:They take T as a new partner. Calculate the new profit sharing ratio. If T simply gets 1/10th share of profit.
  • 27:18:5
  • 28:17:5
  • 5:4:1
  • 19:19:12
Capital employed by a partnership firm is Rs.1,00,000. Its average profit is Rs.20,000. Normal rate of return is 15%. Value of goodwill is _________.
  • Rs.33,333
  • Rs.30,000
  • Rs.23,333
  • Rs.43,667
Find the goodwill from the following information:
Capital employed - Rs 8,25,000
Rate of normal return - Rs. 10%
Future Maintainable profit - Rs 1,50,000
Annuity factor - Rs. 3.17
  • Rs 4,75,500
  • Rs 2,61,525
  • Rs 3,13,975
  • Rs 2,13,975
A,B & Care partners sharing profits losses in the ration of 4:3:2. B decided to retire form the firm. Calculate the new profit sharing ratio of A & C if  B gives his share to A only. 
  • 7:2
  • 25:11
  • 11:7
  • 7:3
The profits and losses for the last years are:
YearProfit/(loss)
2001-2002(20,000)
2002-2003(5000)
2003-20041,96,000
2004-20051,52,000
The average capital employed in the business is Rs 4,00,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
A & B are partners sharing profits & losses in the ratio of 7:They admit C as a new partner. A sacrified 1/7th share of his profit and B sacrified  1/3rd of his share in favour of C. The new profit sharing ratio will be -
  • 3:1:1
  • 2:1:1
  • 2:2:1
  • None of the above
The net profits after tax of Z & Co. for the past 5 years are as follows:
YearProfit
2007-20082,56,000
2008-20092,64,000
2009-20103,76,000
2010-20114,86,000
2011-20125,30,500
The capital employed is Rs. 16,00,Rate of 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
R & S are in partnership sharing profit and losses at the ratio 3:They take T as a new partner. Calculate the new profit sharing ratio. If T purchases 1/10th share to T in the ratio of 2:3.
  • 27:18:5
  • 28:17:5
  • 5:4:1
  • 19:19:12
A,B & Care partners sharing profits losses in the ration of 4:3:2. B decided to retire form the firm. Calculate the new profit sharing ratio of A & C if gives his share to A & C in ratio of 3:1.
  • 7:2
  • 25:11
  • 11:7
  • 2:1
Balance of R,H & M sharing profits & losses in the ratio 2:3:2 stood as R - 10,000; H - 15,00,000; M - 10,00,000; Joint Life Policy 3,50,000 H desired to retire from the firm and the remaining partners decided to carry on with  the future profit sharing ratio of 3:2 Joint policy of the partners surrendered and cash obtained 3,50,000 What would be the treatment for JLP A/c?
  • 3,50,000 credited to partner's capital account in new ratio.
  • 3,50,000 credited to partner's capital account in old ratio.
  • 3,50,000 credited to partner's capital account in capital ratio.
  • 3,50,000 credited to JLP account
A, B & C Care the partners sharing profits and losses in the ratio 2:1:1. Firm has a joint life policy of Rs.1,20,000 and in the balance sheet it is appearing at the surrender value i. e. Rs.20,000. On the the death of A, how this JLP will be shared among the partners? 
  • 50,000:25,000:25,000
  • 60,000:30,000:30,000
  • 40,000:35,000:25,000
  • Whole of Rs.1,20,000 will be paid to A
A and B are sharing profits in the ratio of 3:According to their partnership deed, on reconstitution of a firm, "goodwill is to be valued at two and a half years purchase of the average profits of the last three completed years." The profits were: Year I Rs. 20,000, Year II. Rs. 30,000, Year III Rs. 40,000, Year IV Rs. 50,000, Year V Rs. 60,C is admitted for 1/5th share in profits at end of Year VI. The amount which 'C' will be required to bring by way of his share of goodwill will be ________. 
  • Rs. 20,000
  • Rs. 25,000
  • Rs. 30,000
  • None of these
If a partner dies, then JLP will be reckoned at ________.
  • surrender value
  • maturity value
  • policy value
  • none of these
P,Q and R share profit and losses in the ration of 4:3:2 respectively.  Q retires and P and R decided to share future profits and losses in the ratio of 5:3. Then immediately H is admitted of 3/10 shares of profits half of which was gifted by P an remaining shares was taken by H equally form P and R. Calculate the new profit sharing ratio after H' 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 & D are partners sharing profits & losses in the ratio of 3:3:2:2. D retires, and A, B & C decide to share the future profits in the ratio of 3:2:1. The gaining ratio will be _________. 
  • 1:6
  • 6:1
  • 1:1
  • none of these
A and B are partners sharing profits in the ratio of 2:12:1. C is admitted for 1/5th share. The new profit sharing ratio will be _________.
  • 3:1:1
  • 1:3:1
  • 2:2:1
  • None of these
0:0:1


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