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 $$1/3$$rd 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 $$1/3$$rd 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 $$1/3$$rd 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 $$1/3$$rd 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 $$1/5$$th 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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