CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 2 - MCQExams.com

a) Dog - Goodwill Fugitive good will
b) Cat -  Good willLocality good will
c) Rat - Good will   Personal good will
  • $$1, 2, 3$$
  • $$3, 2, 1$$
  • $$2, 1, 3$$
  • $$1, 3, 2$$
If normal profit is $$Rs.50000$$, average profit is $$Rs.75000$$ than calculate Goodwill for $$2$$ years of purchase under super profit method_______.
  • $$Rs.45000$$
  • $$Rs.50000$$
  • $$Rs.55000$$
  • $$Rs.48500$$
On the death of a partner, the amount of joint life policy should be credited to the capital account of _________.
  • remaining partners in the new profit ratio
  • all partners including the deceased partner in their old profit sharing ratio
  • neither the deceased partner nor the remaining partners
  • None of the Above
Under which of the following method Goodwill account is raised in the books of accounts.
  • Premium Method
  • Revaluation Method
  • Realisation Method
  • None of above
The _______ is paid to new partner if his share of profit as per the profit sharing ratio is less then the guaranteed amount
  • minimum gaurantee amount
  • maximum gaurantee amount
  • less gaurantee amount
  • high gaurantee amount
Which of the following method is followed when incoming partner brings his share of Goodwill in cash___________.
  • Premium Method
  • Revaluation Method
  • Realisaton Method
  • None of Above
Tom and Ban are partners in a Firm for 2 : 1 ratio.
They admitted Jay as new partner for 1/5 share. calculate new ratio ?
  • 3:4:8
  • 8:4:3
  • 2:3:1
  • 4:3:8
A, B, C are partners in a firm sharing profits and losses in ratio 5:3:If Partner B dies than new profit sharing ratio will be ______.
  • 5:4
  • 3:2
  • Equal
  • 1:2
A and B are partners in the ratio of 2 :They admit C for 1/4 share who contributes Rs. 30,000 for his share of goodwill. The total value of the goodwill of the firm is _________.
  • $$Rs. 30,000$$
  • $$Rs. 90,000$$
  • $$Rs. 1,20,000$$
  • $$Rs. 1,50,000$$
P, Q and R were partners in the ratio of 1/5, 1/3 and 7/15 respectively. R retires and his share was taken up by P and Q in the ratio of 3 :The new ratio of P and Q will be:
  • $$13: 12$$
  • $$12: 15$$
  • $$12 : 13$$
  • $$14:15$$
C, M and Y are partners in the ratio of $$1/2 : 2/5 : 1/10$$. What will be new ratio of the remaining partners if C retires?
  • $$2 : 1$$
  • $$4 : 1$$
  • $$5 : 1$$
  • $$3 :1$$
Average profit method is based on the assumption that _____________.
  • no change in the overall situation of profits is expected in the future
  • the overall situation of profits is expected to be increasing in the future
  • the overall situation of profits is expected to be decreasing in the future
  • None of the Above
The amount received from insurance company on the maturity of joint life policy is distributed amongst the partners ___________.
  • in the profit sharing ratio
  • in the ratio of capitals of partners
  • Equally
  • None of the above
Goodwill is regarded as an___________ asset.
  • intangible
  • tangible
  • fixed
  • capital
On the admission of a new partner, the decrease in the value of assets is debited to:
  • Asset Account
  • Profit & Loss Adjustment Account
  • Old Partner's Capital Account
  • None of the above
Following are the factors affecting goodwill except: 
  • Nature of business
  • Efficiency of management
  • Technical know how
  • Location of the customers
A partner may retire with the consent of:
  • Two partners
  • Ten partners
  • Majority of the partners
  • None of the above
A, B and C are partners in a business sharing in the ratio of 5 : 3 :B retires from the firm and his share was taken up by A and C in the ratio of 2 :What is the new profit sharing ratio of the partners?
  • 5 : 2
  • 4 : 3
  • 7 : 3
  • 6 : 5
A, B and C are partners sharing profits in the ratio of 4 : 3 :Their capitals on 30th June, 2014 are A - Rs. 10,000, B - Rs. 6,000 and C - Rs. 2.The current account balances are, A- Rs. 8,000 (Cr.), B - Rs. 3,000 (Cr.) and C - Rs. 9,000 (Dr.). Loss arising from the insolvency of C will be shared by A and B in:
  • equal ratio
  • the ratio of 4:3
  • the ratio of 5 : 3
  • the ratio of 2 :1
A, B and C are partners sharing profits in the ratio of 3 : 2 : 3, their capitals on 30th June, 2014 are A Rs. 10,000, B Rs. 5,000 and C Rs. 6,000 (Dr.). C becomes insolvent and loss due to his insolvency will be shared by A and B in _____________
  • equal ratio.
  • the ratio of 3 : 2.
  • the ratio of 2 : 1.
  • the ratio of 1 : 2.
X and Y are partners in a firm sharing profits and losses in the ratio of 3 :They admit Z as a partner with 1/4th share of profit. Z acquires his share from X and Y in the ratio of 2 :Z's share of goodwill is calculated at Rs.Z is not in position to bring any amount for goodwill. What additional entry will be required if after Z's admission, it is decided that the goodwill account should not appear in the Balance Sheet of new firm ?
  • X's capital a/c Dr. 10,400

    Y's capital a/c Dr. 7,600

    Z's capital a/c Dr. 6,000

    To Goodwill a/c   24,000
  • Goodwill a/c Dr. 24,000

    To X's capital a/c 10,400

    To Y's capital a/c   7,600

    To Z's capital a/c   6,000
  • X's capital a/c Dr. 10,400

    Y's capital a/c Dr. 7,600

    To Z's capital a/c 18,000
  • None of the above
A and B are sharing profits and losses in the ratio of 4 :C is admitted as a new partner for 1/3rd share of profits for which he pays Rs. 30,000 as goodwill. If A and B agree to share future profits equally, then the amount of goodwill to be credited to A would be :
  • Rs. 30,000
  • Rs. 90,000
  • Rs. 48,000
  • Rs. 42,000
The _______ of actual profits over the normal profits is termed as super profits.
  • shortage
  • excess
  • minimum
  • maximum
Accumulated profits are transferred to capital account in ______ratio. 
  • old profit sharing ratio
  • new profit sharing ratio
  • sacrifice ratio
  • gain ratio
Accumulated profits are distributed among the partners by transferring it to their _________account.
  • Capital
  • Drawing
  • Loan
  • Salary
Who is entitled to have share in accumulated profits?
  • New partner
  • Employee
  • Old partner
  • Creditor
Under average profits method, goodwill is valued at agreed number of ________ purchase of the average profits of the past few years.
  • months
  • years
  • days
  • both a and c
Accumulated Profits are transferred to ________________.
  • General reserve
  • Profit & Loss A/c
  • Capital balance
  • Drawing A/c
The capitalised value attached to the differential profit capacity of a business is called _________.
  • asset
  • goodwill
  • trademark
  • copyright
The value of the reputation of a firm in respect of the profits expected in future over and above the normal profits is ________.
  • goodwill
  • patent
  • copyrights
  • trademark
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