CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 4 - MCQExams.com

Retirement /death of a partner leads to ____________.
  • Gain in profit sharing ratio of remaining partners
  • Loss in profit sharing ratio of remaining partners
  • No change in profit sharing ratio of remaining partners
  • None of the above
Increase in any asset at the time of retirement of a partner is ______________.
  • credited to revaluation A.c.
  • debited to revaluation A/c .
  • debited to profit and loss A/c.
  • debited to goodwill A/c.
R,S,G are three partners sharing profit and loss in the ration of 8:7:5,S retires and his share of profit is taken by R,G in the ratio of 1:Find the new profit sharing ratio.
  • 2:1
  • 31:25
  • 29:31
  • 1:2
The amount which a new partner pays for the sacrifice made by other partners is called _______.
  • capital reserve
  • goodwill
  • reserve capital
  • reserve
A,B, and C are three partners sharing profit and loss in the ratio of 4:3:A retires and B and C decides to share future profit in the ratio of 2:Find the gaining ratio.
  • 1:3
  • 1:1
  • 2:1
  • 3:1
A,B and C ate three partners sharing profit and loss in the ratio of 3:2:1.B retires from the firm . What is the gaining ratio of the remaining partners?
  • 3:1
  • 1:2
  • 2:1
  • 1:3
Goodwill brought in by a new partner is a _______.
  • tangible asset
  • fictitious asset
  • dummy asset
  • intangible but real asset
Which of these terms is not true in respect of goodwill?
  • Real Assets
  • Intangible Assets
  • Fixed Assets
  • Fictitious Assets
A,B and C are three partners sharing profit and loss in the ratio of 3:2:B retires from the firm. What is the new profit sharing ratio of the remaining partners?
  • 1:3
  • 3:1
  • 2:3
  • 3:2
A,B and C are three partner sharing profit and loss 3:2:1 A dies on 30th June, 2012, If  the total profit for the year ending 31st march ,2013 amounted to Rs. 30,What would be the share of profit to be credited to A's A/c ?
  • Rs.3750
  • Rs.5000
  • Rs.8000
  • Rs.5500
X,Y and Z are three partners in a firm. They are sharing profit and loss in the ratio of 2:2:Y retires from the firm on 31st March. The firm decided not to raise goodwill A/c in the books of a/c. What entry will be  made for the treatment of goodwill at the time of retirement of Y?
  • Debit X and Z ,Credit Y (for share of Y in the gaining ratio)
  • Goodwill A/c Dr, Credit Y's Capital A/c
  • Goodwill A/c Dr,Credit X,Y and Z Capital A/c
  • Goodwill A/c Dr. Credit X and Z A/c
A company purchased a new Plant and Machinery worth $$RS. 1$$ crore from $$XYZ$$ Associates and issued him $$1100000$$ equity shares of $$Rs. 10$$ each. The excess of consideration over and above the purchase price will be treated as ___________.
  • goodwill
  • discount
  • premium
  • capital reserve
Upon a admission of Champak Lal in a partnership firm as a new partner for 1/4th share of profit, the goodwill of the firm is valued at Rs.40,Goodwill to be brought in cash by Champak will be ______.
  • Rs.40,000
  • Rs.10,000
  • Rs.30,000
  • Rs.20,000
As per AS 26 only _____will be recorded in books of account .
  • hidden goodwill
  • full goodwill
  • purchased goodwill
  • all of the above
Which of these is not found in case of retirement /death of a partner?
  • Revaluation A/c
  • Realization of assets
  • Distribution of goodwill
  • Gaining ratio
Which of the following is the odd one?
  • General reserve A/c
  • Profit and Loss A/c
  • Dividend equalization reserve A/c
  • Goodwill A/c
As per super profit method goodwill = ____________.
  • Actual profit multiplied by No. of years of purchase
  • Normal profit multiplied by No. of years of purchase
  • Maintainable profit multiplied by No. of years of purchase.
  • Super profit multiplied by No. of years of purchase.
Which of these is not found in case of retirement/death of partner?
  • Sacrificing ratio
  • Raising goodwill
  • Distribution of accumulated profit and reserves and surplus
  • Payment to the legal representative
X,Y and Z are three partners in a firm. Y died  on 1st January.The firm had taken a life policy of Rs.18,000 at an annual premium of Rs.On the date of death of Y the JLP appears a RsThe Policy was duly received. How the profit on JLP will be distributed?
  • Dr. Cash $$Rs.10,000$$, Dr. XYZ $$Rs.3333.33$$, Cr. JLP $$Rs.20,000$$.
  • Dr. Cash $$Rs.20,000$$ Cr. JLP $$Rs.20,000$$.
  • Dr. JLP $$Rs.16,200$$, Cr. XYZ $$Rs.5400$$ each.
  • Dr. JLP $$Rs.18,000$$, Cr. profit and loss A/c $$Rs.8,000$$.
X & Associates is a partnership firm, it intends to revalue its goodwill, average profit for the past five years is Rs. 15,000 per annum and goodwill is being valued 5 years purchase of super profit. What would be the value of the goodwill of the firm if normal profit of the firm is Rs.12,000?
  • Rs.15,000
  • Rs.30,000
  • Rs.20,000
  • Rs.25,000
When goodwill is revalued at the time of admission of a partner, how goodwill is distributed amongst the old partners? 
  • Equally.
  • Capital ratio.
  • Sacrifice ratio.
  • New profit sharing ratio.
Consequent upon admission of a new partner in a firm the value of the goodwill is valued at Rs.60,But there exists a goodwill account in the balance sheet which stood at Rs.48,000 what would be treatment of goodwill at the time of admission of a new partner. If memorandum revaluation method is followed, after admission of a new partner?
  • Rs.12,000 would be debited to all the partner's capital account in their new profit sharing ratio
  • Rs.60,000 would be debited to old partner's capital account in their old profit sharing ratio
  • Rs.48,000 would be debited to all the partner's capital account in their new profit sharing ratio
  • Rs.48,000 would be credited to all the partner's capital account in their new profit sharing ratio
Goods worth Rs.2000 distributed as free sample, which A/c will be debited _________.
  • Trading A/c.
  • Profit and loss appropriation A/c.
  • Sale promotion expenses A/c.
  • Charity A/c.
_______ can be described as the sum of those intangible attributes or benefits enjoyed by the enterprise which contributes to its success.
  • Research and Development
  • Goodwill
  • Deferred revenue expenditure
  • Intangible assets
The need for valuation of goodwill arises in all the following situations except
  • Admission of a partner
  • Retirement of a partner
  • Change in profit sharing ratio
  • Illness of a partner
Which of these is an essential qualification to be a partner of a firm?
  • High net worth Individual.
  • Graduate in Business Administration.
  • Must be competent to contract.
  • Possessing Aadhar Card.
The term "person" for the purpose of a partnership agreement does not include a __________.
  • Firm
  • Senior citizen
  • Pardanashin women
  • Non-Pan card holder
A and B are two partners in a firm having share capital of Rs. 13,000 and Rs.17,000 respectively. C is admitted for 1/3rd share of profit for which he is to bring Rs.20,000 for his share of capital. What is the goodwill of the firm?
  • $$Rs.9,000$$
  • $$Rs.10,000$$
  • $$Rs.8,000$$
  • $$Rs.11,000$$
Select the odd one out.
  • No requirement for minimum number of members.
  • No limit on number of members.
  • Governed by Hindu law.
  • Minor cannot be admitted.
A partnership firm can be formed with a minimum share capital of Rs. ____________.
  • $$Rs.50,000$$
  • $$Rs.5,00,000$$
  • $$Rs.1,00,000$$
  • Not fixed
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