CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 7 - MCQExams.com

Under capitalization basis goodwill is calculated by using __________.
  • Average profits * no. of years of purchase
  • Super profits * years of purchase
  • Total of the discounted vale of expected benefits
  • Super profit divided with expected rate of return
X and Y share profits and losses in the ratio of 2:They take Z as a partner and the new profit sharing ratio becomes 3 : 2:Z brings Rs. 9,000 as a premium for goodwill.The full value of goodwill will be ________. 
  • $$Rs.9,000$$
  • $$Rs.36,000$$
  • $$Rs.54,000$$
  • $$Rs.48,000$$
Goodwill of a firm of A and B is valued at 30,It is appearing in the books at 12,C is admitted for 1/4th share. The amount of goodwill, which he is supposed to bring, will be:
  • 4,500
  • 3,000
  • 7,500
  • 10,500
A and B are partners with the capital Rs.50,000 and Rs.40,000 respectively.They share profits and losses equally. C is admitted on bringing Rs.50,000 as capital only and nothing was brought against goodwill. Goodwill in Balance sheet of Rs.10,000 is revalued as 30,000.What will be value of goodwill in the books after the admission of C?
  • $$Rs.60,000$$
  • $$Rs.30,000$$
  • $$Rs.20,000$$
  • $$Rs.15,000$$
The capital of B and D are! 90,000 and! 30,000 respectively with the profit sharing ratio 3 :They decide to change the ratio to 5 :On the date of change Goodwill is valued at! 84,B and Ds capital will be credited by _________.
  • $$63,000$$ and $$21,000$$
  • $$50,000$$ and $$34,000$$
  • $$52,500$$ and $$31,500$$
  • $$60,000$$ and $$24,000$$
A and B are partners sharing the profit in the ratio of 3 : 2 they take C as the new partner, who brings in 25,000 against capital and 10,000 against goodwill. New profit sharing ratio is 1 : 1 :In what ratio will this amount be shared among the old partners A and B?
  • $$8,000 : 2,000$$
  • $$5,000 : 5,000$$
  • Old partners will not get any share in the goodwill bought in by C.
  • $$6,000 : 4,000$$
A, B and C were partners sharing profit and losses in the ratio of 3 :2 :A retired and firm received the joint life policy Rs. 12,The Joint Life Policy Account appearing in the balance sheet at Rs. 20,What will be the treatment for the balance in Joint Life Policy i.e., Rs.8,000.
  • Rs. 8,000 credited to partner's current account in profit sharing ratio.
  • Rs. 8,000 debited to revaluation account
  • Rs. 8,000 debited to partner's capital account in profit sharing ratio.
  • Either (b) or (c)
A, B and C take a Joint Life Policy. After five years, B retires from the firm. Old profit sharing ratio is 2 :2 :After retirement A and C decide to share profits equally. They had taken a Joint Life Policy of Rs. 2,00,000 with the surrender value Rs. 30,000 What will be the treatment in the partners capital account on receiving the JLP amount if joint life policy A/C is maintained at the surrender value?  
  • Rs. 30,000 credited to all the partners in old ratio
  • Rs. 2,00,00 credited to all the partners in old ratio
  • Rs. 1,70,000 credited to all the partners in old ratio
  • No treatment is required
Which of the following statements is true?
  • In case of separate sets of books method of Joint Venture, co-venturers contribution of goods is debited in Joint Bank Account
  • Co-venturers contribution in cash is debited in Venturers personal account
  • Discount on discounting of BIR is debited to Venturers personal account
  • Contract money received is credited to Joint Venture account.
Suresh consigned 2,000 pieces of goods to his agent costing 30 each an invoice price of 20% over cost price. 4/5th of the goods were sold by Agent at a profit margin of 25% on his cost. Sale value of goods will be _________.
  • $$Rs.90,000$$
  • $$Rs.60,000$$
  • $$Rs.72,000$$
  • $$Rs.75,000$$
When a new partner brings his share of goodwill in cash, the amount is debited to:
  • Goodwill A/c
  • Capital A/c of the new partner
  • Cash A/c
  • Capital A/cs of the old partners
Firm has earned exceptionally high profits from a contract which will not be renewed. In such a case, the profit from this contract will not be included in:
  • Profit share of the partners
  • Calculation of the goodwill
  • Both (a) and (b)
  • None of these
X, Y and Z were partners sharing profits in the ratio of $$1/5, 1/3$$ and $$7/15$$ respectively. Z retires and his share was taken up by X and Y in the ratio of $$3 : 2$$. The new ratio will be ________. 
  • $$12 : 13$$
  • $$5 : 3$$
  • $$3 : 2$$
  • $$1 : 1$$
The profits for the last three years are: 2002-03 Rs 42,500; 2003-04 Profits Rs 56,000 and 2004-05 Profits Rs 68,The total liabilities of the firm are Rs 10,00,000 of which outsiders' liabilities Rs 5,00,The rate of interest expected from capital invested is 10%. Calculate the value of goodwill on capitalisation basis taking weighted average of Net Profit.
  • Rs 97,000
  • Rs 97,250
  • Rs 97,500
  • Rs 97,750
On the admission of a partner if goodwill account is to be raised, this should be debited to_________. 
  • partner's capital account
  • goodwill account
  • cash account
  •  profit and loss adjustment account
When a goodwill account is raised at the time of admission of a new partner, credit is given to old partners in their__________. 
  • new profit sharing ratio
  • old profit sharing ratio
  • ratio of sacrifice
  • capital ratio
If A and B share profit in the ratio of $$3 : 1$$ and if C is admitted as a new partner who purchases $$1/4$$ share of profit from A, the new ratio of A, B and C will be________. 
  • $$A = 5/10, B = 3/10, C = 2/10$$
  • $$A = 1/2, B = 1/4, C = 1/4$$
  • $$A = 3/8, B = 1/8, C = 1/4$$
  • $$A = 3/5, B = 1/5, C = 1/5$$
All accumulated profits and losses are written off among all partners in the___________. 
  • new profit-sharing ratio
  • old profit-sharing ratio
  • sacrificing ratio
  • gaining ratio
Super profit is __________. 
  • the average profit earned by the firm
  • the normal profit
  • the difference between average profit and normal profit
  • all of the above
X, Y and Z have been sharing profits and losses in the ratio of $$3 : 2 : 1$$. Z retires. His share is taken over by X and Y in the ratio of $$2 : 1$$. The new profit sharing will be _________. 
  • $$3 : 2$$
  • $$1 : 1$$
  • $$11 : 7$$
  • $$2 : 1$$
Goodwill arises because __________.
  • the firm is able to earn more than the normal return on the capital invested
  • the firm is quite odd in the industry
  • the firm is the market leader in terms of turnover
  • the investment made by the firm is quite large
'A' and 'B', who are partners, share profits in the ratio of $$7 : 3$$, 'C' is admitted as a new partner, 'A' surrenders $$1/7$$ of his share and 'B' surrender $$1/3$$ of his share in favour of 'C'. The new profit sharing ratio will be ___________. 
  • $$6 : 2 : 2$$
  • $$4 : 1 : 1$$
  • $$3 : 2 :2$$
  • None of these
Gaining ratio is equal to ____________. 
  • old ratio minus new ratio
  • new ratio minus old ratio
  • old ratio plus new ratio
  • old ratio/ New ratio
A, B and C are three partners sharing profits and losses in the ratio of $$4 : 3 : 2$$. D is admitted for $$1/ 10$$ share. The new ratio will be __________.
  • $$5 : 4 : 3 : 2$$
  • $$6 : 5 : 3 : 2$$
  • $$4 : 3 : 2 : 1$$
  • None of these
Find the goodwill of the firm using capitalisation, method from the following information:
Total Capital Employed in the firm Rs.8,00,000;
Reasonable Rate of Return 15%;
Profits for the year Rs. 12,00,000.
  • $$Rs.82,00,000$$
  • $$Rs.12,00,000$$
  • $$Rs.72,00,000$$
  • $$Rs.42,00,000$$
X and Y are sharing profits in the ratio of $$3 : 1$$. Z joined the firm by taking $$1/3^{rd}$$ share. The new profit sharing ratio is ___________. 
  • $$3 : 1 : 2$$
  • $$3 : 2 : 1$$
  • $$6 : 5 : 4$$
  • $$4 : 1 : 3$$
An increase in the value of fixed asset is referred to as _________.
  • depreciation
  • appreciation
  • market capitalization
  • reverse depreciation
X and Y are partners in the ratio of $$2 : 1$$. Z joins the firm for $$1/4$$ shares. The new profit sharing ratio is _________. 
  • $$3 : 1 : 1$$
  • $$3 : 1 : 2$$
  • $$2 : 1 : 1$$
  • $$2 : 1 : 2$$
X and Y are partners sharing profits in the ratio of 7 :Z is admitted for 3/7 share in the profit. The new profit sharing ratio of the partners will be ______________.
  • 14:6:15
  • 7:6:7
  • 7:3:3
  • 5:3:3
A and B are partners in the ratio of $$7 : 5$$. They admit C for $$1/5$$ share. What is the new profit sharing ratio?
  • $$7 : 5 : 3$$
  • $$7 : 5 : 1$$
  • $$2 : 2 : 1$$
  • $$3 : 2 : 1$$
0:0:1


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