CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 8 - MCQExams.com

The executors of the deceased partner are entitled to a share of profit earned by the firm from the date of last balance sheet and to the date of death. Which of the entry will be passed for this purpose? (Name of the deceased partner was Mr.X)
  • Profit & Loss Suspense A/c Dr
    To X A/c
  • X A/c Dr
    To Profit & Loss A/c
  • X A/c Dr
    To Memorandum Revaluation A/c
  • X A/c Dr
    To Profit & Loss Suspense A/c
Which of the following factor generally contribute to the value of goodwill of a firm?
  • Efficiency of business.
  • Risk involved in the business.
  • Location of the business.
  • All of above.
Weighted average method of calculating goodwill should be followed when ___________.
  • Profits are uneven
  • Profits has increasing trend
  • Profits has decreasing trend
  • Either (B) or (C)
In which of the following case the need for the valuation of goodwill in a firm may arise?
  • Admission of new partner
  • While changing profit sharing ratio
  • Retirement or death of partner
  • All of above
Under average profit basis goodwill is calculated by :
  • No. of years purchased multiplied with average profits
  • No. of years purchased multiplied with super profits
  • Summation of the discounted value of expected future benefits
  • Super profit divided with expected rate of return
Which of the following asset is compulsory to revalue at the time of admission of a new partner?
  • Stock
  • Fixed Assets
  • Investment
  • Goodwill
The correct entry for recording losses on revaluation would be:
  • Debit-Revaluation A/c, Credit-Partners Capital A/c's
  • Debit-Partners Current A/c's, Credit-Revaluation A/c
  • Debit-Partners Capital A/c's, Credit-Revaluation A/c
  • Debit-Revaluation A/c, Credit-Partners Current A/c's
Gaining Ratio = _______ Minus _______ .
  • Old Ratio, New Ratio
  • Old Ratio, Capital Ratio
  • New Ratio, Old Ratio
  • None of above
In the absence of proper agreement, representative of the deceased partner is entitled to the dead partner's share in ____________.
  • Profits till date, good will, joint life policy, share in revalued assets and liabilities.
  • Capital, good will, joint life policy, interest on capital, share in revalued assets and liabilities.
  • Capital, profits till date, good will, interest on capital, share in revalued assets and liabilities.
  • Capital, profits till date, good will, joint life policy, share in revalued assets and liabilities.
A, B & C partners sharing profits & losses in the ratio of 4:3:B decided to retire from the firm. Calculate the new profit sharing ratio of A & C if B gives his share to A & C in equal proportion.
  • 7:2
  • 25:11
  • 11:7
  • 2:1
Find the goodwill from the following information:
Capital employed - Rs.$$11,00,000$$
Rate of normal return - Rs.$$10\%$$
Future Maintainable profit - Rs.$$2,00,000$$
No. of year purchase -$$3$$ years
  • Rs.$$6,00,000$$
  • Rs.$$2,70,000$$
  • Rs.$$9,00,000$$
  • Rs.$$3,70,000$$
Average profit of a firm is Rs.$$1,20,000$$. The rate of capitalization is $$12\%$$. Assets and liabilities of the firm are $$10,000$$ & Rs.$$4,25,000$$ respectively. The value of goodwill of the firm is ________________.
  • Rs.$$3,25,000$$
  • Rs.$$2,25,000$$
  • Rs.$$5,25,000$$
  • Rs.$$5,85,000$$
From the following information calculate the value of goodwill.
The adjusted forecast maintainable profit is Rs. $$40,000$$, Capital employed is Rs. $$2,00,000$$, Normal rate of return is $$15\%$$, Capitalization rate is $$20\%$$.
  • Rs. $$50,000$$
  • Rs. $$75,000$$
  • Rs. $$40,000$$
  • Rs. $$60,000$$
When required amount for premium for goodwill is not brought in by new partner, goodwill account is raised in the books of the firm by debiting goodwill account and crediting partners capital account in
  • New profit sharing ratio
  • Old profit sharing ratio
  • Scarifying ratio
  • Capital ratio
The amount that the incoming partner pays for goodwill is known as ________________.
  • Adjusted goodwill
  • Premium for capital
  • Premium for goodwill
  • Hidden goodwill
The capital of B & D are Rs.$$90,000$$ and Rs.$$30,000$$ respectively with the profit sharing ratio $$3:1$$. The new ratio is $$5:3$$. The goodwill is valued Rs.$$80,000$$ as on the date. Amount payable by a gaining partner to a scarifying partner is
  • B will pay to D Rs.$$10,000$$
  • D will pay to B Rs.$$10,000$$
  • B will pay to D Rs.$$80,000$$
  • D will pay to B Rs.$$80,000$$
On the admission of a new partner, it is believed that the assets have changed in value. to record a decrease in the value of an asset the double entry should be _____________________.
  • Debit-Asset A/c, Credit-Capital A/c
  • Debit-Asses A/c, Credit-Revaluation A/c
  • Debit-Revaluation A/c, Credit-Capital A/c
  • Debit-Revaluation A/c, Credit-Asset A/c
Sometimes, all the partners including the new partner may agree no to alter the book value of assets and liablities even when they agree to revalue them. In order to record this, ______ is opened.
  • Revaluation A/c
  • Memorandum Revaluation A/c
  • Memorandum Goodwill A/c
  • Memorandum Suspense A/c
A & B are partner for $$5:3$$. The take C and new profit sharing ratio will be $$3:2:1$$. Profit of loss in revaluation is shared by __________.
  • A,B & C in $$5:3:2$$
  • A & B in $$3:2$$
  • A & B in $$5:3$$
  • A & B in scarifying ratio
Find the goodwll of the firm using capilatalization method from the following information:
Capital employed Rs.$$4,80,000$$
Rate of normal - $$15\%$$
Profits for the year Rs.$$90,000$$
  • Rs.$$4,20,000$$
  • Rs.$$3,11,000$$
  • Rs.$$1,20,000$$
  • Rs.$$2,20,000$$
R & S are in partnership sharing profit and losses at the ratio $$3:2$$. They take T as a new partner. Calculate the new profit sharing ratio, if T simply gets $$1/10$$th share of profit.
  • $$27:18:5$$
  • $$28:17:5$$
  • $$5:4:1$$
  • $$19:19:12$$
A & B are partners sharing profits & losses in the ratio of $$3:2$$. C was admitted to the firm and to introduce a capital of Rs.$$25,000$$. The new profit sharing ratio of A,B and C will be $$3:2:1$$ respectively. C is unable to fring in cash for his share of goodwill, partners therefore, decide to raise goodwill account in the books of the firm. They further decide to calculate goodwill on the basis of C's share in the profits and the capital contribution made by him to the firm. Before admission of C capital account balance of A & B was Rs.$$44,000$$ & Rs.$$36,000$$ respectively. Total goodwill to be raised in the books of the firm will be __________.
  • Rs.$$1,50,000$$
  • Rs.$$1,00,000$$
  • Rs.$$50,000$$
  • Rs.$$45,000$$
X & Y sharing profits in the ratio of $$3:1$$. They admit Z as a partner who pays $$Rs.4,000$$ as goodwill the new profit sharing being $$2:1:1$$ among X,Y & Z respectively. The amount of goodwill will be credited to ___________.
  • X & Y as $$Rs.3,000$$ & $$Rs.1,000$$ respectively
  • X only
  • Y only
  • None of the above
R & S are in partnership sharing profit and losses at the ratio $$3:2$$. They take T as a new partner. Calculate the new profit sharing ratio, if T purchases $$1/10$$th share from R.
  • $$27:18:5$$
  • $$28:17:5$$
  • $$5:4:1$$
  • $$19:19:12$$
Y & W were in partnership sharing profit & losses equally. They admit S as a partner and decide to share profits equally. Goodwill is valued at Rs.$$60,000$$ but is to be immediately written off. The effect of this on Y's capital would be to ___________.
  • increase it by $$Rs.10,000$$
  • increase it by $$Rs.30,000$$
  • decrease it by $$Rs.20,000$$
  • decrease it by $$Rs.10,000$$
A & B are partners having capital of Rs.$$29,000$$ & Rs.$$15,000$$. Reserve shown in balance sheet was Rs.$$10,000$$. C is admitted as a new partner introducing a capital of Rs.$$21,000$$. New parofit sharing ratio is $$5:3:2$$. Profit on revaluation of assets & liabilities were Rs.$$5,000$$. C is to bring premium for goodwill in cash. Goodwill amount being calculated on the basis of C's share in the profits and capital contributed by him. Premium for goodwill to be brought in new partner C should be ________
  • Rs.$$30,000$$
  • Rs.$$25,000$$
  • Rs.$$15,000$$
  • Rs.$$5,000$$
A & B are partner sharing profits and losses in the ratio of $$3:2$$. C is coming as a new partner for $$1/3$$rd share. Calculate new profit sharing ratio among A, B & C.
  • $$6:4:5$$
  • $$5:4:6$$
  • $$3:2:3$$
  • $$2:3:3$$
A & B are equal partners. They admit C and D as partners with $$1/5$$th and $$1/6$$th share respectively. What is the profit sharing ratio of all the partners?
  • $$27:18:5:6$$
  • $$28:17:5:6$$
  • $$5:4:5:6$$
  • $$19:19:12:10$$
A & B are partners sharing the profit in the ratio of $$3:2$$. They take C as the new partner, who is supposed to bring Rs. $$50,000$$ against capital and Rs. $$20,000$$ against goodwill. New profit sharing ratio is $$1:1:1$$. C brought cash for his share of Capital and agreed to compensate to A and B outside the firm. How this will be treated in the books of the firm?
  • Cash brought in by C will only be credited to his capital account. 
  • Goodwill will be raised to full value in old ratio. 
  • Goodwill will be raised to full value in new ratio. 
  • Cash brought by C will be credited to his account and debited with his share of goodwill, which will be debited to A and B's account in sacrificing ratio. 
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.
  • Rs. $$33,333$$
  • Rs. $$30,000$$
  • Rs. $$23,333$$
  • Rs. $$43,667$$
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