Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Change in Profit-Sharing Ratio and Admission of a Partner
CBSE Class 12 (Commerce) Accounting for Partnership Firms: Change in Profit-Sharing Ratio and Admission of a Partner — practice questions
81 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CBSE Class 12 (Commerce) Accounting for Partnership Firms: Change in Profit-Sharing Ratio and Admission of a Partner in the app →Unless the deed says otherwise, who must agree to admit a new partner?Which is a right that a newly admitted partner acquires in the firm?Why might a partnership firm admit a new partner?A new partner pays a premium for goodwill mainly to compensate whom?Which matter needs adjustment when a new partner is admitted?Which event can lead to reconstitution of a partnership firm?Anil and Vishal share 3:2. Sumit gets 1/5 from them in the old ratio. New ratio?Akshay and Bharati share 3:2. Dinesh takes 1/5 equally from both. New ratio?Anshu and Nitu share 3:2. Jyoti gets 3/10, taking 2/10 from Anshu and 1/10 from Nitu. New ratio?Ram (3/5) and Shyam (2/5) give a new partner 1/4 and 1/3 of their own shares. New ratio?Das and Sinha share 4:1. Pal gets 1/4, taken wholly from Das. New ratio?How is a partner's sacrifice found when the new ratio is given?Rohit and Mohit share 5:3. After Bijoy joins, the ratio is 4:2:1. Sacrificing ratio?Amar and Bahadur share 3:2; Mary gets 1/4 and Amar:Bahadur become 2:1. Sacrificing ratio?If nothing says how the new partner gets his share, from whom is it assumed to come?In what ratio do old partners share the premium for goodwill?How is goodwill classified in accounting?What goodwill does a firm that earns only normal profits have?A shop at a place with heavy customer traffic usually has what kind of goodwill?Which factor links monopoly or limited competition to a higher value of goodwill?Patents, trademarks and import licences raise goodwill as which kind of factor?A well-managed concern with high productivity and cost efficiency tends to have what?In a partnership, when does the need to value goodwill arise?Which is a recognised method of valuing goodwill?Past average profit is Rs. 20,000 and is expected to last three more years. Goodwill?Five-year profits (Rs.) were 4,00,000; 3,98,000; 4,50,000; 4,45,000; 5,00,000. Goodwill at 4 years' average?When profits show a rising or falling trend, which average may be used if specified?Profits were 20,000; 24,000; 30,000; 25,000; 18,000 with weights 1 to 5. Goodwill at 3 years' purchase?A firm earns Rs. 18,000 on capital of Rs. 1,50,000 at a normal rate of 10%. Super profit?Super profit is Rs. 3,000 a year and is expected for 5 years. Goodwill by super profits?Which items are left out of firm capital when finding normal profit?What is the excess of actual profit over normal profit called?Capital employed is Rs. 5,00,000, normal return 10%, average profit Rs. 60,000. Goodwill at 3 years' super proCapital 1,00,000 at 15%; two partners' salary 6,000 each; average profit 36,000. Goodwill at 2 years' super prAverage profit Rs. 1,00,000, normal return 10%, net assets Rs. 8,20,000. Goodwill by capitalisation?Average profit is Rs. 90,000 and the normal rate of return is 15%. Capitalised value of average profits?Which liabilities count as outside liabilities when finding a firm's net assets?Assets excluding goodwill total Rs. 12,00,000 and outside liabilities Rs. 3,50,000. Firm's capital?When the new partner brings premium in cash, which account is credited first?Sunil and Dalip share 5:3. Sachin gets 1/5 and pays Rs. 4,000 goodwill. Sunil's credit if sacrifice is in old Goodwill is Rs. 20,000 and Ajay joins for 1/4 share. What premium does Ajay bring?Vijay and Sanjay (3:2) admit Ajay for 1/4; new ratio 2:1:1; Ajay pays Rs. 5,000. Vijay's credit?If old partners withdraw their share of the premium, which account is debited?Sachin pays Rs. 4,000 goodwill (Sunil 5/8, Dalip 3/8). If half is withdrawn, Sunil leaves what in business?When goodwill already stands in the books at admission, how is it treated?Goodwill of Rs. 12,000 in books is written off; Srikant and Raman share 3:2. Srikant's capital is debited by?Goodwill is valued at Rs. 24,000. Venkat is admitted for 1/3 share. His premium?Which account is debited if a new partner does not bring his share of goodwill?Share of goodwill is Rs. 50,000 but the new partner brings only Rs. 20,000. His current account is debited by?Chaudhary joins for 1/5 and brings no goodwill; goodwill is Rs. 30,000. His current account is debited by?How is hidden goodwill found when no value is given?A and B share equally with Rs. 45,000 capital each. C gets 1/3 and brings Rs. 60,000. Goodwill?Hem (3/5, Rs. 80,000) and Nem (Rs. 50,000) admit Sam for 1/5 with Rs. 60,000 capital. Goodwill?If goodwill is Rs. 1,10,000 and Sam has 1/5 share, his share of goodwill is?Does a new partner share in profits accumulated before his admission?Rajinder and Surinder (4:1) have general reserve Rs. 20,000 and a P&L debit of Rs. 10,000. Rajinder's net credTo whom is a debit balance of profit and loss account transferred at admission?In the Revaluation Account, how is an increase in the value of an asset recorded?How is an unrecorded asset treated in the Revaluation Account?A debit balance in the Revaluation Account shows what?Stock is written down by Rs. 5,000 and a building raised by Rs. 20,000. Old partners share 3:2. First partner'In what ratio is the Revaluation Account result shared among old partners?New ratio is 2:1:1 and C's capital is the base at Rs. 20,000. A's adjusted capital?A, B and C share 8:5:3 and move to 5:6:5. A's loss of profit share is?A, B, C change from 8:5:3 to 5:6:5. B and C gain in what ratio?Ram, Mohan, Sohan move from 3:2:1 to equal sharing. Who gains profit share?When profit ratio changes among old partners, who is credited for goodwill?A and B move from 3:2 to equal sharing; goodwill is Rs. 60,000. B pays A?A, B, C change from 5:3:2 to 2:3:5; goodwill Rs. 50,000. C is debited by?X, Y, Z share 3:2:1; X dies and Y and Z share equally. Y and Z gain in ratio?The sacrificing ratio is usually the same as which ratio?Before the new partner joins, who owns the firm's goodwill?Under AS 26, how should internally generated goodwill be treated?Purchased goodwill kept in books should be written off over at most how long?AS 26 defines an intangible asset as identifiable and what else?Two equal partners admit C for 1/3, taken equally from both. New ratio?A and B share 2:1; with C the ratio becomes 3:2:1. Who sacrifices?Two equal partners admit C and the ratio becomes 2:1:2. Their sacrificing ratio?Profits were 16,000; 20,000; 24,000; 32,000 on capital Rs. 1,00,000 at 18%. Goodwill at 3 years' super profit?Average profit Rs. 90,000, capital Rs. 8,00,000, normal rate 10%. Goodwill at 4 years' super profit?Giri and Shanta share equally. Kachroo pays Rs. 20,000 goodwill for 1/5, old-ratio sacrifice. Giri is credited