Accounts MCQ Class 12 : Accountancy MCQs for Class 12 with Answers Chapter 3 “Admission of a Partner“. Practicing CBSE RBSE and NCERT Accountancy MCQ Questions for Class 12 with Answers is one of the best ways to prepare for the CBSE Class 12 board exam.
Accountancy MCQs for Class 12 with Answers Chapter 3 Admission of a Partner with Answer
Question: The ratio in which the continuing partners acquire the outgoing partners share is called
a) Gaining Ratio
b) New Profit sharing ratio
c) Old Profit sharing ratio
d) None of the options
Answer: A
Question: Goodwill is _
(a) tangible asset
(b) intangible asset
(c) fictitious asset
(d) both (b) & (c)
Answer: B
Question: Which of the following is not the reconstitution of partnership?
a. Admission of a partner
b. Dissolution of Partnership
c. Change in Profit Sharing Ratio
d. Retirement of a partner
Answer: B
Question: P, Q and R are partners sharing profits in the ratio of 8:5:3. P retires. Q takes 3/16th share from P and R takes 5/16th share from P. What will be the new profit sharing ratio?
a) 1:1
b) 10:6
c) 9:7
d) 5:3
Answer: A
Question: Goodwill of the firm on the basis of 2 years’ purchase of average profit of the last 3 years is Rs. 25,000. Find average profit. Accountancy MCQs for Class 12 with Answers Chapter 3
(a) Rs. 50,000
(b) Rs. 25,000
(c) Rs. 10,000
(d) Rs. 2500
Answer: D
Question: In the event of death of a partner, the amount of general reserve is transferred to partners capital accounts in
a) The old profit sharing ratio
b) The new profit sharing ratio
c) the capital ratio
d) None of the options
Answer: A
Question: On the admission of a new partner:
a. Old partnership is dissolved
b. Both old partnership and firm are dissolved
c. Old firm is dissolved
d. None of the above
Answer: A
Question: X, Y and Z are partners sharing profits and losses in the ratio of 4:3:2. Y retires and surrenders 1/9th of his share in favour of X and the remaining in favour of Z. The new profit sharing ratio will be: Accountancy MCQs for Class 12 with Answers Chapter 3
a) 1:8
b) 13:14
c) 8:1
d) 14:13
Answer: B
Question: Calculate the value of goodwill at 3 years’ purchase when: Capital employed Rs. 2,50,000; Average profit Rs. 30,000 and normal rate of return is I0%.
(a) Rs. 3000
(b) Rs. 25,000
(c) Rs. 30,000
(d) Rs. 5,000
Answer: D
Question: On the Admission of a new partner, increase in the value of assets is debited to :
(a) P & L Adjustment Account
(b) Assets Account
(c) Old Partners’ Capital Accounts
(d) None of the above
Answer: B
Question: On the admission of a new partner, increase in the value of assets is debited to
a) Profit & Loss Account
b) Revaluation A/c
c) Assets Account
d) None of the options
Answer: C
Question: What are super profits | Accountancy MCQs for Class 12 with Answers Chapter 3
a)Actual profit – Normal Profit
b) Normal Profit – Actual profit
c) Actual profit + Normal Profit
d)None of the above
Answer: A
Question: Gaining ratio is used to distribute —————— in case of retirement of a partner.
a) Goodwill
b) Revaluation Profit or Loss
c) Profit and Loss Account (Credit Balance)
d) Both b and c
Answer: A
Question: Sacrificing ratio is used to distribute —————— in case of admission of a partner.
a. Goodwill
b. Revaluation Profit or Loss
c. Profit and Loss Account (Credit Balance)
d. Both b and c
Answer: A
Question: X and Y shares profits in the ratio of 2:3, how they decided to share profits equally in the future, Which partner will sacrifice and in which ratio
a) None of the options
b) X Sacrifice 1/10
c) Both
d) Y Sacrifice 1/10
Answer: D
Question: The net assets of the firm including fictitious assets of 5,000 are 85,000.The net liabilities of the firm are 30,000.The normal rate of return is 10% and the average profits of the firm are 8,000.Calculate the goodwill as per capitalization of super profits.
(a) Rs.20,000
(b) Rs. 30,000
(c) Rs. 25,000
(d) None of the above
Answer: B
Question: X, Y and Z are partners in a firm. Y retires and his claim including his capital and his share of goodwill is R. 1,20,000. He is paid partly in cash and partly in kind. A vehicle at Rs. 60,000 unrecorded in the books of the firm and the balance in cash is given to him to settle his account. The amount of cash to be paid to Y will be: Accountancy MCQs for Class 12 with Answers Chapter 3
a) Rs. 80,000
b) Rs. 60,000
c) Rs. 40,000
d) Rs. 30,000
Answer: A
Question: When the incoming partner brings his share of premium for goodwill in cash, it is adjusted by crediting to :
(a) His Capital Account
(b) Premium for Goodwill Account
(c) Sacrificing Partners’ Capital Accounts
(d) None of the above.
Answer: C
Question: Which of the following items are added to previous year’s profits for finding normal profits for valuation of goodwill.?
a)Loss on sale of fixed assets
b) Loss due to fire, earthquake etc
c) Undervaluation of closing stock
d) All of the above
Answer: D
Question: Himanshu and Naman share profits & losses equally. Their capitals were Rs.1,20,000 and Rs. 80,000 respectively. There was also a balance of Rs. 60,000 in General reserve and revaluation gain amounted to Rs. 15,000. They admit friend Ashish with 1/5 share. Ashish brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.
a. 1,00,000
b. 85,000
c. 20,000
d. None of the above
Answer: B
Question: At the time of retirement of a partner, share of retiring partner’s goodwill will be credited to —————- Capital Account(s).
a) Remaining Partner(s)
b) Retiring Partner’s
c) Both Sacrificing and Gaining Partner(s)
d) Gaining Partner(s)
Answer: B
Question: Revaluation account or Profit & loss adjustment account is
a) Real Account
b) Nominal Account
c) Personal Account
d) None of the options
Answer: B
Question: Under which method of valuation of goodwill, normal rate of return is not considered?
a)Loss on sale of fixed assets
b) Loss due to fire, earthquake etc
c) Undervaluation of closing stock
d) All of the above
Answer: C
Question: The partners whose share Increase as a result of change in profit sharing ratio are known as
a) Gaining Partners
b) Sacrificing Partners
c) Sleeping Partners
d) None of the options
Answer: A
Question: A and B were partners. They shared profits as A- ½; B- 1/3 and carried to reserve 1/6. B died. The balance of reserve on the date of death was Rs. 30,000. B’s share of reserve will be: Accountancy MCQs for Class 12 with Answers Chapter 3
a) Rs. 10,000
b) Rs. 8,000
c) Rs. 12,000
d) Rs. 9,000
Answer: C
Question: Following are the methods of calculating goodwill except:
a)Super profit method
b) Average profit method
c) Weighted Average profit method
d) Capital profit method
Answer: D
Question: Yash and Manan are partners sharing profits in the ratio of2:1. They admit Kushagra into partnership for 25% share of profit. Kushagra acquired the share from old partners in the ratio of 3:2. The new profit sharing ratio will be:
a. 14:31:15
b. 3:2:1
c. 31:14:15
d. 2:3:1
Answer: C
Question: A, B and C are partners in a firm, if D is admitted as a new partner :
(a) Old firm is dissolved
(b) Old firm and old partnership is dissolved
(c) Old partnership is reconstituted
(d) None of the above
Answer: C
Question: If goodwill is already appearing in the books of accounts at the time of retirement, then it should be written off in ————-.
a) New Ratio
b) Gaining Ratio
c) Sacrificing Ratio
d) Old Ratio
Answer: D
Question: The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called :
a)Surplus
b) Super profits
c) Reserve
d) Goodwill
Answe: D
Question: A and B are partners sharing profit and losses in ratio of 5:3. C is admitted for 1/4th share. On the date of reconstitution, the debtors stood at Rs 40,000, bill receivable stood at Rs. 10,000 and the provision for doubtful debts appeared at Rs. 4000. A bill receivable, of Rs 10,000 which was discounted from the bank, earlier has been reported to be dishonored. The firm has sold, the debtor so arising to a debt collection agency at a loss of 40%. If bad debts now have arisen for Rs 6,000 and firm decides to maintain provisions at same rate as before then amount of Provision to be debited to Revaluation Account would be: Accountancy MCQs for Class 12 with Answers Chapter 3
a.Rs 4,400
b.Rs 4,000
c.Rs 3,400
d.None of the above
Answer: C
Question: A firm is reconstituted , whenever there is a
a) Death of a partner
b) Retirement of Existing Partner
c) All of the options
d) Admission of a new partner
Answer: C
Question: When Goodwill is not purchased goodwill account can :
(a) Never be raised in the books
(b) Be raised in the books
(c)Be partially raised in the books
(d)Be raised as per the agreement of the partners
Answer: A
Question: As per Section 37 of the Indian Partnership Act, 1932, interest @ ———– is payable to the retiring partner if full or part of his dues remain unpaid.
a) 9% p.m.
b) 12% p.m.
c) 6% p.m.
d) None of the above
Answer: D
Question A, B and C were partners. Their partnership deed provided that they were to share profits as; A 26 per cent; B 34 per cent; C 40 per cent ; and that if a partner retires, his capital should remain in the business for a stated period at a fixed rate of interest, but that the retiring partner’s share should be credited with an amount for Goodwill, based upon one and a half year’s average profits, for the five years prior to his death, but be subject to deduction of 5 per cent from the book debts. C retired, and the profits of the firm for five years were agreed at Rs. 20,000; Rs. 30,000; Rs. 15,000 (loss); Rs. 5,000 (loss); and Rs. 45,000 respectively. Book Debts stood at Rs. 90,000.The share of Goodwill to be credited to C’s Account will be: Accountancy MCQs for Class 12 with Answers Chapter 3
a) Rs. 2,700
b) Rs. 6,300
c) Rs. 7,200
d) Rs. 3,600
Answer: C
Question: The goodwill of the firm is not affected by:
(a) Location of the firm
(b) reputation of the firm
(c)Better customer services
(d)None of the above
Answer: B
Question: Heena and Sudha share Profit & Loss equally. Their capitals were Rs.1,20,000 and Rs. 80,000 respectively. There was also a balance of Rs. 60,000 in General reserve and revaluation gain amounted to Rs. 15,000. They admit friend Teena with 1/5 share. Teena brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.
a.85,000
b.1,00,000
c.20,000
d.None of the above
Answer: A
Question: Profit & loss adjustment account, which
a) Increase value of the assets
b) Both
c) Decrease Value of Liabilities
d) None of the options
Answer: B
Question: Weighted average profit method of calculating goodwill is used when:
(a) Profits are not equal
(b) Profits show a trend
(c) Profits are fluctuating
(d)None of the above
Answer: B
Question: Z is admitted to a firm for 1/4 share in the profits for which he brings in Rs. 10000towards premium for goodwill, it will be taken by the old partners in
a) The new profit sharing ratio
b) The old Profit sharing ratio
c) the Sacrificing ratio
d) None of the options
Answer: C
Question: When the balance sheet is prepared after retirement (subsequent to preparation of Revaluation Account), ————- values are shown in it.
a) Historical
b) Realisable
c) Market
d) Revalued
Answer: D
Question: Which of the following is not true with respect to Admission of a partner?
a.A new partner can be admitted if it is agreed in the partnership deed.
b.If all the partners agree, a new partner can be admitted.
c.A new partner has to bring relatively higher capital as compared to the existing partners.
d.A new partner gets right in the assets of the firm
Answer: C
Question: Capital invested in a firm is 5,00,000.Normal rate of return is 10% .Average profit of the firm are 64,000(after an abnormal loss of 4,000).Value of goodwill at four times the super profits will be: Accountancy MCQs for Class 12 with Answers Chapter 3
(a) Rs.72,000
(b) Rs. 40,000
(c) Rs. 2,40,000
(d) 1,80,000
Answer: A
Question: Balance in the Investment Fluctuation Reserve, after meeting the loss on Revaluation of Investments, at the time of admission of a partner will be transferred to :
(a) Old Partners’ Capital Accounts
(b) Revaluation Account
(c) Sacrificing Ratio
(d) None of the above
Answer: A
Question: On retirement of a partner, debtors of Rs. 34,000 were shown in the Balance sheet. Out of this Rs. 4,000 became bad. One debtor became insolvent. 70% were recovered from him out of Rs. 10,000. Full amount is expected from the balance debtors. On account of this item loss in revaluation account will be:
a) Rs. 10,200
b) Rs. 3,000
c) Rs. 7,000
d) Rs. 4,000
Answer: C
Question: As per ———, only purchased goodwill can be shown in the Balance Sheet.
a. AS 37
b. AS 26
c. Section 37
d. AS 37
Answer: B
Question: X and Y are partners sharing profits in the ratio of 2:1, they admit Z into the partnership for 1/4th share in profits for which brings in Rs. 20000 as his share of capital. Hence the adjusted capital of X and Y will be | Accountancy MCQs for Class 12 with Answers Chapter 3
a) None of the options
b) 32000 and 16000 respectively
c) 60000 and 30000 Rs. Respectively
d) 40000 and 20000 Rs. Respectively
Answer: D
Question If at the time of retirement, there is some unrecorded asset, it will be ————- to ————- Account.
a) Debited, Revaluation
b) Credited, Revaluation
c) Debited, Goodwill
d) Credited, Partners’ Capital
Answer: B
Question: A, and B are partners sharing profits in the ratio of 2:3. Their balance sheet shows machinery at ₹2,00,000; stock ₹80,000, and debtors at ₹1,60,000. C is admitted and the new profit sharing ratio is 6:9:5. Machinery is revalued at ₹1,40,000 and a provision is made for doubtful debts @5%. A’s share in loss on revaluation amount to ₹20,000. Revalued value of stock will be:
a. ₹62,000
b. ₹1,00,000
c. ₹60,000
d. ₹98,000
Answer: C
Question: When goodwill is withdrawn by old partners ____ a/c is credited.
a) cash/bank
b) capital
c) revaluation
d) Profit and Loss Adjustment
Answer: A
Question: Anil, Bimal and Chetan are partners sharing their profits and losses in the ratio of 4:3:2. On 1.7.2013, Chetan retired and on that date the capitals of Anil, Bimal and Chetan after all necessary adjustments stood at Rs. 75,000, Rs. 65,000 and Rs. 45,000 respectively. Anil and Bimal continued to carry the business for 6 months without settling Chetan’s account. During the period of six months ending 31st December,2013, a profit of Rs. 50,000 is earned by the firm. Keeping Chetan’s interest in mind, the amount payable to Chetan will be: Accountancy MCQs for Class 12 with Answers Chapter 3
a) Rs. 1,350
b) Rs. 13,362
c) Rs. 12,162
d) Rs. 1,362
Answer: C
Question: At the time of admission of a partner, Employees Provident Fund is:
a. Distributed to partners in the old profit sharing ratio
b. Distributed to partners in the new profit sharing ratio
c. Adjusted through gaining ratio
d. None of the above
Answer: D
Question: Jay, Vijay and Ajay are three partners sharing profits in 3:2:1. They decided to admit Sanjay and give him 1/7th share, new profit sharing ratio of partners will be _____.
a) equal
b) 3:2:1:2
c) 3:2:1:1
d) 2:3:1:2
Answer: C
Question: If at the time of admission if there is some unrecorded liability, it will be ————- to — ———— Account.
a. Debited, Revaluation
b. Credited, Revaluation
c. Debited, Goodwill
d. Credited, Partners’ Capital
Answer: A
Question: Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in:
a) Gaining Ratio
b) Sacrificing Ratio
c) Capital Ratio
d) Profit Sharing Ratio
Answer: A
Question: If any asset is taken over by partner from the firm _____ account will be debited.
a) asset
b) revaluation
c) capital
d) Profit and Loss Adjustment
Answer: C
Question: At the time of admission of a new partner, the balance of Workmen Compensation Reserve will be transferred to:
a. Old partners in the old profit sharing ratio
b. Sacrificing partners in the sacrificing ratio
c. Revaluation Account
d. All partners in the new profit sharing ratio
Answer: A
Question: If the incoming partner is to bring Premium for Goodwill in cash and also a balance exists in Goodwill Account, then this Goodwill Account is written among Old Partners in :
(a) New Profit Sharing Ratio
(b) Old Profit Sharing Ratio
(c) Sacrificing Ratio
(d) None of the above
Answer: B
Question: As per section ———— of the Indian Partnership Act, a retiring partner becomes entitled to profits after retirement if his dues remain unpaid
a) Section 73
b) Section 26
c) Section 4
d) Section 37
Answer: D
Question The firm of P, Q and R with profit sharing ratio of 6:3:1, had the balance in General Reserve Account amounting Rs. 1,80,000. S joined as a new partner and the new profit sharing ratio was decided to be 3:3:3:1. Partners decide to keep the General Reserve unchanged in the books of accounts. The effect will be: Accountancy MCQs for Class 12 with Answers Chapter 3
a. P will be credited by Rs. 54,000
b. P will be debited by Rs. 54,000
c. P will be credited by Rs. 36.000
d. P will be credited by Rs. 36,000
Answer: A
Question: Excess of proportionate capital over actual capital represents…………………..
a) Equal capital
b) Surplus Capital
c) Deficit Capital
d) Gain
Answer: C
Question Which statement is true with respect to AS-26?
a. Purchased goodwill can be shown in the Balance Sheet
b. Revalued goodwill can be shown in the Balance Sheet
c. Both purchased goodwill and revalued can be shown in the Balance Sheet
d. None of the above
Answer: A
Question At the time of retirement, amount remaining in Investment Fluctuation Reserve after meeting the fall in value of Investment is:
a) Credited in Sacrificing Ratio
b) Credited in New Profit Sharing Ratio
c) Credited in Old Profit Sharing Ratio
d) Credited in Gaining Ratio
Answer: C
Question: Account is debited when unrecorded liability is brought into business.
a) liability
b) revaluation
c) capital
d) current
Answer: B
Question Premium brought by newly admitted partner should be:
a. Credited to sacrificing partners
b. Credited to all partners in the new profit sharing ratio
c. Credited to old partners in the old profit sharing ratio
d. Credited to only gaining partners
Answer: A
Question: The ratio which is computed to determine the sacrifice of the old partners made in favour of new partner which is admitted into partnership is : Accountancy MCQs for Class 12 with Answers Chapter 3
(a) Gaining Ratio
(b) Old Profit Sharing Ratio
(c) New Profit Sharing Ratio
(d) Sacrificing Ratio
Answer: D
Question: P, Q and R were partners in a firm in the ratio of 5:4:3. They admit S for 1/7 share. It is agreed that Q would retain his original share. ———– will be the sacrificing ratio between P and R.
a) 5:4
b) 1:1
c) 5:3
d) 4:3
Answer: C
Question: Sacrificing ratio is calculated because:
a. Profit shown by Revaluation Account can be credited to sacrificing partners
b. Goodwill brought in by the incoming partner can be credited to the new partner
c. Goodwill brought in by the incoming partner can be credited to the sacrificing partners
d. Both a and c
Answer: C
Question: The _ ratio is useful for making adjustment for goodwill among the old partners.
a) new
b) sacrifice
c) old
d) Profit and Loss Adjustment
Answer: B
Question: Aryaman and Bholu are partners sharing profit and losses in ratio of 5:3. Chirag is admitted for 1/4th share. On the date of reconstitution, the debtors stood at Rs 40,000, bill receivable stood at Rs. 10,000 and the provision for doubtful debts appeared at Rs. 4000. A bill receivable, of Rs 10,000 which was discounted from the bank, earlier has been reported to be dishonored. The firm has sold, the debtor so arising to a debt collection agency at a loss of 40%. If bad debts now have arisen for Rs 6,000 and firm decides to maintain provisions at same rate as before then amount of Provision to be debited to Revaluation Account would be:
a. Rs 4,400
b. Rs 4,000
c. 3,400
d. None of the above
Answer: C
Question: In case of admission of a partner, the profit or loss on revaluation of assets and liabilities is shared by _____ partners.
a) all
b) none of these
c) new
d) old
Answer: D
Question Revaluation Account is a ———— Account.
a. Real
b. Nominal
c. Personal
d. Liability
Answer: B
Question: The account which is prepared to adjust the increase or decrease in the value of assets at the time of admission of partner is called : Accountancy MCQs for Class 12 with Answers Chapter 3
(a) Realisation Account
(b) Revaluation Account
(c) P & L Account
(d) None of the above.
Answer: B
Question: Decrease in the value of Liabilities on reconstitution of the partnership firm results into
a) Gain to the Existing Partner
b) Loss to the Existing Partner
c) Neither Gain of loss to Existing partner
d) None of the options
Answer: A
Question: Change in partnership agreement
a) Dissolved the partnership firm
b) Results in end of partnership business
c) Changes in the relationship among the partner
d) None of the options
Answer: C
Question: General Reserve at the time of admission of a Partner is transferred to :
(a) Revaluation Account
(b) Old Partners’ Capital Accounts
(c) Neither of the two
(d) Both (a) and (b)
Answer: B
Question: If the incoming partner is to bring in premium for goodwill in cash and also a balance exists in the goodwill account, then this goodwill account is written of among the old partners in Accountancy MCQs for Class 12 with Answers Chapter 3
a) None of the options
b) The new profit sharing ratio
c) The sacrificing ratio
d) The old profit sharing ratio
Answer: D
Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Download
Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Free Download will help you. Accountancy MCQs for Class 12 with Answers Chapter 3 Admission of a Partner with Answer
