CBSE Class 12 Accountancy Admission of A Partner Worksheet Set 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. 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. Sacrificing ratio is used to distribute ------------------ in case of admission of a partner.
a) Premium of Goodwill
b) Revaluation Profit or Loss
c) Profit and Loss Account (Credit Balance)
d) Both b and c
Answer. A

Question. At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve ₹ 2,80,000. Claim for workmen compensation ₹2,20,000.
(A) ₹ 2,80,000 Debited to the Partner’s capital Accounts.
(B) ₹ 2,20,000 Debited to Revaluation Account.
(C) ₹ 60,000 Credited to the Partner’s capital Accounts.
(D) ₹ 60,000 to Debited Revaluation Account.
Answer. C

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. Rs.1,00,000
b. Rs. 85,000
c. Rs.20,000
d. None of the above
Answer. B

Question. Yash and Manan are partners sharing profits in the ratio of 2:1. 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. Riya and Diya are partners as per provisions of Indian Partnership Act 1932. On admission of a new partner Megha for 20% share, a revaluation account is prepared. Megha claims to have equal share in revaluation profits. Choose the correct accounting treatment.
a) Megha’s share of revaluation profit is equal.
b ) Megha’s share of revaluation profit is 20%.
c) Megha’s share is revaluation profit is nil
d) none of the above.
Answer. C

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) Rs.85,000
b) Rs.1,00,000
c) Rs.20,000
d) None of the above
Answer. A

Question. At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve ₹40,000. Claim for workmen compensation ₹45,000.
(A) ₹45,000 Debited to the Partner’s capital Accounts.
(B) ₹40,000 Debited to Revaluation Account.
(C) ₹5,000 Debited to Revaluation Account.
(D) ₹5,000 Credited to Revaluation Account.
Answer. C

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. 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. Revaluation of liabilities at the time of admission of a partner shows a gain in its revaluation process. It indicates that their present value is ………(i)................ from
their ……(ii)…….
(A ) (i) Less (ii) Book Value.
(B) (i) More (ii) Book Value.
(C) ) (i) Less (ii) Fixed Asset
(D) ) (i) More (ii) Current Asset.
Answer. A

Question. Daisy and Jasmine were partners in a firm in the ratio 3:1. Their Balance Sheet showed Land & Building at ₹ 3,00,000; Stock at ₹ 1,10,000; Patents ₹ 1,12,000 Debtors at ₹1,02,000 and Creditors at ₹ 80,000. Lily was admitted and new profit-sharing ratio was agreed at 5:4:1. Stock was revalued at ₹ 6,70,000, Patents of ₹ 12,000 becomes useless ,Creditors of ₹ 25,000 are not likely to be claimed, Debtors requires a Provision for doubtful debts @ 5%. Daisy’s share in profit on revaluation amounted to ₹ 30,000. Revalued value of Land & Building will be:
(A) ₹ 2,25,000
(B) ₹ 2,15,000
(C) ₹ 3,15,000
(D) ₹ 3,75,000
Answer. D

Question. Mohan and Rakesh were partners sharing profits and losses in the ratio of 2:1. On 1st April,2021 they admitted Ashad as a new partner and new ratio was decided as 2:1:1. Goodwill of the firm was valued as ₹4,80,000. Ashad couldn’t bring any amount for goodwill. Amount of goodwill share to be credited to Mohan and Rakesh Account’s will be: -
(A) ₹ 60,000 and ₹ 60,000 respectively
(B) ₹ 80,000 and ₹ 80,000 respectively
(C) ₹ 40,000 and ₹ 80,000 respectively
(D) ₹ 80,000 and ₹ 40,000 respectively
Answer. D

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. 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. 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. 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:
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 debited by Rs. 36,000
Answer. A

Question. Which statement is true with respect to AS-26?
a) Purchased goodwill can be shown in the Balance Sheet assets side.
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. 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. 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. At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve ₹ 2,80,000. Claim for workmen compensation ₹2,20,000.
(A) ₹ 2,80,000 Debited to the Partner’s capital Accounts.
(B) ₹ 2,20,000 Debited to Revaluation Account.
(C) ₹ 60,000 Credited to the Partner’s capital Accounts.
(D) ₹ 60,000 to Debited Revaluation Account.
Answer. C

Question. Revaluation Account is a ------------ Account.
a) Real
b) Nominal
c) Personal
d) Liability
Answer. B

Question. Match the following:
i. Sacrificing Ratio              A Nominal Account
ii. Gaining Ratio                 B Reconstitution of Partnership
iii. Revaluation Account      C New Ratio – Old Ratio
iv. Admission of a Partner   D Old Ratio – New Ratio
a) i- B, ii-C, iii-A, iv-D
b) i- D, ii-B, iii-A, iv-C
c) i- D, ii-C, iii-A, iv-B
d) i- D, ii-C, iii-B, iv-A
Answer. C

Question. Match the following with respect to journal entries for treatment of goodwill.
i. Incoming partner brings his                     A No Entry
share of goodwill         
ii. Incoming partner does not bring             B Premium for Goodwill A/c Dr. Incoming Partner’s Capital A/c Dr.
his share of goodwill                                     To Sacrificing Partners Capital A/c
iii. Incoming partner pays his share            C Premium for Goodwill A/c Dr.
of goodwill privately                                     To Sacrificing Partners Capital A/c
iv. Incoming partner brings only a part of    D Incoming Partner’s Capital A/c Dr.
his share of goodwill                                      To Sacrificing Partners Capital A/c
a) i- B, ii-C, iii-A, iv-D
b) i- C, ii-D, iii-A, iv-B
c) i- D, ii-C, iii-A, iv-B
d) i- D, ii-C, iii-B, iv-A
Answer. B

Question. Distribution of ‘General Reserve’ at the time of change in profit sharing ratio of existing partners is shared by (i) whereas in case of admission of a partner it is shared by (ii) .
(A) (i) Remaining Partners, (ii) All Partners.
(B) (i) All Partners, (ii) Old partners.
(C) (i) New Partner, (ii) All partner.
(D) (i) Sacrificing Partner, (ii) Incoming partner.
Answer. B

Question. Amar and Prem are partners in a firm sharing profits and losses in the ratio of 3:1. Balance Sheet (Extract)
Liabilities ₹           Assets ₹
                      Land & Building 30,00,000
If the value of Land & Building reflected in the balance sheet is undervalued by 16 4/6
%, find out the value of Land & Building to be shown in the new Balance Sheet:
(A) ₹ 25,00,000
(B) ₹ 36,00,000
(C) ₹ 24,00,000
(D) ₹35,00,000
Answer. D

Question. Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by (i) whereas in case of admission of a partner it is shared by (ii) .
(A) (i) Remaining Partners, (ii) All Partners.
(B) (i) All Partners, (ii) Old partners.
(C) (i) New Partner, (ii) All partner.
(D) (i) Sacrificing Partner, (ii) Incoming partner.
Answer. B

Question. Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1. Balance Sheet (Extract)
Liabilities ₹                    Assets ₹
                                    Machinery 40,000
If the value of machinery reflected in the balance sheet is overvalued by 33 %, find out the value of Machinery to be shown in the new Balance Sheet:
(A) ₹ 44,000
(B) ₹48,000
(C) ₹ 32,000
(D) ₹30,000
Answer. D

Question. At the time of reconstitution of a partnership firm, recording of an unrecorded liability will lead to:
(A) Gain to the existing partners
(B) Loss to the existing partners
(C) Neither gain nor loss to the existing partners
(D) None of the above
Answer. B

Question. At the time of reconstitution of a partnership firm, recording of an unrecorded prepaid insurance of Rs. 3,300 will lead to:
(A) Loss to the existing partners
(B) Gain to the existing partners
(C) Neither gain nor loss to the existing partners
(D) None of the above
Answer. B

Question. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Revaluation A/c is prepared at the time of Admission of a partner.
Reason (R): The profit or loss on the revaluation of assets and liabilities, on reconstitution of firm, is related to old partners in their old raio.
In the context of the above two statements, which of the following is correct?
Codes:
(A) Both (A) and (R) are correct and (R) is the correct reason of (A).
(B) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(C) Only (R) is correct.
(D) Both (A) and (R) are wrong.
Answer. A

Question. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R)
Assertion (A): On reconstitution of a firm, ‘Interest on Drawings’ is shown in P & L Appropriation A/c.
Reason (R): On admission of a partner, ‘ Interest on Drawings’ are charge against the profits.
In the context of the above statements, which one of the following is correct?
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
Answer. A

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