CBSE Class 12 Accountancy Admission Of Partner Worksheet Set B

Question. A, B, C, and D are partners. A and B share 2/3rd of profits equally and C and D share remaining profits in the ratio of 3:2. Find the profit sharing ratio of A/ B, C and D.
(a) 5:5:3:2
(b) 7:7:6:4
(c) 2.5:2.5:8:6
(d) 3:9:8:3

Answer: A

Question. X and Y are partners in a firm with capital of Rs.180000 and Rs.200000. Z was admitted for 1/3rd share in profits and brings Rs.340000 as capital. Calculate the amount of goodwill
(a) 240000
(b) 100000
(c) 150000
(d) 300000

Answer: D

Question. Match the following with respect to journal entries for treatment of goodwill.


(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. General reserve at the time of admission of a partner is transferred to:
(a) Revaluation a/c
(b) Partners’ capital a/c
(c) Neither of two
(d) Profit and loss a/c

Answer: B

Question. A and B are partners sharing profits and losses in the ratio of 5:3. On admission, C brings Rs.70000 as capital and Rs.43000 against goodwill. New profit ratio between A, B and C is 7:5:4. The sacrificing ratio of A and B is:
(a) 3:1
(b) 1:3
(c) 4:5
(d) 5:9

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. 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. If at the of admission, some balance of profit and loss account appears in the books, it will be transferred to :
(a) Profit and loss adjustment account
(b) All partners’ capital account
(c) Old partners’ capital account
(d) Revaluation account

Answer: C

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. When a new partner brings his share of goodwill in cash, the amount is debited to:
(a) Cash account
(b) Capital accounts of the new partner
(c) Goodwill account
(d) Capital accounts of the old partner

Answer: A

Question. The balance in the investment fluctuation fund after meeting the fall in book value of investment, at the time of admission of partner will be transferred to:
(a) Revaluation account
(b) Capital accounts of old partners
(c) General reserve
(d) Capital account of all partners

Answer: B

Question. The proportion in which old partners make a sacrifice:
(a) Ratio of capital
(b) Ratio of sacrifice
(c) Gaining ratio
(d) Profit sharing ratio

Answer: B

Question. If the new partner brings his share of goodwill in cash, it will be shared by old partners in:
(a) Sacrificing ratio
(b) Old profit sharing ratio
(c) New ratio
(d) Capital ratio

Answer: A

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. New partner may be admitted to partnership:
(a) With the consent of all the old partners
(b) With the consent of any one partner
(c) With the consent of 2/3rd of the old partners
(d) With the consent of 3/4th of the old partners

Answer: A

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. 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. When goodwill is not recorded in the books at all on admission of a partner:
(a) If paid privately
(b) If brought in cash
(c) If not brought in cash
(d) If brought in kind

Answer: A

Question. At the time of admission of a new partner, the entry for unrecorded investment will be:
(a) Dr. Investment A/c and Cr. Revaluation A/c
(b) Dr. Partners’ Capital A/c and Cr. Investment A/c
(c) Dr. Revaluation A/c and Cr. Investment A/c
(d) None of the above

Answer: A

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

True Or False:

Question. “Unless agreed otherwise, Sacrificing Ratio of the old partners will be the same as their Old Profit Sharing Ratio”.
Answer: True

Question. Hidden goodwill arises when total capital is computed based on the new partner’s capital is less than total capitals of remaining partners after all adjustments.
Answer: False

Question. New partner may or may not contribute capital at the time of admission.
Answer: True

Question. New partner may bring his share of goodwill premium in kind.
Answer: True

Question. Employee Provident Fund is a part of Accumulated profits and reserves.
Answer: False

Question. The need for valuation of goodwill also arises when the firm is dissolved involving sale of business as a going concern.
Answer: True

Question. New partner brings goodwill in the firm to get share in the past profits.
Answer: False

Question. At the time of admission, reserves may be carried forwarded by the partners.
Answer:True

Question. “As per Section 26 of the Indian Partnership Act, 1932, a person can be admitted as a new partner if it is agreed in the Partnership Deed”. 
Answer: False

Question. Claim of workmen compensation if more than workmen compensation reserve, is debited to revaluation account.
Answer: True

Fill in the blanks :

Question. In case of upward revaluation of a liability, revaluation account is …………….
Answer: Debited

Question. A and B are partners sharing profits equally. They admit C for 1/3 share in profits. A debtor whose dues of Rs.5000 were written off as bad debts, paid Rs.4000 in full settlement. Bad debts recovered Rs.4000 will be debited to …………and credited to ……………
Answer: Cash account, revaluation account

Question. On the admission of a new partner, after revaluation has been done, the value of assets and liabilities appear in the books of the firm at………….
Answer: their current value

Question. At the time of admission of a partner, new profit sharing is used for sharing future………
Answer: Profit

Question. when the value of goodwill of the firm is not given but has to be inferred on the basis of net worth of the firm, it is called……………
Answer: Hidden goodwill

Question. At the time of admission, it the book value and the market value of investment is same then investment fluctuation reserved is transferred to …………….account of the old partners in their ………..ratio. 
Answer: Capital accounts of old partners, old profit sharing ratio

Question. At the time of admission, the assets are revalued and liabilities are reassessed. The increase or decrease in the values is debited or credited in ……………..
Answer: Revaluation account

Question. Revaluation account is a …………………
Answer: Nominal account

Question. The newly admitted partner brings his/ her share of capital for which he/she will get ……….in firm.
Answer: Profit share

Question. Goodwill appearing in the books oat the time of admission of a new partner is written off by debiting …………..and crediting …………
Answer: Old partners'capital accounts, goodwill account