CBSE Class 12 Accountancy Reconstitution of a Partnership Firm Admission of a Partner Advanced Questions

Question: The ratio in which the continuing partners acquire the outgoing partners share is called
a) New Profit sharing ratio
b) Gaining Ratio
c) Old Profit sharing ratio
d) None of the options

Answer: b

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) Y Sacrifice 1/10
b) X Sacrifice 1/10
c) Both
d) None of the options

Answer: a

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 old Profit sharing ratio
b) The Sacrificing ratio
c) The new profit sharing ratio
d) None of the options

Answer: b

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) old
c) new
d) none of these

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
a) The old profit sharing ratio
b) The new profit sharing ratio
c) The sacrificing ratio
d) None of the options

Answer: a

Question: If any asset is taken over by partner from the firm _________________ account will be debited.
a) revaluation
b) capital
c) asset
d) Profit and Loss Adjustment

Answer: b

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: The partners whose share Increase as a result of change in profit sharing ratio are known as
a) Sacrificing Partners
b) Gaining Partners
c) Sleeping Partners
d) None of the options

Answer: b

Question: When goodwill is withdrawn by old partners ________________ a/c is credited.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: 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: On the admission of a new partner, increase in the value of assets is debited to
a) Assets Account
b) Revaluation A/c
c) Profit & Loss Account
d) None of the options

Answer: a

Question: Profit & loss adjustment account, which
a) Increase value of the assets
b) Decrease Value of Liabilities
c) Both
d) None of the options

Answer: c

Question: Excess of proportionate capital over actual capital represents.......................
a) Equal capital
b) Surplus Capital
c) Deficit Capital
d) Gain

Answer: c

Question: Change in partnership agreement
a) Results in end of partnership business
b) Changes in the relationship among the partner
c) Dissolved the partnership firm
d) None of the options

Answer: b

Question: Revaluation account or Profit & loss adjustment account is
a) Nominal Account
b) Real Account
c) Personal Account
d) None of the options

Answer: a

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: A firm is reconstituted , whenever there is a
a) All of the options
b) Retirement of Existing Partner
c) Death of a partner
d) Admission of a new partner

Answer: a

Question: Account is debited when unrecorded liability is brought into business.
a) liability
b) revaluation
c) capital
d) current

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
a) 32000 and 16000 respectively
b) 40000 and 20000 Rs. Respectively
c) 60000 and 30000 Rs. Respectively
d) None of the options

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