Reconstitution of partnership MCQ Quiz Questions with Answers for Class 12 set 2
Categories: Intermediate class MCQ Accountancy
Reconstitution of partnership MCQ Quiz Questions with Answers for Class 12 set 2
Q1. In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners:
- Profit sharing ratio
- Capital ratio
- Sacrificing ratio
- None of these
Answer: (c)
Q2. Sacrificing ratio is ascertained at the time of:
- Death of a partner
- Retirement of a partner
- Admission of a partner
- None of these
Answer: (c)
Q3. If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it will the transferred to:
- Profit & Loss Appropriation A/c
- All Partners’ Capital A/cs
- Old Partners’ Capital A/cs
- Revaluation A/c
Answer: (c)
Q4. State the ‘true’ statement:
- Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner
- The new partner is liable for the past losses of the firm
- In case the new partner is unable to bring in cash for goodwill, Goodwill Account may be raised in the firm’s books as per AS-26
- When a partner is admitted, there is dissolution of firm
Answer: (a)
Q5. Excess of the credit side over the debit side of Revaluation account is:
- Profit
- Loss
- Gain
- Expense
Answer: (a)
Q6. Balance sheet prepared after new partnership agreement, assets and liabilities are recorded at:
- Original Value
- Revalued Figure
- At Realisable Value
- Either of (a) or (b)
Answer: (b)
Q7. Assets and Liabilities are shown at their revalued values in :
- New Balance Sheet
- Revaluation A/c
- All Partner’s Capital A/c’s
- Realisation A/c
Answer: (a)
Q8. Goodwill is nothing more than the probability that the old customer will resort to the old place. This definition of goodwill was given by:
- Spicer and Pegler
- ICAI
- Lord Elton
- AICPA
Answer: (c)
Q9. Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be :
(a) ₹ 12,000
(b) ₹ 10,000
(c) ₹ 15,000
(d) None of these
Answer: (a)
Q10. When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited :
(a) Partner’s Capital
(b) Goodwill
(c) Cash
(d) Reserve
Answer: (b)