A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner for 1/3 rd share in the profits of the firm. The new profit sharing ratio of A, B and C would be :
1.3 : 2 : 1
2. 3 : 2 : 2
3. 3 : 2 : 3
4.6 : 4 : 5
A, B and C are partners in a firm. If D is admitted as a new partner, then:
1. Old firm is dissolved
2. Old firm and old partnership is dissolved
3.Old Partnership is reconsitituted
4. None of these
A, Band Care three partners sharing profits and losses in the ratio of 4:3:2. D is admitted for 1/10 share, the new ratio will be :
1. 10 : 7 : 7 :4
2. 5 : 3 : 2 : 1
3. 4 : 3 : 2 : 1
4.None of these
Assets and Liabilities are shown at their revalued values in :
1. New Balance Sheet
2.Revaluation A/c
3.All Partner’s Capital A/c’s
4. Realisation A/c
At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:
1. All Partner’s Capital Accounts
2.New Partner’s Capital Account
3. Old Partners’. Capital Accounts
4. None of these
Balance sheet prepared after new partnership agreement, assets and liabilities are recorded at:
1.Original Value
2. Revalued Figure
3.At Realisable Value
4.Either of (a) or (b)
Calculate interest on drawing @12% p.a. for Abhishek if he withdraw ₹ 2,000 once in month :
1. ₹ 1,440
2. ₹ 1,200
3. ₹ 1,320
4.₹ 1,500
Excess of the credit side over the debit side of Revaluation account is:
1. Profit
2.Loss
3. Gain
4. Expense
For the firm, interest on partner’s drawings is a/an :
1. Expense
2. Income
3. Loss
4.Gain
Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by:
1.Spicer and Pegler
2.ICAI
3. Lord Elton
4. AICPA
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 :
1.₹ 12,000
2.₹ 10,000
3. ₹ 15,000
4. None of these
If a fixed amount is withdrawn on the first day of every quarter, the interest on total drawing will be calculated :
1.for 6 months
2.for 6.5 months
3. for 5.5 months
4.for 7.5 months
If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it will the transferred to:
1. Profit & Loss Appropriation A/c
2. All Partners’ Capital A/cs
3. Old Partners’ Capital A/cs
4. Revaluation A/c
In an Ordinary Partnership, maximum number of partners can be:
1.50
2.10
3.15
4.20
In partnership firm profits and losses are shared :
1. Equally
2. In the Ratio of Capitals
3.As per Agreement
4. None of these
In the absence of partnership deed, interest on capital will be given to the partners at:
1.6% p.a.
2. None of these
3. Real Account
4. None of these
In the absence of partnership deed, partners are not entitled to receive:
1.Salaries
2. Commission
3. Interest on Capital
4.All of these
In the absence of partnership deed, the partner will be allowed interest on the amount advanced to the firm:
1. @5%
2. @6%
3. @ 9%
4.@8%
In the absence ofany agreement, the profits or losses of the firm are shared:
1.Equally
2.In Capital Ratio
3. In Different Proportions
4.None o these
In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners :
1. Profit sharing ratio
2.Capital ratio
3. Sacrificing ratio
4. None of these
In which year did the Partnership Act passed ?
1. Year 1932
2. Year 1956
3.Year 1947
4.Year 1952
Interest on advance given to the firm is :
1. Ah appropriation
2.A gain
3.A charge
4. None of these
Interest on loan is :
1.Operating Expense
2.Direct Expense
3. Indirect Expense
4. All of these
Interest on partner’s capital is calculated on:
1.Opening Capital
2. Closing Capital
3.Average Capital
4.None of these
Interest payable on the capital of the partners is recorded in:
1. Profit & Loss A/c
2.Realisation A/c
3.Profit & Loss Appropriation A/c
4.None of these
Liability of Partners is :
1.Limited
2.Unlimited
3. Determined by partnerships Account
4. None of these
Partner’s salary is debited to :
1.Trading Account
2. Profit and Loss Account
3.Profit & Loss Appropriation Account
4.None of these
Partners’ current accounts are opened when their capital is:
1. Fixed
2. Fluctuating
3. Both (a) and (b)
4.None of these
Partnership Deed is also called :
1.Prospectus
2. Articles of Association
3. Principles of Partnership
4.Articles of Partnership
Partnership may be :
1.Limited
2.Unlimited
3.At will
4.All of these
Preparation of partnership agreement in writing is :
1.Compulsory
2.Voluntary
3. Partly Compulsory
4.None of these
Profit & Loss Appropriation Account is prepared to:
1.Create Reserve Fund
2. Find out Net Profit
3.Find out Divisible Profit
4. None of these
Profit or Loss on Revaluation is borne by:
1.Old Partners
2. New Partners
3. All Partners
4. Only Two Partners
Sacrificing ratio is ascertained at the time of:
1.Death of a partner
2.Retirement of a partner
3.Admission of a partner
4.None of these
Share of goodwill brought by new partner in case is shared by old partners in :
1.Sacrificing Ratio
2. Old Ratio
3.New Ratio
4.Equal Ratio
State the ‘true’ statement:
1.Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner
2.The new partner is liable for the past losses of the firm
3.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
4.When a partner is admitted, there is dissolution of firm
The amount of goodwill is paid by new partner :
1.for the payment of capital
2. for sharing the profit
3.for purchase of assets
4.None of these
The Current Account of the partners will always have:
1.Debit balance
2.Credit balance
3. Either of the two
4. None of these
The interest on capital accounts of partners under fixed capital method is to be credited to:
1.Partner’s Capital A/c
2.Profit & Loss A/c
3. Interest A/c
4.Partner’s Current A/c
The interest on partner’s drawings is debited to:
1.Partner’s Capital A/c
2. Profit and Loss A/c
3.Drawings A/c
4.P. & L. App. A/c
The interest on partners’ Capital Accounts under fluctuating method is to be credited to:
1. Profit & Loss A/c
2.Interest A/c
3.Partner’s Capital A/c
4.None of these
The relation of partners with the firm is that of:
1.An owner
2.An Agent
3. An owner and an agent
4.Manager
When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings:
1. for 616 months
2. for 6 months
3. for 516 months
4.for i month
When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited :
1. Partner’s Capital
2. Goodwill
3. Cash
4.Reserve
When time of withdrawals are not mentioned, interest on drawings is charged :
1. for 616 months
2. for 8 months
3.for 516 months
4. for 12 months
Which accounts are opened when the capitals are fixed?
1. Only Capital Accounts
2.Only Current Accounts
3. Liability Accounts
4. Capital and Current Accounts
Which of the following assets is compulsorily revalued at the time of admission of a new partner :
1.stock
2.Fixed Assets
3. Investment
4. Goodwill
Which of the following is an appropriation of profit?
1.Interest on Loan
2.Interest on Capital
3. Salary
4.Rent
Which one is not the feature of partnership?
1.Agreement
2. Sharing of Profit
3. Limited Liability
4.Two or more than two persons
X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :
1. ₹ 2,50,000
2.₹ 50,000
3. ₹ 1,00,000
4. ₹ 1,25,000