1. CLASS-XII -   ACCOUNTANCY

ADMISSION OF A NEW PARTNER

Q. 1.  Premium brought by newly admitted partner should be:

1. Credited to all partners in the new profit sharing ratio
2. Credited to old partners in the old profit sharing ratio
3. Credited to only gaining partners
4. Credited to sacrificing partners

Ans : (d) Credited to sacrificing partners

Q. 2.  At the time of admission of a partner, Employees Provident Fund is:

1. Distributed to partners in the old profit sharing ratio
2. Distributed to partners in the new profit sharing ratio
3. Adjusted through gaining ratio
4. None of the above

Ans : (d)None of the above

Q. 3 At the time of admission of a new partner, the balance of Workmen Compensation Reserve will be transferred to:

1. Sacrificing partners in the sacrificing ratio
2. Revaluation Account
3. Old partners in the old profit sharing ratio
4. All partners in the new profit sharing ratio

Ans : (c) Old partners in the old profit sharing ratio

Q.4  Which of the following is not the reconstitution of partnership?

1. Admission of a partner
2. Change in Profit Sharing Ratio
3. Retirement of a partner
4. Dissolution of Partnership

Ans: (d) Dissolution of Partnership

Q. 5. Which of the following is not true with respect to Admission of a partner?

1. A new partner can be admitted if it is agreed in the partnership deed.
2. If all the partners agree, a new partner can be admitted.
3. A new partner has to bring relatively higher capital as compared to the existing partners
4. A new partner gets right in the assets of the firm

Ans: (c) A new partner has to bring relatively higher capital as compared to the existing partners

Q. 6.  On the admission of a new partner:

1. Both old partnership and firm are dissolved
2. Old firm is dissolved
3. Old partnership is dissolved
4. None of the above

Ans :  (c) Old partnership is dissolved

Q. 7.  Rajeev and Rakesh 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 Ramesh with 1/5 share. Ramesh brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.

1. Rs. 85,000
2. Rs.1,00,000
3. Rs.20,000
4. None of the above

Ans : (a)  Rs. 85,000

Q. 8   Reena and Kareena are partners sharing profits in the ratio of 2:1. They admit Karishma  into partnership for 25% share of profit. Karishma acquired the share from old partners in the ratio of 3:2. The new profit sharing ratio will be:

(a) 31:14:15

(b) 14 :31:15

(c)  3:2:1

(d) 2:3:1

Ans : (a) 31:14:15

Q. 9 A and B are partners sharing profit and losses in ratio of 5:3. C is admitted for 1/4^th share. On the date of reconstitution, the debtors stood at Rs 40,000, bill receivable stood at Rs. 10,000 and the provision for doubtful debts appeared at Rs. 4000. A bill receivable, of Rs 10,000 which was discounted from the bank, earlier has been reported to be dishonored. The firm has sold, the debtor so arising to a debt collection agency at a loss of 40%. If bad debts now have arisen for Rs 6,000 and firm decides to maintain provisions at same rate as before then amount of Provision to be debited to Revaluation Account would be:

1. Rs 4,400
2. Rs 4,000
3. Rs 3,400
4. None of the above

Ans: (c) Rs. 3,400

Q. 10.  Ridhima and Sakshi 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 Deepti with 1/5 share. Deepti brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.

1. Rs.1,00,000
2. Rs.20,000
3. Rs.85,000
4. None of the above

Ans: (c) Rs. 85,000

Q.11  Sacrificing ratio is used to distribute ------------------ in case of admission of a partner.

1. Goodwill
2. Revaluation Profit or Loss
3. Profit and Loss Account (Credit Balance)
4. Both b and c

Ans : (a) Goodwill

Q. 12.  As per ---------, only purchased goodwill can be shown in the Balance Sheet.

1. AS 37
2. Section 37
3. AS 37
4. AS 26

Ans: (d)  AS 26

Q. 13 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:

1. ₹60,000
2. ₹62,000
3. ₹1,00,000
4. ₹98,000

Ans: (a)  ₹60,000

Q. 14. Revaluation Account is a ------------ Account.

1. Real
2. Personal
3. Nominal
4. Liability

Ans : (c) Nominal

Q. 15. Harish and Ramesh are partners sharing profit and losses in ratio of 5:3. Sushil is admitted for 1/4^th share. On the date of reconstitution, the debtors stood at Rs 40,000, bill receivable stood at Rs. 10,000 and the provision for doubtful debts appeared at Rs. 4000. A bill receivable, of Rs 10,000 which was discounted from the bank, earlier has been reported to be dishonored. The firm has sold, the debtor so arising to a debt collection agency at a loss of 40%. If bad debts now have arisen for Rs 6,000 and firm decides to maintain provisions at same rate as before then amount of Provision to be debited to Revaluation Account would be:

1. Rs 4,400
2. Rs 4,000
3. Rs.3,400
4. None of the above

Ans: © Rs.3,400

Q. 16  The firm of A, B and C with profit sharing ratio of 6:3:1, had the balance in General Reserve Account amounting Rs. 1,80,000. D 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:

1. A will be credited by Rs. 54,000
2. A will be debited by Rs. 54,000
3. B will be credited by Rs. 36.000
4. C will be credited by Rs. 36,000

Ans : (a)A will be credited by Rs. 54,000

Q. 17. Which statement is true with respect to AS-26?

1. Purchased goodwill can be shown in the Balance Sheet
2. Revalued goodwill can be shown in the Balance Sheet
3. Both purchased goodwill and revalued can be shown in the Balance Sheet
4. None of the above

Ans: (a) Purchased goodwill can be shown in the Balance Sheet

Q. 18. Sacrificing ratio is calculated because:

1. Profit shown by Revaluation Account can be credited to sacrificing partners
2. Goodwill brought in by the incoming partner can be credited to the new partner
3. Goodwill brought in by the incoming partner can be credited to the sacrificing partners
4. Both a and c

Ans :(c) Goodwill brought in by the incoming partner can be credited to the sacrificing partners

Q. 19. 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

 

1.  i- B, ii-C, iii-A, iv-D
2. i- D, ii-B, iii-A, iv-C
3. i- D, ii-C, iii-A, iv-B
4. i- D, ii-C, iii-B, iv-A

 

Ans: (c) i- D, ii-C, iii-A, iv-B

Q. 20. If at the time of admission if there is some unrecorded liability, it will be -------------  to --     ------------ Account.

1. Debited, Revaluation
2. Credited, Revaluation
3. Debited, Goodwill
4. Credited, Partners’ Capital

Ans : (a) Debited, Revaluation