Accountancy MCQ – Class 12 – Chapter 5 – Admission of a partner – Part 1

1. . A and B are partners of a partnership firm sharing profits in the ratio of 3 : 2 respectively. C was admitted for 1/5th share of profit. Machinery would be appreciated by 10% (book value ₹80,000) and building would be depreciated by 20% (₹2,00,000). Unrecorded debtors of ₹1,250 would be brought into books now and a creditor amounting to ₹2,750 died and need not pay anything on this account. What will be profit/loss on revaluation?

2. In the absence of an express agreement as to who will contribute to new partners’ share of profi t, it is implied that the old partners will contribute :

3. If at the time of admission, some profit and loss account balance appears in the books, it will be transferred to :

4. A and B are partners sharing profits and losses in 3 : 2. They admit C into partnership for 330th share in the profits. A surrenders 13rd of his share and B surrenders 14th of his share in favour of C. Goodwill of the firm is valued at ₹3,00,000 but C is unable to bring his share of goodwill in cash. Credit will be given to :

5. Sacrificing ratio is used to distribute in case of admisstion of a partner :

6. A, B and C are partners sharing profits in ratio of 3 : 2 : 1. They agree to admit D into the firm. A. B and C agreed to give 1/3rd, 1/6th, 1/9th share of their profit. The share of profit of D will be :

7. X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z for 1/5th share of profits, for which he paid ₹1,20,000 against capital and 760,000 as goodwill. Find the capital balances for each partner taking Z’s capital as base capital.

8. A and B are partners sharing profits and losses in the ratio of 5 : 3. On admission, C brings ₹70,000 as cash and ₹43,000 against Goodwill. New profit ratio between A, B and C is 7 : 5 : 4. The sacrificing ratio of A and B is:

9. A and B are partners sharing profits in the ratio of 7 : 5. C is admitted into the partnership for 16th share which he acquires 124th from A and 18th from B. C does not pay anything for his share of goodwill. On C’s admission firm’s goodwill was valued at ₹1,80,000. Credit will be given to :

10. In case of admission of a partner, the entry for unrecorded investments will be:

11. Revaluation Account or Profit and Loss Adjustment A/c is a

12. If at the time of admission, there is some unrecorded liability, it will be :

13. When a new partner does not bring his share of goodwill in cash, the amount is debited to :

14. Ramesh and Suresh are partners sharing profits in the ratio of 2 : 1 respectively. Ramesh Capital is ₹1,02,000 and Suresh Capital is ₹73,000. They admit Mahesh and agree to give him 1/5th share in future profit. Mahesh brings ₹14,000 as his share of goodwill. He agrees to contribute capital in the new profit sharing ratio. How much capital will be brought by Mahesh?

15. If the new partner brings his share of goodwill in cash, it will be shared by old partners in :

16. X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z for 1/5th share of profits, for which he paid ₹1,20,000 against capital and 760,000 as goodwill. Find the capital balances for each partner taking Z’s capital as base capital.

17. If, at the time of admission, the revaluation A/c shows a profit, it should be credited to :

18. When the balance sheet is prepared after the new partnership agreement, the assets and liabilities are recorded at:

19. X and Tare partners sharing profits in the ratio of 4 : 3. Z is admitted for 1/5th share and he brings in ₹1,40,000 as his share of goodwill in cash of which ₹1,20,000 is credited to X and remaining amount to Y. New profit sharing ratio will be :

20. Goodwill of a firm of A and B is valued at ₹30,000. It is appearing in the books at ₹12,000. C is admitted for 1/4 share. What amount he is supposed to bring for goodwill?

21. When a new partner brings his share of goodwill in cash, the amount is debited to:

22. A and B are partners in a firm having capital balances of ₹54,000 and ?36,000 respectively. They admit C in partnership for 1/3rd share and C is to bring proportionate amount of capital. The capital amount of C would be :

23. If the incoming partner brings the amount of goodwill in Cash and also a balance exists in goodwill account, then this goodwill account is written off among the old partners in

24. A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows Machinery at ₹2,00,000; Stock at ₹80,000 and Debtors at ₹1,60,000. C is admitted and new profit sharing ratio is agreed at 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 :

25. A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill of the firm is valued at ₹3,00,000 and C brings ₹30,000 as his share of goodwill in cash which is entirely credited to the Capital Account of A. New profit sharing ratio will be :

26. A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership with 14th share in future profits. The new profit sharing ratio is 5 : 4 : 3. The firm’s goodwill on C’s admission was valued at ₹1,44,000. But C could not bring any amount for goodwill in Cash. Credit will be given to :

27. X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th profits, for which he paid ₹60,000 against capital and ₹30,000 against goodwill. Find the capital balance for each partner taking Z’s capital as base capital.

28. P, Q and R share profits in the ratio of 5 : 3 : 2. S is entitled for 15th share in profits which he acquires equally from P, Q and R. Goodwill of the firm is to be valued at three year’s purchase of last four year’s profits which are ₹50,000; ₹60,000; (-) ₹30,000 and ₹40,000. S cannot bring his share of goodwill in cash. Credit will be given to :

29. Sacrificing ratio is used to distribute in case of admisstion of a partner :

30. When a new partner brings goodwill in Cash, it is credited to :

31. A and B share profits and losses equally. They have ₹20,000 each as capital. They admit C as equal partner and goodwill was valued at ₹30,000. C is to bring in ₹30,000 as his capital and necessary cash towards his share of goodwill. Goodwill Account will not remain open in books. If profit on revaluation is ₹13,000, find the closing balance of the capital accounts.

32. X and Y are partners in a firm sharing profits in the ratio of 5 : 3. They admitted Z as a new partner. The new profit sharing ratio will be 4 : 3 : 2. The firm’s goodwill on Z’s admission was valued at ₹1,26,000. But Z could not bring any amount of goodwill in Cash. Credit will be given to :

33. 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.

34. A and B are partners sharing profits and losses in the ratio of 5 : 3. On admission, C brings ₹70,000 as cash and ₹43,000 against Goodwill. New profit ratio between A, B and C is 7 : 5 : 4. The sacrificing ratio of A and B is: