Practice Test

Q1) __ A/c is debited when unrecorded liability is brought into business. Show Answer

Q2) Excess of proportionate capital over actual capital represents ___. Show Answer

Q3) The Proportion in which old partners make a sacrifice is called _______ ratio. Show Answer

Q4) The ____ ratio is useful for making adjustment for goodwill among the old partners. Show Answer

Q5) If any asset is taken over by partner from the firm _______ account will be debited. Show Answer

Q6) In case of admission of a partner, the profit or loss on revaluation of assets and liabilities is shared by ____ partners. Show Answer

Q7) _______ A/c is an account where changes in the value of the assets or liabilities on revaluation are recorded. Show Answer

Q8) When the liabilities are reduced in value, Revaluation A/c is _____. Show Answer

Q9) New Ratio= Balance ratio x __________.ratio Show Answer

Q10) The Goodwill brought in by a new partner is shared by the old partners. Show Answer

Q11) The Goodwill brought in by the new partner is shared by all partners. Show Answer

Q12) Profit on revaluation account is distributed between the old partners on admission of a partner. Show Answer

Q13) The new partner must pay his share of goodwill in cash only. Show Answer

Q14) A new partner is admitted in the firm for getting additional capital and skill. Show Answer

Q15) The Credit balance of revaluation account means loss on revaluation account. Show Answer

Q16) If the goodwill account is raised up, goodwill account is debited. Show Answer

Q17) When goodwill is written off, goodwill amount is debited to all partners capital account in new ratio. Show Answer

Q18) On admission of a partner, the amount of goodwill brought in cash is credited to goodwill account. Show Answer

Q19) Goodwill is a tangible asset of the business. Show Answer

Q20) When some portion of profit sharing ratio is given to new partner, the profit sharing ratio of old partners does not change. Show Answer

Q21) Goodwill cannot be computed in terms of money. Show Answer

Q22) Amount of goodwill contributed by the new partner is credited to capital account of the old partner in their new ratio. Show Answer

Q23) When goodwill is withdrawn by the old partner in cash goodwill account is credited. Show Answer

Q24) New partner is entitled to get share in the general reserve of the existing partnership firm. Show Answer

Q25) When new partner does not bring cash for goodwill, the goodwill is raised in the books of the new firm. Show Answer

Q26) The credit balance of Revaluation A/c means profit on revaluation. Show Answer

Q27) The ____ ratio is useful for making adjustment for goodwill among the old partners. Show Answer

Q28) When new partner does not bring cash for goodwill, the goodwill is raised in the books of the new firm. Show Answer