Practice Test

Q1) A new partner can be admitted with the consent of______ Show Answer

Q2) Scarifying ratio is different between________&______ Show Answer

Q3) Reserves created out of profit or balance in profit and loss account at the time of admission of a new partner must be transferred to the capital accounts of the old partners in the_______ Show Answer

Q4) Profit or loss revaluation is shared among the partners in_____ratio. Show Answer

Q5) Sometimes,all the partners including the new partner may agree not to alter the book value of assets and liabilities even when they agree to revalue them.In order to record this______is opened. Show Answer

Q6) The amount that the incoming partner pays for goodwill is known as_______ Show Answer

Q7) When required amount for premium for goodwill is brought in by new partner and this amount is immediately withdrawn by the old partner,then such premium for goodwill shared by old partner in________ Show Answer

Q8) When required amount for premium for goodwill is not brought in by new partner,goodwill account is raised in the books of the firm by debiting goodwill accoun t and crediting partners capital account in______ Show Answer

Q9) When required amount for premium for goodwill is not brought in by new partner,goodwill account is raised in the books of the firm by debiting goodwill account and crediting partners capitl account in old profit sharing ratio and written off in________if it is agreed not show goodwill in the books of the firm OR ALTERNATIVELY premium for goodwill should be adjusted through partners capital accounts partner's capital by debiting new partners share of goodwill to his account and crediting old partners capital account in_____ Show Answer

Q10) Guaranteed profit is generally given to____________ Show Answer

Q11) When a partner is given guarantee by the other partner,loss on such guarantee will be borne by_______ Show Answer

Q12) The effect of the revaluation of aasets and liabilities is recorded in_______ Show Answer

Q13) In which of the following account,accounting entriees are made on the basis of the different between book value and revalued figures ? Show Answer

Q14) If a partner on his admission pays to the other partner an amount for goodwill(also known as premium) and it is agreed that the partnership would be for a fixed term,then,if the firm is dissolved before the expiry of such a term,the parner will be entitled to a refund of a ratable amount of the premium so paid.However,such a refund canot beclaimed______ Show Answer

Q15) A and B are partners sharing profits and losses in the ratio of 3:2.C is coming as a new partner for 1/3rd share.Calculate new profit sharing among A,B and C. Show Answer

Q16) H and M are partners in a firm sharing profits and losses in the ratio of 2:5.They admit K as a new partner who will get 1/6th share in the profits of the firm.Calculate new profit sharing ratio H,M and K. Show Answer

Q17) R and S are in partnership sharing profits and losses in the ratio of 3:2.They take T as a new partner.Calculate the new profit sharing ratio.If T purchases 1/10th share from R. Show Answer

Q18) R and S are in partnership sharing profits and losses at the ratio of 3:2.They take T as a new partner.Calculate the new profit sharing ratio.If R & S agree to sacrifice 1/10th share to T in the ratio of 2:3. Show Answer

Q19) R and S are in partnership sharing profits and losses in the ratio of 3:2.They take T as a new partner.Calculate the new profit sharing ratio.If T simply gets 1/10th share of profit. Show Answer

Q20) A and B are equal partners.They admit C and D as partners with 1/5th and 1/6th sahre respectively.What is the sharing ratio of all partners ? Show Answer

Q21) N and Z are partners sharing profits and losses in the ratio of 5:3. They admitted C and agreed to give him 3/10th of the profit. What is new ratio after C's admission ? Show Answer

Q22) A and B are partners sharing profits in the ratio of 5:3,they admitted C giving him 3/10th share of profit.If C acquires 1/5 from A and 1/10 from B, new profit sharing ratio will be : Show Answer

Q23) A,B & C are partners sharing profits and losses in the ratio of 6:3:3,they agreed to take D into partnership for 1/8th share of profits.Find the new profit sharing ratio Show Answer

Q24) A and B are partners sharing profits and losses in the ratio of 3:2.C is coming as a new partner for 1/3rd share.Calculate scarifying ratio between A and B. Show Answer

Q25) A and B are partners sharing profits and losses in the ratio of 5:3.C is coming as a new partner for 1/6th share.Calculate scarifying ratio between A and B. Show Answer

Q26) X and Z are partners sharing profits and losses in the ratio of 5:3.Z is coming as a new partner.New profit sharing ratio among X,Y & Z will be 3:2:1.calculate scarifying ratio between X and Y. Show Answer

Q27) P and Q are partners sharing profit and losses in the ratio of 11:7.Z is coming as a new partner.New profit sharing ratio among X,Y & Z will be 11:9:5.Calculate scarifying ratio between X and Y. Show Answer

Q28) N and D are in partnership sharing profits and losses equally.They agreed to take G as a partner.New profit sharing ratio of N,D and G becomes 4:2:3.Scarificing ratio is______ Show Answer

Q29) A and B are eqal partners.They take C as a third partner for 1/3rd profit.Scarificing ratio is______ Show Answer

Q30) A,B & c are equal partners.They decided to take D as a partner.The new profit sharing ratio is 3:3:2:2.Scarificing ratio is_____ Show Answer

Q31) A and B are partnership sharing profit and losses in the ratio of 3.2.C is coming as a new partner who pays Rs.25,000 as premium for goodwill.The profit sharing ratio among A,B and C is qual.Premium money is retained in business which of the following journal entry is correct for sharing premium for goodwill ? Show Answer

Q32) A and B are partners in a firm sharing profits and losses in the ratio of 3:2.C joins the for 1/3rd share,and is to pay Rs.20,000 as premium for goodwill but cannot pay anything,As between A and B,they decided to share profits and losses equally.Required journal entry________ Show Answer

Q33) A and B are partners in a firm sharing profits and losses in the ratio of 3:2.C joins the firm for 1/3rd share,and is to pay Rs.40,000 as premium for goodwill but cannot pay anything,As between A and B,they decided to share profits and losses equally.Goodwill already appearing in balance sheet is 1,00,000.Required journal entry______ Show Answer

Q34) N and Z are partners in a firm sharing profits and losses in the ratio of 3:2. S joins the for 1/3rd share, and is to pay Rs.5,000 as premium for goodwill but cannot pay anything, As between N and Z, they decided to share profits and losses equally. It was agreed that goodwill has to be adjusted through partner's capital account.Required journal entry_____ Show Answer

Q35) H and M are partners in a firm sharing profits and losses in the ratio of 3:2.Their capitals are Rs.60,000 and Rs.40,000 repectively.They admit k as new partner who will get 1/6th share in the profits of the firm.K breing in Rs.25,000 as his capital.It was agreed that goodwill has to be adjusted through partner's capital account.Required journal entry______ Show Answer

Q36) A,B & C are in partnership sharing profits and losses in the ratio of 2:2:1.They want to admit D into Partnershipwith 1/5share. D breing in Rs.30,000 as capital and Rs.10,000 as premium for goodwill.If premium money is retained in business which of the following journal entry is correct for sharing premium for goodwill ? Show Answer

Q37) A & B are equal partners.They wanted to take C as a third partner and for this purpose goodwill was valued at Rs.1,20,000.The journal entry for adjustment of value of goodwill through partners capital accounts will be_______ Show Answer

Q38) A,B & C are equal partners.They decided to take D who brought in Rs.36,000 as goodwill.The new profit sharing ratio is 3:3:2:2. The journal entry for goodwill will be_______ Show Answer

Q39) A,B & C are equal partners.C wanted to retire for which value of goodwill is considered as Rs.90,000 The necessary journal entry will be_____ Show Answer

Q40) A,B and C are equal partners.D is admitted to the firm for one-fourth share.D brings Rs.20,000 capital and Rs.5,000 being half of the premium for good will.The value of goodwill of the firm is_______ Show Answer

Q41) A and B are partners with capitals of Rs.14,000 and Rs.28,000 respectively and sharing profits equally.They admitted C as third partner with 1/4 profits of the firm on the payment of Rs.16,800.The amount of hidden goodwill is_______ Show Answer

Q42) X and Y share profits and losses in the ratio of 2:1.They take Z as a partner and the new profit sharing ratio becomes 3:2:1.Z breing Rs.4,500 as premium for goodwill.The full value of goodwill will be_____ Show Answer

Q43) A and B are partners sharing the profit in the ratio of 3:2.They take C as the new partner,Who is supposed to breing Rs.25,000 against capital and Rs.10,000 against goodwill.New profit sharing ratio is 1:1:1.C is able to breing Rs.30,000 only.How this will be treated in the books of the firm Show Answer

Q44) A and B shares profit and loss equally.They admit C as an equal partner and assets were revaued as follow:Stock at Rs.20,000(book value Rs.12,000)Machinery at Rs.60,000 (book value Rs.55,000)Find the profits/loss on revaluation to be shared among A,B and C. Show Answer

Q45) A and B shares profit and loss equally.They admit C as an equal partner and assets were revaued as follow:Stock at Rs.10,000(book value Rs.12,000)Machinery at Rs.50,000 (book value Rs.55,000) Buliding would be appreciated by 10% (book value Rs.15,000) find the profit/loss on revaluation to be shared among A and B. Show Answer

Q46) A and B are partners sharing profit in the ratio of 5:3. C was admitted on the following terms.New profit sharing ratio will be 7:5:3.Machinery would be appreciated by 10%(book value Rs.1,80,000)Building would be depreciated by 6%(book value Rs.1,50,000) To create provision for bad debts 5% on debtors of Rs.40,000.Find the distribution of profit/loss on revaluation between A & B. Show Answer

Q47) C was admitted in a firm with 1/4th share of the profits of the firm.C contributes Rs.37,500 as his capital,A and B are other partners with the profit sharing ratio as 3:2.Find the required capital of A and B, If capital should be in profit sharing ratio taking C's as base capital: Show Answer

Q48) X and Y are partners sharing profits in the ratio 5:3 They admitted Z for 1/5th share of profits,for which he paid Rs.72,000 against capital and Rs.36,000 against goodwill,Find the capital balances for each partner taking Z's capital as base capital Show Answer

Q49) A and B are partners sharing profits and losses in the ratio of 3:2 ( A's capital is Rs.30,000 and B's Capital is Rs.15,000).They admitted C and agreed to give 1/5th share of profits to him.How much C shuold bring in towards his capital ? Show Answer

Q50) X and Y are partners sharing profits in the ratio of 3:1. They admit Z as a partner who paid Rs 40,000 as goodwill, the new profit sharing ratio being 2:1:1 among X,Y and Z respectively. The amount of goodwill will be credited to: Show Answer

Q51) X and Y are partners sharing profit in the ratio of 1:1. They admit Z for 1/5th share who contributed Rs 25,000 for his share of goodwill. The total value of the goodwill of the firm will be: Show Answer

Q52) 'A' and 'B' are partners in a business sharing profits in the ratio of 5:3. They admit 'C' as a partner with 1/4 share in the profits which he acquires 3/4 from 'A' and 1/4 from 'B'. He pays Rs 4,000 as his share of goodwill. 'A' and 'B' will be credited by Show Answer

Q53) A,B and C are equal partners in a firm with capital of Rs 16,800, Rs 12,600 and Rs 6,000 respectively with bills payable Rs 3,300; creditors Rs 6,000; cash Rs 600; debtors Rs 10,800; stock Rs 11,400; furniture Rs 2,400 and building Rs 19,500. E is admitted to the firm and brings Rs 9,000 as goodwill and Rs 15,000 as capital. Half the goodwill is withdrawn by old partners, and stock and furniture is depreciated by 10%. A provision of 5% on debtors is created and value of building is taken at Rs 27,000. The profit on revaluation will be- Show Answer