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Admission of a Partner

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

[1] Reserve appearing in the Balance Sheet at the time of admission of a partner, is distributed among partners in their (a)   Ratio.

2.

At the time of admission, the assets are revalued and liabilities are reassessed. The increase or decrease in the values is debited or credited in (a)   Account.

3.

Sacrificing ratio is computed at the time of (a)  

4.

At the time of admission, Gain (Profit) or Loss on revaluation is shared by the old partners

in their (a)   ratio.

5.

Revaluation account is a (a)   account.

6.

In the case of downward revaluation of an asset, Revaluation Account is (a)   .

7.

At the time of admission of a partner new profit-sharing ratio is used for sharing future (a)  

8.

At the time of admission, if the book value and the market value of investment is same Investment Fluctuation Reserve is transferred to __________ account of the old partners in their ______________ ratio.

(a)  

9.

A, B and C share profits and losses in the ratio of 3:2:1. On admission of D, they agree to share profits and losses in the ratio of 5:4:2:1.Sacrificing Ratio of A, B and C will be (a)   .

10.

The formula for calculating Super profit is Average Profit – (a)   Profit.

11.

Q1 When goodwill is not recorded in the books at all on admission of a partners ?

a)

If paid privately

b)

If brought in cash

c)

If not brought in cash

d)

If brought in Kind

12.

The Need of revaluation of assets and liabilities on admission

a)

Assets and Liabilities should appears at revised values

b)

Any profit and loss an account of change in values belong to old partners

c)

All unrecorded assets and liabilities get recorded

d)

None of Above

13.

When new partner brings cash for goodwill , the amount is credited to :


a)

Realisation Account

b)

Cash account

c)

Premium for Goodwill Account

d)

Revaluation Account

14.

The balance in the investment Fluctuation fund after meeting the fall in book value of investment , at the time of admission of partner will transferred to :


a)

Revaluation Account

b)

Capital Account of old Partners

c)

General Reserve

d)

capital Account of All Partners

15.

A and B are Partners sharing Profits in the ratio of 3:2. They Admit C for ¼ share who contributed Rs 30,000 for his share of goodwill. The total value of the goodwill of the firm will be :

a)

Rs 1,50,000

b)

Rs 1,20,000

c)

Rs 1,00,000

d)

Rs 1,60,000

16.

If the new partner brings any additional amount of cash other than his capital contributions then it is termed as :

a)

Capital

b)

Reserves

c)

Profits

d)

Premium for Goodwill

17.

X and Y are partners sharing profits and losses in the ratio of 3 : 2. Z is admitted for 1/5th share in profits which he gets from X. New profit sharing ratio will be

a)

12 : 8 : 5

b)

8 : 12 : 5

c)

2 : 2 : 1

d)

2 : 2 : 2

18.

A and B are partners sharing profit and losses in the ratio of 3 : 2. A's capital is Rs. 1,20,000 and B's capital is Rs. 60,000. They admit C for 1/5thshare of profits. C should bring as his capital

a)

Rs. 36,000

b)

Rs. 48,000

c)

Rs. 58,000

d)

(d) Rs. 45,000

19.

A and B are partners sharing profits and losses in the ratio 5 : 3. On admission, C brings by cheque Rs. 70,000 as Capital and Rs. 48,000 as Goodwill. New Profit-sharing Ratio among A, B and C is 7 : 5 : 4. Sacrificing ratio between A and B is :

a)

3 : 1

b)

4 : 7

c)

5 : 4

d)

2 : 1

20.

A and B are partners sharing profits in the ratio of 7 : 3. C is admitted as a new partner. "A" gave 1/7th of his share and "B" gave 1/3rd of his share to C. New Profit-sharing Ratio will be:

a)

6 : 2 : 2

b)

4 : 1 : 1

c)

3 : 2 : 2

d)

None