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ADMISSION & RETIREMENT

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

Gain of Revaluation at the time of retirement is transferred to:


a)

All Partners

b)

Outgoing partner

c)

Remaining Partner

d)

Retiring Partner

2.

Gaining ratio is calculated by


a)

Old ratio – new share

b)

Old share + acquired share

c)

New share – old share

d)

New share + old share

3.

Gaining ratio is calculated at the time of

a)

Admission of a partner

b)

Retirement of a Partner

c)

Dissolution of a partnership firm

d)

(d) Both (a) and (c)

4.

If Goodwill is appearing in the balance sheet , it will be Credited to


a)

Gaining partner

b)

Retiring partners

c)

All partners

d)

Remaining Partners’

5.

A, B, C are partners sharing profit and losses in the ratio of 4:3:1: B retires and gives his share of profit to A Rs. 3,600 and C Rs. 4,500. What is the Gaining sharing ratio of A and C?

a)

4:5

b)

2:1

c)

68:48

d)

(d) 4: 1

6.

In which ratio Retiring partner is compensated by the continuing partner for his share of goodwill,in which ratio?

a)

Gaining ratio

b)

Sacrificing ratio

c)

Old ratio

d)

(d) New ratio

7.

Revaluation account is prepare to calculate gain or loss at the time of


a)

Admission of partner

b)

Retirement of a partner

c)

Death of a partner

d)

All of a above

8.

A, B and C are partners in a firm sharing profit and losses in 3:4:2 B retire from the firm. The profit on revaluation on that date was Rs. 72,000, New ratio between A and C is 5:3 Profit on revaluation will be distributed as:

a)

(a) A Rs. 32,000 B Rs. 24,000 C Rs. 16,000

b)

(b) A Rs. 24,000 B Rs. 32,000 C Rs. 16,000

c)

(c) A Rs. 45,000 C Rs. 27,000

d)

(d) A Rs. 47,250 C Rs. 24,750

9.

At the time of retirement of partner the amount of goodwill of retiring partner will be paid by the continuing partners in (a)   ratio.

10.

Workmen compensation reserve shown in the balance sheet liability site Rs 35000 and in adjustment it is said workmen compensation claim is to be created Rs 10000. The amount shown in the new balance sheet will be Rs...............

a)

35000

b)

10,000

c)

25000

d)

45000

11.

A,B and c were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a new partner for 1/8 share in the profits, which he acquired 1/16 from B and 1/16 from C.

Calculate new profit sharing ratio of A ,B,C and D.

(a)  

12.

When a new partner brings his share of goodwill in cash, the amount is debited to (a)   Account

13.

P and Q are two partners in a firm having capitals of Rs 15000 each.R is admitted for 1/3 rd share for which he has to bring Rs 20000 for his share of capital. The amount of goodwill will be ............

a)

5000

b)

15000

c)

10,000

14.

What is the nature of revaluation account?

(a)  

15.

Increase in the value of liabilities at the time of admission of partner is

a)

Debited to revaluation account

b)

Credited to revaluation account

c)

Credited to partners capital account

d)

Debited to partners capital account

16.

A and B are partners sharing profits in the ratio 2:3 , they admit C as a partner for 1/4 share, the sacrificing ratio of a and b will be

a)

2:3

b)

1:1

c)

3:2

d)

2:1

17.

New partner can be admitted into partnership

a)

With the consent of any one partner

b)

With the consent of majority of partners

c)

With the consent of all the partners

d)

With the consent of two third of old partners

18.

At the time of admission of partner, if the book value and the market value of investment is same, the balance in Investment Fluctuation Reserve is transferred to which account ?

a)

Old partners'Capital A/c

b)

Revaluation A/c

c)

New partner Capital A/c

d)

Reserve A/C

19.

When goodwill existing in the books is written off at the time of admission of a partner. It is transferred to partner's capital accounts in their

a)

New profits sharing ratio

b)

Sacrificing Ratio

c)

Gaining Ratio

d)

Old profit-sharing ratio

20.

A ,B and C are partners profit sharing in 2:2:1.1 C retired.the new profit sharing ratio between A and B will be

a)

2:1

b)

1:1

c)

3:1

d)

2:2