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Admission of a partner 3

Total questions: 10

Worksheet time: 9mins

Name
Class
Date
1.

Profit or loss on revaluation of assets and reassessment of liabilities is transferred to partners capital account in there

a)

Capital ratio

b)

Equal ratio

c)

Old profit sharing ratio

d)

Gaining ratio

2.

In case of fixed capital, undistributed profits, general reserves, etc, are transferred to

a)

Partners capital account

b)

Partners current account

c)

Revaluation account

d)

Profit and loss adjustment account

3.

Unrecorded assets or liabilities are transferred to

a)

Partners capital account

b)

Revaluation account

c)

Profit and loss account

d)

Partners current account

4.

X and y are partners sharing profits in the ratio of 3: 2, and capitals as 1,00,000 and 50,000 respectively. Z is admitted for 1/5th share in profits.the amount Z will contribute as capital will be

a)

50,000

b)

35,000

c)

37,500

d)

60,000

5.

Goodwill brought by the incoming partner is distributed among the old partners in their

a)

Old profit sharing ratio

b)

New profit sharing ratio

c)

Sacrificing ratio

d)

Gaining ratio

6.

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

a)

2:3

b)

1:1

c)

3:2

d)

2:1

7.

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

a)

8000

b)

10,000

c)

9000

d)

11000

8.

At the time of admission if the profit sharing ratio among the old partner does not change then sacrificing ratio will be

a)

Equal

b)

According to the contribution of capital

c)

Their old profit sharing ratio

d)

According to new partner

9.

At the time of admission of a partner, revaluation account is debited to record the increase in provision for doubtful debts

a)

True

b)

False

10.

Increase in the value of assets is credited to revaluation account

a)

True

b)

False