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WorksheetsCHANGE IN PSR VOL.1
Total questions: 12
Worksheet time: 6mins
- Which of the following is responsible for the Reconstitution of Partnership?
Retirement of an existing partner
Change in existing profit sharing ratio
Death of a partner
All of these
Sacrificing Ratio = ? (a)
A and B were partners in a firm sharing profit or loss equally. With effect from 1st April 2019 they agreed to share profits in the ratio of 4 : 3. Due to change in profit sharing ratio, A’s gain or sacrifice will be :
gain 1/14
sacrifice 1/14
gain 4/7
sacrifice 3/7
A and B were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1st January 2019 they agreed to share profits and losses equally. Individual partner’s gain or sacrifice due to change in the ratio will be :
gain by A 1/6; Sacrifice by B 1/6
gain by B 1/6; Sacrifice by A 1/6
gain by A 1/2; Sacrifice by B 1/2
gain by B 1/2; Sacrifice by A 1/2
Capital employed by a partnership firm is ₹5,00,000. Its average profit is ₹60,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?
₹50,000
₹10,000
₹6,000
₹56,000
The profits earned by a business over the last 5 years are as follows : ₹12,000; ₹13,000; ₹14,000; ₹18,000 and ₹2,000 (loss). Based on 2 years purchase of the last 5 years profits, value of Goodwill will be :
₹23,600
₹22,000
₹1,10,000
₹1,18,000
P, Q and R were partners in a firm sharing profis in 5 : 3 : 2 ratio. They decided to share the future profits in 2 : 3 : 5. For this purpose the goodwill of the firm was valued at ₹1,20,000. In adjustment entry for the treatment of goodwill due to change in the profit sharing ratio :
Cr. P by ₹24,000; Dr. R by ₹24,000
Cr. P by ₹60,000; Dr. R by ₹60,000
Cr. P by ₹36,000; Dr. R by ₹36,000
Dr. P by ₹36,000; Cr. R by ₹36,000
Journal entry for Increase in value of assets
Assets A/c .... Dr
To Revaluation A/c
Revaluation A/c....DR
To Assets A/c
Cash A/c.... Dr
To Assets A/c
Assets A/c ...Dr
To Cash A/c
Accounting Standard ____ requires goodwill should be recorded in the books of accounts only when some money or money’s worth is paid for it.
23
24
25
26
Any change in the relationship of existing partners which results in an end of the existing agreement and enforces making of a new agreement is called
Revaluation of partnership.
Reconstitution of partnership.
Realization of partnership.
None of the above.
Journal entry for Decrease in Liability would be-
Liability A/c ...dr
To Cash A/c
Cash A/c ... Dr
To Liability A/c
Liability A/c ...dr
To Revaluation A/c
Revaluation A/c ... Dr
To Liability A/c
creditors of Rs 2000 is not to claim its dues.. Journal Entry for this would be-
Creditors A/c... Dr
To Revaluation A/c
Creditors A/c... Dr
To Cash A/c
Revaluation A/c ... DR
To Creditors A/c.
Cash A/c.... Dr
To Creditors A/c
