Free Printable admission of a partner

1.

A and B are partners sharing profits in the ratio of 4 : 3. They admitted C as a new partner who gets 1/5th share of profit, entirely from A. The new profit sharing ratio will be :

a)

20 : 8 : 7

b)

13 : 15 : 15

c)

13 :15:7

d)

15 : 13 : 5

2.

A and B are partners sharing profit or loss in the ratio of 3 : 2. C is admitted into partnership as a new partner. A sacrifices 1/3 of his share of B sacrifices 1/4 of his share in favour of C. What will be the C’s share in the firm?

a)

1/5

b)

2/10

c)

3/10

d)

None of the above

3.

B and N are partners in a firm sharing profits in the ratio of 3 : 2. They admit S as a partner for l/4th share in the profits. S acquires his share from B and N in the ratio of 2 : 1. The new profit-sharing ratio will be :

a)

2:1:4

b)

19:26: 15

c)

3:2:4

d)

26 : 19 : 15

4.

A and Bare in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill of the firm is valued at 33,00,000 and C brings ₹30,000 as his share of goodwill in cash which is entirely credited to the capital account of A. New profit sharing ratio will be

a)

3 : 2 : 1

b)

6 : 3 : 1

c)

5 : 4 : 1

d)

4 : 5 : 1

5.

A, B, C, and D are partners. A and B share 2/3rd of profits equally and Cand D share remaining profits in the ratio of 3 : 2. Find the profit sharing ratio of A, B. C, and D

a)

5 : 5 : 3 : 2

b)

7:7:6:4

c)

2.5 : 2.5 : 8 : 6

d)

3 : 9 : 8 : 3

6.

A and B are partners sharing profits and losses in the ration of 5 : 3. On admission, C brings ₹70,000 as cash and ₹43,000 against goodwill. The new profit ratio between A, B, and C is 7 : 5 : 4. The sacrifice ratio of A and B is

a)

3 : 1

b)

1:3

c)

4:5

d)

5:9

7.

A, B, and C are partner sharing profits in ratio 3: 2: 1. They agree to admit D into the firm. A, B, and C agreed to give 1/3rd, 1/6th, 1/9th share of their profit. The share of profit of D will be

a)

1/10

b)

11/54

c)

12/54

d)

13/54

8.

X,Y, and Z were partners for 2:5:3 they decided to take M as a partner for 1/6th share which he acquires from Y and Z in 3:4. calculate NPSR.

a)

105:35:90:43

b)

43:90:105:35

c)

105:90:43:35

d)

2:3:5:4

9.

M, N, O, and P were partners for 3:3:2:2.Q admitted as a new partner for 1/5th share whereas O decided to retain on his original share and M, N, and P decided to share future profit equally. calculate NPSR

a)

3:3:3:2:2

b)

2:3:2:4:3

c)

2:3:3:2:3

d)

1:1:1:1:1

10.

A, B, C, D are in partnership sharing profits and losses in the ratio of 9 : 6 : 5 : 5. E joins the partnership for 20% share. A. B, C and D would in future share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. The new profit sharing ratio will be:

a)

3:4:2: 1:5

b)

9:6:5:5:5

c)

6 : 8 : 4 : 2 : 5

d)

8 : 6 : 4 : 2 : 5

11.

If the incoming partner is to bring Premium for Goodwill in cash and also a balance exists in Goodwill Account, then this Goodwill Account is written off among old partners in :

a)

New Profit Sharing Ratio

b)

Old Profit Sharing Ratio

c)

Sacrificing Ratio

d)

None of the above

12.

Assertion (A): A new partner can be admitted into a partnership firm with the consent of all the existing partners.

Reason (R): According to Section 31 of the Indian Partnership Act, 1932, a new partner shall not be introduced into a firm without the consent of all the existing partners, unless it is agreed otherwise by the partners in the partnership deed.

a)

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

b)

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

c)

Assertion (A) is true, but Reason (R) is false.

d)

Assertion (A) is false, but Reason (R) is true.

13.

Assertion (A): The treatment of revaluation of assets and reassessment of liabilities is done in same manner as done in case of change in profit sharing ratio.

Reason (R): Revaluation of assets and liabilities is only done when the new partner is admitted.

a)

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

b)

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

c)

Assertion (A) is true, but Reason (R) is false.

d)

Assertion (A) is false, but Reason (R) is true.

14.

Anita and Babita are partners sharing profits and losses as 3 : 2. Chandani is admitted and profit sharing ratio becomes 4 : 3 : 2. Goodwill is valued at ₹94,500. Chandani brings required goodwill in cash. Goodwill amount that will be credited by Chandani is:

a)

Anita ₹14,000 and Babita ₹7,000

b)

Anita ₹12,000 and Babita ₹9,000

c)

Anita ₹15,000

d)

Anita ₹21,000

15.

When a new partner brings the amount of goodwill in cash, it is credited to:

a)

His capital Account

b)

Sacrificing partners capital Accounts

c)

Old partnerscapital Accounts

d)

All partners capital Accounts

16.

If at the time of admission, there is some unrecorded liability, it will be:

a)

Debited to Revaluation Account

b)

Credited to Revaluation Account

c)

Debited to Goodwill Account

d)

Credited to partners capital Account

17.

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

18.

ACCUMULATED LOSSES WILL BE DEBITED TO OLD PARTNERS IN OLD RATIO

a)

TRUE

b)

FALSE

19.

ANY ACCUMULATED PROFIT WILL BE CREDITED TO OLD PARTNERS IN OLD RATIO

a)

TRUE

b)

FALSE

20.

SACRIFICING RATIO IS CALCULATED TO DISTRIBUTE THE AMOUNT OF PREMIUM BETWEEN OLD PARTNERS

a)

TRUE

b)

FALSE

21.

IF NEW PARTNER DOES NOT BRING PREMIUM FOR GOODWILL, HIS CURRENT ACCOUNT WILL BE CREDITED

a)

TRUE

b)

FALSE

22.

WHEN PSR OF OLD PARTNERS DOES NOT CHANGE , THEY SACRIFICE IN THEIR OLD RATIO

a)

TRUE

b)

FALSE

23.

OLD GOODWILL WILL BE WRITTEN OFF IN NEW RATIO

a)

TRUE

b)

FALSE

24.

A, B, C, D are in partnership sharing profits and losses in the ratio of 9 : 6 : 5 : 5. E joins the partnership for 20% share. A. B, C and D would in future share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. The new profit sharing ratio will be:

a)

3:4:2: 1:5

b)

(B)9:6:5:5:5

c)

(C) 6 : 8 : 4 : 2 : 5

d)

(D) 8 : 6 : 4 : 2 : 5

25.

P and Q are partners sharing profits in the ratio of 9 : 7. R is admitted as a partner with 9/ 20th share in the profits, which he takes 1/5th from P and 1/4th from Q Sacrificing ratio will be :

a)

5 : 4

b)

(B) 9 : 7

c)

(C) 7 : 9

d)

(D) 4 : 5

26.

A, B and C are partners sharing in the ratio of 5 : 4 : 3. They admit D for 1

7

th share. It is agreed that B would retain his original share. Sacrificing ratio will be :

a)

A, B and C — 5 : 4 : 3

b)

(D) Z and C — 5 : 3

c)

(C) A and C — 5 : 4

d)

(B) A and C — 4 : 3

27.

A and B are partners sharing profits in the ratio of 5 : 3. A surrenders 1/4th of his share and B surrenders 1/5th

of his share in favour of C, a new partner. What is the sacrificing ratio?

a)

4 : 5

b)

(B) 5 : 4

c)

(C) 12 : 25

d)

(D) 25 : 12

28.

X and Y are partners sharing profits in the ratio of 3 : 2. Z is admitted as a partner. Calculate sacrifi cing ratio if new profit sharing ratio is 9 : 7 : 4.

a)

3 : 1

b)

(B) 3 : 2

c)

(C) 1:3

d)

(D) 9 : 7

29.

A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards, D enters for 20 paisa in the rupee. The new profit sharing ratio after D’s admission will be :

a)

9 : 6 : 5 : 5

b)

(B) 6 : 9 : 5 : 5

c)

(C) 3 : 2 : 4 : 5

d)

(D) 3 : 2 : 5 : 5

30.

A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. C is admitted for 1/5 share in the profits of the firm. If C gets it wholly from A, the new profit sharing ratio after C’s admission will be :

a)

1 : 3 : 3

b)

) 3 : 1 : 1

c)

1 : 3 : 1

d)

none of these

31.

A and B are partners in a business sharing profits and losses in the ratio of 7 : 3 respectively. They admit C as a new partner. A sacrificed 1/7th share of his profit and B sacrificed 1/3rd of his share in favour of C. The new profit sharing ratio of A, B and C will be

a)

3 : 1 : 1

b)

(B) 2 : 1 : 1

c)

(C) 2 : 2 : 1

d)

(D) None of the above

32.

A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/15th share of his profit in favour of C and B surrenders 2/15th of his share in favour of C. The new ratio will be :

a)

8 : 4 : 3

b)

(B) 42 : 26 : 7

c)

(C) 4 : 8 : 3

d)

(D) 26 : 42 : 7

33.

A and B share profits in the ratio of 3 : 2. They agreed to admit C on the condition that A will sacrifice 3/25th

of his share of profit in favour of C and B will sacrifice 1/25th of his profits in favour of C. The new profit sharing ratio will be :

a)

12 : 9:4

b)

(B) 3 : 2 : 4

c)

(C) 66 : 48 : 11

d)

(D) 48 : 66 : 11

34.

B and N are partners in a firm sharing profits in the ratio of 3 : 2. They admit S as a partner for l/4th share in the profits. S acquires his share from B and N in the ratio of 2 : 1. The new profit-sharing ratio will be :

a)

2:1:4

b)

(B) 19:26: 15

c)

(C) 3:2:4

d)

(D) 26 : 19 : 15

35.

A and B share profits in the ratio of 2 : 1. C is admitted with 1/4 share in profits. C acquires 3/4 of his share from A and 1/4 of his share from B. The new ratio will be:

a)

2 : 1 : 1

b)

(B) 23 : 13 : 12

c)

(C) 3 : 1 : 1

d)

(D) 13 : 23 : 12

36.

X and Y are partners sharing profit in the ratio of 3 : 2. Z was admitted with 1/4 share in profits which he acquires equally from X and Y. The new ratio will be:

a)

9 : 6 : 5

b)

(B) 19 : 11 : 10

c)

(C) 3 : 3 : 2

d)

(D) 3 : 2 : 4

37.

A and B are partners sharing profit in the ratio of 3 : 2. They admit C as a partner by giving him 1/3 share in future profits. The new ratio will be :

a)

12 : 8 : 5

b)

(B) 8: 12 : 5

c)

(C) 5 : 5 : 12

d)

(D) None of the Above

38.

A new partner may be admitted into a partnership :

a)

With the consent of any one partner

(D) With the consent of 2/3rd of old partners

b)

(B) With the consent of majority of partners

c)

(C) With the consent of all old partners

d)

(D) With the consent of 2/3rd of old partners

39.

4. When goodwill is withdrawn by the partner_______ account is debited.

a)

Revaluation

b)

Cash/Bank

c)

Current

40.

6. If Asset is taken over by the partner_______ account is debited.

a)

Revaluation

b)

Capital

c)

Assets

d)

Balance Sheet

admission of a partner

Total questions: 40

Worksheet time: 25mins

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