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WorksheetsPartnership and Goodwill Quiz
Total questions: 25
Worksheet time: 13mins
When a new partner is admitted, the existing partnership is:
Dissolved automatically
Not affected
Reconstituted
Closed permanently
Goodwill brought in by the new partner in cash is shared by:
All partners equally
Old partners in gaining ratio
New partner only
Old partners in sacrificing ratio
Hidden Goodwill is calculated when:
Goodwill is not brought in cash
Goodwill is mentioned
Goodwill is purchased
Goodwill is not given directly
On admission of a partner, revaluation of assets and liabilities is done to:
Understate profits
Avoid taxation
Ascertain current value
Increase partner's capital
Which account is prepared to record profit or loss on revaluation of assets?
Capital Account
Revaluation Account
Profit & Loss Account
Current Account
The share sacrificed by old partners is:
Added to new partner’s share
Transferred to revaluation
Equal among all partners
Difference between old and new share
On retirement of a partner, goodwill is shared by:
All partners
Gaining partners
Retiring partner only
Incoming partner
A partner retires due to:
Poor business conditions
Age, health, or mutual agreement
Business loss
Death of another partner
When a partner dies, his share in profits is calculated:
For full year
For previous year
Till date of death
After his death
Amount payable to deceased partner is shown in:
His capital account
Revaluation account
Suspense account
Asset account
Gaining ratio is calculated during:
Admission
Death
Retirement
Both B and C
Sacrificing ratio is applicable at the time of:
Admission of partner
Death of partner
Retirement of partner
Dissolution
Goodwill is an:
Asset
Liability
Expense
Income
Goodwill is recorded in books only when:
It is internally generated
Purchased
Declared
Estimated
The amount paid to retiring partner includes:
Capital + Profit share only
Only capital
Capital, revaluation profit/loss, goodwill, reserves
Only goodwill
When goodwill is not to be raised in books:
It is shown as asset
It is adjusted through capital accounts
It is ignored
It is shown in revaluation
If new partner brings capital and goodwill, the entry is:
Bank A/c Dr
Capital A/c Dr
Goodwill A/c Dr
Bank A/c Cr
In absence of an agreement, profits are shared:
In capital ratio
In equal ratio
As per age
Based on goodwill
A deceased partner's executor is:
New partner
Government
Legal heir who receives dues
Bank
Capital of the new partner should be in proportion to:
Old profit share
Sacrificing ratio
New profit sharing ratio
Equal share
Hidden goodwill = Total Capital –
Revaluation reserve
Combined capital of old partners
Average capital
Drawings
Retiring partner's share of goodwill is credited to:
His capital only
Gaining partner's capital
All partners
Remaining partners’ capital in gaining ratio
Profit on revaluation is credited to:
Old partners in old ratio
All partners equally
Retiring partner only
All partners in new ratio
Which of the following is NOT transferred to Revaluation Account?
Increase in asset value
Decrease in asset value
Increase in liability
Capital balance
Admission of a partner affects:
Profit-sharing ratio only
Goodwill only
Profit-sharing ratio and capital
Old assets only
