MCQ Chapter 3 Reconstitution of a Partnership Firm – Admission of a Partner Class 12 Accountancy

MCQ Questions Class 12

Please refer to Admission of a Partner MCQ Questions Class 12 Accountancy below. These MCQ questions for Class 12 Accountancy with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Admission of a Partner will help you to prepare for the exams and get more marks.

Admission of a Partner MCQ Questions Class 12 Accountancy

Please see solved MCQ Questions for Admission of a Partner in Class 12 Accountancy. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.

MCQ Questions Class 12 Accountancy Admission of a Partner

Question. On admission of a partner, which of the following items the Balance Sheet is transferred to the credit of Capital Accounts of old partners in the old Profit-sharing Ratio, if Capital Accounts are maintained following Fluctuating Capital Accounts Method
(a) Deferred Revenue Expenditure;
(b) Profit and Loss Account Debit Balance;
(c) Profit and Loss Account Credit Balance;
(d) Balance in Drawings Account of partners c

Answer

C

Question .The Need of revaluation of assets and liabilities on admission
(a) Assets and Liabilities should appears at revised values
(b) Any profit and loss an account of change in values belong to old partners
(c) All unrecorded assets and liabilities get recorded
(d) None of Above b 

Answer

B

Question . When goodwill is not recorded in the books at all on admission of a partners ?
(a) If paid privately
(b) If brought in cash
(c) If not brought in cash
(d) If brought in Kind a

Answer

A

Question .When new partner brings cash for goodwill , the amount is credited to :
(a) Realisation Account
(b) Cash account
(c) Premium for Goodwill Account
(d) Revaluation Account c

Answer

C

Question. The balance in the investment Fluctuation fund after meeting the fall in book value of investment , at the time of admission of partner will transferred to :
(a) Revaluation Account
(b) Capital Account of old Partners
(c) General Reserve
(d) capital Account of All Partners b

Answer

B

Question. If the new partner brings his share of goodwill in cash , it will shared by old partner in :
(a) Sacrificing ratio
(b) Old profit sharing Ratio
(c) New Ratio
(d) Capital ratio a

Answer

A

Question. Revaluation Account is a :
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the Above b 

Answer

B

Question. Goodwill of the firm is valued at Rs 1,00,000 Goodwill also appears in the books at Rs 50,000 C is admitted for ¼ Share The amount of goodwill to be brought in by c will be :
(a) Rs 20,000
(b) Rs 25,000
(c) Rs 30,000
(d) Rs 40,000

Answer

B

Question. If the new partner brings any additional amount of cash other than his capital contributions then it is termed as :
(a) Capital
(b) Reserves
(c) Profits
(d) Premium for Good will Applying 

Answer

D

Question . A and B are Partners sharing Profits in the ratio of 3:2 They Admit C for ¼ share who contributed Rs 30,000 for his share of goodwill The total value of the goodwill of the firm will be :
(a) Rs 1,50,000
(b) Rs 1,20,000
(c) Rs 1,00,000
(c) Rs 1,60,000

Answer

B

Question. The Credit Balance of Profits and Loss appears in the books at the time of admission of partner will be transferred to :
(a) Profit and loss appropriation account
(b) All partners capital Account
(c) Old partners capital Account
(d) Revaluation Account

Answer

C

Question. A and B are partners sharing profits in the ratio of 7 : 3 C is admitted as a new partner “A” gave 1/7th of his share and “B” gave 1/3rd of his share to C New Profit-sharing Ratio will be:
(a) 6 : 2 : 2
(b) 4 : 1 : 1
(c) 3 : 2 : 2
(d) None

Answer

A

Question. X and Y share profits and losses in the ratio of 4 : 3 The admit Z in the firm for 3/7th share which he gets 2/7thfrom X and 1/7thfrom Y New Profit-sharing Ratio will be :
(a) 7 : 3 : 3
(b) 2 : 2 : 3
(c) 5 : 2 : 3
(d) 2 : 3 : 3

Answer

B

Question. A and B are partners, sharing profits in the ratio of 5 : 3 They admit C for 1/5thshare in profits, which he acquires equally from both A and B New profit sharing ratio will be:
(a) 21 : 11 : 8
(b) 20 : 10 : 4
(c) 15 : 10 : 5
(d) 10 : 5 : 4

Answer

A

Question. A and B are partners sharing profits and losses in the ratio 5 : 3 On admission, C brings by cheque Rs 70,000 as Capital and Rs 48,000 as Goodwill New Profit-sharing Ratio among A, B and C is 7 : 5 : 4 Sacrificing ratio between A and B is :
(a) 3 : 1
(b) 4 : 7
(c) 5 : 4
(d) 2 : 1

Answer

A

Question. X and Y are partners sharing profits in the ratio 5 : 3 They admitted Z for 1/5th share in profits, for which he paid Rs 1,20,000 as Capital and Rs 60,000 as Goodwill Capitals for each partner, taking Z’s capital as base capital will be:
(a) 3,00,000, 1,20,000 and 1,20,000
(b) 3,00,000, 1,20,000 and 1,80,000
(c) 3,00,000, 1,80,000 and 1,20,000
(d) 3,00,000, 1,80,000 and 1,80,000 

Answer

C

Question. A and B are partners sharing profits in the ratio of 3 : 2 On admission of C for 1/5th share, Land is appreciated by 10% Book Value Rs 80,000,Building is decreased by 20% Rs 2,00,000, Unrecorded Debtors of Rs 1,250 are bought in the books and Creditors of Rs 2,750 need not be paid The Gain profit /loss on revaluation will be:
(a) Loss Rs 28,000
(b) Loss Rs 40,000
(c) Profit Rs 28,000
(d) Profit Rs 40,000

Answer

A

Question. Amit and Anil are partners sharing profits in the ratio of 5 : 3 having Capitals of Rs 2,50,000 and Rs 2,00,000 respectively Atul was admitted as partner for 1/5th share in profits who brings Rs 50,000 as Capital and Rs 16,000 as Goodwill Capitals are to be in proportion to profit-sharing ratio based on Atul’s share Capitals of Amit, Anil and Atul respectively after admission of Atul will be:
(a) 1,25,000 : 75,000 : 50,000
(b) 2,20,000 : 1,82,000 : 66,000
(c) 2,92,500 : 2,25,000 : 50,000
(d) 2,82,500 : 2,19,500 : 66,000

Answer

A

Question. X and Y are partners sharing profits in the ratio of 3 : 1 They admit Z as a partner who pays Rs 4,000 as Goodwill New Profit-sharing Ratio being 2 : 1 : 1 among X, Y, Z Goodwill will be credited to:
(a) X and Y as Rs 3,000 and Rs 1,000
(b) X only
(c) Y Only
(d) None

Answer

B

Question. R and S are partners sharing profits in the ratio of 5 : 3 T joins the firm and R gives him 1/4thof his share and S gives 1/5thof his share to him New Profit-sharing Ratio will be:
(a) 75 : 48 : 37
(b) 45 : 32 : 27
(c) 3 : 7 : 4
(d) 35 : 30 : 25

Answer

Question. A, B and C are equal partners, they wanted to change the profit sharing ratio to 4 : 3 : 2 They raised the goodwill to Rs 90,000 The effected accounts will be:
(a) C’s Capital A/c Dr 10,000
To A’s Capital A/c 10,000
(b) B’s Capital A/c Dr 10,000
To A’s Capital A/c 10,000
(c) C’s Capital A/c Dr 10,000
To B’s Capital A/c 10,000
(d) A’s Capital A/c Dr 10,000
To C’s Capital A/c 10,000

Answer

D

Question. A, B and C are partners haring profits in ratio of 3 : 2 : 1 They admit D as partner in the firm A, B and C give 1/3rd, 1/6th, 1/9thshare of their respective profits The share of profit of D will be:
(a) 1/10
(b) 13/54
(c) 12/54
(d) 10/55

Answer

B

Question. A and B are partners sharing profits in ratio of 3 : 2 A’s Capital is Rs 30,000 and B’s Capital is Rs 15,000 They admit C for 1/5thshare of profits C will bring as his capital
(a) Rs 9,000
(b) Rs 12,000
(c) Rs 14,500
(d) Rs 11,250 

Answer

D

Question. A, B and C share profits and Losses in the ratio, of 3 : 2 : 1 D is admitted for 1/6th share which he gets from A New ratio will be:
(a) 2 : 2 : 1 : 1
(b) 3 : 1 : 1 : 1
(c) 2 : 2 : 2 : 1
(d) 1 : 1 : 2 : 2

Answer

A

Question. A, B and C are partners sharing profits in the ratio of 4 : 3 : 2 D is admitted for 2/9thshare of profits He brings Rs 30,000 as capitalNew Profit-sharing Ratiois 3 : 2 : 2 : 2 Goodwill amount will be credited in the capital account of :
(a) A only b A,
(b) B. and C equally
(c) A, and B equally
(d) A, and C equally

Answer

B

Question. A and B share profits equally They admit C for 1/7th share New Profit-sharing Ratio of A and B is:
(a) 4/7, 1/7
(b) 3/7, 3/7
(c) 2/7, 2/7
(d) 2/7, 4/7

Answer

B

Question. A and B are partners C is admitted for 1/5th share C brings Rs 1,20,000 as his share in Capital Net worth of the firm is:
(a) Rs 1,00,000
(b) Rs 4,00,000
(c) Rs 1,20,000
(d) Rs 6,00,000 

Answer

D

Question. A and B share profits in the ratio of 3:2 A’s capital is Rs 48,000, B’s capital is Rs 32,000 C is admitted for 1/5th share in profits C will bring as his Capital
(a) Rs 20,000
(b) Rs 16,000
(c) Rs 1,00,000
(d) Rs 64,000

Answer

A

Question. A and B share profits in the ratio of 3: 4 C is admitted for 1/5th share New Profit-sharing ratio will be
(a) 3: 4: 1
(b) 12: 16: 7
(c) 16: 12: 7
(d) 12 : 6 : 7

Answer

B

Question. X and Y are partners Z is admitted as partner for 1/7thshare New Profit- sharing Ratio will be
(a) 2 : 3 : 1
(b) 3 : 3 : 1
(c) 6 : 5 : 2
(d) 1 : 1 : 1

Answer

B

Question. A and B share profits and losses in the ratio of 3: 2 Their respective capitals are Rs 1,20,000 and Rs 54,000 C is admitted for 1/3rd share in profits who brings Rs 75,000 as his share of capital Capitals of A and B to be adjusted according to C’s share A will withdraw from capital
(a) Rs 30,000
(b) Rs 32,000
(c) Rs 15,000
(d) Rs 28,000

Answer

A

Question. A, B, C and D are partners They change their profit sharing ratio to 2 : 2 : 1 : 1 C’s sacrifice is
(a) 1/6
(b) 1/12
(c) 1/24
(d) 2/6

Answer

B

Question. In regard to Rent expenses paid in advance of a non- profit organisation which of the following classification is correct
(a)Expense
(b) Liability
(c) Equity
(d) Assets

Answer

D

Question. Income & Expenditure Account is based on
(a) Cash Accounting
(b) Accrual Accounting
(c) Government Accounting
(d) Management Accounting 

Answer

B

Question. The Receipt and Payment account of a Non- Profit Organisation is a
(a) Nominal Account
(b) Real Account
(c) Income Statement Account
(d) Financial Statements

Answer

B

Question. Which of the following is to be recorded in an income and Expenditure Account
(a) Purchase of a fixed Asset
(b) Capital Expenditure incurred on a fixed asset
(c) Profit on the sale of a fixed asset
(d) Sale of a fixed asset

Answer

C

Question. XYZ club has a bar that maintains a separate trading account for its trading activities. Which of the following is the treatment of profit or loss on bar trading activities?
(a) Profit or loss is directly shown in the Balance Sheet
(b) Profit or loss is to be presented in income and expenditure account
(c) Profit and loss is credited in income statement.
(d) Profit or loss is added to accumulated fund.

Answer

B

Question. Which of the following is the accounting equation for a non-profit organisation?
(a) Asset= Capital + Liabilities
(b) Capital+ Liabilities= Assets
(c) Accumulated Fund+ Liabilities= Assets
(d) Liabilities= Assets + Accumulated Fund 

Answer

C

Question. The control of non trading concern rest in the hand of
(a) Directors
(b) managing Agents
(c) Governing body
(d) Promoters 

Answer

C

Question. If debit side of receipt and payment account exceeds the credit side, it represents:
(a) Deficit balance
(b) Surplus Balance
(c)Cash at Bank
(d) Bank Overdraft 

Answer

C

Question. Deficit balance can be shown in balance Sheet as:
(a) Liability
(b) Assets
(c) Owner’s equity
(d) None of the above 

Answer

B

Question. Receipt and Payment account includes
(a) Revenue items
(b) Cash items
(c) Revenue & Cash items
(d) None of the above

Answer

C

Question. Subscription received but not yet earned is considered as
(a) Asset
(b) Liability
(c) Income
(d) Expenditure

Answer

B

Question. On What basis receipts and payments account is made
(a) Cash basis
(b) Accrual basis
(c) Both Cash & Accrual basis
(d) None of the above 

Answer

A

Question. At the beginning of an accounting year a club has assets of Rs. 19,000 and liabilities of Rs.5,000. Rs. 1,800 is the debit balance of the income & expenditures account. The opening capital fund is
(a) Rs. 18,000
(b) Rs.11,200
(c) Rs.15,800
(d) Rs. 24,800 

Answer

C

Question. The opening balance of the Prize fund of a sports club was Rs.6,400. Further donations towards this fund received during the accounting year amounted to Rs.4,300. During the year, Rs. 3,500 was spent on prizes and Rs. 400 was received as interest on investment of the Prize Fund. The closing balance of the Prize fund is
(a) Rs. 1,900
(b) Rs.10,200
(c) Rs.10,600
(d) Rs.7,600

Answer

C

Question. Amount received from the sale of old furniture by a club is treated as:
(a) Revenue Receipt
(b) Capital Receipt
(c) Asset
(d) liability

Answer

B

Question. Which should be considered as capital receipt of a club
(a) Donation
(b) sale of newspaper
(c) sale of bar items
(d) sale of furniture

Answer

D

Question. Fixed assets fund is
(a) Endowment Fund
(b) Current restricted Fund
(c) Current unrestricted fund
(d) Meant for accounting of asses and depreciation

Answer

D

Question. Donations received for special purpose should be
(a) Credited to a separate fund account and shown in the Balance Sheet
(b) Treated as revenue
(c) treated as revenue unless the amount is large
(d) Not recorded at all

Answer

A

Question. Receipt & Payment Account shows
(a) A debit balance
(b) A credit balance
(c) Surplus or deficit
(d) Capital fund

Answer

A

Question. Salaries payable for the current year amount to Rs. 8,500 at the end of the year. Outstanding salaries amounted to Rs. 300. Salaries paid in advance last year pertaining to the current year amounted to Rs.500. Prepaid salaries for the next year amount to Rs.250. total amount paid for salaries during the year is
(a) Rs.7,550
(b) Rs.7,500
(c) Rs. 7,950
(d) Rs.6,500

Answer

C

Question. Second hand furniture worth Rs. 6,000 was purchased. It was repaired for Rs.600 and installed by workmen to whom Rs. 200 was paid as wages. The furniture should be capitalised for
(a) Rs.6,200
(b) Rs.6,800
(c) Rs. 6,600
(d) Rs. 6,000 

Answer

B

Question. Subscription received in advance during the accounting year is
(a) an income
(b) an expense
(c) Asset
(d) Liability

Answer

D

Question.Fill in the blanks:

Question. Restricted fund can be used for —-, —-purpose

Answer

Specific

Question. ——————— ——– represents the excess of assets over liabilities.-

Answer

Capital fund

Question. Endowment Fund is ——,—-Fund.

Answer

General fund

Question. Fund based accounting is used by —-,———-organisations. 

Answer

Not for profit

Question. General Fund can be transferred to — — Fund

Answer

Any other

Question. When Expenditure is paid out of current/ restricted fund, cash/bank account is credited and ——–. ——————–is debited.

Answer

Restricted fund

True or False

Question.There is no difference between the nature of Receipt & Payment Account and Income & Expenditure account.

Answer

False

Question. All receipts are the items of revenue nature.

Answer

False

Question. Not for profit concerns concentrate their efforts on maximising the profits.

Answer

False

Question. Income & expenditure account do not have opening balance.

Answer

True

Question. Charitable institutions prepare income and expenditure account at the end of every financial year. 

Answer

True

Question. In the income and Expenditure Account, all incomes received during the year irrespective of the year for which they are received, are to be recorded.

Answer

False

Fill in the blanks: 

Question. Sacrificing ratio is computed at the time of___________

Answer

Reconstitution

Question. Revaluation Account is prepared at the time of _____ 

Answer

Reconstitution 

Question. Reserve appearing in the Balance Sheet at the time of admission of a partner, is distributed among partners in their ____________ Ratio.

Answer

Old

Question. At the time of admission, the assets are revalued and liabilities are reassessed. The increase or decrease in the values is debited or credited in ________________ Account.

Answer

Revaluation  

Question. In case of upward revaluation of a liability, Revaluation Account is ___________. 

Answer

Debited

Question. At the time of admission of a partner new profit-sharing ratio is used for sharing future ___________’

Answer

Profits 

Question. The Revaluation Account shows _______________ in Values of assets and liabilities.   

Answer

Question. In the case of downward revaluation of an asset, Revaluation Account is ___________. 

Answer

Debited 

Question. At the time of admission, Gain (Profit) or Loss on revaluation is shared by the old partners in their ________________ ratio.

Answer

Old 

Question. Revaluation account is a __________________ account.

Answer

Nominal

True or False: 

 Question. Self-generated Goodwill is recorded in the books of accounts and shown in the Balance Sheet as an asset as per Accounting Standard -26, Intangible Assets.

Answer

False

Question. In case of admission of a partner, all existing partners sacrifice.

Answer

False

Question. In the absence of agreement, consent of all partners is required to admit a partner.

Answer

True

Question. New partner may bring his share of goodwill premium in kind.

Answer

True

Question. Goodwill is an intangible current asset.

Answer

False

Question. The goodwill brought at the time of admission of partner will be distributed among all the partners in new Profit-sharing Ratio.

Answer

False

Question. Claims of Workmen Compensation if more than Workmen Compensation Reserve is debited to Revaluation Account

Answer

True

Question. New partner may or may not contribute Capital at the time of admission.

Answer

True

Question. At the time of admission of partner, the partnership firm is dissolved.

Answer

False

Question. Super profit is a profit a firm earns above the normal profits.

Answer

True

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