Class 12 Accountancy Chapter 3 (Part 2) - Reconstitution of a partnership firm

Class 12 Accountancy Chapter 3 (Part 2) – Reconstitution of a partnership firm – admission of a partner MCQ Question Answers for CUET 2024

1. Unrecorded assets are _________and Unrecorded liabilities are _______ to the revaluation account

a.Credited --Debited

b.Debited – credited

c.Deducted --added

d.Added--deducted

2. Accounting Standard used by ICAI which deals with the treatment of Goodwill and its Applications

a.AS-16

b.AS-26

c.AS-21

d.AS-6

3. Any change in the existing agreement amounts to _________

a.Remodulation of the partnership firm

b.Revaluation of the partnership firm

c.Reconstitution of the partnership firm

d.Resolution of the partnership firm

4. At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred

a.none of the above

b.old partner’s capital account

c.all partner’s capital account

d.new partner’s capital account

5. Question

a.a

b.b

c.c

d.d

6. Which of following is Incorrect Regarding Goodwill?

a.It is as an intangible asset.

b.It is valued Using a single Method and does not have any other alternative of measuring

c.It is the capitalised value attached to the differential profit capacity of a business

d.Amalgamation of partnership firms Can be a Reason for Valuation of Goodwill

7. If, at the time of admission of a partner, any reserve and accumulated profits or losses exist in books of the firm, these should be transferred to old partner’s capital/current accounts in their _____

a.Sacrifice ratio

b.New Profit-Sharing Ratio

c.Gain ratio

d.old profit-sharing ratio

8. Excess of credit side over the debit side in Revaluation Account is:

a.Gross Profit

b.Super Profit

c.Average Profit

d.Net Profit

9. Sacrifice Ratio = __________

a.New Ratio – Old Ratio

b.Old Ratio – New Ratio

c.New Ratio + Old Ratio

d.Old Ratio + Gain Ratio

10. The excess of actual profits over the normal profits is termed as _________________.

a.Excess Normal Profits

b.Excess Profits

c.Over Profits

d.Super Profits

11. A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 10%. Ascertain the value of goodwill by capitalisation average profits method, given that the value of net assets of the business is Rs. 8,20,000. Amount Of Goodwill?

a.Rs. 180000

b.Rs. 185000

c.Rs. 189500

d.Rs. 188000

12. Under this method, the goodwill is valued at agreed number of ‘years’ purchase of the average profits of the past few years.

a.Super Profits Method

b.Capitalisation Method

c.Average Profits Method

d.Average Goodwill Method

13. Firms’ capital includes partner’s capital and reserves and surplus but excludes__________.

a.Fictitious Assets and goodwill

b.Miscellaneous Expenditure and Goodwill

c.Preliminary Expenses and Goodwill

d.Goodwill and Current Assets

14. A new partner can be admitted into the firm only with the consent of all the _________unless otherwise agreed upon

a.Partners

b.Existing Partners

c.Members

d.Shareholders

15. Question

a.c

b.a

c.d

d.b

16. Question

a.d

b.b

c.a

d.c

17. Profit or Loss on Revaluation is to be Accepted by:

a.New Partner

b.All partners

c.Old Partners

d.New Partners

18. __________ is brought by the new partner primarily to compensate the sacrificing partners for loss of their share in super profits of the firm

a.Debt

b.Investments

c.Goodwill

d.Additional Capital

19. Sacrificing partners are credited with their share of goodwill and new partner is debited by the amount of goodwill not brought by him. This Situation only arises when __________

a.Goodwill does not exist in the books

b.New Partner brings goodwill in cash.

c.New partner does not bring goodwill in cash, partly or full

d.Partners decide to withdraw the amount of Goodwill

20. The profit for the five years of a firm are as follows – year 2013 Rs. 400000; year 2014 Rs. 400000; year 2015 Rs. 450000; year 2016 Rs. 445000 and year 2017 Rs. 500000. Calculate goodwill of the firm on the basis of 3 years purchase of 5 years average profits

a.1317000

b.1318000

c.1710000

d.1910000