Change In Profit Sharing Ratio Of Existing Partners CBSE Questions & Answers

Change In Profit Sharing Ratio Of Existing Partners

This is Accountancy class 12 Change in Profit sharing ratio of existing Partners CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Goodwill can be sold only when :
  • A
    New partner is admited
  • B
    At the time of Merger
  • C
    Business earning profits
  • D
    Entire business is sold
    Correct
2
Goodwill is recorded in the books only when :
  • A
    Goodwill is self generated
  • B
    Money or money worth is paid for it
    Correct
  • C
    None of these
  • D
    A partner retires
3
Total Assets (excluding goodwill) -outside liabilities will be :
  • A
    Super Profit
  • B
    Average Profits
  • C
    None of These
  • D
    Capital employed
    Correct
4
Capitalisation method for goodwill is used when :
  • A
    When business is sold
  • B
    No. of years purchase is not given
    Correct
  • C
    When total assets are given
  • D
    Always when calculating super profits
5
If average profit of a business is Rs.50,000 and normal profits are Rs.60,000, it shows :
  • A
    Positive Goodwill
  • B
    Positive super profit
  • C
    Goodwill is more than expected
  • D
    No Goodwill of business
    Correct
6
Internal Goodwill is calculated when :
  • A
    At the time of death of a partner
  • B
    At the time of dissolution
  • C
    A partner is admitted
  • D
    All of these
    Correct
7
Annual profit shown by a business is Rs.20,000. Normal rate of return 10%. Total assets of the business firm Rs.2,40,000 and liabilities Rs.80,000. Value of Goodwill will be :
  • A
    Rs.20,000
  • B
    Rs.40,000
    Correct
  • C
    No Goodwill of Business
  • D
    Rs.30,000
8
Profits/losses of a firm for last 4 years are Rs. 10,000 (Loss) ; Rs.15,000 profit ; 20,000 profit ; Rs.15,000 profit. Calculate Goodwill at 1 ? years purchase of average profits of last 4 years .
  • A
    Rs.20,000
  • B
    Rs.15,000
    Correct
  • C
    None of these
  • D
    Rs.25,000
9
Revaluation Account will be debited when:
  • A
    None of these
  • B
    Value of fixed asset decreases
    Correct
  • C
    Value of fixed asset increases
  • D
    Value of liabilities reduces
10
Which of the following is transferred to the partners capital account?
  • A
    General Reserve
    Correct
  • B
    Creditors
  • C
    Loan (short term)
  • D
    Land and Building
11
Which of the following is written off by the old partners?
  • A
    Preliminary Expenes
  • B
    Advertisement Suspense
  • C
    Goodwill (given in balance sheet)
  • D
    All of these
    Correct
12
Which of the following is not transferred to partners capital account?
  • A
    General Reserve
  • B
    Contingency Reserve
  • C
    Employees Providebt Fund
    Correct
  • D
    Retained Earnings
13
Which of the following is showin in the debit side of partners capital account?
  • A
    Loss on revaluation
    Correct
  • B
    Profit on revaluation
  • C
    Profit and Loss Account (Cr.balance)
  • D
    P/L Appropriation Account (Profit)
14
Example of cash equivalent is___
  • A
    Prepaid Expenses
  • B
    Cheques in hand
    Correct
  • C
    None of these
  • D
    Stock
15
General Resreve cannot be ______
  • A
    Sold
    Correct
  • B
    Distributed
  • C
    Created out of profit
  • D
    Show in balance sheet