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
Who should compensate to whom if the partners of the firm decide to change their profit share ratio:
  • A
    Sacrificing partner to New partner
  • B
    Gaining partner to sacrificing partner
    Correct
  • C
    New partner to Gaining partner
  • D
    Sacrificing partner to Gaining partner
2
__________ goodwill should not be recognized as an asset because it is not an identifiable resource controlled by an enterprise that can be measurable reliably at cost
  • A
    Internally generated
    Correct
  • B
    Purchased
  • C
    None
  • D
    Both
3
How can the gaining partner compensate the sacrificing partner in case of change in profit sharing ratio :
  • A
    By paying him goodwill
    Correct
  • B
    By paying cash only
  • C
    By paying goods only
  • D
    By taking cash
4
Where will you record unrecorded liabilities?
  • A
    Partner current account
  • B
    Revaluation Account
    Correct
  • C
    Profit and Loss Account
  • D
    Partner capital account
5
Unless otherwise stated partner’s capital account should be assumed to be
  • A
    Fixed
  • B
    Both
  • C
    Fluctuating
    Correct
  • D
    None
6
According to AS-26 goodwill should be recorded in the books only when some consideration in money or money’s worth has been paid for it. This statement is
  • A
    True
    Correct
  • B
    Not given in AS
  • C
    Not exact statement
  • D
    FALSE
7
The balance of revaluation account is transferred to
  • A
    Profit and Loss adjustment A/c
  • B
    Profit and Loss A/c
  • C
    Partner’s Capital A/c
    Correct
  • D
    Profit and Loss Appropriation A/c
8
Which of the following is false regarding the content of revaluation account :
  • A
    Credited with increase in the value of asset
  • B
    Debit with increase in the value of asset
    Correct
  • C
    Debit with decrease in the value of asset
  • D
    Debit with increase in the value liabilities
9
In the journal entry for increase in the value of assets in revaluation. Assets A/c should be
  • A
    Not to be shown
  • B
    Can be debited as well as credited
  • C
    Credited
  • D
    Debited
    Correct
10
When revaluation account is prepared the assets and liabilities appear in the balance sheet of new firm at their _______ figure
  • A
    Place
  • B
    Market
  • C
    Old
  • D
    Revised
    Correct
11
P, Q and R who are presently sharing profits and losses in the ratio 5:3:2 decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April 2012. Balance sheet show creditors amounted Rs.200000. If it is decided that an item of Rs.10000 included in sundry creditors is most likely to be claimed. what will be the effect of this decision
  • A
    No change in the amount of Debtors
  • B
    Increase in the amount of creditors
  • C
    Decrease in the amount of Debtors
  • D
    Decrease in the amount of creditors
    Correct
12
While recording the unrecorded liabilities items provision for taxation made Rs.10000 .which account should be credited
  • A
    Bank
  • B
    Revaluation
  • C
    Tax
  • D
    Provision for tax
    Correct
13
If Assets are increasing but liabilities decreasing; in such a case Revaluation A/c will show_____
  • A
    Net Loss
  • B
    Profit
    Correct
  • C
    None of these
  • D
    Neither Gain or Loss
14
For calculating Net Effect of Revaluation account number of items should be added except
  • A
    Increase in value of assets
  • B
    Decrease in amount of creditors
  • C
    Decrease in value of Liabilities
  • D
    Decrease in value of assets
    Correct
15
How will you deal with if no other information is given for the Investment fluctuating reserves except- assets shows Investment (cost) Rs.200000 and Investment fluctuation reserves Rs.18000
  • A
    Transfer the excess Investments Fluctuation Reserves to Partners Capital account in their profit old sharing ratio
    Correct
  • B
    Transfer the Investments amount to Partners Capital account in their old profit sharing ratio
  • C
    Transfer the excess Investments Fluctuation Reserves to Profit and Loss account in their old profit sharing ratio
  • D
    Transfer the excess Investments Fluctuation Reserves to Revaluation account in their old profit sharing ratio