Admission Of A Partner CBSE Questions & Answers

Admission Of A Partner

This is Accountancy Class 12 Admission of a Partner CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
When the incoming partner pays his share of goodwill privately to the sacrificing partner outside the business Which account should be debited in the books of account
  • A
    Cash A/c
  • B
    Premium A/c
  • C
    Partner’s A/c
  • D
    No entry should be passed
    Correct
2
If new partner account is not given then how it be worked out
  • A
    All partners’ capital after adjustment x reciprocal of old partner’s share x new partner’s share
  • B
    Old partners’ capital after adjustment x reciprocal of sacrificing share x new partner’s share
  • C
    Old partners’ capital after adjustment x reciprocal of old partner’s share x new partner’s share
    Correct
  • D
    Old partners’ capital after adjustment x reciprocal of old partner’s share x sacrificing share
3
If a new partner is admitted during the year the profits for the year should be divided between ____ period on an agreed basis
  • A
    Pre-admission and post –admission
    Correct
  • B
    Old profit sharing
  • C
    Equal
  • D
    New year basis
4
Sacrifice ration is used only for
  • A
    Premium for goodwill
    Correct
  • B
    Revaluation profit
  • C
    Revaluation of loss
  • D
    Distribution of Reserve
5
Section ____ of the Indian Partnership Act provides that a new partner shall not be inducted into a firm without the consent of all existing partners
  • A
    30
  • B
    32
  • C
    31.0
    Correct
  • D
    33
6
Incoming partner may acquire his share from the old partners (i) In their old profit sharing ratio (ii) In a particular ratio (iii) In particular fraction from some of the partners. In which of the above mentioned alternatives
  • A
    Only i
  • B
    All the three
    Correct
  • C
    Only I and iii
  • D
    Only i and ii
7
The existing goodwill if appearing in the firm is __________ by debiting the old partner’s account.
  • A
    Increase
  • B
    Written off
    Correct
  • C
    All
  • D
    Decrease
8
The amount of goodwill brought in by the new partner is shared by the ____ partners in their ____ ratio
  • A
    Gaining partner, gaining
  • B
    Old , old
  • C
    Sacrificing partners, sacrificing
    Correct
  • D
    All, new
9
Net loss on revaluation account should be transferred to _______ capital account in their old profit sharing ratio
  • A
    New Partner
  • B
    Old partner
    Correct
  • C
    All partner’s
  • D
    Sacrificing partner
10
If goodwill already shown in the --------, it should be written off by debiting old partners in their old profit sharing ratio
  • A
    Profit and loss account
  • B
    Trial Balance
  • C
    Trading account
  • D
    Balance sheet
    Correct
11
New partner can be admitted only with consent of
  • A
    One partner only
  • B
    Two partners only
  • C
    Three partners only
  • D
    All existing partner
    Correct
12
To acquire which right new partner bring in the agreed amount of capital
  • A
    None of these
  • B
    Right to share the future profits
  • C
    Both of these
  • D
    Right to share assets of the firm
    Correct
13
To acquire which right new partner bring his share of goodwill which shared by sacrifice partners
  • A
    Right to share assets of the firm
    Correct
  • B
    Both of these
  • C
    None of these
  • D
    Right to share the future profits
14
Various methods need adjustments at the time of admission of a new partner are given below: (a) Adjustment in Profit sharing ratio (b) Adjustment in Goodwill (c) Adjustment of Accumulated profits, Reserves and losses. Which of the adjustment needed?
  • A
    Only b
  • B
    Only a
  • C
    Only a and b
  • D
    All are needed
    Correct
15
When a new partner is admitted he acquires his share of profits , this ____ the old partner’s shares in profits:
  • A
    Increase
  • B
    Reduce
    Correct
  • C
    Remain same
  • D
    No change