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
Is admission of a new partner is a reconstitution of partnership firm :
  • A
    None of these
  • B
    Yes
    Correct
  • C
    No
  • D
    Can not say
2
Why new profit ratio is determine even for old partners
  • A
    Ratio keeps on changing in every six month
  • B
    change in the of agreement among all partners
    Correct
  • C
    Due to change in external environment
  • D
    No change in agreement
3
Sacrificing ratio is differ from new profit sharing ratio
  • A
    It is related to new partners
  • B
    It is related to old partners
    Correct
  • C
    It is related to all partners
  • D
    It is related to all partners (including new)
4
__________ means good name, good product or reputation earned by a firm through the hard work and honesty of its owners
  • A
    All
  • B
    Reputation
  • C
    Goodwill
    Correct
  • D
    Repo
5
Sometimes the value of goodwill is not given at the time of admission of a new partner.In such a situation it has to be inferred from the arrangement of the capital and profit sharing ratio.This concept is called
  • A
    All of these
  • B
    Premium Goodwill
  • C
    Hidden Goodwill
    Correct
  • D
    Average Goodwill
6
Why new partner need to bring goodwill because :
  • A
    To compensate the old partners for their share sacrifice
    Correct
  • B
    None of these
  • C
    Both of these
  • D
    To compensate the old partners for their share gained
7
Hari and Haqque are partners in the ratio 3:2. On 1st April, 2013 they admitted John as a new partner with 1/6 share in profit of the firm. With this change there are three partners of the firm and it stand for which type of reconstitution
  • A
    Death of partner
  • B
    Retirement of an existing partner
  • C
    Change in profit sharing ratio among the existing partners
  • D
    Admission to a partner
    Correct
8
Normally goodwill should not be brought into book unless it is paid ___ and whenever it is recorded it should be ________ over a period.
  • A
    For, Written –off
    Correct
  • B
    Written-off, For
  • C
    Paid of, For
  • D
    Of , Paid of
9
A, B and C are partners carrying on an illegal business without forming a partnership deed. C wants to retire but A and B are not willing to give his share. Their profit sharing ratio is 3:2:1.Identify the values which should have been incorporated while formulating partnership
  • A
    Righteous behavior
  • B
    All
    Correct
  • C
    Responsibility towards society
  • D
    Respect for law
10
Even if there is no legal requirement for revaluation of assets why it is done at the time of admission of a new partner because
  • A
    New advantage get disadvantage
  • B
    All are correct
  • C
    New partner neither advantaged or disadvantaged due to increase or decrease in assets and liabilities
    Correct
  • D
    New partner get advantage
11
If new partner is unable to bring in his share of goodwill , How will you deal
  • A
    New Partner’s A/c.................................................Dr. ...........To Old Partner’s Capital A/c
  • B
    New Partner’s A/c ......................................................................Dr. ............To Gainer Partner’s Capital A/c
  • C
    New Partner’s A/c....................................................Dr. .................To All Partner’s Capital A/c
  • D
    New Partner’s Current A/c ...........................................................Dr. ...........To Sacrificing Partner’s Capital A/c
    Correct
12
Ram is admitted as a partner on M/s Iron and Steel Co. a partnership firm of Naman and Manik. The firm has reserve of `50000 and accumulated profit of 100000. At the time of admission Arpit an accountant distributed the reserve and accumulated profit in their profit sharing ratio. Naman was of the opinion that they should not be distributed because even if they are not distributed they will remain in business and can be distributed when partners retire or firm is dissolved. Do you agree with Naman give reason
  • A
    Yes , it puts Naman and Manik to disadvantage
  • B
    No, it puts Naman and Manik to disadvantage
    Correct
  • C
    No, it puts Ram to disadvantage
  • D
    Yes , it puts Naman and Manik to advantage
13
With the ___ into the firm number of partner increase
  • A
    Retirement of new partner
  • B
    Death of new partner
  • C
    Dissolution of a new partner
  • D
    Admission of a new partner
    Correct
14
A & B are partners sharing profits in the ratio 1:1. C wants to join their firm as it enjoys a good reputation in the industry. A and B were initially reluctant to his admission but agreed to admit him for 1/5th share in profits. For this, they ask him to pay an unreasonable amount of goodwill in cash irrespective of his share in the profits What values are being overlooked by the firm at the time of C’s admission?
  • A
    Greediness
  • B
    All
  • C
    Respect for Professional ethics
    Correct
  • D
    Dishonesty
15
Ram, Ramesh and Rajesh are partners in a business sharing profits and losses in the ratio 3:2:1. Rajesh retires and both the existing partners agree to share profits in the ratio 2:1 .Later Rajesh requests the other partners that his physically challenged son should be inducted as a partner in his place. After discussing it amongst themselves both the partners, Ram and Ramesh agree to take his son as a partner. Identify the values which should have been incorporated while formulating partnership
  • A
    All
    Correct
  • B
    Responsibility towards society
  • C
    Respect for law
  • D
    Righteous behavior