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
Which of the following is responsible for the Reconstitution of Partnership?
  • A
    Retirement of an existing partner
  • B
    Change in existing profit sharing ratio
  • C
    Death of a partner
  • D
    All of these
    Correct
2
What is the meaning of change in the profit sharing ratio:
  • A
    In which all partner including the deceased partner executor partner share future profit and loss
  • B
    Purchase of shares of profit by one partner form another partner
    Correct
  • C
    In which all partner including the retired partner share future profit and loss
  • D
    In which all partner including the new partner share future profit and loss
3
The circumstances when change in profit sharing ratio is needed:
  • A
    All of these
    Correct
  • B
    When new partner admitted
  • C
    When existing partner’s decide
  • D
    When existing partner retires
4
On the reconstitution of a firm change in the value of assets is called ___
  • A
    Revaluation of assets
    Correct
  • B
    Reassessment of assets
  • C
    Devaluation of assets
  • D
    Reassessment of liabilities
5
Any change in the relations of partners without affecting the existing of partnership firm is called ____
  • A
    Reassessment
  • B
    Retirement
  • C
    Revaluation
  • D
    Reconstitution
    Correct
6
The partner whose share has increased as a result of change is called
  • A
    Sacrificing partner
  • B
    Sacrificing ratio
  • C
    Gaining partner
    Correct
  • D
    Gaining ratio
7
What is gaining ratio:
  • A
    In which profit sharing ratio of sacrificing partners increase
  • B
    In which profit sharing ratio of sacrificing partners decrease
  • C
    In which profit sharing ratio of gaining partners increase
    Correct
  • D
    In which profit sharing ratio of gaining partners decrease
8
How sacrificing ratio is calculated
  • A
    All of these
  • B
    Sacrificing ratio = Old ratio – Gaining ratio
  • C
    Sacrificing ratio = New ratio – Old ratio
  • D
    Sacrificing ratio = Old ratio – New ratio
    Correct
9
Who is a sacrificing partner :
  • A
    Whose share has decrease as a result of change
    Correct
  • B
    Whose share has increase as well as decrease as a result of change
  • C
    Whose share has does not get affected as a result of change
  • D
    Whose share has increase as a result of change
10
Reassessment of liabilities means :
  • A
    Only increase in the values of liabilities
  • B
    Change in the values of liabilities
    Correct
  • C
    Change in the values of assets
  • D
    Only decrease in the values of liabilities
11
Accounting Standard ____ requires goodwill should be recorded in the books of accounts only when some money or money’s worth is paid for it.
  • A
    26
  • B
    23
  • C
    27
  • D
    10
    Correct
12
An account prepared to carry out the scheme of revaluation of assets and reassessment of liabilities :
  • A
    Devaluation account
  • B
    Memorandum of revaluation
  • C
    Memorandum of valuation
  • D
    Revaluation account
    Correct
13
Revaluation of assets on the reconstitution of partnership is necessary because their present value may be different from their _____
  • A
    Market Value
  • B
    Net Value
  • C
    Place Value
  • D
    Book Value
    Correct
14
What adjustments are required when existing partners decide to change their profit sharing ratio:
  • A
    Reserves
  • B
    Accumulated profits
  • C
    All
    Correct
  • D
    Goodwill
15
The purpose of revaluation account is to ascertain the
  • A
    Reassessment
  • B
    None
  • C
    Both A and B
  • D
    Revaluation Profit/Loss
    Correct