Partnership Accounts – Admission of a New Partner 0 Partnership Accounts - Admission of a New Partner 1 / 31 Q.30 A & B share profit and losses equally. They admit C as an equal partner & assets were revalued as follows :Goodwill at Rs.60,000 (book value NIL). Stock at Rs.40,000 (book value Rs.24,000);machinery at Rs.1,20,000 (book value Rs.1,10,000) .C is to bring in Rs.40,000 as his capital & the necessary cash towards his shares of goodwill. Goodwill account will not remain in the books .Find the profit /loss on revaluation to be shared among A, B & C 43,000 : 43,000 : 0 13,000 : 13,000 : 0 28,667 : 28,667 : 28,667 8,667 : 8,667 : 8,667 2 / 31 Q.29 A and B are partners with their capital Rs.30,000 & Rs.20,000 respectively. they admitted C for 1/6th profit of the firm.The amount of C's share in the capital of the firm if he asked to bring in capital in proportion to his profit sharing ratio will be Rs.10,000 Rs.8,333 Rs.16,667 None of these 3 / 31 Q.28 A , B & C are partners sharing profits in the ratio of 3:2:1 .D is admitted for 1/6th share in the profits .C would retain his original shares.the new ratio will be 8:12:5:5 10:6:4:4 12:8:5:5 None of these 4 / 31 Q.27 profit & loss an revaluation of assets /liabilities is shared by the old partners in their capital ratio new profit sharing ratio sacrificing ratio Old profit sharing ratio 5 / 31 Q.26 J and K are partners sharing profit and losses in the ratio 5:3 , J's capital is Rs.2,50,000 & K's capital is Rs.2,00,000 ;.They admitted O as a new partner .O contributes Rs.50,000 as his capital, and Rs.16,000 as goodwill for 1/5 the share in the profit , find the balance of capital account after admission of O 2,60,000:2,06,000:50,000 2,92,500:2,25,500:50,000 2,20,000:1,82,000:66,000 2,82,500:2,19,500:66,000 6 / 31 Q.25 A and B are partners sharing profit and losses in the ratio 5:3 .they admitted C and agreed to give him 3/10th of the profit .if C acquires 1/5th share from A 1/10th from B ,new profit sharing ratio will be 5:6:3 2:4:6 18:24:38 17:11:12 7 / 31 Q.24 Scarifying ratio is different between________&______ Old ratio & new ratio Old ratio & Capital ratio New ratio & Capital ratio None of the above 8 / 31 Q.23 The credit balance of Revaluation A/c means profit on revaluation. TRUE FALSE 9 / 31 Q.22 When new partner does not bring cash for goodwill, the goodwill is raised in the books of the new firm. TRUE FALSE 10 / 31 Q.21 New partner is entitled to get share in the general reserve of the existing partnership firm. TRUE FALSE 11 / 31 Q.20 Goodwill cannot be computed in terms of money. TRUE FALSE 12 / 31 Q.19 When some portion of profit sharing ratio is given to new partner, the profit sharing ratio of old partners does not change. TRUE FALSE 13 / 31 Q.18 The Credit balance of revaluation account means loss on revaluation account. TRUE FALSE 14 / 31 Q.18 The Credit balance of revaluation account means loss on revaluation account. TRUE FALSE 15 / 31 Q.17 A new partner is admitted in the firm for getting additional capital and skill. TRUE FALSE 16 / 31 Q.16 The new partner must pay his share of goodwill in cash only. TRUE FALSE 17 / 31 Q.15 Profit on revaluation account is distributed between the old partners on admission of a partner. TRUE FALSE 18 / 31 Q.14 The Goodwill brought in by the new partner is shared by all partners. TRUE FALSE 19 / 31 Q.13 The Goodwill brought in by a new partner is shared by the old partners. TRUE FALSE 20 / 31 Q.12 New Ratio= Balance ratio x __________.ratio Old Sacifice Gain Capital 21 / 31 Q.11 When the liabilities are reduced in value, Revaluation A/c is _____. Debited Credited Decreased Neutralized 22 / 31 Q.10 _______ A/c is an account where changes in the value of the assets or liabilities on revaluation are recorded. P & L A/c Trading Revaluation Capital 23 / 31 Q.9 In case of admission of a partner, the profit or loss on revaluation of assets and liabilities is shared by ____ partners. All Old New None of these 24 / 31 Q.8 If any asset is taken over by partner from the firm _______ account will be debited. Capital Capital Asset P & L Adjustment A/c 25 / 31 Q.7 The ____ ratio is useful for making adjustment for goodwill among the old partners. New Sacrifice Old Capital 26 / 31 Q.6 The Proportion in which old partners make a sacrifice is called _______ ratio. Opening Capital Gaining Sacrifice New 27 / 31 Q.5 Excess of proportionate capital over actual capital represents ___. Surplus Capital Deficit Capital Profit on revaluation Equal Capital 28 / 31 Q.4 __ A/c is debited when unrecorded liability is brought into business. Liability Revaluation Capital Current 29 / 31 Q.3 A and B Partners of a Firm sharing profits in the ratio of 3:2. C was admitted for 1/5th share of profit. Machinery would be appreciated by 10% ( Book value Rs.80,000) and Building would be depreciated by 20% (Rs.2,00,000). Unrecorded Debtors of Rs.1,250 would be brought to books. person to whom the Firm owes Rs.2750 died and the Firm needn't pay anything in respect of the aforesaid liability. What will be the profit/loss on revaluation ? Loss Rs.28,000 Loss Rs.40,000 Profit Rs.28,000 Profit Rs.40,000 30 / 31 Q.2 Amit and Anil are Partners of a partnership Firm sharing profits in the ratio of 5:3 with Capital of Rs.2,50,000 and Rs.2,00,000 respectively. Atul brought 50,000 as Capital and Rs.16,000 as Goodwill, for 1/5th profit. Find the balance of Capital A/c's after admission of atul. Rs.2,60,000, Rs.2,06,000, Rs.50,000 respectively. Rs.2,20,000, Rs.1,82,000, Rs.66,000 respectively. Rs.2,92,000, Rs.2,25,500, Rs.50,000 respectively. Rs.2,82,000, Rs.2,19,000, Rs.66,000 respectively. 31 / 31 Q.1 X & Y partners sharing profits in the ratio of 4:3 .they admit Z as a partner for 1/3 rd share in the profits .On the date of Z's admission ,the B / S of X & Y showed a balance Rs.4,200 in profit & loss account shown on the asset side of B/S & a general reserve of Rs.42,000 .The final effect on X's capital account will be increase of Rs.21,600 increase of Rs.16,200 increase of Rs.26,400 increase of Rs.19,800 Your score is LinkedIn Facebook Twitter VKontakte