A and B are partners. C is admitted with 1/5 share. C brings 7 1,20,000 as his share towards capital. The total net worth of the firm is :
1. ₹ 1,00,000
2. ₹ 4,00,000
3. ₹ 1,20,000
4.₹ 6,00,000
Posted Date:-2022-10-14 07:38:52
A and B share profits and losses in the ratio of 3 : 1.C is admitted into partnership for 1/4 share. The sacrificing ratio of A and B is :
1. Equal
2.3 : 1
3. 2 : 1
4.3 : 2
Posted Date:-2022-10-14 07:41:34
A and B share profits and losses in the ratio of 3:4. C was admitted for 1/5 th share. New profit sharing ratio will be:
1.3 : 4 : 1
2. 12 : 16 : 7
3. 16 : 12 : 7
4. None of these
Posted Date:-2022-10-14 07:39:21
A, B and C are equal partners. D is admitted to the firm for non-ourth share. D brings ₹ 20,000 as capital and ₹ 5,000 being half of the premium for goodwill. The value of goodwill of the firm is :
1.₹ 10,000
2. ₹ 40,000
3.₹ 30,000
4. None of these
Posted Date:-2022-10-14 07:43:29
A, B and C are partners in a firm, if D is admitted as a new partner:
1. Old firm is dissolved
2. Old firm and old partnership are dissolved
3.Old partnership is reconstituted
4. None of these
Posted Date:-2022-10-14 07:54:40
A, B, C and D are partners sharing their profits and losses equally. They change their profit sharing ratio to 2:2:1:1. How much will C sacrifice ?
1.1/6
2. 1/12
3. 1/24
4.None of these
Posted Date:-2022-10-14 07:56:13
An asset which is not ficitious but intangible in nature, having realisable value is :
1.Machinery
2. Building
3. Furniture
4.Goodwill
Posted Date:-2022-10-14 08:02:38
At the time of admission of a new partner, General Reserve a appearing in the old Balances Sheet is transferred to:
1.All Partner’s Capital Accounts .
2.New Partners’ Capital Accounts
3. Old Partner’s Capital Accounts
4. None of these
Posted Date:-2022-10-14 07:58:32
At the time of admission of a new partner, Undistributed Profits appearing in the Balance Sheet of the old firm is transferred to the Capital Account of:
1.Old partners is old profit-sharing ratio
2.Old partners in new profit-sharing ratio
3. All the partners in the new profit-sharing ratio
4. None of these
Posted Date:-2022-10-14 07:48:41
Capital employed in a business is ₹ 1,50,000. Profits are ₹ 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalisation method will be:
1.₹ 2,00,000
2.₹ 1,50,000
3. ₹ 3,00,000
4. ₹ 1,00,000
Posted Date:-2022-10-14 08:06:21
Change in profit-sharing ratio of existing partners results in:
1.Revaluation of Firm
2. Reconstitutions of Firm
3. Dissolution of Firm
4.None of these
Posted Date:-2022-10-14 07:50:25
Change in the partnership agreement results in:
1. Reconstitution of Firm
2.Dissolution of Firm
3.Amalgamation of Firm
4. None of these
Posted Date:-2022-10-14 07:53:10
Change in the partnership agreement:
1.Changes the relationship among the partners
2. Results in end of partnership business
3. Dissolves the partnership firm
4.None of these
Posted Date:-2022-10-14 07:53:41
Excess of credit side over the debit side in Revalution Account is:
1. Profit
2.Loss
3.Receipt
4.Expense
Posted Date:-2022-10-14 07:54:09
Following are the factors affecting goodwill except:
1.Nature of business
2. Efficiency of Management
3. Technical Knowledge
4.Location of the Customers
Posted Date:-2022-10-14 08:00:24
Formula of Sacrificing ratio is:
1.New Ratio – Old Ratio
2. Old Ratio – New Ratio
3.Gain Ratio – Sacrificing Ratio
4. New Ratio – Sacrificing Ratio .
Posted Date:-2022-10-14 07:42:29
Gaining Ratio:
1.New Ratio – Old Ratio
2.Old Ratio – Sacrificing Ratio
3. New Ratio – Sacrificing Ratio
4.Old Ratio – New Ratio
Posted Date:-2022-10-14 07:57:16
General Reserval at the time of admission of a new partner is transferred to :
1. Revaluation Account
2.Old Partner’s Capital Account
3.Profit and Loss Adjustment Account
4. Realisation Account
Posted Date:-2022-10-14 07:49:54
Generally the interest on capital is considered as :
1. An appropriation of profit
2. An Asset
3.An Expense
4.None of these
Posted Date:-2022-10-14 07:59:21
Goodwill is a…………….asset
1.Useless
2. Tangible
3. Worthless
4.Valuable
Posted Date:-2022-10-14 08:04:15
Goodwill is:
1. Tangible Asset
2. Intangible Asset
3.Current Asset
4. None of these
Posted Date:-2022-10-14 08:02:08
If the incoming partner brings the amount of goodwill in cash and also a balance exists in Goodwill A/c, then the Goodwill A/c is written off among the old partners:
1.In new profit-sharing ratio
2.In old profit-sharing ratio
3.In sacrificing ratio
4. In gaining ratio
Posted Date:-2022-10-14 07:41:01
Increase In the value of assets on reconstitution of the partnership firm results into :
1.Gain to the existing partners
2. Loss to the existing partners
3.Neither gain nor loss to the existing partners
4. None of these
Posted Date:-2022-10-14 07:51:30
Increase in the value of assets on reconstitution of the partnership firm results into:
1. Gain to the existing partners
2. Loss to the existing partners
3.Neither a gain nor a loss to the existing partners
4.None of these
Posted Date:-2022-10-14 07:59:54
On reconstitution of a partnership firm, recording of an unrecorded liability wil result in:
1. Gain to the existing partners
2. Loss to the existing partners
3. Neither gain nor loss to the existing partners
4.None of these
Posted Date:-2022-10-14 07:50:55
On the admission of a new partner, increase in the value of assets is debited to which account ?
1. Revaluation Account
2. Assets Account
3. Old Partners’ Capital Accounts
4. None of these
Posted Date:-2022-10-14 07:44:00
On the admission of a new partner, the decrease in the value of assets is debited to:
1.Revaluation Account
2.Assets Account
3. Old Partners’ Capital Accounts
4.None of these
Posted Date:-2022-10-14 07:45:18
Profits of the last three years were ₹ 6,000, ₹ 13,000 and ₹ 8,000 respectively. Goodwill at two years purchase of the average net profit will be :
1.₹ 81,000
2. ₹ 27,0000
3. ₹ 9,000
4. ₹ 18,000
Posted Date:-2022-10-14 08:05:16
Recording of an unrecorded asset on the reconstltutlam of a partnership firm will be:
1. A gain to the existing partners
2. A loss to the existing partners
3.Neither a gain nor a loss to the existing partners
4.None of these
Posted Date:-2022-10-14 07:55:09
Revaluation Account or Profit & Loss Adjustment Account is a:
1. Personal Account
2.Real Account
3.Nominal Account
4. None of these
Posted Date:-2022-10-14 07:55:43
Sacrificing Ratio:
1. New Ratio – Old Ratio
2. Old Ratio – New Ratio
3. Gaining Ratio – Old Ratio
4.Old Ratio – Gaining Ratio
Posted Date:-2022-10-14 07:56:43
Share of goodwill brought in cash by the new partner is called:
1.Assets
2. Profit
3.Premium
4. None of these
Posted Date:-2022-10-14 07:40:26
The accumulated profits and reserves are transferred to:
1.Realisation A/c
2. Partner’s Capital A/cs
3. Bank A/c
4.Savings A/c
Posted Date:-2022-10-14 07:43:01
The balance of Revaluation Account is transferred to old Partner’s Capital Accounts in their:
1. Old Profit-sharing Ratio
2.New Profit-sharing Ratio
3.Equal Ratio
4. None of these
Posted Date:-2022-10-14 07:52:02
The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partners’ Capital Accounts in their :
1. Old profit-sharing ratio
2. New profit-sharing ratio
3.Equal ratio
4.Capital ratio
Posted Date:-2022-10-14 07:47:00
The excess of average profits over the normal profits are called :
1.Super Profits
2.Fixed Profits
3.Abnormal Profits
4. Normal Profits
Posted Date:-2022-10-14 08:03:48
The monetary value of reputation of the business is called:
1. Goodwill
2. Super Profit
3.Surplus
4. Abnormal Profit
Posted Date:-2022-10-14 08:09:17
The opening balance of Partner’s Capital Account is credited with:
1. Interest on Capital
2. Interest on Drawings
3. Drawings
4. Share in loss
Posted Date:-2022-10-14 07:39:54
The profit of the last three years are ₹ 42,000, ₹ 39,000 and ₹ 45,000. Value of goodwill at two years purchases of the average profits will be :
1. ₹ 42,000
2. ₹ 84,000
3.₹ 1,26,000
4. ₹ 36,000
Posted Date:-2022-10-14 08:01:03
Under average profit basis goodwill is calculated by :
1.No. of years’ purchased x Average profit
2.No. of years’ purchased x Super profit
3.Super Profit -r Expected Rate of Return
4.None of these
Posted Date:-2022-10-14 08:01:40
Under super profit basis goodwill is calculated by :
1. No. of years’ purchased x Average Profit
2.No. of years’ purchased x Super profit
3. Super profit -r Expected rate of return
4.None of these
Posted Date:-2022-10-14 08:04:48
Weighted average method of calculating goodwill is used when:
1.Profits are equal
2.Profit has increasing trend
3. Profit has decreasing trend
4. Either (b) or (c)
Posted Date:-2022-10-14 08:08:39
What do you mean by Super Profit ?
1.Total Profit/No. of Years
2. Average Profit – Normal Profit
3.Weighted Profit/No. of Years’ Purchase
4.None of these
Posted Date:-2022-10-14 08:05:51
When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to:
1.Goodwill Account
2.Cash Account
3. Capital Account of new partner
4. None of these
Posted Date:-2022-10-14 07:46:30
Which of the following is not a method of valuation of Goodwill:
1.Revaluation Method
2. Average Profit Method
3. Super Profit Method
4.Capitalisation Method
Posted Date:-2022-10-14 08:03:12
X and Y share profit and loss in 3:2. From 1st January, 2017 they agreed to share profit equally. Their sacrifice or gain will be :
1.Sacrifice by X: 1/10
2. Sacrifices by Y : 1/10
3.Both (a) and (b)
4. Non of these
Posted Date:-2022-10-14 07:58:01
X and Y share profits in the ratio 2 :3. In future they have decided to share profits in equal ratio. Which partner will sacrifice in which ratio ?
1. X sacrifice 1/10
2. Y sacrifice 1/5
3.Y sacrifice 1/10
4.None of these
Posted Date:-2022-10-14 07:52:41
X and Y share profits in the ratio of 3 : 2 Z was admitted as a partner who gets 1/5 share. Z acquires 3/20 from X and 1/20 from Y. The new profit sharing ratio will be :
1.9 : 7 : 4
2.8 : 8 : 4
3. 6 : 10 : 4
4. 10 : 6 :4
Posted Date:-2022-10-14 07:47:30
Z is admitted in a firm for a 1/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in :
1.Old profit-sharing ratio
2. New profit-sharing ratio
3.Sacrificing ratio
4. Capital ratio
Posted Date:-2022-10-14 07:44:33
Z is admitted in a firm for al/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in :
1.Old profit-sharing ratio
2.New profit-sharing ratio
3. Sacrificing ratio
4. Capital ratio
Posted Date:-2022-10-14 07:49:11