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MCQ Questions for Class 12 Accountancy set-3

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1. 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 :




2. 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:




3. The opening balance of Partner’s Capital Account is credited with:




4. Share of goodwill brought in cash by the new partner is called:




5. 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:




6. 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 :




7. Formula of Sacrificing ratio is:




8. The accumulated profits and reserves are transferred to:




9. 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 :




10. On the admission of a new partner, increase in the value of assets is debited to which account ?




11. 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 :




12. On the admission of a new partner, the decrease in the value of assets is debited to:




13. When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to:




14. The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partners’ Capital Accounts in their :




15. 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 :




16. 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:




17. 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 :




18. General Reserval at the time of admission of a new partner is transferred to :




19. Change in profit-sharing ratio of existing partners results in:




20. On reconstitution of a partnership firm, recording of an unrecorded liability wil result in:




21. Increase In the value of assets on reconstitution of the partnership firm results into :




22. The balance of Revaluation Account is transferred to old Partner’s Capital Accounts in their:




23. 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 ?




24. Change in the partnership agreement results in:




25. Change in the partnership agreement:




26. Excess of credit side over the debit side in Revalution Account is:




27. A, B and C are partners in a firm, if D is admitted as a new partner:




28. Recording of an unrecorded asset on the reconstltutlam of a partnership firm will be:




29. Revaluation Account or Profit & Loss Adjustment Account is a:




30. 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 ?




31. Sacrificing Ratio:




32. Gaining Ratio:




33. 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 :




34. At the time of admission of a new partner, General Reserve a appearing in the old Balances Sheet is transferred to:




35. Generally the interest on capital is considered as :




36. Increase in the value of assets on reconstitution of the partnership firm results into:




37. Following are the factors affecting goodwill except:




38. 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 :




39. Under average profit basis goodwill is calculated by :




40. Goodwill is:




41. An asset which is not ficitious but intangible in nature, having realisable value is :




42. Which of the following is not a method of valuation of Goodwill:




43. The excess of average profits over the normal profits are called :




44. Goodwill is a…………….asset




45. Under super profit basis goodwill is calculated by :




46. 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 :




47. What do you mean by Super Profit ?




48. 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:




49. Weighted average method of calculating goodwill is used when:




50. The monetary value of reputation of the business is called: