CBSE Class 12 Accountancy Reconstitution of Partnership Firm: Admission of a Partner Quiz 2

1. A, B and C are partners in a firm. If D is admitted as a new partner, then:

A Old firm is dissolved B Old firm and old partnership is dissolved C Old Partnership is reconsitituted D None of these

2. In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners :

A Profit sharing ratio B Capital ratio C Sacrificing ratio D None of these

3. Sacrificing ratio is ascertained at the time of:

A Death of a partner B Retirement of a partner C Admission of a partner D None of these

4. If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it will the transferred to:

A Profit & Loss Appropriation A/c B All Partners’ Capital A/cs C Old Partners’ Capital A/cs D Revaluation A/c

5. State the ‘true’ statement:

A Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner B The new partner is liable for the past losses of the firm C In case the new partner is unable to bring in cash for goodwill, Goodwill Account may be raised in the firm’s books as per AS-26 D When a partner is admitted, there is dissolution of firm

6. Excess of the credit side over the debit side of Revaluation account is:

A Profit B Loss C Gain D Expense

7. Balance sheet prepared after new partnership agreement, assets and liabilities are recorded at:

A Original Value B Revalued Figure C At Realisable Value D Either of (a) or (b)

8. Assets and Liabilities are shown at their revalued values in :

A New Balance Sheet B Revaluation A/c C All Partner’s Capital A/c’s D Realisation A/c

9. Which of the following assets is compulsorily revalued at the time of admission of a new partner :

A stock B Fixed Assets C Investment D Goodwill

10. 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 :

A ₹ 1,00,000 B ₹ 4,00,000 C ₹ 1,20,000 D ₹ 6,00,000