Class 12 MCQ Questions of Change in Profit Sharing Ratio among the Existing Partners with Answers can assist you with practicing and improve marks in the impending class 12 bookkeeping assessments. We have given Profit Sharing Ratio among the Existing Partners Class 12 Accountancy MCQ Questions with Answers to assist understudies with understanding the idea well indeed. 

Understudies of class 12 Accountancy ought to refer to MCQ Questions Class 12 Profit Sharing Ratio among the Existing Partners with answers gave here which is significant in the Class 12 Accountancy coursebook. Understudies can address Class 12 MCQ Questions of Accounting for Partnership Firms — Fundamentals with Answers to realize their planning level for exams.

1. Sacrificing Ratio:

a) New Ratio – Old Ratio
b) Old Ratio – New Ratio
c) Old Ratio – Gaining Ratio
d) Gaining Ratio – Old Ratio

2. Gaining Ratio:

a) New Ratio – Sacrificing Ratio
b) Old Ratio – Sacrificing Ratio
c) New Ratio – Old Ratio
d) Old Ratio – New Ratio

3. A and B were partners in a firm sharing profit or loss equally. With effect from 1st April, 2019 they agreed to share profits in the ratio of 4:3. Due to change in profit sharing ratio, A’s gain or sacrifice will be:

a) Gain 1/4
b) Sacrifice 1/14
c) Gain 4/7
d) Sacrifice 3/7

4. A and B were partners in a firm sharing profit or loss in the ratio of 3:5. With effect from 1st April, 2019, they agreed to share profits or losses equally. Due to change in profit sharing ratio, A’s gain or sacrifice will be:

a) Gain 3/8
b) Gain 1/8
c) Sacrifice 3/8
d) Sacrifice 1/8

5. A and B were partners in a firm sharing profits and losses in the ratio of 2:1. With effect from 1st January, 2019 they agreed to share profits and losses equally. Individual partner’s gain or sacrifice due to change in the ratio will be:

a) Gain by A 1/6, Sacrifice by B 1/6
b) Sacrifice by A 1/6, Gain by by B 1/6
c) Gain by A 1/2, Sacrifice by B 1/2
d) Sacrifice by A 1/2, Gain by B 1/2

6. A and B share profits and losses in the ratio of 3:2. With effect from 1st January, 2019, they agreed to share profits equally. Sacrificing ratio and Gaining Ratio will be:

a) Sacrifice by A 1/10, Sacrifice by B 1/10
b) Gain by A 1/10, Gain by B 1/10
c) Sacrifice by A 1/10, Gain by B 1/10
d) Gain by A 1/10, Sacrifice by B 1/10

7. The ratio of surrender of profit sharing ratio is called

1. New ratio
2. Gaining ratio
3. Sacrificing ratio
4. Old ratio

8. The ratio of gain of profit sharing ratio is called

1. New ratio
2. Gaining ratio
3. Sacrificing ratio
4. Old ratio

9. Sacrificing ratio =

1. Old ratio – new ratio
2. New ratio- old ratio
3. Old ratio/ new ratio
4. New ratio/ old ratio

10. Gaining ratio =

1. Old ratio – new ratio
2. New ratio – old ratio
3. Old ratio / new ratio
4. New ratio / old ratio

11. The term goodwill is generally used to

1. Pay off liabilities of the business
2. Purchase goods on credit
3. Denote the benefit arising from connections and reputation
4. None of the above

12. Essential Features of goodwill don’t involve

1. It is a valuable asset
2. It is helpful in earning excess profit
3. It is an intangible asset
4. It is very easy to place an exact value on goodwill

13. Excess of actual average profit over normal profits is known as

1. Average profit
2. Accumulated profit
3. Unearned profit
4. Super profit

14. When there is a change in profit sharing ratio amongst existing partners, so in …… ratio, partners will share profit or losses on revaluation of assets and liabilities.

1. Old profit sharing
2. New profit sharing
3. Sacrificing
4. Gaining

15. Goodwill is a/an …… Asset

1. Fictitious
2. Current
3. Wasting
4. Intangible

16. Any change in the relationship of existing partners which results in an end of the existing
agreement and enforces making of new agreement is called:

(a) Revaluation of partnership
(b) Reconstitution of partnership
(c) Realization of partnership
(d) None of the above

17. The ratio in which a partner surrenders his share in favour of a partner is known as:

(a) New profit-sharing ratio
(b) Sacrificing Ratio
(c) Gaining Ratio
(d) Capital Ratio

18. The ratio in which a partner receives a rise in his share of profits is known as:

(a) New Ratio
(b) Sacrificing Ratio
(c) Capital Ratio
(d) Gaining Ratio

19. Reserves and accumulated profits are transferred to partners ‘ capital accounts at the time of reconstitution in:

(a) Old profit-sharing ratio
(b) Sacrificing Ratio
(c) Gaining ratio
(d) New profit-sharing ratio

20. Increase and decrease in the value of assets and liabilities are recorded through:

(a) Partners’ Capital Account
(b) Revaluation Account
(c) Profit and Loss Appropriation Ne
(d) Balance Sheet

21. In which of the following case, revaluation account is debited?

(a) Increase in value of an asset
(b) Decrease in value of an asset
(c) Decrease in value of liability
(d) No change in the value of assets

22. In which of the following cases, revaluation account is credited?

(a) Decrease in value of liability
(b) Increase in value of liability
(c) Decrease in value of asset
(d) No change in value of liability

23. Partner’s capital account is credited when there is

(a) Profit on revaluation
(b) transfer of general reserve
(c) transfer of accumulated profits
(d) All of the above

24. Sacrificing ratio is the difference between :

(a) New ratio and old ratio
(b) Old ratio and new ratio
(c) New ratio and gaining ratio
(d) Old ratio and gaining ratio

25. A and B are partners in a firm sharing profits in the ratio of 3 : 2. They decided to share future profits equally. Calculate A’s gain or sacrifice

(a) 2/10 (sacrifice)
(b) 5/10 (gain)
(c) 1/10 (Gain)
(d) 1/10 (sacrifice)

Answer:

1. Answer (b) Old Ratio – New Ratio

2. Answer (c) New Ratio – Old Ratio

3. Answer (a) Gain 1/4

4. Answer (b) Gain 1/8

5. Answer (b) Sacrifice by A 1/6, Gain by by B 1/6

6. Answer (c) Sacrifice by A 1/10, Gain by B 1/10

7. Answer (3) Sacrificing ratio

8. Answer (2) Gaining ratio

9. Answer (1) Old ratio – new ratio

10. Answer (2) New ratio – old ratio

11. Answer (3) Denote the benefit arising from connections and reputation

12. Answer (4) It is very easy to place an exact value on goodwill

13. Answer (4) Super profit

14. Answer (1) Old profit sharing

15. Answer (4) Intangible

16. Answer (b) Reconstitution of partnership

17. Answer  (b) Sacrificing Ratio

18. Answer (d) Gaining Ratio

19. Answer (a) Old profit-sharing ratio

20. Answer (b) Revaluation Account

21. Answer (a) Increase in value of an asset

22. Answer (a) Decrease in value of liability

23. Answer (d) All of the above

24. Answer (d) Old ratio and gaining ratio

25. Answer (d) 1/10 (sacrifice)