Explore topic-wise InterviewSolutions in Current Affairs.

Roughage cannot be totally absorbed by the digestive system of the body and this helps to clean out the digestive tract and bowels. This clearing action plays a vital role in preventing infection and diseases. This also adds bulk to the diet and minimizes overeating.

1. Contacts and networks are crucial for getting jobs in urban areas. 

2. Migration is the survival strategy for many families. 

3. Villagers pre-arrange their jobs from rural areas. 

4. They come to urban areas through their contacts or networks. 

5. Migrants also pass on the urban opportunities to the rural masses. 

6. So that potential migrants can engage in rural-based job research.

B) Contacts and networks

Correct option is B) Bardhaman

The seven districts in western Maharashtra Nasik, Ahmad Nagar, Pune, Satara, Sangli, Kolhapur and Sholapur – comprise the ”sugar belt” which extends into Surat(Gujarat) in the north and Belgaum(Karnataka) in the south. Five districts of the arid Marathwada region – Beed, Jalgaon, Ahmad Nagar, Nasik and Jalna – send out labour to this sugar belt for six months every year for sugarcane harvesting.

D) Most migrants move only for short distance.

(A) Material order:

The order that specifies to have all the material of the business unit in proper order or say in proper place is called material order.

(B) Social order:

Social order refers to having a proper place for all human resources in accordance with their designations.

Correct option is D) Beed

Scalar chain means emphasizing on creating chains from top level management to bottom level management. Power and responsibility should be vested as per their respective levels.

Correct option is D) Germany

i. Liabilities

ii. Gain

iii. Assets

iv. Old Ratio

v. Goodwill

Scalar chain:

• Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.
• Fayol emphasized that each information in the organization must flow according to this chain to facilitate clear communication of orders of the superiors and feelings of the subordinates.
• This chain must be strictly followed in the organization.
• This principle emphasizes on creating chain from top level management to bottom level employees.
• Chain of power from higher administrative officers to bottom level employees should not be broken. .
• There should be proper delegation of powers and responsibility at respective level. Moreover, the employees of the unit should be aware of , who is responsible to whom.

B) Kerala and Punjab

India faces an acute shortage of skilled service professionals in Health sector.

Correct option is D) Kerala

Fastest growing sector is Service

C) 200 million

Advantages of protecting business environment: 

i. Reduced health hazards: Pollutants in the environment cause deadly diseases, including cancer and other respiratory problems. Thus, pollution control measures can help reduce the incidences of such diseases and allow people to enjoy a good and healthy life. 

ii. Reduced risk of liability: Enterprises are often held responsible for polluting the environment and are, therefore, asked to compensate for the same. Adoption of pollution control measures can help reduce the risk of such liabilities on part of business enterprises. 

iii. Cost savings: Efficient pollution control mechanisms can help enterprises reduce their costs of waste disposal and cleaning up of production plants. This, in turn, can help businesses reduce their overall cost of production. 

iv. Improved public image: Education has made people aware about environmental problems, and they have started realising the need of protecting the environment. Thus, business enterprises that adopt pollution control measures enjoy a good reputation in the society

Mental revolution

A) 200 million

Science not rule of thumb

The different types of companies are explained below:

(A) Statutory company:

• A statutory company is a public enterprise brought into existence by a special act of the parliament or legislative assembly.
• Reserve Bank of India (RBI), Life Insurance Corporation (LIC) of India, etc. are statutory companies.

(B) Companies from the view point of number of members:
(I) Public company:

• As per Companies Act, a company which is not a private company is called a public company.
• A public company needs to have minimum 7 members. There s no limit on maximum number of members.
• Such companies can invite public to buy its shares and debentures. Moreover, one can easily transfer the shares.

From liability of member’s point of view a public limited company can be divided In three parts. They are:
1. Company limited by share capital:

In such companies the liability of members is limited to the face value of the number of shares held by them These companies put a word Limited’ at the end of the company. name. For example. National Insurance Company Limited.

2. Company limited by guarantee :

• A company limited by guarantee does not usually have a share capital or shareholders but instead has members who act as guarantors.
• The guarantors give an undertaking to contribute the amount guaranteed by them at the time of liquidation of the company.

3. Company by unlimited liability:

• A company in which the liability of members is unlimited is called a company by unlimited liability.
• If the debts of such companies exceed their assets or if the company goes under liquidation than the members may have to pay their contribution even by selling their personal assets.

(II) Private company:

• A private company is a company that has minimum 2 members and maximum 200 members.
• Unlike public company there are restrictions on the transfer of shares of a private company.

From liability point of view a private company can be divided into three types. They are:
1. Company limited by share:

• The liability of the members is limited to the face value of the number of shares they possess.
• Such private company has to put the words ‘Private Limited’ at the end of its name. For example, ABC Private Limited.

2. Company limited by guarantee:

• A private company in which the liability of members of the company is limited to the amount of guarantee given by them is called a company limited by guarantee.
• In case of liquidation of the company the members have to pay the guaranteed amount to the company.
• Such companies add the word ‘private’ at the end of company name.

3. Company with unlimited liability:

• A company in which the liability of members is unlimited is called a company by unlimited liability.
• If the debts of such companies exceed their assets or if the company goes under liquidation than the members may have to pay their contribution even by selling their personal assets.
• Such companies add the word ‘private’ at the end of company name.

(III) One person company:

• The concept of One Person Company (OPC) is a new form of private company introduced by the Companies Act, 2013. It consists of only one member (person) and so the name.
• One Person Company can enter into contract with director who is its member (i.e. the person itself as a director) through written consent of that person.
• The OPC needs to present the Memorandum and Articles before the Registrar of Companies during the incorporation of the company.

(C) Companies from the point of view of domination:
1. Government company:

• A company whose 51 % or more capital is held by either (1) Central government or (2) State government or (3) more than one state governments or (4) Central government and one or more than one state governments is called a government company.
• For example, Ashok Hotels Limited, Bharat Heavy Electricals Limited (BHEL), Bharat Sanchar Nigam Limited (BSNL), etc. are government companies.

2. Holding company:

A company which holds more than 50% shares of another company and holds the right to appoint majority of directors of that company is called a holding company.

3. Subsidiary company:

A company whose more than 50% shares are with the holding company and the right to appoint majority of its directors also lie with the holding company is called a subsidiary company.

(D) Types of companies with the view point of place of registration.
1. Indian company:

• A company which is registered in India under the Indian Companies Act or under the special act passed by the parliament is called an Indian company.
• An Indian company can be private company, public company or government company.

2. Foreign company:
A company which is registered outside India and whose registered office is also outside India, but whose place of business is in India is called a foreign company. For example, Vodafone.

Call Centre: A call centre is an office where people work answering or making telephone calls for a particular company or customer regarding certain information.

Limitations of co-operative societies:
1. Limited capital:

It is difficult to raise capital in a co-operative society. The main reason for this is that the price of shares to be sold to members is quite low and members generally belong to poor class. Moreover, unlike companies any member can have only one vote irrespective of the number of shares he holds. So, members are not much interested in buying shares which further adds to capital shortage.

2. Lack of efficient management:

The directors of co-operative societies work on an honorary basis i.e. without taking any fees or salary. Hence, at times they may not take personal and deep interest in the management and administration.

• Since the directors work honorary the society may hot get an efficient person / having specialized knowledge, business experience and time.
• Lack of personal interest may also result in formation of opposite groups within the society and hence poor management.

3. Political interference:

Various political parties directly or indirectly try to control the co-operative societies. If the society starts functioning according to their political will the business freedom gets affected which in turn affects the objective of the co-operative society and its democracy.

4. Non Co-operation among members:

• The success of a co-operative society depends highly on the honesty, loyalty and co-operative approach of the members.
• When members lack these values it may result in disharmony, conflicts, division of members in various groups, selfishness, enmity and ultimately non-co-operation.
• Owing to these reasons, the co-operative society may not be able to fulfill its objectives.

In 1793 lord Cornwallis introduced permanent settlement.

Co-operative society:

• A co-operative society is a voluntary form of business where in individuals intending to set-up a business get associated for economic interests but on the basis of equality i.e. to provide equal right and opportunity to all the members.
• Thus, people with common interests voluntarily get associated to fulfill economic interest of members through co-operation among members but, by treating all members equally. In other words to uplift economically weaker sections of society. The co-operative societies are set-up by weaker sections of society to protect its members from the clutches of profit hungry businessman.
• Amul is one of the best examples of a co-operative society.

Advantages of a co-operative society:
1. Easy establishment:
It does not require lengthy legal procedure to set-up a co-operative society. Ten persons can simply come together voluntarily and form a co-operative society. If they wish they can even easily register it.

2. Perpetual existence:

• As soon as a co-operative society gets registered it becomes a separate legal entity i.e. members and society are considered two separate entities.
• The existence of the society than does not get affected by the exit, death or insolvency of the member.
• Hence, a co-operative society enjoys a long and also in many cases a perpetual life.

3. Open membership:
The membership is open to all who have a common interest. Anyone can become a member irrespective of religion, caste, sex or economic condition.

4. Limited liability of the members:
The liability of each member is limited only to the number of shares he purchases.

5. Government aid:
Government provides financial assistance to the society for conducting activities to uplift the members and serve the society. The assistance can be in the form of loan, grant or subsidy.

6. Democratic management:

• The business of co-operative society is managed by the committee elected by the members. Each member has a right to caste only one vote irrespective of the number of shares he holds.
• The decisions of the society are taken on the basis of majority.
• Every member can contest the election, cast vote and participate in meetings and elect the representatives of the society.

7. Lesser administrative expenses:

• The co-operative society works on the principle of thrift i.e. wisely managing money and other resources.
• Members provide honorary services for managing the society. Moreover, management is done on an economical way without spending or spending very less on advertisements and marketing of the products.
• These things together reduces overall administrative expenses of the society.

8. A specific class of customers:
Mostly the members are customers too. Members are specific and goods are sold to them.

9. Strong competitor against trading firms:
Sometimes business firms in order to earn more profit may involve in unfair practices like adulteration, cheating, profit-maximization, black marketing, etc. -» A co-operative society can stand strongly against such firms because it does not involve in unfair trade particles and aims at providing goods at reasonable prices. Also its administrative expenses are lesser and so it can provide a good competition to business firms.

10. Welfare activities for the society (public):

• Co-operative societies from their profits and reserve conduct various types of welfare activities for the society.
  They arrange activities like setting-up medical camps free of charge or at very nominal rates, develop schools, dispensaries, gardens, etc.
• These activities are advantages to general public of the country.

11. Training school for democracy:

• A co-operative society works purely on a democratic way. It gives importance to humans and not money or power.
• In this sense the co-operative society works as a training school democracy where ideals of democracy can be thoroughly learnt.

The land revenue was very high. To pay land revenue was compulsory.

The fifth report was submitted to the British Parliament in 1813 about administrative activities of the East India Company.

1. There was a worldwide economic decline triggered by a decline in demand and fall in prices. It was called “Great Depression”. 

2. The Great Depression began around the end of 1929 and lasted almost till 1939.

(1) Firstly British adopted policy of extermination. 

(2) Augusts Cleveland, the collector of Bhagalpur proposed policy of pacification. 

(3) Under policy of pacification paharia chiefs was to ensure proper conduct of their men. 

(4) Paharia went into mountains and deep forests and continued their war against outsiders.

1. Increase in unemployment. 

2. Fall in prices. 

3. Closure of industries. 

4. Decrease in the purchasing capacity of the people.

Accounts that are not recorded as per the double entry system are known as incomplete records. According to Kohler (Dictionary for Accountants), single entry system is defined as, “A system of bookkeeping in which as a rule, only records of cash and of personal accounts are maintained; it is always incomplete double entry, varying with circumstances.”

The important de-merits of incomplete records are: 

(c) Padahasthasana.

(b) To perform action or deed,

1. Yama: It symbolises self discipline. There are five Yama i.e., non-violence, satya, astay, brahmacharya and Aprigrah. 

2. Niyama: There are five rules 

1. Purity of mind and body 

2. Contentment 

3. Self-evaluation 

4. Devotion or complete surrender to God 

5. Rigorous penance.

(d) Uttanapadasana.

Common Requirements of Yoga: 

1. Basic knowledge. 

2. Time and place. 

3. Food and habits. 

4. Cleanliness. 

5. Guidance. 

6. Relaxation.

Only cash transactions such as cash received from debtors or customers, cash paid to creditors or suppliers, cash sales, cash purchases, cash expenses, cash incomes, etc. are recorded in Single Entry System.

• Though the proprietor or owner is the legal owner of the business, owner and business should treated two separate entities (Separate entity concept). 

• Business transaction are recorded in the view point of business not in the view point of proprietor. 

• The various terms used in a transaction such as commenced business, started business, capital introduced, capital brought in, etc. mean one and the same thing (capital) similarly withdraw, personal drawing, private purpose etc., are drawings a/c.

• Money borrowed from any outsiders including wife, relative, friends, should be treated as ‘loan’ account, similarly given also (loan given). 

• Goods a/c – opening stock, purchases, sales, returns outwards or inwards and closing stock must be recorded as purchase, sales, purchase return and sales return respectively. 

• Purchase of Fixed assets should be recorded in fixed assets name only and it should not be recorded in purchase book 

Example : plant and machinery a/c 

• Cash paid or received from parties against the services is not recorded in their personal a/c (names) but in the name of services 

Example : salary paid to ‘x’ a/c 

• Trade Discount should not be recorded only cash discount should be recorded. 

• Some times the transactions are not clear. In that case the correct meaning should be understood. 

Examples, (a) Purchase goods, not clear about cash, or credit. It should be treated as cash transaction. 

(b) Purchase goods from ‘Y’. It is treated as credit transcation. 

• Expenditure on fixed assets should not be recorded in the name of assets but in the name of service ‘Repairs and maintenance’ unless otherwise stated clearly. 

1. First step : Firstly we have to find out two accounts involved in the transaction. While ascertaining the two accounts, the account of a person in whose books entries are recorded should not be taken into account. 

2. Second step : We have to find out whether the accounts are personal, real or nominal accounts. 

3. Third step : After the second step we have to apply the relevant rules of the each account which means the account should be credited or debited. 

4. Fourth step : Lastly we should pass the journal as stated earlier.

It provides date-wise record of all the transaction so that the reference of transaction will be quick and easy. 

• It gives whole record of all the transaction at one place. 

• By writing journal narration, it help to understand the purpose and nature of entry. 

• It avoids the making of immediate entries in the ledger book.- 

• It helps to avoid the mistakes or errors in the books of accounts. 

• It is necessary for recording the opening entries, closing entries and adjusting entries. 

• It helps to identity the errors which were in the books of accounts. 

• It is a book of prime entry or original entry. 

The correct answer is : (c) Assets

The relationship of assets with that of liabilities to outsiders and to owners in the equation form is known as accounting equation. 

Under the double entry system of book keeping, every transaction has two fold effect, which causes the changes in assets and liabilities or capital in such a way that an accounting equation is completed and equated. 

Capital + Liabilities = Assets 

Capital can also be called as owner’s equity and liabilities as outsider’s equity.

Personal account: Account relating to persons is called personal account. The personal account may be natural, artificial or representative personal account.

Debit all expenses and losses credit all incomes and gains.

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)

Class 12 MCQ Questions of Admission of a Partner with Answers for a significant piece of exams for Class 12 Accountancy and whenever practiced appropriately can assist you with getting better grades. Allude to more Chapter-wise MCQ Questions for NCERT Class 12 Accountancy and for all subjects. The MCQ Questions for Class 12 Accountancy with answers have been arranged according to the most recent syllabus, NCERT books, and pattern of exams Class 12 recommended by CBSE. 

Our educators have given beneath Admission of a Partner Class 12 Accountancy MCQ Questions with answers which will assist understudies with changing and get more marks in exams. Given underneath are significant MCQ Questions on the Admission of a New Partner to dissect your comprehension of the point. The appropriate responses are additionally given for your reference.

1. In the case of admission of a partner, the entry for unrecorded investments will be

A) Debit Partner Capital A/cs and Credit Investment A/c

B) Debit Revaluation A/cs and Credit Investment A/c

C) Debit Investment A/cs and Credit Revaluation A/c

D) None of the above

2. Goodwill of a firm of A and B is valued at ₹30,000. It is appearing in the books at ₹12,000. C is admitted for 1/4share. What amount he is supposed to bring for goodwill?

A) ₹ 30,000

B) ₹ 4,500

C) ₹ 7,500

D) ₹ 10,500

3. Ramesh and Suresh are partners sharing profits in the ration of 2:1 respectively. Ramesh capital ₹ 1,02,000 and Suresh capital are ₹73,000. They admit Mahesh and agree to give him 1/5th share in future profit. Mahesh brings ₹14,000 as his share of goodwill. He agrees to contribute capital in the new profit-sharing ration. How much capital will be brought by Mahesh?

A) ₹ 43,750

B) ₹ 45,000

C) ₹ 47,250

D) ₹ 48,000

4. A and Bare in partnership, sharing profits in the ratio of 3:2. They take C as a new partner. Goodwill of the firm is valued at 33,00,000 and C brings ₹30,000 as his share of goodwill in cash which is entirely credited to the capital account of A. New profit sharing ratio will be

A) 3:2:1

B) 6:3:1

C) 5:4:1

D) 4:5:1

5. X and Y are partners sharing profits in the ratio of 4:3. Z is admitted for 1/5th share and he brings in ₹1,40,000 as his share of goodwill in cash of which ₹1,20,000 is credited to X remaining amount to Y. New profit sharing ratio will be

A) 4: 3: 5

B) 2: 2: 1

C) 1: 2: 2

D) 2: 1: 2

6. A, B, C, and D are partners. A and B share 2/3rd of profits equally and C and D share remaining profits in the ratio of 3: 2. Find the profit sharing ratio of A, B. C, and D

A) 5: 5: 3: 2

B) 7: 7: 6: 4

C) 2.5: 2.5: 8: 6

D) 3: 9: 8: 3

7. If the new partner brings his share of goodwill in cash, it will be shared by old partners in ______.

(A) Old profit sharing ratio.

(B) New profit sharing ratio.

(C) In capital ratio.

(D) Ratio of sacrifice.

8. Any change in partnership is called ______.

(A) Dissolution of a partnership firm.

(B) Reconstitution of partners.

(C) Reconstitution of a partnership firm.

(D) None of the options are correct.

9. If at the time of admission, some profit and loss account balance appears in the books, it will be transferred to ______.

(A) All partners’ Capital Accounts.

(B) Revaluation Account.

(C) Old partners’ Capital Accounts.

(D) Profit and Loss Adjustment Account.

10. At the time of admission of a new partner, which adjustments are required?

(A) Accounting treatment of goodwill.

(B) Accounting treatment of accumulated profits.

(C) Calculation of new profit sharing ratio and sacrificing ratio.

(D) All of the options are correct.

11. In the absence of an express agreement as to who will contribute to new partners’ share of profit, it is implied that the old partners will contribute ______.

(A) In the ratio of their capitals.

(B) In their old profit sharing ratio.

(C) In the gaining ratio.

(D) Equally.

12. Which clause should be mentioned in the partnership deed?

(A) Description of the firm.

(B) Nature of the business.

(C) Description of the partners.

(D) All of the options are correct.

13. A new partner may be admitted into a partnership :

(A) With the consent of any one partner
(B) With the consent of majority of partners
(C) With the consent of all old partners
(D) With the consent of 2/3rd of old partners

14. On the admission of a new partner :

(A) Old firm is dissolved
(B) Old partnership is dissolved
(C) Both old partnership and firm are dissolved
(D) Neither partnership nor firm is dissolved

15. A and B are partners sharing profit in the ratio of 3 : 2. They admit C as a partner by giving him 1/3 share in future profits. The new ratio will be : 

(A) 12 : 8 : 5
(B) 8: 12 : 5
(C) 5 : 5 : 12
(D) None of the Above

16. X and Y are partners sharing profit in the ratio of 3 : 2. Z was admitted with 1/4 share in profits which he acquires equally from X and Y. The new ratio will be:

(A) 9 : 6 : 5
(B) 19 : 11 : 10
(C) 3 : 3 : 2
(D) 3 : 2 : 4

17. A and B share profits in the ratio of 2 : 1. C is admitted with 1/4 share in profits. C acquires 3/4 of his share from A and 1/4 of his share from B. The new ratio will be:

(A) 2 : 1 : 1
(B) 23 : 13 : 12
(C) 3 : 1 : 1
(D) 13 : 23 : 12

18. B and N are partners in a firm sharing profits in the ratio of 3 : 2. They admit S as a partner for l/4th share in the profits. S acquires his share from B and N in the ratio of 2 : 1. The new profit-sharing ratio will be :

(A) 2 : 1 : 4
(B) 19 : 26: 15
(C) 3 : 2 : 4
(D) 26 : 19 : 15

19. Sacrificing ratio is ascertained at the time of

a) Admission of a new partner

b) Death of partner

c) Retirement of partner

d) None of the options

20. share of goodwill brought in by new partner in cash is shared by old partners in

a) Sacrificing ration

b) Old ratio

c) New ratio

d) All of the options

21. Excess of the credit side over the debit side of revaluation account

a) Profit

b) Loss

c) Gain

d) Expense

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

a) Revalued figure

b) Original value

c) At realisable value

d) None of the options

23. Share of goodwill brought in by new partner in cash is called

a) Premium

b) Profit

c) Assets

d) Liabilities

24. Profit or loss on revaluation is borne by

a) Old Partners

b) New partners

c) All partners

d) All of the options

25. When the new partners pays for goodwill in cash, the amount should be debited in the firms book to

a) Cash A/c

b) Goodwill A/c

c) Capital Account

d) All of the options

Answer:

Practice the MCQ Questions for Class 12 MCQ Questions of Retirement or Death of a Partner with Answers here. if practiced properly can help you to get higher marks and revise the whole syllabus. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern.

We have provided Reconstitution of Partnership Firm: Retirement or Death of a Partner Class 12 Accountancy MCQ Questions with Answers to help students understand the concept very well. Every Multiple choice question has 4 options. one of them from that 4 is right answer. The appropriate answers are also given to check your preprataions.

Practice the MCQ Questions for Class 12 MCQ Questions of Retirement or Death of a Partner with Answers here. if practiced properly can help you to get higher marks and revise the whole syllabus. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern.

We have provided Reconstitution of Partnership Firm: Retirement or Death of a Partner Class 12 Accountancy MCQ Questions with Answers to help students understand the concept very well. Every Multiple choice question has 4 options. one of them from that 4 is right answer. The appropriate answers are also given to check your preprataions.

1. Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in

A) Gaining Ratio

B) Capital Ratio

C) Sacrificing Ratio

D) Profit-Sharing Ratio

2. A, B, and C are partners in the ratio of 3:4:2. B wants to retire from the firm. The profit on revaluation on that date was ₹36,000. The new ratio of A and C is 5:3. Profit on revaluation will be distributed as

A) A ₹16,000, B ₹12,000, C ₹8,000

B) A ₹12,000, B ₹16,000, C ₹8,000

C) A ₹22,500, C ₹13,500

D) A ₹23,625, C ₹12,375

3. A, B, and C share profits and losses of the company equally. B retires form business and his share is purchased by A and C in the ratio of 2:3. New profit sharing ratio between A and C respectively would be

A) 1:1

B) 2:2

C) 7:8

D) 3:5

4. P, Q, and R have been sharing profits in the ration of 8:5:3. P retires. Q takes 3/16th share from P and R take 5/16th share from P. New profit sharing ratio will be

A) 1:1

B) 10:6

C) 9:7

D) 5:3

5. A, B, and C are equal partners. C retires. He surrenders 3/5th of his share in favour of A and 2/5th in favour of B. New ratio will be

A) 3:2

B) 8:7

C) 7:8

D) 2:3

6. P, Q, and R are sharing profit and losses equally. R retires and the goodwill is appearing in the book at ₹30,000. Goodwill of the firm is valued at ₹1,50,000. Calculate the net amount to be credited to R’s capital A/c

A) ₹ 60,000

B) ₹ 50,000

C) ₹ 40,000

D) ₹ 10,000

7. On retirement of a partner, goodwill will be credited to the Capital Account of:

(A) Retiring Partner
(B) Remaining Partners
(C) All Partners
(D) None of the Above

8. ‘Gaining Ratio’ means :

(A) Old Ratio – New Ratio
(B) New Ratio – Old Ratio
(C) Old Ratio – Sacrificing Ratio
(D) New Ratio – Sacrificing Ratio

9. What treatment is made of accumulated profits and losses on the retirement of a partner?

(A) Credited to all partner’s capital accounts in old ratio.
(B) Debited to all partner’s capital accounts in old ratio.
(C) Credited to remaining partner’s capital accounts in new ratio.
(D) Credited to remaining partner’s capital accounts in gaining ratio.

10. At the time of retirement of a partner, profit on revaluation will be credited to :

(A) Capital Account of retiring partner
(B) Capital Accounts of all partners in the old profit sharing ratio.
(C) Capital Accounts of the remaining partners in their old profit sharing ratio
(D) Capital Accounts of the remaining partners in their new profit sharing ratio

11. What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?

(A) Retiring Partner’s Capital A/c Dr. To Goodwill A/c
(B) All Partner’s Capital A/cs (including retiring) Dr. (in old ratio) To Goodwill A/c
(C) Remaining Partner’s Capital A/cs Dr. (in gaining ratio) To Goodwill A/c
(D) Remaining Partner’s Capital A/cs Dr. (in new ratio) To Goodwill A/c

12. What journal entry will be recorded for deceased partner’s share in profit from the closure of last balance sheet till the date of his death?

(A) Profit and Loss A/c To Deceased Partner’s Capital A/c Dr.
(B) Deceased Partner’s Capital A/c To Profit and Loss A/c Dr.
(C) Deceased Partner’s Capital A/c To Profit and Loss Suspense A/c Dr.
(D) Profit and Loss Suspense A/c To Deceased Partner’s Capital A/c Dr.

13. A, B, and C are partners in a company sharing profit and loss in the ratio of 2:2:2. On March 31, 2018, C died. Accounts are closed on December 31st every year. The sale for the year 2017 was ₹6,00,000 and profits were ₹60,000. The sales for the period from Jan 1, 2018, to March 31, 2018, were ₹2,00,000. The share of the deceased partner in the current year’s profits on the basis of sale is

(a) ₹20,000
(b) ₹8,000
(c) ₹3,000
(d) ₹4,000

14. A, B, and C are partners in 3:4:2. B wants to retire from the firm. The profit on revaluation on that date was ₹36,000. The new ration of A and C is 5:3. Profit on revaluation will be distributed as

(a) A ₹16,000, B ₹12,000, C ₹8,000
(b) A ₹12,000, B ₹16,000, C ₹8,000
(c) A ₹22,500, C ₹13,500
(d) A ₹23,625, C ₹12,375

15. A, B, and C share profits and losses of the company equally. B retires form business and his share is purchased by A and C in the of 2:3. New profits sharing ratio between A and C respectively would be

(a) 01:01
(b) 02:02
(c) 07:08
(d) 03:05

16. P, Q, and R have been sharing profits in the ration of 8:5:3. P retires. Q takes 3/16th share from P and R take 5.16th share from P. New profit sharing ratio will be

(a) 01:01
(b) 10:6
(c) 9:7
(d) 5:3

17. A, B, and C are equal partners. C retires. He surrenders 3/5th of his share in favour of A and 2/5th in favour of B. New ratio will be

(a) 3:2
(b) 8:7
(c) 7:8
(d) 2:3

18. A, B, and C are partners with profit sharing ratio 4:3:2. B retires and goodwill was valued ₹1,08,000. If A and C share profits in 5;3, find out the goodwill shared A and C in favour of B

(a) ₹ 22,500 and ₹ 13,500
(b) ₹ 16,500 and ₹ 19,500
(c) ₹ 67,500 and ₹ 40,500
(d) ₹ 19,500 and ₹ 16,500

19. Gaining Ratio’ means :

(A) Old Ratio – New Ratio
(B) New Ratio – Old Ratio
(C) Old Ratio – Sacrificing Ratio
(D) New Ratio – Sacrificing Ratio

20. In the absence of any information regarding the acquisition of share in profit of the retiring / deceased partner by the remaining partners. It is assumed that they will acquires his/her shares :

(a) Old Profit Sharing ratio
(b) New Profit Sharing ratio
(c) Equal Ratio
(d) None of these

21. An account operated to ascertain the loss or gain at the time of death of a Partner is called

(a) Realisation Account
(b) Executors Account
(c) Revaluation Account
(d) Deceased Partners capital account

22. On retirement of a partner, goodwill will be credited to the Capital Account of:

(A) Retiring Partner
(B) Remaining Partners
(C) All Partners
(D) None of the Above

23. P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and P and R decide to share future profits equally. Gaining Ratio will be :

(A) 5 : 3
(B) 1 : 1
(C) 1 : 3
(D) 3 : 1

24.  A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2:1. On March, 31, 2018 C died. Accounts are closed on December 31^st every year. The sales for the year 2017 was Rs. 6,00,000 and the profits were Rs. 60,000. The sales for the period for the period January 1, 2018 to March 31^st 2018 were Rs.2,00,000. The share of deceased Partner in the current year’s profit on the basis of sales is

(a) Rs.20,000
(b) Rs. 8,000
(c) Rs. 3,000
(d) Rs. 4,000

25. On retirement / death of a partner, the retiring / deceased Partner’s capital account will be credited with:

(a) his / her share of goodwill
(b) Goodwill of the firm
(c) Shares of goodwill of remaining Partners
(d) None of these

Answer:

1. Answer (A) Gaining Ratio

2. Answer (B) A ₹12,000, B ₹16,000, C ₹8,000

3. Answer (C) 7:8

4. Answer (A) 1:1

5. Answer (B) 8:7

6. Answer (C) ₹ 40,000

7. Answer (A) Retiring Partner

8. Answer (B) New Ratio – Old Ratio

9. Answer (A) Credited to all partner’s capital accounts in old ratio.

10. Answer (B) Capital Accounts of all partners in the old profit sharing ratio.

11. Answer (B) All Partner’s Capital A/cs (including retiring) Dr. (in old ratio) To Goodwill A/c

12. Answer (D) Profit and Loss Suspense A/c To Deceased Partner’s Capital A/c Dr.

13. Answer (d) ₹4,000

14. Answer (b) A ₹12,000, B ₹16,000, C ₹8,000

15. Answer (c) 07:08

16. Answer (a) 01:01

17. Answer (b) 8:7

18. Answer (d) ₹ 19,500 and ₹ 16,500

19. Answer (B) New Ratio – Old Ratio

20. Answer (a) Old Profit Sharing ratio

21. Answer (c) Revaluation Account

22. Answer (A) Retiring Partner

23. Answer (C) 1 : 3

24. Answer (d) Rs. 4,000

25. Answer (a) his / her share of goodwill.

D) we cannot say