Reconstitution of Partnership Firm: Retirement/Death of a partner Class 12 MCQs Questions with Answers

1. When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited :

2. X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :

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

4. 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 :

5. Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be :

6. A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner for 1/3 rd share in the profits of the firm. The new profit sharing ratio of A, B and C would be :

7. Sacrificing ratio is ascertained at the time of:

8. Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by:

9. Profit or Loss on Revaluation is borne by:

10. Share of goodwill brought by new partner in case is shared by old partners in :

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

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

13. A, Band Care three partners sharing profits and losses in the ratio of 4:3:2. D is admitted for 1/10 share, the new ratio will be :

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

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

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

17. At the time of admission of a new partners general reserve appearing in the old Balance Sheet is transferred to:

18. The amount of goodwill is paid by new partner :

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

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