MCQ Questions of Admission of a Partner | Accountancy - Part 1: Not-for-Profit Organisation and Partnership Accounts

Q1) 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

View Answer Discuss Share

Q2) 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

View Answer Discuss Share

Q3) 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

View Answer Discuss Share

Q4) 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

View Answer Discuss Share

Q5) 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

View Answer Discuss Share

Q6) 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

View Answer Discuss Share

Q7) A and B are partners sharing profits and losses in the ratio of 7 : 5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B, The new profit sharing ratio will be :

(A) 13 : 7 : 4

(B) 7 : 13 : 4

(C) 7 : 5 : 6

(D) 5 : 7 : 6

View Answer Discuss Share

Q8) A and B share profits in the ratio of 3 : 2. They agreed to admit C on the condition that A will sacrifice 325th of his share of profit in favour of C and B will sacrifice 125th of his profits in favour of C. The new profit sharing ratio will be :

(A) 12 : 9: 4

(B) 3 : 2 : 4

(C) 66 : 48 : 11

(D) 48 : 66 : 11

View Answer Discuss Share

Q9) A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/15th share of his profit in favour of C and B surrenders 2/15th of his share in favour of C. The new ratio will be :

(A) 8 : 4 : 3

(B) 42 : 26 : 7

(C) 4 : 8 : 3

(D) 26 : 42 : 7

View Answer Discuss Share

Q10) A and B are partners sharing profits and losses in the ratio of 5 : 3. On admission, C brings ₹70,000 as cash and ₹43,000 against Goodwill. New profit ratio between A, B and C is 7 : 5 : 4. The sacrificing ratio of A and B is:

(A) 3 : 1

(B) 1 : 3

(C) 4 : 5

(D) 5 : 9

View Answer Discuss Share

Q11) X and Y are partners in a firm with capital of ₹1,80,000 and ₹2,00,000. Z was admitted for 1/3rd share in profits and brings ₹3,40,000 as capital, calculate the amount of goodwill:

(A) ₹2,40,000

(B) ₹1,00,000

(C) ₹1,50,000

(D) ₹3,00,000

View Answer Discuss Share

Q12) Sacrificing ratio is used to distribute in case of admisstion of a partner :

(A) Reserves

(B) Goodwill

(C) Revaluation Profit

(D) Balance in Profit and Loss Account

View Answer Discuss Share

Q13) 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

View Answer Discuss Share

Q14) X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z for 1/5th share of profits, for which he paid ₹1,20,000 against capital and 760,000 as goodwill. Find the capital balances for each partner taking Z’s capital as base capital.

(A) ₹3,00,000, ₹1,20,000 and ₹1,20,000

(B) ₹3,00,000, ₹1,20,000 and ₹1,80,000

(C) ₹1,92,000, ₹2,88,000 and ₹1,20,000

(D) ₹3,00,000, ₹1,80,000 and ₹1,80,000

View Answer Discuss Share

Q15) X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z for 1/5th share of profits, for which he paid ₹1,20,000 against capital and 760,000 as goodwill. Find the capital balances for each partner taking Z’s capital as base capital.

(A) ₹3,00,000, ₹1,20,000 and ₹1,20,000

(B) ₹3,00,000, ₹1,20,000 and ₹1,80,000

(C) ₹1,92,000, ₹2,88,000 and ₹1,20,000

(D) ₹3,00,000, ₹1,80,000 and ₹1,80,000

View Answer Discuss Share

Q16) A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows Machinery at ₹2,00,000; Stock at ₹80,000 and Debtors at ₹1,60,000. C is admitted and new profit sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at ₹1,40,000 and a provision is made for doubtful debts @5%. A’s share in loss on revaluation amount to ₹20,000. Revalued value of Stock will be :

(A) ₹62,000

(B) ₹1,00,000

(C) ₹60,000

(D) ₹98,000

View Answer Discuss Share

Q17) X and Tare 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 and 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

View Answer Discuss Share

Q18) A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill of the firm is valued at ₹3,00,000 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

View Answer Discuss Share

Q19) A and B are partners in a firm having capital balances of ₹54,000 and ?36,000 respectively. They admit C in partnership for 1/3rd share and C is to bring proportionate amount of capital. The capital amount of C would be :

(A) ₹90,000

(B) ₹45,000

(C) ₹5,400

(D) ₹36,000

View Answer Discuss Share

Q20) Ramesh and Suresh are partners sharing profits in the ratio of 2 : 1 respectively. Ramesh Capital is ₹1,02,000 and Suresh Capital is ₹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 ratio. How much capital will be brought by Mahesh?

(A) ₹43,750

(B) ₹45,000

(C) ₹47,250

(D) ₹48,000

View Answer Discuss Share

Q21) X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th profits, for which he paid ₹60,000 against capital and ₹30,000 against goodwill. Find the capital balance for each partner taking Z’s capital as base capital.

(A) ₹1,50,000; ₹60,000 and ₹60,000

(B) ₹1,50,000; ₹90,000 and ₹60,000

(C) ₹1,50,000; ₹60,000 and ₹90,000

(D) ₹1,50,000; ₹90,000 and ₹90,000

View Answer Discuss Share

Q22) A and B are partners of a partnership firm sharing profits in the ratio of 3 : 2 respectively. C was admitted for 1/5th share of profit. Machinery would be appreciated by 10% (book value ₹80,000) and building would be depreciated by 20% (₹2,00,000). Unrecorded debtors of ₹1,250 would be brought into books now and a creditor amounting to ₹2,750 died and need not pay anything on this account. What will be profit/loss on revaluation?

(A) Loss ₹28.000

(B) Loss ₹40,000

(C) Profits ₹28,000

(D) Profits ₹40,000

View Answer Discuss Share

Q23) A and B are partners in a business sharing profits and losses in the ratio of 7 : 3 respectively. They admit C as a new partner. A sacrificed 1/7th share of his profit and B sacrificed 1/3rd of his share in favour of C. The new profit sharing ratio of A, B and C will be :

(A) 3 : 1 : 1

(B) 2 : 1 : 1

(C) 2 : 2 : 1

(D) None of these

View Answer Discuss Share

Q24) A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. C is admitted for 1/5 share in the profits of the firm. If C gets it wholly from A, the new profit sharing ratio after C’s admission will be :

(A) 1 : 3 : 3

(B) 3 : 1 : 1

(C) 2 : 2 : 1

(D) 1 : 3 : 1

View Answer Discuss Share

Q25) A and B are partners sharing profits in the ratio of 4 : 3. They admitted C as a new partner who gets 1/5th share of profit, entirely from A. The new profit sharing ratio will be :

(A) 20 : 8 : 7

(B) 13 : 15 : 15

(C) 13 :15: 7

(D) 15 : 13 : 5

View Answer Discuss Share

Q26) A, B, C, D are in partnership sharing profits and losses in the ratio of 9 : 6 : 5 : 5. E joins the partnership for 20% share. A. B, C and D would in future share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. The new profit sharing ratio will be:

(A) 3 : 4 : 2 : 1 : 5

(B) 9 : 6 : 5 : 5 : 5

(C) 6 : 8 : 4 : 2 : 5

(D) 8 : 6 : 4 : 2 : 5

View Answer Discuss Share

Q27) A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards, D enters for 20 paisa in the rupee. The new profit sharing ratio after D’s admission will be :

(A) 9 : 6 : 5 : 5

(B) 6 : 9 : 5 : 5

(C) 3 : 2 : 4 : 5

(D) 3 : 2 : 5 : 5

View Answer Discuss Share

Q28) The formula for calculating the sacrificing ratio is :

(A) New share – Old share

(B) Old share – New share

(C) Gaining Ratio – Old Ratio

(D) Old Ratio – Gaining Ratio

View Answer Discuss Share

Q29) X and Y are partners sharing profits in the ratio of 3 : 2. Z is admitted as a partner. Calculate sacrifi cing ratio if new profit sharing ratio is 9 : 7 : 4.

(A) 3 : 1

(B) 3 : 2

(C) 1 : 3

(D) 9 : 7

View Answer Discuss Share

Q30) A and B are partners sharing profits in the ratio of 5 : 3. A surrenders 14th of his share and B surrenders 15 of his share in favour of C, a new partner. What is the sacrificing ratio?

(A) 4 : 5

(B) 5 : 4

(C) 12 : 25

(D) 25 : 12

View Answer Discuss Share

Q31) A and B are partners sharing profits in the ratio of 11 : 4. C was admitted. A surrendered 111th of his share and B14 of his share in favour of C. The sacrificing ratio will be :

(A) 11 : 4

(B) 1 : 1

(C) 4 : 11

(D) 7 : 4

View Answer Discuss Share

Q32) A and B are partners sharing profits and losses as 2 : 1. C and D are admitted and profit sharing ratio becomes 3 : 2 : 4 : 1. Goodwill is valued at ?90,000. C and D bring required goodwill in Cash. Credit will be given to :

(A) A ₹30,000; B ₹15,000

(B) A ₹66,000; B ₹24,000

(C) A ₹33,000; B ₹12,000

(D) A ₹27,000; B ₹18,000

View Answer Discuss Share

Q33) A and B are partners sharing profits and losses in 3 : 2. They admit C into partnership for 330th share in the profits. A surrenders 13rd of his share and B surrenders 14th of his share in favour of C. Goodwill of the firm is valued at ₹3,00,000 but C is unable to bring his share of goodwill in cash. Credit will be given to :

(A) A ₹54,000; B ₹36,000

(B) A ₹60,000; B ₹30,000

(C) A ₹2,00,000; B ₹1,00,000

(D) A ₹1,80,000; 5 ₹1,20,000

View Answer Discuss Share

Q34) A and B are partners sharing profits in the ratio of 7 : 5. C is admitted into the partnership for 16th share which he acquires 124th from A and 18th from B. C does not pay anything for his share of goodwill. On C’s admission firm’s goodwill was valued at ₹1,80,000. Credit will be given to :

(A) A ₹22,500; B ₹7,500

(B) A ₹7,500; B ₹22,500

(C) A ₹45,000; B ₹1,35,000

(D) A ₹1,35,000; B ₹45,000

View Answer Discuss Share

Q35) X and Y are partners in a firm sharing profits in the ratio of 5 : 3. They admitted Z as a new partner. The new profit sharing ratio will be 4 : 3 : 2. The firm’s goodwill on Z’s admission was valued at ₹1,26,000. But Z could not bring any amount of goodwill in Cash. Credit will be given to :

(A) X ₹17,500; Y ₹10,500

(B) X ₹16,000; Y ₹12,000

(C) X ₹22,750; Y ₹5,250

(D) X ₹1,02,375; Y ₹23,625

View Answer Discuss Share

Q36) A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership with 14th share in future profits. The new profit sharing ratio is 5 : 4 : 3. The firm’s goodwill on C’s admission was valued at ₹1,44,000. But C could not bring any amount for goodwill in Cash. Credit will be given to :

(A) A ₹80,000; B ₹64,000

(B) A ₹20,000; B ₹16,000

(C) A ₹1,05,600; B ₹38,400

(D) A ₹26,400; B ₹9,600

View Answer Discuss Share

Q37) P, Q and R share profits in the ratio of 5 : 3 : 2. S is entitled for 15th share in profits which he acquires equally from P, Q and R. Goodwill of the firm is to be valued at three year’s purchase of last four year’s profits which are ₹50,000; ₹60,000; (-) ₹30,000 and ₹40,000. S cannot bring his share of goodwill in cash. Credit will be given to

(A) P ₹30,000; Q ₹30,000; R ₹30,000

(B) P ₹6,000; Q ₹6,000; R ₹6,000

(C) P ₹45,000; Q ₹27,000; R ₹18,000

(D) P ₹9,000; Q ₹9,000; R ₹9,000

View Answer Discuss Share

Q38) When a new partner brings his share of goodwill in cash, the amount is debited to:

(A) Goodwill A/c

(B) Capital A/c of the new partner

(C) Cash A/c

(D) Capital A/cs of the old partners

View Answer Discuss Share

Q39) When a new partner does not bring his share of goodwill in cash, the amount is debited to :

(A) Cash A/c

(B) Premium A/c

(C) Current A/c of the new partner

(D) Capital A/cs of the old partners

View Answer Discuss Share

Q40) If at the time of admission, some profit and loss account balance appears in the books, it will be transferred to

(A) Profit & Loss Adjustment Account

(B) All partners’ Capital Accounts

(C) Revaluation Account

(D) Old partners’ Capital Accounts

View Answer Discuss Share

Q41) If at the time of admission, there is some unrecorded liability, it will be :

(A) Debited to Revaluation Account

(B) Debited to Goodwill Account

(C) Credited to partners’ Capital Accounts

(D) Credited to Revaluation Account

View Answer Discuss Share

Q42) If the new partner brings his share of goodwill in cash, it will be shared by old partners in :

(A) Ratio of sacrifice

(B) Old profit sharing ratio

(C) New profit sharing ratio

(D) In Capital ratio

View Answer Discuss Share

Q43) A and B share profits and losses equally. They have ₹20,000 each as capital. They admit C as equal partner and goodwill was valued at ₹30,000. C is to bring in ₹30,000 as his capital and necessary cash towards his share of goodwill. Goodwill Account will not remain open in books. If profit on revaluation is ₹13,000, find the closing balance of the capital accounts.

(A) ₹31,500; ₹31,500; ₹30,000

(B) ₹31,500; ₹31,500; ₹20,000

(C) ₹26,500; ₹26,500; ₹30,000

(D) ₹20,000; ₹20,000; ₹30,000

View Answer Discuss Share

Q44) In the absence of an express agreement as to who will contribute to new partners’ share of profi t, it is implied that the old partners will contribute :

(A) Equally

(B) In the ratio of their capitals

(C) In their old profit sharing ratio

(D) In the gaining ratio

View Answer Discuss Share

Q45) When a new partner brings goodwill in Cash, it is credited to :

(A) His Capital A/c

(B) Sacrificing Partner’s Capital A/cs

(C) Old Partner’s Capital A/cs

(D) All Partner’s Capital A/cs

View Answer Discuss Share

Q46) If the incoming partner brings the amount of goodwill in Cash and also a balance exists in goodwill account, then this goodwill account is written off among the old partners in

(A) The new profit sharing ratio

(B) The old profit sharing ratio

(C) The sacrificing ratio

(D) The gaining ratio

View Answer Discuss Share

Q47) If, at the time of admission, the revaluation A/c shows a profit, it should be credited to :

(A) Old partners capital accounts in the old profit sharing ratio.

(B) All partners capital accounts in the new profit sharing ratio.

(C) Old partners capital accounts in the new profit sharing ratio.

(D) Old partners capital accounts in the sacrificing ratio.

View Answer Discuss Share

Q48) Revaluation Account or Profit and Loss Adjustment A/c is a

(A) Real Account

(B) Personal Account

(C) Nominal Account

(D) Asset Account

View Answer Discuss Share

Q49) In case of admission of a partner, the entry for unrecorded investments will be:

(A) Debit Partners Capital A/cs and Credit Investments A/c

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

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

(D) None of the above

View Answer Discuss Share

Q50) When the balance sheet is prepared after the new partnership agreement, the assets and liabilities are recorded at:

(A) Historical cost

(B) Current cost

(C) Realisable value

(D) Revalued figures

View Answer Discuss Share

Q51) 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 1/4 share. What amount he is supposed to bring for goodwill?

(A) ₹3,000

(B) ₹4,500

(C) ₹7,500

(D) ₹10,500

View Answer Discuss Share

12th Class - Accountancy - Part 1: Not-for-Profit Organisation and Partnership Accounts | Chapter: Admission of a Partner MCQs

Subjects (12th Class)

Chapters (Accountancy - Part 1: Not-for-Profit Organisation and Partnership Accounts)