Class 12 Accountancy MCQs Admission of Partner
These MCQs are based on Admission of a new partner to the partnership. Try these questions after thoroughly preparing the chapter. Check your time taken and accuracy, the ultimate requirements for success in examination.
- Which of the following is not true with respect to Admission of a partner?
a) A new partner can be admitted if it is agreed in the partnership deed.
b) If all the partners agree, a new partner can be admitted.
c) A new partner has to bring relatively higher capital as compared to the existing partners
d) A new partner gets right in the assets of the firm
2. As per ---------, only purchased goodwill can be shown in the Balance Sheet.
a) Accounting Standard - 37
b) Accounting Standard - 26
c) Section 37 of Indian Partnership Act
d) Accounting Standard -3
3. Pindi and Shindi are partners with capitals ₹1,80,000 and ₹1,40,000 respectively, sharing profits in the ratio of 2:1. They admit Cindy and agreed to give her 1/5th share in future profits if she brings ₹80,000. Goodwill of the firm is:
a) ₹43,750
b) ₹45,000
c) ₹47,250
d) Nil
4. Shruti and Mamta are partners in a firm sharing profits and losses in the ratio of 2: 1. They admitted Rajni as a partner for 2/7 share for which ₹8,000 and ₹4,000 are credited as a premium for goodwill to the old partners respectively. New profit-sharing ratio of Shruti, Mamta and Rajni will be:
a) 3:2:2
b) 4:2:1
c) 10:5:6
d) 4:1:2
5. Ankita and Bina are partners sharing profits and losses in the ratio of 3 and 2. Chitra is admitted for ¼ and for which ₹30,000 and ₹10,000 are credited as a premium for goodwill to Ankita and Bina respectively. The new profit-sharing ratio of Ankita, Bina, Chitra will be:
a) 3:2:1
b) 12:8:5
c) 9:6:5
d) 33:27:20
6. Mona and Shona are partners in a firm with capital of ₹18,000 and ₹20,000. Teena brings ₹10,000 for his share of goodwill and she is required to bring proportionate capital for 1/3rdshare in profits. The capital contribution of Teena will be:
a) ₹24,000.
b) ₹19,000.
c) ₹12,667.
d) ₹14,000.
7. Amrit and Mankirat were partners sharing profits and losses equally. They admitted Davinder as a new partner for 1/3 share. Davinder is to bring 20% of the combined capital of all the partners. Capitals of Amrit and Mankirat after all the adjustments related to Revaluation Gain, Goodwill treatment and Accumulated profits/losses were ₹7,40,000 and ₹4,60,000 respectively. Determine the Capital amount to be brought in by Davinder.
a) ₹4,00,000
b) ₹6,00,000
c) ₹2,40,000
d) ₹3,00,000
8. Meena and Teena were partners in a firm sharing profits in the ratio of 3: 2. Neena was admitted with the one sixth share in the profits of the firm. At the time of admission, Workmen’s Compensation Reserve appeared in the Balance Sheet of the firm at ₹ 32,000. The claim on account of workmen’s compensation was determined at ₹ 40,000. Excess of claim over the reserve will be:
a) Credited to Revaluation Account.
b) Debited to Revaluation Account.
c) Credited to old partner’s Capital Account.
d) Debited to old partner’s Capital Account.
9. Peter and Kaef are partners in a firm sharing profits in the ratio of 3:2. Capitals of Peter and Kaef after adjustments are ₹80,000 and ₹60,000 respectively. They admit Ralaph as a partner on his capital contribution of ₹35,000. New profit-sharing ratio of partners is to be 5:3:2. Capital Accounts of the old partners are to be proportionate of their profit-sharing ratio adjusted on the basis of Ralaph's Capital. Surplus capital to be paid to Kaef will be:
a) ₹5,000
b) ₹6,000
c) ₹7,500
d) ₹8,000
10. Ajit and Baljit were in partnership sharing profits and losses in the ratio of 3: 2. They admitted Charanjit for 1/5th share in profits. Capitals of Ajit and Baljit after adjustments are ₹50,000 and ₹40,000 respectively. Charanjit is to bring 25% of the total capital of the new firm. The capital contribution of Charanjit will be:
a) ₹15,000
b) ₹25,000
c) ₹20,000
d) ₹30,000
Class 12 Accountancy MCQs Admission of Partner
11. As per Accounting Standard-26, goodwill is to be recorded in the books of accounts only when money or money’s worth has been paid for it. At the time of admission, Anantbir, a new partner was unable to bring in his share of goodwill in cash, so:
a) Current A/c will be credited
b) His Current A/c will be debited
c) Capital A/c will be debited
d) Capital A/c will be credited
12. At the time of admission of a new partner in the firm, the new partner compensates the old partners for their loss of share in the super-profits of the firm for which he brings in an additional amount which is known as:
a) Premium for Goodwill
b) Capital
c) Super Profit
d) Average Profit
13. On the admission of a new partner:
a) Old partnership is dissolved
b) Both old partnership and firm are dissolved
c) Old firm is dissolved
d) None of the above
14. Harish and Nishi share profits & losses equally. Their capitals were ₹1,20,000 and ₹ 80,000 respectively. There was also a balance of ₹ 60,000 in General reserve and revaluation gain amounted to ₹ 15,000. They admit friend Ashu with 1/5 share. Ashu brings ₹90,000 as capital. Calculate the amount of goodwill of the firm.
a) ₹1,00,000
b) ₹ 85,000
c) ₹20,000
d) None of the above
15. Yamini and Zinni are partners sharing profits in the ratio of 2:1. They admit Kinni into partnership for 25% share of profit. Kinni acquired the share from old partners in the ratio of 3:2. The new profit-sharing ratio will be:
a) 14:31:15
b) 3:2:1
c) 31:14:15
d) 2:3:1
16. Anchal and Bindi are partners sharing profit and losses in ratio of 5:3. Cindy is admitted for 1/4th share. On the date of reconstitution, the debtors stood at ₹ 40,000, bill receivable stood at ₹ 10,000 and the provision for doubtful debts appeared at ₹ 4000. A bill receivable, of ₹ 10,000 which was discounted from the bank, earlier has been reported to be dishonored. The firm has sold, the debtor so arising to a debt collection agency at a loss of 40%. If bad debts now have arisen for ₹ 6,000 and firm decides to maintain provisions at same rate as before then amount of Provision to be debited to Revaluation Account would be:
a) ₹ 4,400
b) ₹ 4,000
c) ₹ 3,400
d) None of the above
17. Arman and Sharman share Profit & Loss equally. Their capitals were ₹1,20,000 and ₹ 80,000 respectively. There was also a balance of ₹ 50,000 in Contingency reserve and revaluation gain amounted to ₹ 25,000. They admit friend Tarun with 1/5 share. Tarun brings ₹90,000 as capital. Calculate the amount of goodwill brought by Tarun.
a) ₹85,000
b) ₹17,000
c) ₹20,000
d) None of the above
18. Anne and Bani are partners sharing profits in the ratio of 2:3. Their balance sheet shows machinery at ₹2,00,000; stock ₹80,000, and debtors at ₹1,60,000. Tinni is admitted and the new profit sharing ratio is 6:9:5. Machinery is revalued at ₹1,40,000 and a provision is made for doubtful debts @5%. Anne’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
19. At the time of admission of a partner, Employees Provident Fund is:
a) Distributed to partners in the old profit-sharing ratio
b) Distributed to partners in the new profit-sharing ratio
c) Adjusted through gaining ratio
d) None of the above
20. The firm of X, Y and Z with profit sharing ratio of 6:3:1, had the balance in General Reserve Account amounting ₹ 1,80,000. S joined as a new partner and the new profit-sharing ratio was decided to be 3:3:3:1. Partners decide to keep the General Reserve unchanged in the books of accounts. The effect will be:
a) X will be credited by ₹ 54,000
b) X will be debited by ₹ 54,000
c) X will be credited by ₹ 36.000
d) X will be credited by ₹ 18,000
Class 12 Accountancy MCQs Admission of Partner - Answers
- c) A new partner has to bring relatively higher capital as compared to the existing partners
- b) Accounting Standard - 26
- d) Nil
- c) 10:5:6
- d) 33:27:20
- a) ₹24,000.
- d) ₹3,00,000
- b) Debited to Revaluation Account.
- c) ₹7,500
- d) ₹30,000
- b) His Current A/c will be debited
- a) Premium for Goodwill
- a) Old partnership is dissolved
- b) ₹ 85,000
- c) 31:14:15
- c) ₹ 3,400
- b) ₹17,000
- d) ₹98,000
- d) None of the above
- a) X will be credited by ₹ 54,000
Class 12 Accountancy MCQs Reconstitution of Partnership Firm