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Class 12 Accountancy MCQs Admission of Partner

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

  1. c) A new partner has to bring relatively higher capital as compared to the existing partners
  2. b) Accounting Standard - 26
  3. d) Nil
  4. c) 10:5:6
  5. d) 33:27:20
  6. a) ₹24,000.
  7. d) ₹3,00,000
  8. b) Debited to Revaluation Account.
  9. c) ₹7,500
  10. d) ₹30,000
  11. b) His Current A/c will be debited
  12. a) Premium for Goodwill
  13. a) Old partnership is dissolved
  14. b) ₹ 85,000
  15. c) 31:14:15
  16. c) ₹ 3,400
  17. b) ₹17,000
  18. d) ₹98,000
  19. d) None of the above
  20. a) X will be credited by ₹ 54,000

Adjustments on Admission of Partner