MCQs on Partnership Accounting
Question 46:
Som, Pam and Ron were partners in a firm sharing profits in the ratio of 7 : 2 : 1. With effect from 1st April, 2023 they decided to change their profit sharing ratio to 1 : 2 : 7. There existed a Credit Balance in the Profit and Loss Account of ₹ 1,00,000 on the date of change in profit sharing ratio in the books of the firm. The partners decided to retain the Credit Balance in Profit and Loss Account in the books. The adjustment entry will be :
(A) Ron’s Capital A/c Dr. 20,000
To Som’s Capital A/c 20,000
*(B) Ron’s Capital A/c Dr. 60,000
To Som’s Capital A/c 60,000
(C) Som’s Capital A/c Dr. 20,000
To Ron’s Capital A/c 20,000
(D) Som’s Capital A/c Dr. 60,000
To Ron’s Capital A/c 60,000
Question 47:
Anu, Bina and Roy were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Roy retired and his share was acquired by Anu. The new profit sharing ratio between Anu and Bina after Roy’s retirement will be :
(A) 3 : 2
(B) 3 : 1
(C) 1 : 1
*(D) 2 : 1
Question 48:
Asha, Yug and Zubin were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Zubin retired. Zubin’s share was acquired equally by Asha and Yug. The new profit sharing ratio between Asha and Yug after Zubin’s retirement was :
(A) 3 : 2
*(B) 5 : 4
(C) 4 : 3
(D) 2 : 1
Question 49:
A partner’s capital account was credited with ₹80,000 during the year. Which of the following can be the possibility for such a credit in his capital account?
- Opening Balance
- *Capital introduced
- Drawings during the year
- Loss during the year
Question 50:
Assertion (A) :- Fluctuating Capital Account can show debit balance.
Reason (R) :- Losses and Drawings can be more than Capital Balance.
- Both A and R are correct but R is not the correct explanation of A
- *Both A and R are correct and R is the correct explanation of A
- A is correct but R is incorrect
- Both A and R are incorrect.
Question 51:
On 1st July, 2024, Ankita, Beenu and Chander entered into partnership sharing Profits & Losses in the ratio 5:3:2. Chander was guaranteed that his share of profits will not be less than ₹ 60,000 p.a. Deficiency if any will be borne by Ankita and Beenu equally. For the year ended March 31, 2025, firm incurred loss of ₹ 1,25,000. Deficiency will be borne by Ankita and Beenu will be:
- Ankita ₹ 30,000 and Beenu ₹ 30,000
- Ankita ₹ 43,750 and Beenu ₹ 26,250
- *Ankita ₹ 35,000 and Beenu ₹ 35,000
- Ankita ₹ 42,500 and Beenu ₹ 42,500
Question 52:
Seema and Teena were partners in a firm with Capitals of ₹ 24,00,000 and 16,00,000. They admitted Reena as a new partner for 1/3 share for which Reena brings ₹ 20,00,000 as capital. There was Investment and Investment Fluctuation Reserve appearing in the books of ₹ 2,50,000 and ₹ 50,000 respectively. Seema took over 40% of the Investments at ₹ 80,000 and remaining Investments were valued at ₹ 1,10,000. By what amount Revaluation account will be affected for the above information?
- Debited ₹ 60,000
- Credited with ₹ 60,000
- Credited ₹ 10,000
- *Debited ₹ 10,000
Question 53:
Jagan and Vishesh were in a partnership sharing Profit &Loss in the ratio 5:3. Their Capitals were ₹ 10,00,000 and ₹ 8,00,000 respectively. The firm was also having reserves of ₹ 7,00,000. Normal rate of return was 10%. Firm made average profits of ₹ 2,30,000 for the year ended March 31, 2025 (after adjustment of loss of machinery of book value of ₹2,00,000 by fire against which insurance claim of ₹1,50,000 was admitted). Value of goodwill as per Capitalisation of super profits will be:
- *₹ 3,00,000
- ₹ 10,00,000
- ₹ 18,00,000
- NIL
Question 54:
On 1st August, 2024 Tom, Jolly and Tina entered into partnership with capitals of ₹5,00,000 each. Interest on Drawings was to be charged @ 6% p.a. For the year ended March 31, 2025, Tina withdrew ₹ 80,000. What amount of Interest on drawings will be charged from Tina?
- ₹ 4,800
- ₹ 2,400
- *₹ 1,600
- ₹ 3,200
Question 55:
Apple, Banana and Cherry were partners sharing Profits &Losses in the ratio 7:2:1. Banana died. Apple took over 1/20 from his share and remaining share was taken over by Cherry. Determine the new Profit Sharing Ratio.
- 4 : 1
- 7 : 1
- *3 : 1
- 71 : 29
Question 56:
Amrit, Yamini and Zora were partners sharing Profit & Losses in the ratio 5:3:2. Yamini retired, and she gifted half of her share to Amrit and remaining half was taken over equally by Amrit and Zora. Determine the new Profit-sharing Ratio.
- 13 : 7
- *29 : 11
- 1 : 1
- 5 : 2
Question 57:
Chander, a partner was assigned to look after the dissolution process and was allowed remuneration of ₹ 15,000. Actual realisation expenses amounted to ₹ 20,000, being paid by another partner Bipan. By what amount Realisation account will be debited for the above-mentioned information?
- ₹ 20,000
- ₹ 5,000
- ₹ 15,000
- *₹ 35,000
Question 58:
Tarun and Arun were partners sharing Profits &Losses in the ratio 3:2. They admitted Dharam into partnership for 20% share. Dharam was to bring proportionate Capital and he brought ₹ 3,50,000 (including ₹ 50,000 for goodwill share) in firm. If adjusted capital of Tarun after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment was ₹ 8,40,000. What was Arun’s Capital after Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment?
- ₹ 5,60,000
- ₹ 12,00,000
- ₹ *3,60,000
- ₹ 6,60,000
Question 59:
Ramnik and Sachin were partners sharing Profit &Loss in the ratio 5:3. Their capital balances were ₹ 7,20,000 and ₹ 2,80,000 respectively. There were balances of General Reserve of ₹ 5,00,000 and Deferred Revenue Expenditure of ₹ 4,00,000 in the books of the firm. They admitted Orry into partnership for 20% share for which he brings ₹ 4,00,000 as capital. Determine the goodwill share of Orry.
- *₹ 1,00,000
- ₹ 5,00,000
- ₹ 1,20,000
- ₹ 60,000
Question 60:
Machinery was appearing in the books at ₹ 20,00,000 which was overvalued by 25%. What amount will be shown in the Balance Sheet of a reconstituted firm for machinery?
- ₹ 25,00,000
- ₹ 24,00,000
- *₹ 16,00,000
- ₹ 15,00,000