Important MCQs of Admission of Partner chapter Class 12

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Looking for Important MCQs (Multiple Choice Questions) of Admission of Partner chapter with answers of Accountancy Class 12 CBSE, ICSE, and other State Board.

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Multiple Choice Questions of Admission of Partner chapter of Accounts Class 12

1. A New Partner may be admitted into a partnership:

a) with the consent of anyone partner
b) with the consent of a majority of partners
c) With the consent of all old partners
d) With the consent of 2/3rd of old partners

Ans – c

2. 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

Ans – b)

3. A and B are partners sharing profit in the ratio of 3 : 2. They admit C as a partner by giving him 1/3rd 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

Ans – d)

4. 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

Ans – b)

5. 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 1/4th 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

Ans – b)

6. At the time of admission of a new partner in the firm, the new partner compensate 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) Capital share
b) Premium for goodwill
c) Both a) and b)
d) None of the above

Ans – b)

7. At the time of admission, incoming partner become liable for the________of the firm and also acquires right on the___________

a) assets, liabilities
b) goodwill, capital
c) liabilities, assets
d) None of these

Ans – c)

8. At the time of admission of partners, it is presumed that the new partner acquires his share
in profits from the old partners in_________ratio in the absense of any additional information.

a) New
b) Gaining
c) OLd
d) NOne of these

Ans – c)

9. At the time of admission of partners, new profit shring ratio is concerned with ________ partners
while sacricing ratio is concerned with __________ partners

a) new, old
b) new, all
c) old, new
d) all, old

Ans – d)

10. The share of premium of goodwill brought in by the new partner is divided in which ratio?

a) In new Ratio
b) In old Ratio
c) In sacrificing Ratio
d) None of these

Ans – c)

11. A newly admitted partner acquires the right to

a) share in the future profits
b) share in the assets of the firm
c) Both a) and b)
d) None of these

Ans – c)

Reason:- After the admission, a new partner acquires the right to share in the future profits and also in the assets of the firm. He is also liable to share the losses and the liabilities of the firm.

12. According to sections 31(1) of the Indian partnership Act, 1932, “A person can be admitted as
a new partner only with the ___ unless otherwise agreed upon.”

a) consent of one partner
b) consent of the existing partners
c) Both a) and b)
d) consent of the firm

Ans – b)

13. X and Y are partners in a firm that develops software for industries. X’s minor son Z is a
computer wizard. Can he be admitted to the partnership firm?

a) Yes, if X agrees
b) Yes, if Y agrees
c) Yes, if X and Y agrees
d) No, he can not be admitted

Ans – c)

Reason:- Section 30 of the Indian Partnership Act, provides that though a minor cannot be a
partner in a firm, but, with the consent of all the partners for the time being, he may be
admitted to the benefits of partnership by an agreement executed through his guardian with
the other partners.

14. When share of new or incoming partner is given without giving the details of sacricie made by
old or existing partners, then

a) it is assumed that old partners make sacrifice in their old profit sharing ratio.
b) ther is no change in profit sharing ratio of the old partners

a) only a is correct
b) Only b is correct
c) Both a) and b) are correct
d) Both a) and b) are incorrect

Ans – c)

15. A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. They agree to admit D into the firm. A, B and C agreed to give 1/3rd, 1/6th, and 1/9th share of their profit. The share
of profit of D will be

a) 1/10
b) 11/64
c) 12/54
d) 13/54

Ans – 13/54

16. The amount of goodwill brought in by new partner is credited to _ partner’s capital
account.

a) old
b) sacrificing
c) gaining
d) All of these

Ans – b)

Reason:- The amount of goodwill brought in by the new partner is credited to the capital
accounts of sacrificing partners to compensate them for their sacrifice.

18. X and Y are partners sharing profits in the ratio of 3 : 1. They admit Z as a partner who pays ₹ 4000 as goodwill, the new profit sharing ratio being 2 : 1 : 1 among X, Y and Z. The amount of goodwill will be credited to

a) X and Y as ₹3000 and ₹1000
b) 2,000 each
c) only Y
d) Only X

Ans – d)

Reson:- Goodwill will be credited in that partners capital account who sacrifices. sacrificing Ratio = Old Ratio – New Share

X’s sacrifice = 3/4 – 2/4 = 1/4;
Y’s Sacrifice = 1/4 – 1/4 = Nil

Here, only X sacrifices, So, goodwill will be credited in X’s capital account only.

19. Contingency reserve appearing in the balance sheet at the time of admission of partner is __ to old partners capital accounts in old ratio.

a) debited
b) credited
c) Either a) or b)
d) None of these

Ans – b)

Resons:- Contingency reserve is a free reserve created out of profits related to the period prior
to admission. Since it is a part of profit, therefor it is credited to old partner’s capital accounts in old ratio.

20. Workmen Compensation Reserve (WCR) appears in the balance Sheet of Rashmi and Suman, Who share profits in the ratio of 2 : 3, at ₹ 80,000. Deepa is admitted and the new profit sharing ratio is 1:1:1. If the claim on account of WCR is estimated at ₹1,00,000, then

a) the difference of ₹ 20,000 will be debited to the revaluation account
b) the difference of ₹ 20,000 will be debited to Rashmi’s Capital account
b) the difference of ₹ 20,000 will be credited to Suman’s Capital account
d) None of the above.

Ans – a)

Reason:- In this case, the difference amount is debited to the revaluation account as it results in increase in the amount of liability.

21. Can employee provident fund be distributed among old partners in old ratio at the time of admission?

a) It can be distributed
b) It can’t be distributed
c) can be distributed if tax is paid
d) None of these

Ans – b)

Reason:- Employee Provident fund is neither a free reserve nor is an accumulatied profit.
Therefore, it is not distributed amongst old partners.

22. If the market value and the book value of investments are ₹ 1,47,000 and 1,50,000. The Investment Fluctuation Fund appears in the Balance Sheet is ₹ 13,500. The ratio of the old partners A, B and C at the time of admission of new partner D is 5:3:2.

a) 5,250, 3,150, 2,100
b) 6,750, 4050, 2,700
c) 5,000, 5,000, 3,500
d) None of these

Ans – a)

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