[200] MCQs of Admission of Partner chapter Class 12

Contingency reserve, profit and loss account (credit) balance and deferred revenue expenditure account are credited to capital accounts of an old partner in the old ratio at the time of admission of new partners.

a) True
b) False
c) Partially true
d) Can’t say

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Disha and Abha were partners in a firm. Farad was admitted as a new partner for 1/5th share in the profits of the firm. Farad brought proportionate capital. The capitals of Disha and Abha after all adjustments were ₹64,000 and ₹46,000 respectively. Capital brought by Farad
was:

a) ₹22,000
b) ₹27,500
c) ₹55,000
d) ₹28,000

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Aditya and Shiv were partners in a firm with capitals of ₹3,00,000 and ₹2,00,000, respectively. Naina was admitted as a new partner for 1/4th share in the profits of the firm. Naina brought ₹1,20,000 for her share of goodwill premium and ₹2,40,000 for her capital. The amount of goodwill premium credited to Aditya will be

a) ₹40,000
b) ₹30,000
c) ₹72,000
d) ₹60,000

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Onkar, Nitisha and Sheetal were partners sharing profits in the ratio of 3:1:1. They decided to admit Raman as a partner. On revaluation of assets, it was found that Machinery is overvalued by 25% (the Book value of Machinery was ₹6,25,000). This implies:

a) Revaluation Profit of ₹1,25,000
b) Revaluation Loss of ₹1,25,000
c) Revaluation Loss of ₹1,56,250
d) Revaluation Profit of ₹1,56,250

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When the existing goodwill in books is written off at the time of admission of a new partner, the new partner’s capital accounts is not debited.

a) True
b) Partially false
c) False
d) Can’t say

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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

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A and B are partners sharing profits and losses equally. At the time of admission of C, revaluation of assets and liabilities was done. Investments were raised by ₹20,000 and there was a provision created on debtors @5% (debtors being ₹1,00,000), the stock was also revalued, loss on realisation for A was ₹5,000. New profit sharing ratio of A:B:C would be 1:1:2. Find the revalued amount of stock, if initially, the stock was ₹60,000.

a) ₹35,000
b) ₹85,000
c) ₹55,000
d) ₹65,000

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A and B are partners sharing profits in the ratio 3:2. C is admitted as a new partner. A sacrificed 1/6th of his share and B sacrificed 1/8th from his share. The sacrificing ratio of A and B is:

a) 3:2
b) 3:4
c) 4:5
d) 2:5

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Maan and Shaan are partners in firm sharing profits equally. Their capitals were ₹90,000 and ₹1,00,000 respectively. Aan was admitted for 1/3rd share in profits/losses and brought ₹1,70,000 as capital. Calculate the amount of goodwill

a) ₹5,10,000
b) ₹3,20,000
c) ₹1,50,000
d) can’t be determined

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X and Y are 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 the 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

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Zafar and Zubin are partners with a profit-sharing ratio as 2:3. They admitted Zannat who brought ₹80,000 as goodwill which was credited to Zafar’s and Zubin’s Capital account as ₹60,000 and ₹20,000 respectively goodwill of the firm is ₹4,00,000 calculate new profit sharing ratio.

a) 2:3:5
b) 5:11:4
c) 5:12:3
d) Can’t be determined

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On admission of a partner, an increase in provision for doubtful debts will be _________.

a) Credited to Revaluation A/c
b) Debited to Revaluation A/c
c) Debited to Capital A/c
d) Credited to cash A/c

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According to AS – 10, the value of goodwill should be adjusted through the capital accounts of the partners.

a) True
b) False
c) Partially true
d) Can’t say

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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 a 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 amounts to ₹20,000. Revalued value of the stock will be:

a) ₹62,000
b) ₹1,00,000
c) ₹60,000
d) ₹98,000

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P and Q are partners sharing profit or loss in a ratio of 2:1. A surrenders 1/4th of his share and B surrenders 1/3rd of his share in favour of R a new partner. What will be R share?

a) 7/12
b) 5/12
c) 13/36
d) 5/18

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X and Y are partners sharing profits and losses in the ratio 3:2. Z is admitted for 1/6th share which he gets from X and Y in the ratio 3:2. The new profit sharing ratio of X, Y and Z will be:

a) 1:1:1
b) 3:2:1
c) 12:8:4
d) None of these

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On the admission of a new partner, the old partnership continues.

a) True
b) Partially true
c) False
d) Can’t say

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

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

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A and B are partners in a firm having a capital of ₹54,000 and ₹36,000 respectively. They admitted C for 1/3rd share in the profits. C brought the proportionate amount of capital. The capital brought in by C would be

a) ₹90,000
b) ₹45,000
c) ₹5,4000
d) ₹36,600

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X and Y are partners sharing profits and losses in the ratio 3:2. Z is admitted for 1/6th share which he gets from X and Y in the ratio 3:2. The new profit sharing ratio of X, Y and Z will be:

a) 1:1:1
b) 3:2:1
c) 12:8:4
d) None of these

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Shishu and Pranav are partners in a firm and share profits and losses in the ratio of 3:2. Extract of their balance sheet on 31st March 2020 is as follows

Liabilities – Provision for Doubtful Debts ₹4,000
Assets – Debtors ₹10,000

At the time of admission of Shiv as a partner, if provision for doubtful debts is to be maintained at 10% of receivables as on 31st March 2020, when what amount of provision for doubtful debts will be shown in the reconstituted balance sheet?

a) ₹1,000
b) ₹3,000
c) ₹400
d) ₹6,000

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When incoming partner acquires his share from existing partners in their profit sharing ratio, the steps for calculation of new profit sharing ratio are given as

i) Calculate old partner’s new share as part of the combined share
ii) Convert the new shares of all partners and find out the new profit sharing ratio
iii) Calculate the combined share of old partners in the new firm by deducting new partners share from 1

Arrange the steps in the correct order

a) i), iii), ii)
b) iii), i), ii)
c) ii), iii),i)
d) iii), ii), i)

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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 ₹60,000 as goodwill. Find the capital balances for each partner taking Z’s capital as base capital.

a) ₹3,00,000, ₹1,20,000, ₹1,20,000
b) ₹3,00,000, ₹1,20,000, ₹1,80,000
c) ₹1,92,000, ₹2,88,000, ₹1,20,000
d) ₹3,00,000, ₹1,80,000, ₹1,80,000

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A and B are partners sharing profits and losses in the ratio of 2:1. C is admitted and the profit-sharing ratio becomes 4:3:2. Goodwill is valued at ₹94,500. C brings required goodwill in cash. Calculate the amount of goodwill to be credited to A and B is:

a) ₹14,000 and ₹7,000 respectively
b) ₹1,05,000 each
c) ₹21,000 to A
d) ₹21,000 to B

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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

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A, B, C, D are in partnership sharing profit and losses in the ratio of 1:2:3:4. E joins for 25% share. The new profit sharing ratio among A, B, C, D will be 4:3:2:1 what is the new profit sharing ratio among A, B, C, D, E?

a) 4:3:2:1:4
b) 8:6:4:2:8
c) 12:9:6:3:10
d) Can’t be determined

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Sacrificing ratio is used to distribute _______ in case of admission of a partner:

a) Reserves
b) Goodwill
c) Revaluation Profit
d) Balance in Profit and Loss Account

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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

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The new partner, at the time of admission, may acquire his share from old partners in

a) Old profit sharing ratio
b) Some agreed ratio
c) particular fraction from some of the partners
d) All of these

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X and Y are partners in a firm with the 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

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Which of the following is not a right of a newly admitted partner?

a) Right to share profits of the firm
b) Right to inspect the books of accounts
c) Right to participate in affairs of business
d) None of these

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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

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The ratio in which a partner receives a rise in his share of profits is known as:

a) New ratio
b) Sacrificing ratio
c) Capital ratio
d) Gaining ratio

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Ram and Shyam are partners sharing profits in the ratio of 3:2. They admit Tarun as a new partner. After his admission, the profit-sharing ratio becomes 5:5:3. On the date of Tarun’s Admission, the goodwill of the firm is valued at ₹13,00,000. The amount of goodwill brought in by Tarun will be

a) ₹5,00,000
b) ₹10,00,000
c) ₹3,00,000
d) ₹13,00,000

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A and B are partners in a firm having capitals of ₹54,000 and ₹36,000 respectively. They admitted C for 1/3rd share in the profits. C brought the proportionate amount of capital. The Capital brought in by C would be:

a) ₹90,000
b) ₹45,000
c) ₹54,000
d) ₹36,000

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X and Y are sharing profits and losses in the ratio of 3:2. Z is admitted with 1/5th share in profits of the firm which he gets entirely from X. Find out the new profit sharing ratio.

a) 12:8:5
b) 8:12:5
c) 2:2:1
d) 2:2:2

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The ratio in which a partner surrenders his share in favour of a partner is known as:

a) New profit sharing ratio
b) Sacrificing ratio
c) Gaining ratio
d) Capital ratio

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P and Q are in partnership sharing profits and losses in the ratio of 2:1 respectively. R joins the partnership for 1/5th share. The sacrificing ratio of P and Q after R’s admission is:

a) 2:1
b) 3:2
c) 4:3
d) 5:2

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Nikki and Tikki were partners sharing profits and losses in the ratio of 3:2. On 31st December 2019, the extract of their balance sheet is as follows:

Assets – Land and Building – 1,00,000

At the time of admission of new partner Chikki, if the value of land and building is to be appreciated by 10%, then what will be the amount of Land and Building which is to be shown in the new balance sheet?

a) ₹90,000
b) ₹1,00,000
c) ₹10,000
d) ₹1,10,000

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X, Y and Z are partners in the ratio of 3:2:1. W is admitted with 1/6th share in profits. Z would retain his original share. The new profit sharing ratio of X, Y and A and W is:

a) 4:3:2:2
b) 3:3:1:1
c) 12:8:5:5
d) 5:2:1:1

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Mona and Tina were partners in firm sharing profits in the ratio of 3:2. Naina was admitted with 1/6th 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 Accounts
d) Debited to old partner’s capital Accounts

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Surya and Ishaan are partners. They admitted Hardik, At the time, there was a debit balance of profit and loss account in the balance sheet of ₹66,000. Journalise.

a) Surya’s Capital A/c Dr 33,000
Ishaan’s Capital A/c Dr 33,000
To Profit and Loss A/c 66,000

b) Profit and Loss A/c Dr 66,000
To Surya’s Capital A/c 33,000
To Ishaan’s Capital A/c 33,000

c) Surya’s Capital A/c Dr 22,000
Ishaan’s Capital A/c Dr 22,000
Hardik’s Capital A/c Dr 22,000
To Profit and Loss A/c 66,000

d) Profit and Loss A/c Dr 66,000
To Surya’s Capital A/c 22,000
To Ishaan’s Capital A/c 22,000
To Hardik’s Capital A/c 22,000

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In the case of workmen Compensation Reserve, if the amount claimed is more than the amount lying in WCR, then the shorfall will be recorded in :

a) Revaluation Account
b) Partner’s Capital Account
c) Balance Sheet
d) None of these

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A and B are partners sharing profits and losses in the ratio of 5:4. C is admitted for 1/5th share. A and B decide to share equally in future. Sacrificing ratio will be.

a) 5:4
b) 2:7
c) 7:2
d) 1:1

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Dana and Lana were sharing profits in the ratio of 2:1. Jana was admitted for 1/3rd share and claim on workmen compensation reserve was ₹10,000. Journalise.

Liabilities – Workmens Compensation Reserve – ₹18,000

a) Workmen Compensation Reserve A/c Dr 18,000
To Dana’s Capital A/c 12,000
To Lana’s Capital A/c 6,000

b) Workmen Compensation Reserve A/c Dr 18,000
To Dana’s Capital A/c 8,000
To Lana’s Capital A/c 4,000
To Jana’s Capital A/c 6,000

c) Workmen Compensation Reserve A/c Dr 18,000
To Claim on Workmen compensation A/c 10,000
To Dana’s Capital A/c 5,333
to Lana’s Capital A/c 2,667

d) Workmen Compensation Reserve A/c Dr 10,000
To Claim on Workmen Compensation A/c 3,556
To Dana’s Capital A/c 1,778
To Jana’s Capital A/c 2,666

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X and Y are partners in a firm sharing profits and losses in the proportion of 2:1. They admit a new partner Z for 1/6th share in profit. What is the new profit sharing ratio of X, Y and Z?

a) 5:3:10
b) 2:1:6
c) 1:1:1
d) 10:5:3

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The Emi, Nemi and Kimi are partners sharing profits in the ratio of 5:3:2. They have admitted Vimi into the partnership for 1/6th share. An Extract of their balance sheet on 1st April 2020 is as follows

Liabilities – Investment Fluctuation Fund ₹27,000
Assets – Investment (Cost) ₹3,00,000

If the market value of investments is ₹2,90,000, then the investment fluctuation fund will be credited to partners

a) ₹27,000
b) ₹20,000
c) ₹17,000
d) ₹13,000

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Sun and Star were partners in a firm sharing profits in the ratio of 2:1. Moon was admitted as a new partner in the firm. The new profit sharing ratio was 3:3:2. Moon brought the following assets towards his share of goodwill and his capital:

Machinery ₹2,00,000; Furniture ₹1,20,000; Stock ₹80,000; Cash ₹50,000. If his capital is considered as ₹3,80,000, the goodwill of the firm
will be:

a) ₹70,000
b) ₹2,80,000
c) ₹4,50,000
d) ₹1,40,000

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A and B are partners in the ratio of 3:1. C was admitted for 1/5th share and he could not bring his share of goodwill. Goodwill of the firm is valued at ₹1,00,000. Journalise.

a) Premium for Goodwill A/c Dr 1,00,000
To A’s Capital A/c 75,000
To B’s Capital A/c 25,000

b) C’s Capital A/c Dr 1,00,000
To A’s Capital A/c 75,000
To B’s Capital A/c 25,000

c) C’s Capital A/c Dr 20,000
To A’s Capital A/c 10,000
To B’s Capital A/c 10,000

d) C’s Capital A/c Dr 20,000
To A’s Capital A/c 15,000
To B’s Capital A/c 5,000

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X and Y are partners in a firm. They admit Z for 1/3 share. Z brought ₹2,00,000 as his capital and ₹60,000 for premium. Journalise the transaction.

a) Bank A/c Dr 2,60,000
To Z’s capital 2,00,000
To Premium for Goodwill A/c 60,000

b) Z’s Capital A/c Dr 2,00,000
To Bank A/c 2,00,000

c) Z’s Capital A/c Dr. 2,00,000
Premium for Goodwill A/c 60,000
To Bank A/c 2,60,000

d) Bank A/c Dr 2,00,000
To Z’s Capital A/c 2,00,000

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A and B are partners sharing profits in an equal ratio. A’s capital is ₹90,000 and B’s capital is ₹60,000. They admit C and agree to give 1/5th share in future profit. C brings ₹70,000 as his capital. Value of hidden goodwill at the time of admission of C is:

a) ₹70,000
b) ₹1,30,000
c) ₹3,50,000
d) ₹1,50,000

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A and B are two partners sharing profits in the ratio of 2:1. C, a new partner admitted for 1/4th share. At the time of admission, loss from revaluation is ₹9,000. Pass a necessary journal entry for distribution of loss between the partners?

a) A’s Capital A/c Dr 6,000
B’s Capital A/c Dr 3,000
To Revaluation A/c 9,000

b) A’s Capital A/c Dr 9,000
To B’s capital A/c 9,000

c) Revaluation A/c Dr 9,000
To A’s Capital A/c 6,000
To B’s Capital A/c 3,000

d) B’s Capital A/c 9,000
To A’s Capital A/c 9,000

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