Admission of a Partner Test

Result

Admission of a Partner Test - 23

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

When a new partner is admitted into the firm the old partners stand to ___________.

A
gain in profit sharing ratio

B
loss in profit sharing ratio

C
not affected at all

D
only one partner gain other lose
Question 2
1 / -0

A and B are two partners sharing profit and loss equally. Their capital A/c stood at Rs.30,000 and Rs.25,000 respectively on 31st March, 2013. On 1st April C is admitted for 1/3rd share of profit for which he brings Rs.12,000 as his share of goodwill. On the date of his admission, stock was appreciated by Rs.11,000 and provisions for bad debts also increased by Rs.2,000. Old partners decided that C's capital should be in accordance with his share of profit sharing ratio. What adjustment will be required to make their capital in proportion to their profit sharing ratio?

A
A to bring Rs.2500, B to be refunded Rs.2500

B
A to be refunded Rs.2500, B to bring Rs.2500

C
A to bring Rs.5500, B to be refunded Rs.5500

D
A to be refunded Rs.5500, B to bring Rs.5500

Solution
Question 3
1 / -0

Which of the following is the odd one?

A
General reserve A/c

B
Profit and Loss A/c

C
Dividend equalization reserve A/c

D
Goodwill A/c

Solution

General reserve A/c, Profit and Loss A/c, and Dividend equalization reserve A/c are all included in the Reserves and Surplus in the Balance Sheet of a company. However, Goodwill A/c is an intangible asset that is presented under Non-current assets in the Balance Sheet.
Question 4
1 / -0

As per super profit method goodwill = ____________.

A
Actual profit multiplied by No. of years of purchase

B
Normal profit multiplied by No. of years of purchase

C
Maintainable profit multiplied by No. of years of purchase.

D
Super profit multiplied by No. of years of purchase.

Solution

Super profit means excess profit that can be earned by a firm over and above the normal profit usually earned by similar firms under circumstances. Formula of calculating goodwill by Super profit basis is -
Goodwill = Super profit multiplied by No. of years of purchase
Question 5
1 / -0

X & Associates is a partnership firm, it intends to revalue its goodwill, average profit for the past five years is Rs. 15,000 per annum and goodwill is being valued 5 years purchase of super profit. What would be the value of the goodwill of the firm if normal profit of the firm is Rs.12,000?

A
Rs.15,000

B
Rs.30,000

C
Rs.20,000

D
Rs.25,000

Solution

Normal profit=12000
super profit =average profit - normal profit
=15000-12000=3000
then goodwill of the firm =super profit* no of purchase year
=3000*5
=15000
Question 6
1 / -0

A and B are two partners in a firm having share capital of Rs. 13,000 and Rs.17,000 respectively. C is admitted for 1/3rd share of profit for which he is to bring Rs.20,000 for his share of capital. What is the goodwill of the firm?

A
$$Rs.9,000$$

B
$$Rs.10,000$$

C
$$Rs.8,000$$

D
$$Rs.11,000$$

Solution

When the value of the goodwill of the firm is not specifically given, the value of goodwill has to be inferred as follows:
Goodwill = (Incoming partner's capital * Reciprocal of share of incoming partner) - Total capital after taking into consideration the capital brought in by incoming partner.
Goodwill = [Rs. 20000 * (3/1)] - Rs. (13000 + 17000 + 20000)
Goodwill = Rs. 60000 - Rs. 50000
Goodwill = Rs. 10000
Question 7
1 / -0

A, B and C are sharing profit and loss in the ratio of 3:2:1, D is admitted into the firm with 1/7th share of profit which he purchases from A.How the goodwill brought in by D would be distributed amongst the old partners on the facts given in question?

A
3:2:1

B
Equally

C
In capital ratio

D
Only A would get goodwill
Question 8
1 / -0

Partnership is defined as a relationship between persons who have agreed to share the profit of a business carried on by ________ or any one of them acting for _________.

A
All,all

B
Seniormost ,all

C
Managing partners,all

D
All,Managing partner
Question 9
1 / -0

Consequent upon admission of a new partner in a firm the value of the goodwill is valued at Rs.60,000. But there exists a goodwill account in the balance sheet which stood at Rs.48,000 what would be treatment of goodwill at the time of admission of a new partner. If memorandum revaluation method is followed, after admission of a new partner?

A
Rs.12,000 would be debited to all the partner's capital account in their new profit sharing ratio

B
Rs.60,000 would be debited to old partner's capital account in their old profit sharing ratio

C
Rs.48,000 would be debited to all the partner's capital account in their new profit sharing ratio

D
Rs.48,000 would be credited to all the partner's capital account in their new profit sharing ratio
Question 10
1 / -0

__________ is not essential requirement of a partnership.

A
An association of two or more persons

B
Existence of a contract

C
Sharing of profit

D
Mandatory registration

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Admission of a Partner Test - 23

Result

Admission of a Partner Test - 23

Score

-

Rank

-

SHARING IS CARING

Question 1

gain in profit sharing ratio

loss in profit sharing ratio

not affected at all

only one partner gain other lose

Question 2

A to bring Rs.2500, B to be refunded Rs.2500

A to be refunded Rs.2500, B to bring Rs.2500

A to bring Rs.5500, B to be refunded Rs.5500

A to be refunded Rs.5500, B to bring Rs.5500

Solution

Question 3

General reserve A/c

Profit and Loss A/c

Dividend equalization reserve A/c

Goodwill A/c

Solution

Question 4

Actual profit multiplied by No. of years of purchase

Normal profit multiplied by No. of years of purchase

Maintainable profit multiplied by No. of years of purchase.

Super profit multiplied by No. of years of purchase.

Solution

Question 5

Rs.15,000

Rs.30,000

Rs.20,000

Rs.25,000

Solution

Question 6

$$Rs.9,000$$

$$Rs.10,000$$

$$Rs.8,000$$

$$Rs.11,000$$

Solution

Question 7

3:2:1

Equally

In capital ratio

Only A would get goodwill

Question 8

All,all

Seniormost ,all

Managing partners,all

All,Managing partner

Question 9

Rs.12,000 would be debited to all the partner's capital account in their new profit sharing ratio

Rs.60,000 would be debited to old partner's capital account in their old profit sharing ratio

Rs.48,000 would be debited to all the partner's capital account in their new profit sharing ratio

Rs.48,000 would be credited to all the partner's capital account in their new profit sharing ratio

Question 10

An association of two or more persons

Existence of a contract

Sharing of profit

Mandatory registration

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.