Retirement or Death of a partner Test

Result

Retirement or Death of a partner Test - 34

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

Find the goodwll of the firm using capilatalization method from the following information:
Capital employed Rs.$$4,80,000$$
Rate of normal - $$15\%$$
Profits for the year Rs.$$90,000$$

A
Rs.$$4,20,000$$

B
Rs.$$3,11,000$$

C
Rs.$$1,20,000$$

D
Rs.$$2,20,000$$
Question 2
1 / -0

A & B are partner for $$5:3$$. The take C and new profit sharing ratio will be $$3:2:1$$. Profit of loss in revaluation is shared by __________.

A
A,B & C in $$5:3:2$$

B
A & B in $$3:2$$

C
A & B in $$5:3$$

D
A & B in scarifying ratio
Question 3
1 / -0

R & S are in partnership sharing profit and losses at the ratio $$3:2$$. They take T as a new partner. Calculate the new profit sharing ratio, if T simply gets $$1/10$$th share of profit.

A
$$27:18:5$$

B
$$28:17:5$$

C
$$5:4:1$$

D
$$19:19:12$$

Solution

Old ratio (R and S) = 3 : 2
T is admitted for 1/10th share
Let combined share of all partners after T's admission = 1
Combined share of R and S in the new firm = 1 - (1/10) = 9/10
New ratio = Old ratio * Combined share of R and S
R's new ratio = (3/5) * (9/10) = 27/50
S's new ratio = (2/5) * (9/10) = 18/50
T's share = 1/10 or 5/50
New profit sharing ratio (R : S : T) = 27 : 18 : 5
Question 4
1 / -0

A & B shares profit and losses equally. The admit C as an equal partner and assets were revalued as follow: Stock at Rs.$$20,000$$ (book value Rs.$$12,000$$); Machinery at Rs.$$60,000$$ (book value Rs.$$55,000$$). Find profit/loss on revaluation to be shared among A & B.

A
Profit $$6,500$$ & $$6,500$$

B
Profit $$4,000$$ & $$4,000$$

C
Profit $$2,500$$ & $$2,500$$

D
None of the above
Question 5
1 / -0

A & B are partners sharing profits & losses in the ratio of $$3:2$$. C was admitted to the firm and to introduce a capital of Rs.$$25,000$$. The new profit sharing ratio of A,B and C will be $$3:2:1$$ respectively. C is unable to fring in cash for his share of goodwill, partners therefore, decide to raise goodwill account in the books of the firm. They further decide to calculate goodwill on the basis of C's share in the profits and the capital contribution made by him to the firm. Before admission of C capital account balance of A & B was Rs.$$44,000$$ & Rs.$$36,000$$ respectively. Total goodwill to be raised in the books of the firm will be __________.

A
Rs.$$1,50,000$$

B
Rs.$$1,00,000$$

C
Rs.$$50,000$$

D
Rs.$$45,000$$

Solution

Total capital of the firm according to C = Rs. 25000 x 6
= Rs. 150000
Actual total capital of the firm= Rs. 44000 + 36000 + 25000
= Rs. 105000
Value of hidden goodwill = Rs. 150000 - 105000
= Rs. 45000
Therefore, D is the correct option.
Question 6
1 / -0

X & Y share profits & losses in the ratio of $$2:1$$. They take Z as a partner and the new profit sharing ratio becomes $$3:2:1$$. Z brings Rs.$$4,500$$ as premium for goodwill. The full value of goodwill will be _____________.

A
$$Rs.24,000$$

B
$$Rs.27,000$$

C
$$Rs.18,000$$

D
$$Rs.4,500$$

Solution

Z is admitted for 1/6th share of profit
Z's contribution of Rs. 4500 consists of 1/6 share of goodwill only
Thereforfe, total goodwill of firm should be Rs. 4500 * (6/1) = 27000
Question 7
1 / -0

X & Y sharing profits in the ratio of $$3:1$$. They admit Z as a partner who pays $$Rs.4,000$$ as goodwill the new profit sharing being $$2:1:1$$ among X,Y & Z respectively. The amount of goodwill will be credited to ___________.

A
X & Y as $$Rs.3,000$$ & $$Rs.1,000$$ respectively

B
X only

C
Y only

D
None of the above

Solution

At the time of admission of a new partner, goodwill bought in by new partner is distributed among sacrificing partners in their sacrificing ratio.
In the given question -
Old ratio (X and Y) = 3 : 1
New ratio (X, Y and Z) = 2 : 1 : 1
Sacrificing ratio = Old ratio - New ratio
X's sacrifice ratio = (2/4) - (3/4) = 1/4
Y's sacrificing ratio = (1/4) - (1/4) = 0
Therefore, Goodwill of Rs. 4000 brought in by Z is credited to X only, as only X is sacrificing here.
Question 8
1 / -0

Y & W were in partnership sharing profit & losses equally. They admit S as a partner and decide to share profits equally. Goodwill is valued at Rs.$$60,000$$ but is to be immediately written off. The effect of this on Y's capital would be to ___________.

A
increase it by $$Rs.10,000$$

B
increase it by $$Rs.30,000$$

C
decrease it by $$Rs.20,000$$

D
decrease it by $$Rs.10,000$$

Solution

At the time of admission of a new partner, goodwill brought in by new partner is distributed among sacrificing partner in their sacrificing ratio.
Old ratio (Y and W) = 1 : 1
New ratio (Y, W and S) = 1 : 1 : 1
Sacrificing ratio = Old ratio - New ratio
Y's sacrifice = (1/2) - (1/3) = 1/6
W's sacrifice = (1/2) - (1/3) = 1/6
Therefore, 1/6th of goodwill Rs. 60000 i.e., Rs 10000 is credited to Y's capital account, it means Y's capital account is increased by Rs. 10000
Question 9
1 / -0

A & B shares profit and losses equally. The admit C as an equal partner and assets were revalued as follow:Stock at Rs.$$10,000$$ (book value Rs.$$12,000$$); Machinery at Rs.$$50,000$$ (book value Rs.$$55,000$$): Building would be appreciated by $$10\%$$ (book value Rs.$$15,000$$). Find the profit/loss on revaluation to be shared among A and B.

A
Profit $$2,750$$ & $$2,750$$

B
Loss $$2,750$$ & $$2,750$$

C
Profit $$2,500$$ & $$2,750$$

D
None of the above

Question 10

1 / -0

A,B & C are in partnership sharing profits and losses in the ratio $$2:2:1$$. They want to admit D into partnership with $$1/5$$ share. D brings in Rs.$$30,000$$ as capital and Rs.$$10,000$$ as premium for goodwill. If premium money is retained in business which of the following journal entry is correct for sharing premium for goodwill?

A Capital A/c Dr. B Capital A/c Dr. C Capital A/c Dr. To Premium for Goodwill A/c	$$4,000$$ $$4,000$$ $$2,000$$	$$10,000$$
Premium for Goodwill A/c Dr. To A Capital A/c To B Capital A/c To C Capital A/c	$$10,000$$	$$2,000$$ $$4,000$$ $$4,000$$
Premium for Goodwill A/c Dr. To A Capital A/c To B Capital A/c To C Capital A/c	$$10,000$$	$$4,000$$ $$4,000$$ $$2,000$$
Premium for Goodwill A/c Dr. To A Capital A/c To B Capital A/c To C Capital A/c	$$10,000$$	$$3,000$$ $$3,000$$ $$4,000$$

A

B

C

D

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Retirement or Death of a partner Test - 34

Result

Retirement or Death of a partner Test - 34

Score

-

Rank

-

SHARING IS CARING

Question 1

Rs.$$4,20,000$$

Rs.$$3,11,000$$

Rs.$$1,20,000$$

Rs.$$2,20,000$$

Question 2

A,B & C in $$5:3:2$$

A & B in $$3:2$$

A & B in $$5:3$$

A & B in scarifying ratio

Question 3

$$27:18:5$$

$$28:17:5$$

$$5:4:1$$

$$19:19:12$$

Solution

Question 4

Profit $$6,500$$ & $$6,500$$

Profit $$4,000$$ & $$4,000$$

Profit $$2,500$$ & $$2,500$$

None of the above

Question 5

Rs.$$1,50,000$$

Rs.$$1,00,000$$

Rs.$$50,000$$

Rs.$$45,000$$

Solution

Question 6

$$Rs.24,000$$

$$Rs.27,000$$

$$Rs.18,000$$

$$Rs.4,500$$

Solution

Question 7

X & Y as $$Rs.3,000$$ & $$Rs.1,000$$ respectively

X only

Y only

None of the above

Solution

Question 8

increase it by $$Rs.10,000$$

increase it by $$Rs.30,000$$

decrease it by $$Rs.20,000$$

decrease it by $$Rs.10,000$$

Solution

Question 9

Profit $$2,750$$ & $$2,750$$

Loss $$2,750$$ & $$2,750$$

Profit $$2,500$$ & $$2,750$$

None of the above

Question 10

A

B

C

D

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.