Accountancy Test

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Accountancy Test - 13

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Weekly Quiz Competition

Question 1
5 / -1

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

Solution

Z’s share = 1/5;

X’s share = 3/5 - 1/5 = 2/5;

Y’s share = 2/5;

New profit sharing ratio of X : Y : Z = 2 : 2 :1.
Question 2
5 / -1

Taxation fund should never be distributed among the old partners at the time of admission of partners.

A
True

B
False

C
Partially true

D
Can't say

Solution

Taxation fund is neither profits nor free reserves, so it is not distributed.
Question 3
5 / -1

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

A
True

B
Partially true

C
False

D
Can't say

Solution

Old partnership comes to an end and new partnership comes into existence and the firm continues.
Question 4
5 / -1

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

A
True

B
False

C
Partially tru

D
Can't say

Solution

The given statement is true only if the new partner is not able to bring his share of goodwill in money or money’s worth.
Question 5
5 / -1

When the existing goodwill in books is written-off at the time of admission of new partner, the new partners’ capital account is not debited.

A
True

B
Partially false

C
False

D
Can't say

Solution

Existing goodwill is written-off in old ratio by debiting old partners’ capital accounts.
Question 6
5 / -1

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

A
True

B
False

C
Partially true

D
Can't say

Solution

Deferred revenue expenditure account is debited.
Question 7
5 / -1

Good will of the firm of X and Y is valued at ₹ 45,000. It is appearing in the books at ₹18,000. Z is admitted in the firm. What amount is she supposed to bring an account of goodwill?

A
₹ 15,000

B
₹ 6,000

C
₹ 9,000

D
Can't be determined

Solution

Good will share is calculated at the valued amount of goodwill, not the amount appearing in books Ratio is supposed to be equal among X , Y , Z i.e. 1 : 1 : 1

∴ Z’s Share of Goodwill = 1/3 x 45,000

= ₹ 15,000
Question 8
5 / -1

There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below

Assertion (A): In certain cases, the premium for goodwill paid by the incoming partner is not recorded in the books of accounts.

Reason (R): Sometimes, the incoming partner pays his share of goodwill privately to the sacrificing partners, outside the business.

A
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

B
Both Assertion (A) and Reason (R)are true but Reason (R) is not the correct explanation of Assertion (A)

C
Assertion (A)is false, but Reason(R) is true

D
Assertion (A)is true, but Reason (R) is false
Question 9
5 / -1

Which of the following capitals is shown in the company’s balance sheet?

A
Authorised Capital

B
Issued Capital

C
Subscribed and Fully Paid Up

D
Reserve Capital

Solution

In the company’s balance sheet, only subscribed and fully paid up share capital amount is shown. Authorised capital and issued capital are shown in notes to accounts and reserve capital is not shown in the company’s balance sheet and note to accounts.
Question 10
5 / -1

Which document is prepared by the company as an invitation to the public to subscribe for company’s shares?

A
Memorandum of Association

B
Articles of Association

C
Prospectus

D
None of the above

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Re-Attempt Weekly Quiz Competition

Accountancy Test - 13

Result

Accountancy Test - 13

Score

-

Rank

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SHARING IS CARING

Question 1

12:8:5

8 :12 : 5

2 : 2 :1

2 : 2 : 2

Solution

Question 2

True

False

Partially true

Can't say

Solution

Question 3

True

Partially true

False

Can't say

Solution

Question 4

True

False

Partially tru

Can't say

Solution

Question 5

True

Partially false

False

Can't say

Solution

Question 6

True

False

Partially true

Can't say

Solution

Question 7

₹ 15,000

₹ 6,000

₹ 9,000

Can't be determined

Solution

Question 8

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R)are true but Reason (R) is not the correct explanation of Assertion (A)

Assertion (A)is false, but Reason(R) is true

Assertion (A)is true, but Reason (R) is false

Question 9

Authorised Capital

Issued Capital

Subscribed and Fully Paid Up

Reserve Capital

Solution

Question 10

Memorandum of Association

Articles of Association

Prospectus

None of the above

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My Perfomance

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