ICSE XII — Learn

MCQ Questions for Class 12 Accountancy set-3

Review each question and reveal answers to strengthen your understanding

1 A and B are partners. C is admitted with 1/5 share. C brings 7 1,20,000 as his share towards capital. The total net worth of the firm is :
✅ Correct Answer: 4
2 A and B share profits and losses in the ratio of 3:4. C was admitted for 1/5 th share. New profit sharing ratio will be:
✅ Correct Answer: 2
3 The opening balance of Partner’s Capital Account is credited with:
✅ Correct Answer: 1
4 Share of goodwill brought in cash by the new partner is called:
✅ Correct Answer: 3
5 If the incoming partner brings the amount of goodwill in cash and also a balance exists in Goodwill A/c, then the Goodwill A/c is written off among the old partners:
✅ Correct Answer: 2
6 A and B share profits and losses in the ratio of 3 : 1.C is admitted into partnership for 1/4 share. The sacrificing ratio of A and B is :
✅ Correct Answer: 2
7 Formula of Sacrificing ratio is:
✅ Correct Answer: 2
8 The accumulated profits and reserves are transferred to:
✅ Correct Answer: 2
9 A, B and C are equal partners. D is admitted to the firm for non-ourth share. D brings ₹ 20,000 as capital and ₹ 5,000 being half of the premium for goodwill. The value of goodwill of the firm is :
✅ Correct Answer: 2
10 On the admission of a new partner, increase in the value of assets is debited to which account ?
✅ Correct Answer: 2
11 Z is admitted in a firm for a 1/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in :
✅ Correct Answer: 3
12 On the admission of a new partner, the decrease in the value of assets is debited to:
✅ Correct Answer: 1
13 When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to:
✅ Correct Answer: 2
14 The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partners’ Capital Accounts in their :
✅ Correct Answer: 1
15 X and Y share profits in the ratio of 3 : 2 Z was admitted as a partner who gets 1/5 share. Z acquires 3/20 from X and 1/20 from Y. The new profit sharing ratio will be :
✅ Correct Answer: 1
16 At the time of admission of a new partner, Undistributed Profits appearing in the Balance Sheet of the old firm is transferred to the Capital Account of:
✅ Correct Answer: 1
17 Z is admitted in a firm for al/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in :
✅ Correct Answer: 3
18 General Reserval at the time of admission of a new partner is transferred to :
✅ Correct Answer: 2
19 Change in profit-sharing ratio of existing partners results in:
✅ Correct Answer: 2
20 On reconstitution of a partnership firm, recording of an unrecorded liability wil result in:
✅ Correct Answer: 2
21 Increase In the value of assets on reconstitution of the partnership firm results into :
✅ Correct Answer: 1
22 The balance of Revaluation Account is transferred to old Partner’s Capital Accounts in their:
✅ Correct Answer: 1
23 X and Y share profits in the ratio 2 :3. In future they have decided to share profits in equal ratio. Which partner will sacrifice in which ratio ?
✅ Correct Answer: 2
24 Change in the partnership agreement results in:
✅ Correct Answer: 1
25 Change in the partnership agreement:
✅ Correct Answer: 1
26 Excess of credit side over the debit side in Revalution Account is:
✅ Correct Answer: 1
27 A, B and C are partners in a firm, if D is admitted as a new partner:
✅ Correct Answer: 3
28 Recording of an unrecorded asset on the reconstltutlam of a partnership firm will be:
✅ Correct Answer: 1
29 Revaluation Account or Profit & Loss Adjustment Account is a:
✅ Correct Answer: 3
30 A, B, C and D are partners sharing their profits and losses equally. They change their profit sharing ratio to 2:2:1:1. How much will C sacrifice ?
✅ Correct Answer: 4
31 Sacrificing Ratio:
✅ Correct Answer: 2
32 Gaining Ratio:
✅ Correct Answer: 1
33 X and Y share profit and loss in 3:2. From 1st January, 2017 they agreed to share profit equally. Their sacrifice or gain will be :
✅ Correct Answer: 3
34 At the time of admission of a new partner, General Reserve a appearing in the old Balances Sheet is transferred to:
✅ Correct Answer: 3
35 Generally the interest on capital is considered as :
✅ Correct Answer: 1
36 Increase in the value of assets on reconstitution of the partnership firm results into:
✅ Correct Answer: 1
37 Following are the factors affecting goodwill except:
✅ Correct Answer: 3
38 The profit of the last three years are ₹ 42,000, ₹ 39,000 and ₹ 45,000. Value of goodwill at two years purchases of the average profits will be :
✅ Correct Answer: 2
39 Under average profit basis goodwill is calculated by :
✅ Correct Answer: 1
40 Goodwill is:
✅ Correct Answer: 2
41 An asset which is not ficitious but intangible in nature, having realisable value is :
✅ Correct Answer: 4
42 Which of the following is not a method of valuation of Goodwill:
✅ Correct Answer: 1
43 The excess of average profits over the normal profits are called :
✅ Correct Answer: 1
44 Goodwill is a…………….asset
✅ Correct Answer: 3
45 Under super profit basis goodwill is calculated by :
✅ Correct Answer: 2
46 Profits of the last three years were ₹ 6,000, ₹ 13,000 and ₹ 8,000 respectively. Goodwill at two years purchase of the average net profit will be :
✅ Correct Answer: 4
47 What do you mean by Super Profit ?
✅ Correct Answer: 2
48 Capital employed in a business is ₹ 1,50,000. Profits are ₹ 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalisation method will be:
✅ Correct Answer: 4
49 Weighted average method of calculating goodwill is used when:
✅ Correct Answer: 4
50 The monetary value of reputation of the business is called:
✅ Correct Answer: 1
Back to All Quizzes