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MCQ Questions for Class 12 Accountancy set-3
50 questions · Test your knowledge
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MCQ Questions for Class 12 Accountancy set-3
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 :
A
₹ 1,00,000
B
₹ 4,00,000
C
₹ 1,20,000
D
₹ 6,00,000
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:
A
3 : 4 : 1
B
12 : 16 : 7
C
16 : 12 : 7
D
None of these
3
The opening balance of Partner’s Capital Account is credited with:
A
Interest on Capital
B
Interest on Drawings
C
Drawings
D
Share in loss
4
Share of goodwill brought in cash by the new partner is called:
A
Assets
B
Profit
C
Premium
D
None of these
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:
A
In new profit-sharing ratio
B
In old profit-sharing ratio
C
In sacrificing ratio
D
In gaining ratio
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 :
A
Equal
B
3 : 1
C
2 : 1
D
3 : 2
7
Formula of Sacrificing ratio is:
A
New Ratio – Old Ratio
B
Old Ratio – New Ratio
C
Gain Ratio – Sacrificing Ratio
D
New Ratio – Sacrificing Ratio .
8
The accumulated profits and reserves are transferred to:
A
Realisation A/c
B
Partner’s Capital A/cs
C
Bank A/c
D
Savings A/c
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 :
A
₹ 10,000
B
₹ 40,000
C
₹ 30,000
D
None of these
10
On the admission of a new partner, increase in the value of assets is debited to which account ?
A
Revaluation Account
B
Assets Account
C
Old Partners’ Capital Accounts
D
None of these
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 :
A
Old profit-sharing ratio
B
New profit-sharing ratio
C
Sacrificing ratio
D
Capital ratio
12
On the admission of a new partner, the decrease in the value of assets is debited to:
A
Revaluation Account
B
Assets Account
C
Old Partners’ Capital Accounts
D
None of these
13
When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to:
A
Goodwill Account
B
Cash Account
C
Capital Account of new partner
D
None of these
14
The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partners’ Capital Accounts in their :
A
Old profit-sharing ratio
B
New profit-sharing ratio
C
Equal ratio
D
Capital ratio
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 :
A
9 : 7 : 4
B
8 : 8 : 4
C
6 : 10 : 4
D
10 : 6 :4
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:
A
Old partners is old profit-sharing ratio
B
Old partners in new profit-sharing ratio
C
All the partners in the new profit-sharing ratio
D
None of these
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 :
A
Old profit-sharing ratio
B
New profit-sharing ratio
C
Sacrificing ratio
D
Capital ratio
18
General Reserval at the time of admission of a new partner is transferred to :
A
Revaluation Account
B
Old Partner’s Capital Account
C
Profit and Loss Adjustment Account
D
Realisation Account
19
Change in profit-sharing ratio of existing partners results in:
A
Revaluation of Firm
B
Reconstitutions of Firm
C
Dissolution of Firm
D
None of these
20
On reconstitution of a partnership firm, recording of an unrecorded liability wil result in:
A
Gain to the existing partners
B
Loss to the existing partners
C
Neither gain nor loss to the existing partners
D
None of these
21
Increase In the value of assets on reconstitution of the partnership firm results into :
A
Gain to the existing partners
B
Loss to the existing partners
C
Neither gain nor loss to the existing partners
D
None of these
22
The balance of Revaluation Account is transferred to old Partner’s Capital Accounts in their:
A
Old Profit-sharing Ratio
B
New Profit-sharing Ratio
C
Equal Ratio
D
None of these
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 ?
A
X sacrifice 1/10
B
Y sacrifice 1/5
C
Y sacrifice 1/10
D
None of these
24
Change in the partnership agreement results in:
A
Reconstitution of Firm
B
Dissolution of Firm
C
Amalgamation of Firm
D
None of these
25
Change in the partnership agreement:
A
Changes the relationship among the partners
B
Results in end of partnership business
C
Dissolves the partnership firm
D
None of these
26
Excess of credit side over the debit side in Revalution Account is:
A
Profit
B
Loss
C
Receipt
D
Expense
27
A, B and C are partners in a firm, if D is admitted as a new partner:
A
Old firm is dissolved
B
Old firm and old partnership are dissolved
C
Old partnership is reconstituted
D
None of these
28
Recording of an unrecorded asset on the reconstltutlam of a partnership firm will be:
A
A gain to the existing partners
B
A loss to the existing partners
C
Neither a gain nor a loss to the existing partners
D
None of these
29
Revaluation Account or Profit & Loss Adjustment Account is a:
A
Personal Account
B
Real Account
C
Nominal Account
D
None of these
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 ?
A
1/6
B
1/12
C
1/24
D
None of these
31
Sacrificing Ratio:
A
New Ratio – Old Ratio
B
Old Ratio – New Ratio
C
Gaining Ratio – Old Ratio
D
Old Ratio – Gaining Ratio
32
Gaining Ratio:
A
New Ratio – Old Ratio
B
Old Ratio – Sacrificing Ratio
C
New Ratio – Sacrificing Ratio
D
Old Ratio – New Ratio
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 :
A
Sacrifice by X: 1/10
B
Sacrifices by Y : 1/10
C
Both (a) and (b)
D
Non of these
34
At the time of admission of a new partner, General Reserve a appearing in the old Balances Sheet is transferred to:
A
All Partner’s Capital Accounts .
B
New Partners’ Capital Accounts
C
Old Partner’s Capital Accounts
D
None of these
35
Generally the interest on capital is considered as :
A
An appropriation of profit
B
An Asset
C
An Expense
D
None of these
36
Increase in the value of assets on reconstitution of the partnership firm results into:
A
Gain to the existing partners
B
Loss to the existing partners
C
Neither a gain nor a loss to the existing partners
D
None of these
37
Following are the factors affecting goodwill except:
A
Nature of business
B
Efficiency of Management
C
Technical Knowledge
D
Location of the Customers
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 :
A
₹ 42,000
B
₹ 84,000
C
₹ 1,26,000
D
₹ 36,000
39
Under average profit basis goodwill is calculated by :
A
No. of years’ purchased x Average profit
B
No. of years’ purchased x Super profit
C
Super Profit -r Expected Rate of Return
D
None of these
40
Goodwill is:
A
Tangible Asset
B
Intangible Asset
C
Current Asset
D
None of these
41
An asset which is not ficitious but intangible in nature, having realisable value is :
A
Machinery
B
Building
C
Furniture
D
Goodwill
42
Which of the following is not a method of valuation of Goodwill:
A
Revaluation Method
B
Average Profit Method
C
Super Profit Method
D
Capitalisation Method
43
The excess of average profits over the normal profits are called :
A
Super Profits
B
Fixed Profits
C
Abnormal Profits
D
Normal Profits
44
Goodwill is a…………….asset
A
Useless
B
Tangible
C
Worthless
D
Valuable
45
Under super profit basis goodwill is calculated by :
A
No. of years’ purchased x Average Profit
B
No. of years’ purchased x Super profit
C
Super profit -r Expected rate of return
D
None of these
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 :
A
₹ 81,000
B
₹ 27,0000
C
₹ 9,000
D
₹ 18,000
47
What do you mean by Super Profit ?
A
Total Profit/No. of Years
B
Average Profit – Normal Profit
C
Weighted Profit/No. of Years’ Purchase
D
None of these
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:
A
₹ 2,00,000
B
₹ 1,50,000
C
₹ 3,00,000
D
₹ 1,00,000
49
Weighted average method of calculating goodwill is used when:
A
Profits are equal
B
Profit has increasing trend
C
Profit has decreasing trend
D
Either (b) or (c)
50
The monetary value of reputation of the business is called:
A
Goodwill
B
Super Profit
C
Surplus
D
Abnormal Profit
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