Accountancy MCQs for Class 12 with Answers Chapter 3 Admission of a Partner

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Admission of a Partner Class 12 Accountancy MCQs Pdf

Choose the Best Alternate :
1. A new partner may be admitted into a partnership :
(A) With the consent of any one partner
(B) With the consent of majority of partners
(C) With the consent of all old partners
(D) With the consent of 2/3rd of old partners

2. On the admission of a new partner :
(A) Old firm is dissolved
(B) Old partnership is dissolved
(C) Both old partnership and firm are dissolved
(D) Neither partnership nor firm is dissolved

Calculation of New Profit Sharing Ratios :
3. A and B are partners sharing profit in the ratio of 3 : 2. They admit C as a partner by giving him 1/3 share in future profits. The new ratio will be : (C.S. Foundation, Dec., 2012)
(A) 12 : 8 : 5
(B) 8: 12 : 5
(C) 5 : 5 : 12
(D) None of the Above

4. X and Y are partners sharing profit in the ratio of 3 : 2. Z was admitted with 1/4 share in profits which he acquires equally from X and Y. The new ratio will be:
(A) 9 : 6 : 5
(B) 19 : 11 : 10
(C) 3 : 3 : 2
(D) 3 : 2 : 4

5. A and B share profits in the ratio of 2 : 1. C is admitted with 1/4 share in profits. C acquires 3/4 of his share from A and 1/4 of his share from B. The new ratio will be:
(A) 2 : 1 : 1
(B) 23 : 13 : 12
(C) 3 : 1 : 1
(D) 13 : 23 : 12

6. B and N are partners in a firm sharing profits in the ratio of 3 : 2. They admit S as a partner for l/4th share in the profits. S acquires his share from B and N in the ratio of 2 : 1. The new profit-sharing ratio will be :
(A) 2:1:4
(B) 19:26: 15
(C) 3:2:4
(D) 26 : 19 : 15

7. A and B are partners sharing profits and losses in the ratio of 7 : 5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B, The new profit sharing ratio will be :
(A) 13 : 7 : 4
(B) 7 : 13 : 4
(C) 7 : 5 : 6
(D) 5 : 7 : 6

8. A and B share profits in the ratio of 3 : 2. They agreed to admit C on the condition that A will sacrifice $$\frac{3}{25}$$th of his share of profit in favour of C and B will sacrifice $$\frac{1}{25}$$th of his profits in favour of C. The new profit sharing ratio will be :
(A) 12 : 9:4
(B) 3 : 2 : 4
(C) 66 : 48 : 11
(D) 48 : 66 : 11

9. A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/15th share of his profit in favour of C and B surrenders 2/15th of his share in favour of C. The new ratio will be :
(A) 8 : 4 : 3
(B) 42 : 26 : 7
(C) 4 : 8 : 3
(D) 26 : 42 : 7

10. A and B are partners sharing profit or loss in the ratio of 4 : 1. A surrenders 1/4 of his share and B surrenders 112 of his share in favour of C, a new partner. What will be the C’s share?

11. A and B are partners in a business sharing profits and losses in the ratio of 7 : 3 respectively. They admit C as a new partner. A sacrificed 1/7th share of his profit and B sacrificed 1/3rd of his share in favour of C. The new profit sharing ratio of A, B and C will be : (C.S. Foundation, June, 2013)
(A) 3 : 1 : 1
(B) 2 : 1 : 1
(C) 2 : 2 : 1
(D) None of the above

12. A and B are partners sharing profit or loss in the ratio of 3 : 2. C is admitted into partnership as a new partner. A sacrifices 1/3 of his share of B sacrifices 1/4 of his share in favour of C. What will be the C’s share in the firm?

13. A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. C is admitted for 1/5 share in the profits of the firm. If C gets it wholly from A, the new profit sharing ratio after C’s admission will be :
(A) 1 : 3 : 3
(B) 3 : 1 : 1
(C) 2 : 2 : 1
(D) 1 : 3 : 1

14. A and B are partners sharing profits in the ratio of 4 : 3. They admitted C as a new partner who gets 1/5th share of profit, entirely from A. The new profit sharing ratio will be :
(A) 20 : 8 : 7
(B) 13 : 15 : 15
(C) 13 :15:7
(D) 15 : 13 : 5

15. A, B, C, D are in partnership sharing profits and losses in the ratio of 9 : 6 : 5 : 5. E joins the partnership for 20% share. A. B, C and D would in future share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. The new profit sharing ratio will be:
(A) 3:4:2: 1:5
(B)9:6:5:5:5
(C) 6 : 8 : 4 : 2 : 5
(D) 8 : 6 : 4 : 2 : 5

16. A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards, D enters for 20 paisa in the rupee. The new profit sharing ratio after D’s admission will be :
(A) 9 : 6 : 5 : 5
(B) 6 : 9 : 5 : 5
(C) 3 : 2 : 4 : 5
(D) 3 : 2 : 5 : 5

Calculation of Sacrificing Ratio :
17. The formula for calculating the sacrificing ratio is :
(A) New share – Old share
(B) Old share – New share
(C) (iaining Ratio – Old Ratio
(D) Old Ratio – Gaining Ratio

18. X and Y are partners sharing profits in the ratio of 3 : 2. Z is admitted as a partner. Calculate sacrifi cing ratio if new profit sharing ratio is 9 : 7 : 4.
(A) 3 : 1
(B) 3 : 2
(C) 1:3
(D) 9 : 7

19. A and B are partners sharing profits in the ratio of 5 : 3. A surrenders $$\frac{1}{4}$$th of his share and B surrenders $$\frac{1}{5}$$ of his share in favour of C, a new partner. What is the sacrificing ratio?
(A) 4 : 5
(B) 5 : 4
(C) 12 : 25
(D) 25 : 12

20. A and B are partners sharing profits in the ratio of 11 : 4. C was admitted. A surrendered $$\frac{1}{11}$$th of his share and B$$\frac{1}{4}$$ of his share in favour of C. The sacrificing ratio will be :
(A) 11 : 4
(B) 1 : 1
(C) 4:11
(D) 7 : 4

21. P and Q are partners sharing profits in the ratio of 9 : 7. R is admitted as a partner with $$\frac{9}{20}$$th share in the profits, which he takes $$\frac{1}{5}$$th from P and $$\frac{1}{4}$$th from Q Sacrificing ratio will be :
(A) 5 : 4
(B) 9 : 7
(C) 7 : 9
(D) 4 : 5

22. A, B and C are partners sharing in the ratio of 5 : 4 : 3. They admit D for $$\frac{1}{7}$$th share. It is agreed that B would retain his original share. Sacrificing ratio will be :
(A) A, B and C — 5 : 4 : 3
(B) A and C — 4 : 3
(C) A and C — 5 : 4
(D) Z and C — 5 : 3

23. A and B are partners sharing profits and losses in the ratio of 5 : 4. C is admitted for $$\frac{1}{5}$$th share. A and B decide to share equally in future. Sacrificing
ratio will be :
(A) 5 : 4
(B) 2 : 7
(C) 7 : 2
(D) 1 : 1

24. A and B are partners. They admit C for $$\frac{1}{3}$$rd share. In future the ratio between A and B would be 2 : 1. Sacrificing ratio will be :
(A) 2 : 1
(B) 1 : 1
(C) 5:1
(D) 1 : 5

Treatment of Goodwill :
25. A and B are partners sharing profits and losses as 2 : 1. C is admitted and profit sharing ratio becomes 4 : 3 : 2. Goodwill is valued at ₹94,500. C brings required goodwill in cash. Goodwill amount will be Credited to :
(A) A ₹14,000 and B ₹7,000
(B) A ₹12,000 and B ₹9,000
(C) A ₹21,000
(D) A ₹94,500

26. X and 7 are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership with $$\frac{1}{5}$$th share in profits which he acquires equally from A and Y. Z brings in ₹40,000 as goodwill in cash. Goodwill amount will be credited to :
(A) X ₹20,000; Y ₹20,000
(B) X ₹25,000; Y ₹15,000
(C) X ₹24,000; T ₹16,000
(D) X ₹4,000; Y ₹4,000

27. A and B are partners sharing profits and losses in the ratio of 3 : 2. C is admitted into partnership for $$\frac{1}{5}$$th share in profit. He pays ₹1,00,000 as goodwill. The ratio of the partners A, B and C in the new firm would be 3 : 1 : 1. Goodwill will be credited to:
(A) Only A ₹1,00,000
(B) Only B ₹1,00,000
(C) A ₹60,000; B ₹40,000
(D) A ₹75,000; B ₹25,000

28. A and B are partners in a firm sharing profits in the ratio of 2 : 1. C is admitted as a partner. A and B surrender $$\frac{1}{2}$$ of their respective share in favour of C. C is to bring his share of premium for goodwill in cash. The goodwill of the firm is estimated at ? 60,000. Credit will be given to :
(A) A ₹15,000; B ₹15,000
(B) A ₹40,000; B ₹20,000
(C) A ₹30,000; B ₹30,000
(D) A ₹20,000; B ₹10,000

29. P and S are partners sharing profits in the ratio of 3 : 2. R is admitted with $$\frac{1}{5}$$th share and he brings in ₹84,000 as his share of goodwill which is Credited to the Capital Accounts of P and S respectively with ₹63,000 and ₹21,000. New profit sharing ratio will be :
(A) 3 : 1 : 5
(B) 9 : 7 : 4
(C) 3 : 2 : 5
(D) 7 : 9 : 4

30. Partners A, B and C share the profits of a business in the ratio of 3 : 2 : 1 respectively. They admit D who brings in ₹60,000 for his share of goodwill. A, B, C and D decide to share the profits respectively in the ratio of 5 : 3 : 2 : 2. Credit will be given to :
(A) A ₹6,000; B ₹6,000
(B) A ₹30,000; B ₹18,000; C ₹12,000
(C) A ₹30,000; B ₹20,000; C ₹10,000
(D) A ₹30,000; B ₹30,000

31. A and B are partners sharing profits and losses as 2 : 1. C and D are admitted and profit sharing ratio becomes 3 : 2 : 4 : 1. Goodwill is valued at ?90,000. C and D bring required goodwill in Cash. Credit will be given to :
(A) A ₹30,000; B ₹15,000
(B) A ₹66,000; B ₹24,000
(C) A ₹33,000; B ₹12,000
(D) A ₹27,000; B ₹18,000

32. A and B are partners sharing profits and losses in 3 : 2. They admit C into partnership for $$\frac{3}{30}$$th share in the profits. A surrenders $$\frac{1}{3}$$rd of his share and B surrenders $$\frac{1}{4}$$th of his share in favour of C. Goodwill of the firm is valued at ₹3,00,000 but C is unable to bring his share of goodwill in cash. Credit will be given to :
(A) A ₹54,000; B ₹36,000
(B) A ₹60,000; B ₹30,000
(C) A ₹2,00,000; B ₹1,00,000
(D) A ₹1,80,000; 5 ₹1,20,000

33. A and B are partners sharing profits in the ratio of 7 : 5. C is admitted into the partnership for $$\frac{1}{6}$$th share which he acquires $$\frac{1}{24}$$th from A and $$\frac{1}{8}$$th from B. C does not pay anything for his share of goodwill. On C’s admission firm’s goodwill was valued at ₹1,80,000. Credit will be given to :
(A) A ₹22,500; B ₹7,500
(B) A ₹7,500; B ₹22,500
(C) A ₹45,000; B ₹1,35,000
(D) A ₹1,35,000; B ₹45,000

34. X and Y are partners in a firm sharing profits in the ratio of 5 : 3. They admitted Z as a new partner. The new profit sharing ratio will be 4 : 3 : 2. The firm’s goodwill on Z’s admission was valued at ₹1,26,000. But Z could not bring any amount of goodwill in Cash. Credit will be given to :
(A) X ₹17,500; Y ₹10,500
(B) X ₹16,000; Y ₹12,000
(C) X ₹22,750; Y ₹5,250
(D) A ₹1,02,375; Y ₹23,625

35. A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership with $$\frac{1}{4}$$th share in future profits. The new profit sharing ratio is 5 : 4 : 3. The firm’s goodwill on C’s admission was valued at ₹1,44,000. But C could not bring any amount for goodwill in Cash. Credit will be given to :
(A) A ₹80,000; B ₹64,000
(B) A ₹20,000; B ₹16,000
(C) A ₹1,05,600; B ₹38,400
(D) A ₹26,400; B ₹9,600

36. P, Q and R share profits in the ratio of 5 : 3 : 2. S is entitled for $$\frac{1}{5}$$th share in profits which he acquires equally from P, Q and R. Goodwill of the firm is to be valued at three year’s purchase of last four year’s profits which are ₹50,000; ₹60,000; (-) ₹30,000 and ₹40,000. S cannot bring his share of goodwill in cash. Credit will be given to :
(A) P ₹30,000; Q ₹30,000; R ₹30,000
(B) P ₹6,000; Q ₹6,000; R ₹6,000
(C) P ₹45,000; Q ₹27,000; R ₹18,000
(D) P ₹9,000; Q ₹9,000; R ₹9,000

37. When a new partner brings his share of goodwill in cash, the amount is debited to:
(A) Goodwill A/c
(B) Capital A/c of the new partner
(C) Cash A/c
(D) Capital A/cs of the old partners

38. When a new partner does not bring his share of goodwill in cash, the amount is debited to :
(A) Cash A/c
(C) Current A/c of the new partner
(D) Capital A/cs of the old partners

39. If at the time of admission, some profit and loss account balance appears in the books, it will be transferred to : (CPT; Dec. 2011)
(A) Profit & Loss Adjustment Account
(B) All partners’ Capital Accounts
(C) Old partners’ Capital Accounts
(D) Revaluation Account

40. If at the time of admission, there is some unrecorded liability, it will be :
(A) Debited to Revaluation Account
(B) Credited to Revaluation Account
(C) Debited to Goodwill Account
(D) Credited to partners’ Capital Accounts

41. If the new partner brings his share of goodwill in cash, it will be shared by old partners in :
(A) Ratio of sacrifice
(B) Old profit sharing ratio
(C) New profit sharing ratio
(D) In Capital ratio

42. A and B share profits and losses equally. They have ₹20,000 each as capital. They admit C as equal partner and goodwill was valued at ₹30,000. C is to bring in ₹30,000 as his capital and necessary cash towards his share of goodwill. Goodwill Account will not remain open in books. If profit on revaluation is ₹13,000, find the closing balance of the capital accounts.
(A) ₹31,500; ₹31,500; ₹30,000
(B) ₹31,500; ₹31,500; ₹20,000
(C) ₹26,500; ₹26,500; ₹30,000
(D) ₹20,000; ₹20,000; ₹30,000

43. In the absence of an express agreement as to who will contribute to new partners’ share of profi t, it is implied that the old partners will contribute :
(A) Equally
(B) In the ratio of their capitals
(C) In their old profit sharing ratio
(D) In the gaining ratio

44. When a new partner brings goodwill in Cash, it is credited to :
(A) His Capital A/c
(B) Sacrificing Partner’s Capital A/cs
(C) Old Partner’s Capital A/cs
(D) All Partner’s Capital A/cs

45. If the incoming partner brings the amount of goodwill in Cash and also a balance exists in goodwill account, then this goodwill account is written off among the old partners in
(A) The new profit sharing ratio
(B) The old profit sharing ratio
(C) The sacrificing ratio
(D) The gaining ratio

46. If, at the time of admission, the revaluation A/c shows a profit, it should be credited to :
(A) Old partners capital accounts in the old profit sharing ratio.
(B) All partners capital accounts in the new profit sharing ratio.
(C) Old partners capital accounts in the new profit sharing ratio.
(D) Old partners capital accounts in the sacrificing ratio.

47. Revaluation Account or Profit and Loss Adjustment A/c is a
(A) Real Account
(B) Personal Account
(C) Nominal Account
(D) Asset Account

48. In case of admission of a partner, the entry for unrecorded investments will be:
(A) Debit Partners Capital A/cs and Credit Investments A/c
(B) Debit Revaluation A/c and Credit Investment A/c
(C) Debit Investment A/c and Credit Revaluation A/c
(D) None of the above

49. When the balance sheet is prepared after the new partnership agreement, the assets and liabilities are recorded at:
(A) Historical cost
(B) Current cost
(C) Realisable value
(D) Revalued figures

50. Goodwill of a firm of A and B is valued at ₹30,000. It is appearing in the books at ₹12,000. C is admitted for 1/4 share. What amount he is supposed to bring for goodwill?
(A) ₹3,000
(B) ₹4,500
(C) ₹7,500
(D) ₹10,500

51. A and B are partners of a partnership firm sharing profits in the ratio of 3 : 2 respectively. C was admitted for 1/5th share of profit. Machinery would be appreciated by 10% (book value ₹80,000) and building would be depreciated by 20% (₹2,00,000). Unrecorded debtors of ₹1,250 would be brought into books now and a creditor amounting to ₹2,750 died and need not pay anything on this account. What will be profit/loss on revaluation?
(A) Loss ₹28.000
(B) Loss ₹40,000
(C) Profits ₹28,000
(D) Profits ₹40,000

52. X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th profits, for which he paid ₹60,000 against capital and ₹30,000 against goodwill. Find the capital balance for each partner taking Z’s capital as base capital.
(A) ₹1,50,000; ₹60,000 and ₹60,000
(B) ₹1,50,000; ₹60,000 and ₹90,000
(C) ₹1,50,000; ₹90,000 and ₹60,000
(D) ₹1,50,000; ₹90,000 and ₹90,000

53. Ramesh and Suresh are partners sharing profits in the ratio of 2 : 1 respectively. Ramesh Capital is ₹1,02,000 and Suresh Capital is ₹73,000. They admit Mahesh and agree to give him 1/5th share in future profit. Mahesh brings ₹14,000 as his share of goodwill. He agrees to contribute capital in the new profit sharing ratio. How much capital will be brought by Mahesh? (C.S. Foundation, June 2013)
(A) ₹43,750
(B) ₹45,000
(C) ₹47,250
(D) ₹48,000

54. A and B are partners in a firm having capital balances of ₹54,000 and ?36,000 respectively. They admit C in partnership for 1/3rd share and C is to bring proportionate amount of capital. The capital amount of C would be : (C.S. Foundation, Dec. 2012)
(A) ₹90,000
(B) ₹45,000
(C) ₹5,400
(D) ₹36,000

55. A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill of the firm is valued at ₹3,00,000 and C brings ₹30,000 as his share of goodwill in cash which is entirely credited to the Capital Account of A. New profit sharing ratio will be :
(A) 3 : 2 : 1
(B) 6 : 3 : 1
(C) 5 : 4 : 1
(D) 4 : 5 : 1

56. X and Tare partners sharing profits in the ratio of 4 : 3. Z is admitted for 1/5th share and he brings in ₹1,40,000 as his share of goodwill in cash of which ₹1,20,000 is credited to X and remaining amount to Y. New profit sharing ratio will be :
(A) 4 : 3 : 5
(B) 2 : 2 : 1
(C) 1 : 2 : 2
(D) 2 : 1 : 2

57. A and B are partners sharing profits in the ratio of 2 : 3. Their Balance Sheet shows Machinery at ₹2,00,000; Stock at ₹80,000 and Debtors at ₹1,60,000. C is admitted and new profit sharing ratio is agreed at 6 : 9 : 5. Machinery is revalued at ₹1,40,000 and a provision is made for doubtful debts @5%. A’s share in loss on revaluation amount to ₹20,000. Revalued value of Stock will be :
(A) ₹62,000
(B) ₹1,00,000
(C) ₹60,000
(D) ₹98,000

58. A, B and C are partners sharing profits in ratio of 3 : 2 : 1. They agree to admit D into the firm. A. B and C agreed to give 1/3rd, 1/6th, 1/9th share of their profit. The share of profit of D will be :

59. X and Y are partners sharing profits in the ratio 2 : 3. They admitted Z for 1/5th share of profits, for which he paid ₹1,20,000 against capital and 760,000 as goodwill. Find the capital balances for each partner taking Z’s capital as base capital.
(A) ₹3,00,000, ₹1,20,000 and ₹1,20,000
(B) ₹3,00,000, ₹1,20,000 and ₹1,80,000
(C) ₹1,92,000, ₹2,88,000 and ₹1,20,000
(D) ₹3,00,000, ₹1,80,000 and ₹1,80,000

60. A, B, C and D are partners. A and B share 2/3rd of profits equally and C and D share remaining profits in the ratio of 3 : 2. Find the profit sharing ratio of A, B, C and D. (CPT; Dec. 2012)
(A) 5 : 5 : 3 : 2
(B) 7 : 7 : 6 : 4
(C) 2.5 : 2.5 : 8 : 6
(D) 3 : 9 : 8 : 3

61. Sacrificing ratio is used to distribute in case of admisstion of a partner : (CPT; Dec. 2012)
(A) Reserves
(B) Goodwill
(C) Revaluation Profit
(D) Balance in Profit and Loss Account

62. X and Y are partners in a firm with capital of ₹1,80,000 and ₹2,00,000. Z was admitted for 1/3rd share in profits and brings ₹3,40,000 as capital, calculate the amount of goodwill: (CPT; June 2012)
(A) ₹2,40,000
(B) ₹1,00,000
(C) ₹1,50,000
(D) ₹3,00,000

63. A and B are partners sharing profits and losses in the ratio of 5 : 3. On admission, C brings ₹70,000 as cash and ₹43,000 against Goodwill. New profit ratio between A, B and C is 7 : 5 : 4. The sacrificing ratio of A and B is: (CPT; Dec. 2012)
(A) 3 : 1
(B) 1 : 3
(C) 4 : 5
(D) 5 : 9