CUET 2023 Accountancy Chapter 3 (Part 2) – Reconstitution of a partnership firm – admission of a partner MCQ Question and Answers – MCQs for Practice by Meenu Saini | May 25, 2022 | General | 0 comments Accountancy Chapter 3 (Part 2) – Reconstitution of a partnership firm – admission of a partner MCQ Question Answers for CUET 2023 1. Accounting Standard used by ICAI which deals with the treatment of Goodwill and its Applicationsa.AS-16b.AS-6c.AS-21d.AS-26 Loading... 2. Question a.db.bc.ad.c Loading... 3. Unrecorded assets are _________and Unrecorded liabilities are _______ to the revaluation accounta.Debited – creditedb.Deducted --addedc.Added--deductedd.Credited --Debited Loading... 4. Excess of credit side over the debit side in Revaluation Account is:a.Super Profitb.Gross Profitc.Average Profitd.Net Profit Loading... 5. Firms’ capital includes partner’s capital and reserves and surplus but excludes__________.a.Goodwill and Current Assetsb.Preliminary Expenses and Goodwillc.Fictitious Assets and goodwilld.Miscellaneous Expenditure and Goodwill Loading... 6. The excess of actual profits over the normal profits is termed as _________________.a.Excess Normal Profitsb.Super Profitsc.Excess Profitsd.Over Profits Loading... 7. Sacrificing partners are credited with their share of goodwill and new partner is debited by the amount of goodwill not brought by him. This Situation only arises when __________a.Goodwill does not exist in the booksb.New partner does not bring goodwill in cash, partly or fullc.New Partner brings goodwill in cash.d.Partners decide to withdraw the amount of Goodwill Loading... 8. Which of following is Incorrect Regarding Goodwill?a.It is valued Using a single Method and does not have any other alternative of measuringb.It is as an intangible asset.c.Amalgamation of partnership firms Can be a Reason for Valuation of Goodwilld.It is the capitalised value attached to the differential profit capacity of a business Loading... 9. Any change in the existing agreement amounts to _________a.Revaluation of the partnership firmb.Remodulation of the partnership firmc.Resolution of the partnership firmd.Reconstitution of the partnership firm Loading... 10. At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferreda.none of the aboveb.new partner’s capital accountc.old partner’s capital accountd.all partner’s capital account Loading... 11. Question a.cb.ac.bd.d Loading... 12. If, at the time of admission of a partner, any reserve and accumulated profits or losses exist in books of the firm, these should be transferred to old partner’s capital/current accounts in their _____a.old profit-sharing ratiob.Gain ratioc.New Profit-Sharing Ratiod.Sacrifice ratio Loading... 13. Sacrifice Ratio = __________a.Old Ratio – New Ratiob.Old Ratio + Gain Ratioc.New Ratio + Old Ratiod.New Ratio – Old Ratio Loading... 14. A new partner can be admitted into the firm only with the consent of all the _________unless otherwise agreed upona.Shareholdersb.Existing Partnersc.Partnersd.Members Loading... 15. __________ is brought by the new partner primarily to compensate the sacrificing partners for loss of their share in super profits of the firma.Debtb.Additional Capitalc.Goodwilld.Investments Loading... 16. Profit or Loss on Revaluation is to be Accepted by:a.New Partnersb.All partnersc.New Partnerd.Old Partners Loading... 17. A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 10%. Ascertain the value of goodwill by capitalisation average profits method, given that the value of net assets of the business is Rs. 8,20,000. Amount Of Goodwill?a.Rs. 180000b.Rs. 185000c.Rs. 189500d.Rs. 188000 Loading... 18. Question a.bb.ac.d d.c Loading... 19. The profit for the five years of a firm are as follows – year 2013 Rs. 400000; year 2014 Rs. 400000; year 2015 Rs. 450000; year 2016 Rs. 445000 and year 2017 Rs. 500000. Calculate goodwill of the firm on the basis of 3 years purchase of 5 years average profitsa.1710000b.1910000c.1317000d.1318000 Loading... 20. Under this method, the goodwill is valued at agreed number of ‘years’ purchase of the average profits of the past few years.a.Average Profits Methodb.Super Profits Methodc.Average Goodwill Methodd.Capitalisation Method Loading... Loading... Also See : Accountancy Part 1 Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQs Accountancy Chapter 2 (Part 1) – Accounting for partnership: basic concepts MCQs Accountancy Chapter 3 (Part 1) – Financial statements of a company MCQs Accountancy Chapter 4 (Part 1) – Analysis of financial statements MCQs Accountancy Chapter 5 (Part 1) – Accounting ratios MCQs Accountancy Chapter 6 – Cash flow statement MCQs Accountancy Part 2 Accountancy Chapter 1 (Part 2) – Accounting for not for profit organisation MCQs Accountancy Chapter 2 (Part 2) – Issue and redemption of debentures MCQs Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQs Accountancy Chapter 5 (Part 2) – Dissolution of partnership firm MCQs Submit a Comment Cancel replyYou must be logged in to post a comment.