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Test: Admission Of A Partner - 2 - Commerce MCQ


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20 Questions MCQ Test Accountancy Class 12 - Test: Admission Of A Partner - 2

Test: Admission Of A Partner - 2 for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Admission Of A Partner - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Admission Of A Partner - 2 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Admission Of A Partner - 2 below.
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Test: Admission Of A Partner - 2 - Question 1

Premium brought by the new partner will be shared by the existing partners in:

Detailed Solution for Test: Admission Of A Partner - 2 - Question 1

When a new partner is admitted into the partnership firm, he brings some amount of premium for goodwill which will be shared/distributed by the sacrificing partners in their sacrificing ratio

Test: Admission Of A Partner - 2 - Question 2

 Which of the following is not an example of Reconstitution of partnership firm?

Detailed Solution for Test: Admission Of A Partner - 2 - Question 2

Reconstitution on a partnership means change in the number of partners through Admission, Retirement or Death of the partners or change in the ratio of partners. Puchase of Assets will not change the constitution of the partnership.

Test: Admission Of A Partner - 2 - Question 3

According to section 31(1) of _____ new partner can be admitted only with consent of all existing partners

Detailed Solution for Test: Admission Of A Partner - 2 - Question 3

When there is no proper guidelines or when there is no partnership deed or when partnership deed is silent on the issue of admission of a new partner. In such a case all provisions of the Partnership Act, 1932 will be applicable according to which a new partner can be admitted into the partnership only with the consent of all existing partners.

Test: Admission Of A Partner - 2 - Question 4

Amount brought by a new partner for his share in goodwill is known as _____

Detailed Solution for Test: Admission Of A Partner - 2 - Question 4

When a new partners is admitted into the partnership he brings some amount in cash as his capital and some amount for his share in goodwill. The amount he brings for the share of goodwill is known as premium for goodwill.

Test: Admission Of A Partner - 2 - Question 5

Any change in the existing agreement amounts to ______

Detailed Solution for Test: Admission Of A Partner - 2 - Question 5

Correct option is B. Reconstitution of the partnership firm

Test: Admission Of A Partner - 2 - Question 6

New profit sharing ratio means

Detailed Solution for Test: Admission Of A Partner - 2 - Question 6

New profit sharing ratio refers to that ratio in which all the partners (old partners + new partner) will share future profits. It is not compulsory to share future profits equally. If there is no partnership deed or partnership deed is silent on the distribution of future profits, only in that case they will share future profits equally.

Test: Admission Of A Partner - 2 - Question 7

How will you calculate sacrificing ratio

Detailed Solution for Test: Admission Of A Partner - 2 - Question 7

Sacrificing ratio refers to that ratio in which old partners will sacrifice their share in the favour of a new partner. To calculate the sacrificing ratio new share should be deducted from the old share of the existing partners’ i.e. old ratio – new ratio.

Test: Admission Of A Partner - 2 - Question 8

At the time of admission of a new partner, new profit sharing ratio is calculated. The new partner acquires his share from the old partners and as a result profit shares of old partners is reduced. What is it known

Detailed Solution for Test: Admission Of A Partner - 2 - Question 8

When a new partner is admitted, old partners will sacrifice some share in favor of new partner, the share they sacrifice in favor of new partner is known as sacrifice share or sacrificing ratio of the old partners.

Test: Admission Of A Partner - 2 - Question 9

Sacrifice ratio is used only for

Detailed Solution for Test: Admission Of A Partner - 2 - Question 9

At the time of admission of a new partner, the main use of sacrificing ratio is to adjust the premium for goodwill brought by a new partner.

Test: Admission Of A Partner - 2 - Question 10

Section ____ of the Indian Partnership Act provides that a new partner shall not be inducted into a firm without the consent of all existing partners

Detailed Solution for Test: Admission Of A Partner - 2 - Question 10

Section 31of the Indian Partnership Act provides that a new partner shall not be inducted into a firm without the consent of all existing partners.

Test: Admission Of A Partner - 2 - Question 11

Incoming partner may acquire his share from the old partners 
(i) In their old profit sharing ratio
(ii) In a particular ratio
(iii) In particular fraction from some of the partners
In which of the above mentioned alternatives

Detailed Solution for Test: Admission Of A Partner - 2 - Question 11

A newly admitted partner may acquire his share of profit from one partner or two partners or from all partners in an agreed ratio. He may acquire his share in old ratio of the partners or in an agreed ratio for sacrifice but not in the new ratio of all the partners because new ratio will be fixed after adjusting his share.

Test: Admission Of A Partner - 2 - Question 12

The amount of goodwill brought in by the new partner is shared by the ____ partners in their ____ ratio

Detailed Solution for Test: Admission Of A Partner - 2 - Question 12

The amount of premium for goodwill brought in by the new partner will be shared by the only sacrificing partners in their sacrificing ratio.

Test: Admission Of A Partner - 2 - Question 13

X and Y are partners sharing profits in the ratio of 3:2. Z is admitted for 1/5 share. All partners have decided to share future profits equally. The profit of new partnership firm was Rs.30,000. This profit will be shared by all the partners in _______

Detailed Solution for Test: Admission Of A Partner - 2 - Question 13

Distribution of profit is to be done in new profit sharing ratio:
X = 30,000 × 1/3 = 10,000
Y = 30,000 × 1/3 = 10,000
Z = 30,000 × 1/3 = 10,000

Test: Admission Of A Partner - 2 - Question 14

What adjustments are mainly done at the time of admission of a new partner?
(i) Adjustment in Profit sharing ratio
(ii) Goodwill 
(iii) Accumulated profits, Reserves and losses

Detailed Solution for Test: Admission Of A Partner - 2 - Question 14

Adjustments to be done at the time of admission of a partner are:
1.Change in profit sharing ratio
2.Adjustment for premium for goodwill
3.Adjustment of old goodwill (given in balance sheet)
4.Revaluation account (revaluation of assets and re-assessment of liabilities)
5.Accumulated profits and reserves
6.Adjustment of capital

Test: Admission Of A Partner - 2 - Question 15

When a new partner is admitted he acquires his share of profits , this will ____ the old partner’s shares in profits:

Detailed Solution for Test: Admission Of A Partner - 2 - Question 15

Old partners will sacrifice some share in favor of a new partner. In simple words, when a new partner is admitted he acquires his share of profits , this will reduce the old partner’s shares in profits

Test: Admission Of A Partner - 2 - Question 16

Is admission of a new partner is a reconstitution of partnership firm:

Detailed Solution for Test: Admission Of A Partner - 2 - Question 16

Admission of a new partner will reconstitute the partnership firm. It means it is the end of old partnership and beginning of a new partnership among the partners. It does not mean the end of the firm.

Test: Admission Of A Partner - 2 - Question 17

Why new profit ratio is determine even for old partners?

Detailed Solution for Test: Admission Of A Partner - 2 - Question 17

New profit sharing ratio will be calculated for all the partners because of change in profit sharing ratio agreement among the partners.

Test: Admission Of A Partner - 2 - Question 18

Sacrificing ratio is differ from new profit sharing ratio

Detailed Solution for Test: Admission Of A Partner - 2 - Question 18

Sacrificing ratio is concerned with the old partners who are sacrificing their share in favor of a new partner. New ratio means, new ratio of all the partners (including new and old partners).

Test: Admission Of A Partner - 2 - Question 19

__________ means good name, good product or reputation earned by a firm through the hard work and honesty of its owners

Detailed Solution for Test: Admission Of A Partner - 2 - Question 19

Goodwill means good name, good product or reputation earned by a firm through the hard work and honesty of its owners.

Test: Admission Of A Partner - 2 - Question 20

Sometimes the value of goodwill is not given at the time of admission of a new partner. In such a situation it has to be inferred from the arrangement of the capital and profit sharing ratio. This concept is called

Detailed Solution for Test: Admission Of A Partner - 2 - Question 20

It is known as hidden goodwill. Following formula should be used to calculate the value of hidden goodwill: Total Capital of the firm – Combined capital of partners = Hidden Goodwill

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