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Accountancy: CUET Mock Test - 9


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40 Questions MCQ Test CUET Mock Test Series | Accountancy: CUET Mock Test - 9

Accountancy: CUET Mock Test - 9 for Class 12 2023 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 9 questions and answers have been prepared according to the Class 12 exam syllabus.The Accountancy: CUET Mock Test - 9 MCQs are made for Class 12 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 9 below.
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Accountancy: CUET Mock Test - 9 - Question 1

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - 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

Accountancy: CUET Mock Test - 9 - Question 2

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 2

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.

Accountancy: CUET Mock Test - 9 - Question 3

Ways in which incoming partner may acquire his share except:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 3

A new partner can acquired his share 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.

Accountancy: CUET Mock Test - 9 - Question 4

How will you calculate sacrificing ratio

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 4

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.

Accountancy: CUET Mock Test - 9 - Question 5

Sacrifice ratio is used only for

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 5

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.

Accountancy: CUET Mock Test - 9 - Question 6

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 Accountancy: CUET Mock Test - 9 - Question 6

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.

Accountancy: CUET Mock Test - 9 - Question 7

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 Accountancy: CUET Mock Test - 9 - Question 7

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

Accountancy: CUET Mock Test - 9 - Question 8

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 8

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

Accountancy: CUET Mock Test - 9 - Question 9

Why new profit ratio is determine even for old partners?

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 9

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

Accountancy: CUET Mock Test - 9 - Question 10

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 10

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

Accountancy: CUET Mock Test - 9 - Question 11

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 Accountancy: CUET Mock Test - 9 - Question 11

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

Accountancy: CUET Mock Test - 9 - Question 12

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 12

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.

Accountancy: CUET Mock Test - 9 - Question 13

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 13

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.

Accountancy: CUET Mock Test - 9 - Question 14

New profit sharing ratio means

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 14

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.

Accountancy: CUET Mock Test - 9 - Question 15

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 Accountancy: CUET Mock Test - 9 - Question 15

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.

Accountancy: CUET Mock Test - 9 - Question 16

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 Accountancy: CUET Mock Test - 9 - Question 16

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.

Accountancy: CUET Mock Test - 9 - Question 17

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 17

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

Accountancy: CUET Mock Test - 9 - Question 18

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 Accountancy: CUET Mock Test - 9 - Question 18

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

Accountancy: CUET Mock Test - 9 - Question 19

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

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 19

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.

Accountancy: CUET Mock Test - 9 - Question 20

Sacrificing ratio is differ from new profit sharing ratio

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 20

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).

Accountancy: CUET Mock Test - 9 - Question 21

Reserve appearing in the Balance sheet will be divided among partners during admission in _________ ratio. 

Accountancy: CUET Mock Test - 9 - Question 22

A and B are partner sharing profits and losses in the ration 5 : 3. On admission, C brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between A, B, C is 7:5:4. The sacrificing ratio among A and B is :

Accountancy: CUET Mock Test - 9 - Question 23

A, B, C, 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?

Accountancy: CUET Mock Test - 9 - Question 24

The balance of memorandum revaluation account (second part), is transferred to the capital accounts of the partners in:

Accountancy: CUET Mock Test - 9 - Question 25

A, B, 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: 

Accountancy: CUET Mock Test - 9 - Question 26

A, B, and C share profits and Losses in the ratio, of 3:2:1. D is admitted with 1/6 share which he gets entirely from A. New ratio will be:

Accountancy: CUET Mock Test - 9 - Question 27

R and S are partners sharing profits in the ratio of 5:3. T joins the firm. R gives 1/4th of his share and S gives, 1/5th of his share to the new partner. Find out new ratio.

Accountancy: CUET Mock Test - 9 - Question 28

A and B carry on business and share profits and losses in the ratio of 3:2. Their respective capital are Rs. 1,20,000 and Rs. 54,000. C is admitted for 1/3rd share in profit and brings Rs. 75,000 as his share of capital. Capitals of A and B to be adjusted according to C’s share. Calculate the amount refunded to A. 

Accountancy: CUET Mock Test - 9 - Question 29

General Reserve at the time of admission of a partner is transferred to ____________ . 

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 29

Sometimes a firm may have accumulated reserves not yet transferred to the partner's capitals accounts. These are in the form of general reserve, reserve fund etc. The new partner is not entitled to share in these reserves. Hence, at the time of admission, these reserves are transferred to the old partner's capital accounts in their profit sharing ratio.

Accountancy: CUET Mock Test - 9 - Question 30

Which account will be prepared at the time of admission of a new partner for giving effect of revaluation of assets and liabilities without changing the value of assets and liabilities of old Balances Sheet?

Accountancy: CUET Mock Test - 9 - Question 31

A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.

Accountancy: CUET Mock Test - 9 - Question 32

Profit or loss on revaluation is shared among the partners in …………..ratio. 

Accountancy: CUET Mock Test - 9 - Question 33

A and B are partners sharing profits and losses in the proportion of 7 : 5. They agree to admit C, their manager, into partnership who is to get 1 / 6th share in the profit. He acquires this share as 1 / 24th from A and 1 / 8th from B. Calculate new profit-sharing ratio.

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 33

A's old share = 7 / 12 
B's old share = 5 / 12 
C is admitted for 1 / 6th share 
A's new ratio = 7 / 12 - 1 / 24 = 13 / 24 
B's new ratio = 5 / 12 - 1 / 8 = 7 / 24 
New Ratio of the firm = 13 : 7 : 4

Accountancy: CUET Mock Test - 9 - Question 34

A and B are partners sharing the profit in the ratio of 3:2. They take C as the new partner, who is supposed to bring Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. C is able to bring only his share of Capital. How this will be treated in the books of the firm:

Accountancy: CUET Mock Test - 9 - Question 35

Adam, Brain and Chris were equal partners of a firm with goodwill Rs. 1,20,000 shown in the balance sheet and they agreed to take Daniel as an equal partner on the term that he should bring Rs. 1,60,000 as his capital and goodwill, his share of goodwill was evaluated at Rs. 60,000 and the goodwill account is to be written off before admission. What will be the treatment for goodwill?

Accountancy: CUET Mock Test - 9 - Question 36

A and B are partners sharing profits in the ratio of 3 : 2. C is admitted into the firm for 1 / 5th share in the profit which he acquires equally from A and B. The new profit sharing ratio will be ________.

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 36

Old ratio (A and B) = 3 : 2 
C is admitted for 1 / 5th share 
A's sacrifice in favour of C = (1 / 5) * (1 / 2) = (1 / 10) 
B's sacrifice in favour of C = (1 / 5) * (1 / 2) = (1 / 10) 
New ratio = Old ratio - Sacrificing ratio 
A's new ratio = (3 / 5) - (1 / 10) = 5 / 10 or 1 / 5 
B's new share = (2 / 5) - (1 / 10) = 3 / 10 
C's share = A's sacrifice + B's sacrifice 
= (1 / 10) + (1 / 10) 
=  2 / 10
Therefore, new profit sharing ratio of A, B and C is 5 : 3 : 2

Accountancy: CUET Mock Test - 9 - Question 37

X and Y are partners sharing profits in the ratio of 3:1. They admit Z as a partner who pays Rs. 4000 as goodwill, the new profit sharing ratio being 2:1:1 among X, Y, Z. The amount of goodwill will be credited to : 

Accountancy: CUET Mock Test - 9 - Question 38

The opening balance of Partner’s Capital Account is credited with:

Accountancy: CUET Mock Test - 9 - Question 39

A and B are partners, sharing profits in the ratio of 5:3. They admit C with 1/5 share in profits, which he acquires equally from both 1/10 from A and 1/10 from B. New profit sharing ratio will be:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 39

C is acquiring 1/10th equally from both A and B,

A's new share= 5/8 - 1/10= 21/40
B's new share= 3/8 - 1/10= 11/40
C's share= 8/40
New profit-sharing ratio= 21:11:8
Therefore, D is the correct answer.

Accountancy: CUET Mock Test - 9 - Question 40

X and Y are sharing profits and losses in the ratio of 3:2. Z is admitted with 1/5th share in profits of the firm which he gets from X. Find out the New profit sharing ratio?

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