ACCOUNTANCY FOR CLASS 12 CHAPTER 3 RECONSTITUTION OF PARTNERSHIP FIRM: ADMISSION OF A PARTNER, MCQS ALONG WITH ANSWERS

Free CBSE Accountancy Multiple Choice Questions for Class 12 along with answers Chapter 3: Reconstitution of Partnership Firm: Admission of a Partner. Accountancy MCQs for Class 12 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to _____.

(a) Cash account

(b) Capital account of a new partner

(c) Goodwill account

(d) None of the above

Answer: (a) Cash account

2. 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 in new profit-sharing ratio

(b) All the partners in the new profit-sharing ratio

(c) Old partners in the old profit-sharing ratio

(d) None of the above

Answer: (c) Old partners in the old profit-sharing ratio

3. A general reserve treated at the time of admission of a new partner, it is transferred to ______.

(a) Old Partner’s capital account

(b) Profit and loss adjustment account

(c) Realisation account

(d) Revaluation account

Answer: (a) Old Partner’s capital account

4. On reconstitution of a partnership firm, recording of an unrecorded liability will result in ______.

(a) Loss to the existing partners

(b) Neither gain nor loss to the existing partners

(c) Gain to the existing partners

(d) None of the above

Answer: (a) Loss to the existing partners

5. The balance of the revaluation account is transferred to the old partner’s capital accounts in their _____.

(a) New profit-sharing ratio

(b) Equal ratio

(c) Old profit-sharing ratio

(d) None of the above

Answer: (c) Old profit-sharing ratio

6. Recording of an unrecorded asset on the reconstitution of a partnership firm will be ______.

(a) A loss to the existing partners

(b) Neither a gain nor a loss to the existing partners

(c) A gain to the existing partners

(d) None of the above

Answer: (c) A gain to the existing partners

7. What is the formula to calculate the gaining ratio?

(a) Old Ratio – sacrificing ratio

(b) New Ratio – sacrificing ratio

(c) Old Ratio – new ratio

(d) New Ratio – old ratio

Answer: (d) New Ratio – old ratio

8. At the time of an admission of a new partner, the general reserve that is appearing in the old balance sheet is transferred to _____.

(a) New partners’ capital accounts

(b) Old partner’s capital accounts

(c) All partner’s capital accounts

(d) None of the above

Answer: (b) Old partner’s capital accounts

9. The increase in the value of assets on reconstitution of the partnership firm results in ______.

(a) A loss to the existing partners

(b) Neither a gain nor a loss to the existing partners

(c) A gain to the existing partners

(d) None of the above

Answer: (c) A gain to the existing partners

10. Under the capitalisation method, goodwill is calculated by _____.

(a) Super profit x number of years’ purchase

(b) Total of the discounted value of expected future benefits

(c) Super profit – (r) expected rate of return

(d) Average profit x number of years’ purchase

Answer: (c) Super profit – (r) expected rate of return

We trust that the offered Accountancy MCQs for Class 12 with responses Chapter 3: Reconstitution of Partnership Firm: Admission of a Partner will help you. Assuming you have any questions with respect to CBSE Class 12 Accountancy, Reconstitution of Partnership Firm: Admission of a Partner MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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