Change in Profit Sharing Ratio(PSR)

Q.

Goodwill brought in by incoming partner in cash is distributed by the old partners in their ___________.

1. old profit sharing ratio

2. new profit sharing ratio

3. capital ratio

4. sacrificing ratio

Q.

X & Y are partners sharing profit in the ratio of 5:3. Z is admitted as a new partner. X surrendered 1/5th of his share & Y surrendered 1/3rd of his share in favor of Z. What shall be the sacrificing ratio ?

1. 4:5

2. 1:1

3. 3:2

4. 3:1

Q. Old ratio of A, B & C is 5:4:1. If C acquires 1/5th share from A, the new profit sharing ratio will be .

1. 3:4:3
2. 4:5:1
3. 4:3:4
4. 5:4:1

Q.

Old ratio of A, B & C is 5:4:1.Calculate the new profit sharing ratio, when C acquires 1/5th Share from A & B equally.

1. 3;3:4

2. None of the above

3. 3:4:3

4. 4:3:3

Q. Rs.2170 was divided among A, B, & C such that : 3 times of As share=5times of Bs share=2 times of Cs share. Find the share of each.

Q. Kangli, Mangli and Sanvali are partners sharing profits in the ratio of 4:3:2 . Kangli retires . Assuming Mangli and Sanvali will share profits in the future in the ratio of 5:3, determine the gaining ratio.

Q. Before changing the profit sharing ratio, the old partners should share all the past profits and losses in the ratio.

1. old
2. new
3. gaining
4. sacrificing

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

1. $5:3:2$
2. $3:5:2$
3. 4:4:24:4:2
4. 6:2:2

Q.

There are _________ number of methods for valuation of Goodwill?

1. three

2. four

3. five

4. six

Q. State whether the following statements are true or false :

Retiring partner is entitled to his share of goodwill.

Q. Change in profit-sharing ratios amounts to dissolution of the partnership or partnership Firm. Give reason.

Q. A and B are partners sharing profits in the ratio of 2:12:1. C is admitted for $1/5$th share. The new profit sharing ratio will be _________.

1. $3:1:1$
2. $2:2:1$
3. None of these
4. $1:3:1$

Q.

Before changing the profit sharing ratio, the old partners should share all the past profits and losses in the ____________

1. none of the above

2. equal

3. old

4. new

Q. What would be the profit sharing ratio if the partnership act is compiled with?

1. As per agreement.
2. Equally.
3. In capital ratio.
4. None of the above.

Q.

when goodwill amt not bring by new partner nor bring the amount of captal .how will you treatment?

when goodwill amt not bring by new partner .how will you treatment?

In the Capital adjustment new partner not bring the amount of goodwill .how will u treat?

Q. Short answer type question:
Why the value of goodwill need to be determined on retirement or death of a partner?

Q. State the ratio in which the partners share accumulated profit when there is a change in the profit-sharing ratio among existing partners.

Q. A & B are partners in a firm sharing profits and losses in the ratio 5:3. On admission, C brings Rs 1, 40, 000 in cash and Rs 96, 000 against goodwill. New profit sharing ratio between A, B and C are 7:5:4. Find the sacrificing ratio as A:B?

1. 4:7
2. 5:4
3. 2:1
4. 3:1

Q. A and B are partners sharing profits in the ratio of $3:2$. They admit C who takes $2/7$th from A and $1/7$th from B. The new profit sharing ratio will be _______.

1. $15:9:11$
2. $11:9:15$
3. $15:11:9$
4. $9:11:15$

Q.

Old ratio of A, B & C is 5:4:1. If C acquires 1/5th Share from A, the new profit sharing ratio will be

1. 3:4:3

2. 4:3:4

3. 5:4:1

4. None of the above

Q. X sent out 1000 boxes to Ram of Delhi costing Rs 100 each at a profit of 1/6th on Invoice Price. Goods sent out on consignment to be credited in general trading will be:

1. Rs. 1, 00, 000
2. Rs. 1, 20, 000
3. None
4. Rs. 20, 000

Q. A, B & C partners in a firm sharing profits losses in the ratio of 4:3:2. B decided to retire from the firm. B gives his share to A & C in ratio of 3:1. What is the gain ratio?

1. 7:2
2. 11:7
3. 3:1
4. 2:1

Q. A, B & C partners in a firm sharing profits losses in the ratio of 4:3:2. B decided to retire from the firm. B gives his share to A and C in the original ratio of A & C. What is the gain ratio?

1. 4:2
2. 25:11
3. 11:7
4. 2:1

Q. Objective Type Questions :
Answer in one sentence only.

Why a new partner is admitted?

Q.

a and b are partners sharing in the ratio 5;3. They admit D for 1/6th share . D is to bring 25000 as his capital and 30000 as his share of goodwill in cash. Goodwill appears in the books of accounts as 24000. Pass necessary Journal Entries

Q. State whether the following statements are true or false :

Gaining ratio means old ratio minus new ratio.

Q. Select the most appropriate answer from the alternative given below and rewrite the sentence.

Akash, Prakash and Deepak are partners who share profits as 3:2:1. They admit Suraj as a partner and decided to share future profits as 5:3:2:2. The sacrifice ratio will be __________
a) 1:1:0
b) 2:1:1
c) 0:1:3
d) 0:0:2

Q. Hari, Roy and Prasad are partners in the ratio of 3:5:1 respectively. Roy wants to retire. His share is being purchased by Prasad. What would be the new ratio of hari and Prasad respectively?

1. 1:2
2. 2:1
3. 3:5
4. Equal

Q. Determination of sacrificing ratio is necessary when the incoming partner _________________.

1. brings his premium of goodwill in cash
2. fails to bring his capital in cash
3. fails to bring his premium of goodwill
4. request to raise goodwill a/c

Q.

For admitting a new partner, what should be done with the profit sharing ratio?

1. should distribute profits equally

2. should decide a new profit sharing ratio

3. should continue with old ratio

4. none of the above