On reconstitution of a partnership firm, recording of an unrecorded liability wil result in:
  • Gain to the existing partners
  • Loss to the existing partners
  • Neither gain nor loss to the existing partners
  • None of these
Increase In the value of assets on reconstitution of the partnership firm results into :
  • Gain to the existing partners
  • Loss to the existing partners
  • Neither gain nor loss to the existing partners
  • None of these
The balance of Revaluation Account is transferred to old Partner’s Capital Accounts in their:
  • Old Profit-sharing Ratio
  • New Profit-sharing Ratio
  • Equal Ratio
  • None of these
X and Y share profits in the ratio 2 :In future they have decided to share profits in equal ratio. Which partner will sacrifice in which ratio ?
  • X sacrifice 1/10
  • Y sacrifice 1/5
  • Y sacrifice 1/10
  • None of these
Change in the partnership agreement results in:
  • Reconstitution of Firm
  • Dissolution of Firm
  • Amalgamation of Firm
  • None of these
Change in the partnership agreement:
  • Changes the relationship among the partners
  • Results in end of partnership business
  • Dissolves the partnership firm
  • None of these
Excess of credit side over the debit side in Revalution Account is:
  • Profit
  • Loss
  • Receipt
  • Expense
A, B and C are partners in a firm, if D is admitted as a new partner:
  • Old firm is dissolved
  • Old firm and old partnership are dissolved
  • Old partnership is reconstituted
  • None of these
Recording of an unrecorded asset on the reconstltutlam of a partnership firm will be:
  • A gain to the existing partners
  • A loss to the existing partners
  • Neither a gain nor a loss to the existing partners
  • None of these
Revaluation Account or Profit & Loss Adjustment Account is a:
  • Personal Account
  • Real Account
  • Nominal Account
  • None of these
A, B, C and D are partners sharing their profits and losses equally. They change their profit sharing ratio to 2:2:1:How much will C sacrifice ?
  • 1/6
  • 1/12
  • 1/24
  • None of these
Sacrificing Ratio:
  • New Ratio – Old Ratio
  • Old Ratio – New Ratio
  • Gaining Ratio – Old Ratio
  • Old Ratio – Gaining Ratio
Gaining Ratio:
  • New Ratio – Old Ratio
  • Old Ratio – Sacrificing Ratio
  • New Ratio – Sacrificing Ratio
  • Old Ratio – New Ratio
X and Y share profit and loss in 3:From 1st January, 2017 they agreed to share profit equally. Their sacrifice or gain will be :
  • Sacrifice by X: 1/10
  • Sacrifices by Y : 1/10
  • Both (a) and (b)
  • Non of these
Generally the interest on capital is considered as :
  • An appropriation of profit
  • An Asset
  • An Expense
  • None of these
Increase in the value of assets on reconstitution of the partnership firm results into:
  • Gain to the existing partners
  • Loss to the existing partners
  • Neither a gain nor a loss to the existing partners
  • None of these
Following are the factors affecting goodwill except:
  • Nature of business
  • Efficiency of Management
  • Technical Knowledge
  • Location of the Customers
The profit of the last three years are ₹ 42,000, ₹ 39,000 and ₹ 45,Value of goodwill at two years purchases of the average profits will be :
  • ₹ 42,000
  • ₹ 84,000
  • ₹ 1,26,000
  • ₹ 36,000
Under average profit basis goodwill is calculated by :
  • No. of years’ purchased x Average profit
  • No. of years’ purchased x Super profit
  • Super Profit -r Expected Rate of Return
  • None of these
Goodwill is:
  • Tangible Asset
  • Intangible Asset
  • Current Asset
  • None of these
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