CUET UG 2025 — Partnership

Match List-I with List-II | List-I | List-II | |---|---| | Revaluation of assets and reassessment of liabilities at the time of admission of a new partner | Journal Entry | | (A) For increase in the value of an asset | (I) Revaluation A/c Dr. To Asset A/c | | (B) For reduction in the amount of a liability | (II) Revaluation A/c Dr. To Liability A/c | | (C) For reduction in the value of an asset | (III) Asset A/c Dr. To Revaluation A/c | | (D) For appreciation in the amount of a liability | (IV) Liability A/c Dr. To Revaluation A/c | Choose the correct answer from the options given below:

When drawings are made at the beginning of every month for the full year, interest on drawings is calculated for

When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Sacrificing ratio | (I) Dissolution of Partnership | | (B) Gaining Ratio | (II) Admission of a New Partner | | (C) Executors Account | (III) Retirement of a Partner | | (D) Realisation Account | (IV) Death of a Partner | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A). Payment of loans due to partners | (i). Realisation A/c Dr To Bank A/c | | (B). For settlement of partners' accounts, in case their capital account shows a debit balance. | (ii). Bank A/c Dr. To loan to partners A/c | | (C). For settlement of loan by a firm to a partner: | (iii) Bank A/c Dr. To Partner's Capital A/c | | (D). For settlement of any unrecorded liability | (iv) Partner's Loan A/c Dr. To Bank A/c | Choose the correct answer from the options given below:

The profits for the five years of a firm are as follows – year 2013 Rs. 4,00,000;year 2014 Rs. 3,98,000; year 2015 Rs. 4,50,000; year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. Calculate the goodwill of the firm on the basis of a 4-year purchase of 5 years average profits:

The liability of partners is

Identify the correct statement from the given below :-

Which of the following is not a features of partnership:

Which Factor does not Affect the Value of Goodwill:

Which of the following statements truly makes the distinction between Dissolution of Partnership and Dissolution of Firm: (A) In dissolution of partnership, business is not terminated, while in dissolution of firm business is terminated. (B) The Court intervenes in dissolution of Partnership because a partnership is not dissolved by mutual agreement. A firm can not be dissolved by court order. (C) Economic relationships between partners continue in a changed form in dissolution of partnership. Economic relationships between the partners come to an end at the dissolution of the Firm. (D) Dissolution of Partnership doesn't require permanent closure of books, while in Dissolution of firm books are closed. Choose the correct answer from the options given below:

Required capitals of all partners is:

A partnership firm is dissolved compulsorily in the following cases: (A) when all the partners or all but except one partner, become insolvent, rendering them incompetent to sign a contract: (B) When the business of the firm becomes illegal (C) Change in existing profit sharing ratio among partners (D) When some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership, e.g., when a partner who is a citizen of a country becomes an alien enemy because of the declaration of war with his country and India. Choose the correct answer from the options given below:

The Partnership agreement between Maneesh and Girish provides that: (A) Profits will be shared equally (B) Maneesh will be allowed a salary of Rs 400 pm (C) Girish who manages the sales department will be allowed a commission of 10% of the net profits after deducting Maneesh's salary (D) 7% p.a. interest will be allowed on Partner's fixed capital (E) 5% p.a. interest will be charged on partner's annual drawings (F) The fixed capitals of Maneesh and Girish are Rs 1,00,000 and Rs. 80,000 respectively. Their annual drawings were Rs. 16,000 and Rs 14,000 respectively. The net profit for the year ended March 31, 2018 amounted to Rs. 40,000 Calculate the profit allocated to each partner after all adjustments.

The major difference between Retirement and Death is

Murli, Naveen and Omprakash are partners sharing profits in the ratio of 3 /8 , 1/2 and 1/8 . Murli retires and surrenders 2/3rd of his share in favour of Naveen and the remaining share in favour of Omprakash. The gaining ratio of the remaining partners is-

If the asset is taken over by the creditor in lieu of the amount due to him, then the journal entry will be:

Match List-I with List-II | List–I (Events) | List–II (Result) | | -------------------------------------- | ----------------------------------------------- | | (A) Termination of business. | (I) Not possible in dissolution of partnership. | | (B) Continuation of Business | (II) Not possible in the dissolution of a firm. | | (C) Intervention of court. | (III) Dissolution of firm | | (D) Continuation of books of accounts. | (IV) Dissolution of partnership. | Choose the correct answer from the options given below:

If a new partner does not bring his share of goodwill in cash, the following treatment shall be made

What journal entry will be passed for settlement of loan from a partner of Rs. 50,000 by paying Rs. 45,000 at the time of dissolution of a firm :-

C will withdraw the capital amount after capital are adjusted in the ratio of their respective shares in profits. The amount is:

Himanshu withdrew Rs.2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

Steps involved in various accounting aspects of retirement or death of a partner - (A) Settlement of the amounts due to retired/deceased partner (B) Ascertainment of new profit sharing ratio and gaining ratio (C) Adjustment of capital, if required (D) Revaluation of assets and liabilities Choose the correct answer from the options given below:

Various accounting aspects involved on death of a partner are as follows: (A) Adjustment in respect of unrecorded assets and liabilities (B) Treatment of goodwill (C) Preparation of Realization A/c (D) Preparation of Executor's loan A/c Choose the correct answer from the options given below:

When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to

The maximum limit for the number of partner is decided by.

By virtue of which Section of the Companies Act 2013, the Central Government is empowered to prescribe the maximum number of partners in a firm, but the number of partners can not be more than 100?

When a new partner is admitted, the increase in the value of the assets is debited to which account?

A, B and C are partners in a firm. On retirement/death of C, his capital account will be credited with:

Any firm that earns normal profits or is incurring losses has ____________.

At the time of the Dissolution of a Partnership Firm, which statement is not false :-

In the case of a re-constitution of a partnership firm, if the value of decrease in investment exceeds the Investment Fluctuation Fund, the :-

Identify the incorrect journal entry related to Revaluation of Assets and Liabilities of a firm.

On dissolution of a firm, partner's loan account is transferred to:

Match List-I with List-II At the time of retirement following Transactions took place. Chose the correct treatment | List-I | List-II | |---|---| | (Particulars ) | (Treatment ) | | (A) Asset taken over by the partner | (I) Debit side of Revaluation A/C | | (B) Increase in Assets | (II) Written off amongst old partners in old ratio | | (C) Unrecorded Liability | (III) Debit side of Partners Capital A/C | | (D) Goodwill Appearing in books | (IV) Credit side of Revaluation A/C | Choose the correct answer from the options given below:

Neil, Kapil, Sunil started a furniture business in partnership. After one year of their operation, they started exporting Opium by keeping them in blank spaces between the furniture. As authorities came to know about the illegal business of the firm, they will compel them for .......

Choose the correct statement in respect of the Fixed Capital Method for a Partnership Firm :-

The ratio in which the old partners agree to give their share of profit in favor of the incoming partner is called:

In the case of the Dissolution of partnership firm, which accounts are opened: (A) Realization Account (B) Revaluation Account (C) Partners Capital Account (D) Bank Account Choose the correct answer from the options given below:

In the absence of any information regarding the acquisition of shares in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his share in:

In case of admission of a partner, the new partner brings Rs. 20,000 only as his share of premium for goodwill out of Rs. 50,000. Journal entry for the adjustment of goodwill will be:

When a partnership firm is dissolved, final payment made to partners is transferred to

On the dissolution of a firm, the Creditors are transferred to :

Arrange the following steps which involve the Super Profits Method of valuation of goodwill in the correct sequence: (A) Calculate the average profit. (B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return. (C) Calculate goodwill by multiplying the super profits by the given number of years' purchase (D) Calculate the super profits by deducting normal profit from the average profits. Choose the correct answer from the options given below:

Steps involved in accounting treatment at the time of death of a partner - (A) Preparation of deceased partner's capital account (B) Ascertainment of new profit sharing ratio and gaining ratio (C) Preparation of revaluation account, if required (D) Settlement by making payment to deceased partner's executor. Choose the correct answer from the options given below:

Determine the value of firm's goodwill by capitalization of the super profit method if the average profits are Rs 1,00,000, super profits are Rs 18,000 and the normal rate of return is 10%.

Which combination of statements are false about partnership- (A) Interest on partner's loan is to be given @ 12% p.a. If the deed is silent about the rate. (B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. (C) Methods of settlement of dispute among the partners can't be part of the partnership deed. (D) Each partner carrying on the business is the principal as well as the agent for all the other partners Choose the correct answer from the options given below: 1. (A), (B) and (D) only 2. (A), (B) and (C) only 3. (A), (B), (C) and (D) 4. (B), (C) and (D) only

Which of the following is not the feature of fluctuating capital in partnership-

Under which method is the goodwill valued at agreed number of years' purchase of the average profits of the past few years?

When a new partner is admitted, the undistributed profits that appear in the balance sheet of the old firm are transferred to the capital account of:

Calculate Interest on drawings for the amount of Rs. 3000 drawn on September 30, 2019

If the partnership deed is silent on interest on capital, then:

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

Kim and Sim are partners in a firm sharing profits in 4:3 ratio. They admitted Pim as a new partner for 1/4 share in the profits, which he acquired in the ratio of 3:2 from Kim and Sim. Determine the new profit sharing ratio of the partners.

Which of the following is the feature of fluctuating capital:

Which of the following factors affects the value of goodwill? (A). Location of Business (B). Partner's Performance (C). Nature of Business (D). Market Situation Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (Items to be adjusted on admission) | (side of account.) | | (A) Existing goodwill | (i) Debit of capital account. | | (B) Increase in value of assets. | (ii) Debit of revaluation account. | | (C) Decrease in value of assets. | (iii) Credit of revaluation account. | | (D) New partner capital. | (iv) Credit of capital account. | Choose the correct answer from the options given below:

Das and Sinha are partners in a firm sharing profits in 4:1 ratio. They admitted Pal as a new partner for 1/4th share in the profits, which he acquired wholly from Das. The new profit sharing ratio of the partners is-

The order to be followed in preparation of realization account is. (A) Realization of the assets. (B) Transfer assets and liabilities to realization account. (C) Ascertainment of profit or loss on realization. (D) Payment of liabilities. Choose the correct answer from the options given below:

Which of the following statements results in the reconstitution of a partnership firm :- (A) Change in profit sharing ratio among partners. (B) Admission of a new partner. (C) Dissolution of a partnership firm. (D) Dissolution of a partnership. Choose the correct answer from the options given below:

In case of dissolution of a partnership firm, losses, including deficiencies of capital, shall be paid first out of ...............

Match List-I with List-II | List-I | List-II | |---|---| | (Events) | (Result.) | | (A) Termination of business. | (I) Not Possible In Dissolution Of Partnership. | | (B) Continuation Of Business | (II) Not possible in the dissolution of a firm. | | (C) Intervention of court. | (III) Dissolution of firm | | (D) Continuation of books of accounts. | (IV) Dissolution of partnership. | Choose the correct answer from the options given below:

The sum due to the retiring partner includes : (A) His share of profits up to the date of retirement. (B) His share of goodwill; (C) His share of accumulated profits ; (D) His share in the gain of revaluation of assets and liabilities; Choose the correct answer from the options given below:

In the absence of any information regarding the acquisition of share in profits of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in following:

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, which, among the following, is not shown in the Profit and Loss Appropriation Account?

A firm is dissolved compulsorily in the following cases: (A) When all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract. (B) When the business of the firm becomes illegal (C) Change in existing profit sharing ratio among partners (D) When some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Bank (fresh capital introduced) | (I) Debit side of Partner's Current Account | | (B) Interest on drawings | (II) Debit side of Partner's Capital Account | | (C) Bank (permanent withdrawal of capital) | (III) Credit side of Partner's Current Account | | (D) Commission | (IV) Credit side of Partner's Capital Account | Choose the correct answer from the options given below:

On retirement/death of a partner, the retiring/deceased partner's capital account will be credited with:

At the time of dissolution of a Firm, the Loan from a Partner Account should be

Match List-I with List-II | List-I | List-II | |---|---| | (Transaction) | (Relevant account) | | (A) Settlement of Partners Loan | (I) Credit side of Realization A/c | | (B) Transfer of liabilities | (II) Partner's Capital will be credited | | (C) Transfer of Assets | (III) Credit Side of Bank A/c | | (D) Remuneration payable to partner | (IV) Debit Side of Realization A/c | Choose the correct answer from the options given below:

What is the amount of profit to be credited to V's Capital account?

Contents of the Partnership Deed does not include

Section 49, of the Indian Partnership Act 1932, deals with

Match List-I with List-II | List-I | List-II | |---|---| | (Events) | (Result.) | | (A) Termination of business. | (I) Not possible in the dissolution of partnership. | | (b) Continuation of business | (II) Not possible in the dissolution of a firm. | | (C) Intervention of court. | (III) Dissolution of firm | | (D) Continuation of books of accounts. | (IV) Dissolution of partnership. | Choose the correct answer from the options given below:

Arrange the following in correct order in which assets of the firm can be used in there settlement. (A) Residue shall be divided between the partners in their profit sharing ratio. (B) In paying the partners proportionately what is due to him/her on account of capital. (C) In paying the partners proportionately what is due to him/her from the firm for advances/loans. (D) In paying the debts of the firm to the third parties. Choose the correct answer from the options given below:

The clauses of a partnership deed can be altered with the consent of ______

Under the fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners. Which among the following is NOT the feature of the fixed capital method?

In which of the following the Economic relationship between the partners comes to an end?

When the business of the partnership firm becomes illegal, it leads to dissolution of the firm under ___________?

Arrange the steps in the correct sequence while calculating goodwill by capitalization of average profit method: (A) Ascertain the actual firm's capital (net assets) (B) Compute the value of goodwill (C) compute the capitalized value of the average profits (D) Ascertain the average profits Choose the correct answer from the options given below:

Saloni and Srishti are partners in a firm. Their capital accounts as on April 01, 2019 showed a balance of Rs. 2,00,000 and Rs. 3,00,000 respectively. On July 01, 2019 Saloni introduced additional capital of Rs. 50,000 and Srishti, Rs. 60,000. On October 01, 2019 Saloni withdrew Rs. 30,000, and on January 01, 2020 Srishti withdrew Rs. 15,000 from their capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital to Saloni during the financial year 2019–2020.

A and B are partners in a firm with their fixed capital Rs 4,00,000 and 5,00,000 respectively. After preparation of accounts, it was found that interest on capital @ 10% p.a as provided by the partnership deed is omitted. In order to rectify the mistake, A's current account will be ………?

Match List-I with List-II If the partnership deed is silent regarding the items provided in List-I | List-I | List-II | |---|---| | (A) Interest on Capital | (I) to be shared equally | | (B) Interest on Loan | (II) not charged | | (C) Interest on Drawings | (III) not payable | | (D) Sharing of Profits | (IV) @6% p.a. | Choose the correct answer from the options given below:

Dissolution of a partnership firm may be ordered by the court on the following grounds: (A) when a partner becomes insane. (B) when a partner becomes permanently incapable of performing his duties as partner. (C) when a partner acts in good faith (D) when it is regarded just and equitable by the court. Choose the correct answer from the options given below:

At the time of dissolution, a firm transferred Rs.100,000 Assets to the realization account and 50% of the assets were taken over by Kiran at 20% discount. How much net assets were taken over by Kiran?

The assets of the firm, including any sum contributed by the partners to make deficiencies of capital, shall be applied first for paying ………….

On the dissolution of a firm, creditors is transferred to:

A and B are partners sharing profits equally with capitals of Rs 45,000 each. They admitted C as a new partner for 1/3rd share in the profit. C bring Rs 60,000 as his capital. Find the goodwill of the firm.

On retirement / death of a partner, the remaining partners who have gained due to the change in profit sharing ratio should compensate the:

In case partner's capital is fixed, then where interest on drawings charged will be shown?

Arrange the following steps for calculating Goodwill under Capitalisation of Average Profits Method in correct sequence- (A) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets. (B) Compute the value of goodwill by deducting net assets from the capitalised value of average profits. (C) Ascertain the average profits based on the past few years' performance. (D) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalised value of average profits. Choose the correct answer from the options given below:

Neha contributed Rs. 30,000 and Solani Rs. 90,000 as capital. What will be Saloni's share in profits if the partnership agreement is silent?

On the admission of a new partner increase in the value of assets is debited to:

L and M are partners sharing profits in the ratio 3:2. N is admitted as a partner for 1/5th of the share which is acquired from L. Goodwill of the firm is valued at Rs. 40,000 on N's admission. N will have to pay for Goodwill:

Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. Calculate the interest on drawings, which is charged @8% p.a., when the amount is withdrawn at the beginning of each month .

In the event of retirement of partner, following deduction has to be made from his/her share.:

L and M are partners sharing profits in the ratio 3:2. N is admitted as a partner for 1/5th of the share which is acquired from L. Goodwill of the firm is valued at Rs. 40,000 on N's admission. N will have to pay for Goodwill:

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 10%. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is Rs. 8,20,000.

Rohit and Mohit are partners in a firm sharing profits in the ratio of 5:3. They admit Bijoy as a new partner for 1/7th share in the profits. The new profit sharing ratio will be 4:2:1. The sacrificing ratio of Rohit and Mohit is-

In the case of the Dissolution of partnership firm, which accounts are opened: (A) Realization Account (B) Revaluation Account (C) Partners Capital Account (D) Bank Account

Unrecorded liabilities when paid are shown in:

For the right to get a share in future profits of a partnership firm, a newly admitted partner will have to bring :-

A and B are partners sharing profits in the ratio of 2:1. C is admitted into the firm for 1/4 share of profits. C brings in Rs. 20,000 in respect of his capital. The capitals of old partners A and B, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively, It is agreed that partners' capitals should be according to the new profit sharing ratio. A's Capital in the new firm will be:

If there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm. It should be transferred to:

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission @ 5,000. Amitabh has also given a Loan on April 01 , 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. Profit and Loss Appropriation account shows balance of the Profit and Loss A/c (Net profit before Babul's salary) amounted to:

In this case Average profit is -

At the time of admission of a new partner, for getting right to share the assets of the partnership firm, the new partner atleast will bring :-

Unrecorded liabilities when paid are shown in:

R and S are partners in a firm sharing profits in the ratio of 5:3. They admitted B as a new partner for 1/7th share in the profit. The new profit sharing ratio will be 4:2:1. The sacrificing ratio of R and S is:

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, which, among the following, is not shown in the Profit and Loss Appropriation Account?

Arrange the following steps for calculating Goodwill under Capitalisation of Average Profits Method in correct sequence- (A). Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets. (B). Compute the value of goodwill by deducting net assets from the capitalised value of average profits. (C). Ascertain the average profits based on the past few years' performance. (D). Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalised value of average profits. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Meaning of Dissolution | (I) Section 49,of the partnership Act 1932 | | (B) Application of Assets | (II) Section 39,of the partnership Act 1932 | | (C) Private Debts Vs Firm's Debts | (III) Section 4,of the partnership Act 1932 | | (D) Nature of Partnership | (IV) Section 48,of the partnership Act 1932 | Choose the correct answer from the options given below:

Abhiram and Ragini are partners sharing profits in the ratio of 3:2. They admit Arun a new partner for 1/5th share in the future profits of the firm which he gets equally from Abhiram and Ragini. Calculate the new profit sharing ratio of Abhiram, Ragini and Arun.

The assets of the firm, including any sum contributed by the partners to make deficiencies of capital, shall be applied first for paying ...........

If the partnership deed is silent on interest on capital, then:

Stock at the time of dissolution was appearing in books at Rs 50,000. Half of the stock was sold at a discount of 20% and the remaining was taken over by one of the partners at a 10% discount. What amount was received in cash at the time of realization of stock.

Which of the following is the feature of Fixed Capital Method in Partnership Accounts:-

Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if the amount is withdrawn at the beginning of each month and rate of interest on drawings is 8% per annum?

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in a similar business is 25%. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is Rs. 3,20,000.

Which among the following is not the feature of a fixed capital method by which the capital accounts of partners can be maintained?

Section 49, of the Indian Partnership Act 1932, deals with

Excess value of net assets over purchase consideration at the time of purchase of business is credited to

Saloni and Srishti are partners in a firm. Their capital accounts as on April 01, 2019 showed a balance of Rs. 2,00,000 and Rs. 3,00,000 respectively. On July 01, 2019 Saloni introduced additional capital of Rs. 50,000 and Srishti, Rs. 60,000. On October 01, 2019 Saloni withdrew Rs. 30,000 and on January 01, 2020 Srishti withdrew Rs. 15,000 from their respective capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital to Saloni during the financial year 2019–2020.

If there are some accumulated losses in the form of a debit balance of profit and loss account appearing in the balance sheet of the firm, it should be transferred to:

When a new partner is admitted, the increase in the value of the assets is debited to which account?

As per Section 48 of the Partnership Act 1932, which of the following will be utilized for payment of losses, including deficiencies of capital: (A) Out of Profits (B) Out of capital of Partners (C) By partners individually in their profit sharing ratio (D) Creditors Assets Choose the correct answer from the options given below:

On dissolution of a firm, partner's loan account is transferred to:

The Court may order a partnership firm to be dissolved in which of the following case?

Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of 4 : 3 : 2. Nirmal retires and the goodwill is valued at Rs. 72,000. Keshav and Pankaj decided to share future profits and losses in the ratio of 5 : 3. Gaining Ratio of Keshav and Pankaj is:

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Amitabh has also given a Loan on April 01, 2024 of Rs. 50,000 to the firm without any agreement. Calculate Interest on Amitabh's Loan assuming books are closing on 31st March, 2025.

Which combination of statements is true about partnership- (A) Valid partnership can be formulated even without a written agreement between the partners. (B) Methods of settlement of disputes among the partners can't be part of the partnership deed. (C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. (D) Each partner carrying on the business is the principal as well as the agent for all the other partners. Choose the correct answer from the options given below:

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Arrange the following in the correct sequence : (A) In paying to each partner proportionately what is due to him on account of capital (B) In paying the debts of the firm to the third parties (C) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan) (D) The residue, if any, shall be divided among the partners in their profit sharing ratio Choose the correct answer from the options given below:

Dissolution of a partnership firm may be ordered by the court on the following grounds: (A) when a partner becomes insane. (B) when a partner becomes permanently incapable of performing his duties as partner. (C) when a partner acts in good faith (D) when it is regarded just and equitable by the court. Choose the correct answer from the options given below:

Vijay and Manohar share profits and losses in the ratio of 2:1. They admit Prakash as a partner with 1/4 share in profits with a guarantee that his share of profit will be at least Rs. 50,000. The net profit of the firm for the year ending March 31, 2015, was Rs. 1,60,000. Calculate the amount of profit Vijay will get.

Rohan, Bharti and Leela are partners. On the retirement of Rohan, the goodwill already appears in the balance sheet at Rs. 24,000. The goodwill will be written-off:

Partnership comes into existence as a result of an agreement among the partners, that agreement is called......

While doing adjustment of partners capital, for the amount of capital to be brought in by the partner, the following entry will be passed:

Which of the following statement is incorrect?

When a new partner brings his share of goodwill in cash, the amount is credited to:

In the case of fixed capital method, following two accounts are maintained.

The order to be followed in preparation of realization account is. (A) Realization of the assets. (B) Transfer assets and liabilities to realization account. (C) Ascertainment of profit or loss on realization. (D) Payment of liabilities. Choose the correct answer from the options given below:

Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs 10,00,000 respectively. They agreed to share profits in the ratio of 3:2. The books are closed on March 31, every year. They admit Ravi on October 1, 2019 in the partnership, who bring Rs 12,00,000 as capital and Sameer also introduced additional capital Rs 3,00,000 on that date. Interest on partner's capital is provided @5% p.a. The amount of interest on the capital of Sameer for the year 2019-20 is-

Which of the following will lead to dissolution of partnership firm by agreement?

In case of dissolution Machine costing Rs 20,000, alongwith cash of Rs 5,000 were given to creditors of Rs 30,000 in full settlement of their claim. In this case Realisation A/c will be Debited with ___________.

In the case of a dissolution of a firm, accumulated losses are transferred to:

Which of the following are shown under capital account in case capital of partner's are fixed? (A) Fresh capital introduced (B) Permanent capital withdrawn (C) Interest on capital (D) Amount of capital brought down from the previous year Choose the correct answer from the options given below:

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

In the event of retirement of partner, following deduction has to be made from his/her share.:

Match List-I with List-II | List-I | List-II | |---|---| | Interest on Drawings | Time (Month) | | (A). When the amount is withdrawn at the beginning of each month. | (I). 6 months | | (B). When the amount is withdrawn at the end of each month. | (II). 6.5 months. | | (C). When the amount is withdrawn at the middle of each month. | (III). 5.5 months. | | (D). When the amount is withdrawn at the end of each quarter. | (IV). 4.5 months. | Choose the correct answer from the options given below:

Which of the following indicate the situation of compulsory dissolution.

Rohan, Bharti and Leela are partners. On the retirement of Rohan, the goodwill already appears in the balance sheet at Rs. 24,000. The goodwill will be written-off:

In the absence of any information regarding the acquisition of share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in:

Which of the following statements results in the reconstitution of a partnership firm :- (A) Change in profit sharing ratio among partners. (B) Admission of a new partner. (C) Dissolution of a partnership firm. (D) Dissolution of a partnership. Choose the correct answer from the options given below: 1. (A), (B) and (C) only 2. (A), (B) and (D) only 3. (A), (B), (C) and (D) 4. (B), (C) and (D) only

While settlement of Accounts, what should be the order of application of assets of Firm (A) In paying the debts of the firm to the third parties (B) In paying to each partner proportionately what is due to him on account of capital (C) divided among the partners in their profit sharing ratio. (D) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan) Choose the correct answer from the options given below:

The books of a business showed that the firm's capital employed on December 31, 2015, is Rs. 5,00,000 and the profits for the last five years were: 2011-Rs. 40,000; 2012-Rs. 50,000; 2013-Rs. 55,000; 2014- Rs.70,000 and 2015-Rs. 85,000. You are required to find out the normal profits of the business, given that the normal rate of return is 10%.

At the time of retirement of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs 10,00,000 respectively. They agreed to share profits in the ratio of 3:2. The books are closed on March 31, every year. They admit Ravi on October 1, 2019 in the partnership, who bring Rs 12,00,000 as capital and Sameer also introduced additional capital Rs 3,00,000 on that date. Interest on partner's capital is provided @5% p.a. The amount of interest on the capital of Sameer for the year 2019-20 is-

Match List-I with List-II | List-I | List-II | |---|---| | (A). Compulsory Dissolution | (I). Partner becomes insane. | | (B). Dissolution by notice | (II). Death of a partner. | | (C). Dissolution by Court | (III). Business become illegal. | | (D). Dissolution on certain contingencies | (IV). Partnership at will. | Choose the correct answer from the options given below:

The New Profit Sharing Ratio in this case is:

Which combination of statements is true about dissolution- (A). Dissolution of a partnership is different from dissolution of a firm. (B). A partnership is dissolved when there is a death of a partner. (C). A firm is dissolved when all partners give consent to it. (D). A firm is compulsorily dissolved when a partner decides to retire. Choose the correct answer from the options given below:

At the time of death of a partner, undistributed Losses appearing in the balance sheet of the old firm is transferred to the capital account of:

What are the main factors affecting the value of goodwill? (A) Nature of business (B) Location (C) Efficiency of management (D) Market situation Choose the correct answer from the options given below:

Romesh took over Investments at Rs.8,100 which is 10% less then its book value. The book value of the investment was ____

Goodwill is a/an:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Dissolution of firm by agreement | (I) When a partner becomes insane | | (B) Compulsory dissolution of firm | (II) With the consent of all partners | | (C) Dissolution of firm by notice | (III) When business of a firm becomes illegal | | (D) Dissolution of firm by Court | (IV) At the request of any one partner | Choose the correct answer from the options given below:

Which statement is not false, in respect of the dissolution of a partnership firm :-

"The business of a partnership concern may be carried on by all the partners or any one of them acting for all", indicate which feature of the partnership?

Stock at the time of dissolution was appearing in books at Rs 50,000. Half of the stock was sold at a discount of 20% and the remaining was taken over by one of the partners at a 10% discount. What amount was received in cash at the time of realization of stock.

Which Act empowers the Central Government to prescribe a maximum number of partners in a partnership firm :-

Which account is credited if the value of net assets exceeds purchase consideration at the time of purchase of business?

Goodwill is -

All assets except cash/bank and fictitious assets are transferred to the Debit side of the ______Account.

Which Factor does not Affect the Value of Goodwill-

As per Section 48 of the Partnership Act 1932, which of the following will be utilized for payment of losses, including deficiencies of capital: (A) Out of Profits (B) Out of capital of Partners (C) By partners individually in their profit sharing ratio (D) Creditors Assets Choose the correct answer from the options given below:

Under the fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners. Which among the following is NOT the feature of the fixed capital method?

Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a firm, but the number of partners can not be more than 100?

A and B are partners in a firm sharing profits in the ratio 2:1. C is admitted into the firm with 1/4th share in profits and he brings Rs. 30,000 as his capital. If the capitals of A and B are to be adjusted in their profit sharing ratio then the capital of A will be-

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

Which among the following is NOT true?

Anubha looked after the dissolution work for remuneration of Rs. 8,500 and agreed to bear dissolution expenses upto Rs. 6,000. Actual expenses paid by her were Rs. 7,600. In this case, (A) Realisation A/c is debited by Rs. 10,100 (B) Anubha's Capital A/c is credited by Rs. 9,600. (C) Realisation A/c is debited by Rs. 13,600. (D) Anubha's Capital is credited by Rs. 10100. Choose the correct answer from the options given below:

A correct journal entry for Transfer of the balance of Profit and Loss Account (a credit balance) to Profit and Loss Appropriation Account is-

Calculate Interest on drawings for the amount of Rs. 7000 withdrawn on November 30, 2019

A and B are partners sharing profits equally with capitals of Rs 45,000 each. They admitted C as a new partner for one-third share in the profit. C brings in Rs 60,000 as his capital. Find the value of Firm Goodwill.

Arjun and Vaibhav are partners sharing profits in the ratio of 3:2. They admitted Rahul as a new partner for 1/5 share in the future profits of the firm. The new partner acquired his share from the old partners in the old ratio. Calculate the new profit sharing ratio of Arjun, Vaibhav and Rahul.

The total amount of interest on drawings will be:

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission Rs. 5,000. Amitabh has also given a loan on April 01, 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. What amount of profit will be transferred to Profit and Loss Appropriation account :

On the happening of certain contingencies, Subject to contract between the partners, a firm is dissolved , (A) if constituted for a fixed term, by the expiry of that term. (B) if constituted to carry out one or more ventures, by the completion thereof. (C) by the death of a partner (D) by the adjudication of a partner as an insolvent Choose the correct answer from the options given below:

A and B are partners in a firm sharing profits in the ratio 2:1. C is admitted into the firm with 1/4th share in profits and he brings Rs. 30,000 as his capital. If the capitals of A and B are to be adjusted in their profit sharing ratio then the capital of A will be-

The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01,2018 were: Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidu is 3,50,000. As per a partnership deed, partners are entitled to interest on capital of @5% p.a. and Yadu has to be paid a salary of Rs. 2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to Rs. 75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided under partnership deed @10% p.a was omitted. Select the correct option from the following:

In case of dissolution of a partnership firm, losses, including deficiencies of capital, shall be paid first out of ...............

Vijay and Sanjay are partners in a firm sharing profits and losses in the ratio of 3:2. They admitted Ajay into partnership with 1/4th share in profits. Ajay brings in Rs. 30,000 for capital and the requisite amount of premium in cash for goodwill. The goodwill of the firm is valued at Rs. 20,000. The new profit sharing ratio is 2:1:1. The sacrificing ratio of Vijay and Sanjay is:

In which of the following situation compulsory dissolution of partnership can be done?

Which of the following is not the main factors affecting the value of Goodwill?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Bank (fresh capital introduced) | (I) Debit side of Partner's Current Account | | (B) Interest on drawings | (II) Debit side of Partner's Capital Account | | (C) Bank (permanent withdrawal of capital) | (III) Credit side of Partner's Current Account | | (D) Commission | (IV) Credit side of Partner's Capital Account | Choose the correct answer from the options given below:

A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided under partnership deed @10% p.a was omitted. Select the correct option from the following:

Arrange in correct sequence at a time of admission of partner- (A) Adjustments of capital accounts. (B) Valuation of goodwill (C) Calculation of new profit sharing ratio and sacrificing ratio. Choose the correct answer from the options given below: 1. (A), (B), (C) 2. (A), (C), (B) 3. (B), (A), (C) 4. (C), (B), (A)

In the absence of any information regarding the acquisition of share in profits of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in________.

All assets (except cash/bank and fictitious assets) are transferred to the__________ side of __________Account.

When a firm is dissolved, the Balance of Investment Account and Balance of Investment Fluctuation Fund Account, shown by Firm's Balance Sheet are transferred into ............... and into ............... respectively:-

A and B are partners in a firm with their fixed capital Rs 4,00,000 and 5,00,000 respectively. After preparation of accounts, it was found that interest on capital @ 10% p.a as provided by the partnership deed is omitted. In order to rectify the mistake, A's Current account will be _____?

P, Q and R share profits equally. At the time of P's retirement, goodwill appears in the books at Rs. 3000. P will be debited with _____ amount for Goodwill share.

In the case of dissolution of a partnership firm, unrecorded liabilities when paid are shown in:

Abhiram and Ragini are partners sharing profits in the ratio of 3:2. They admit Arun a new partner for 1/5th share in the future profits of the firm which he gets equally from Abhiram and Ragini. Calculate the new profit sharing ratio of Abhiram, Ragini and Arun.

Match List-I with List-II | List-I | List-II | |---|---| | (A). Admission of a New Partner | (I). Realisation Account | | (B). Retirement of a Partner | (II). Sacrificing Ratio | | (C). Dissolution of Partnership | (III). Executors Account | | (D). Death of A Partner | (IV). Revaluation of Assets and Liabilities | Choose the correct answer from the options given below:

According to Section ______ of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

In the absence of partnership deed, interest on drawings is charged at.

Ram, Karan and Shyam are partners. On retirement of Ram, the goodwill already appears in the Balance Sheet at Rs. 32,000. The goodwill will be written-off.

L, N and T are partners sharing profits in the ratio of 5:3:2. If N retires, the gaining ratio of L & T would be.......

Which among the following is Not the method of valuation of goodwill:

According to section ......... of the Partnership Act, 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

According to section .......... of the Partnership Act, 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

If the partnership deed is silent, at what rate, the interest would be charged on the drawings made by the partner:

The Central Government has prescribed the maximum number of partners in a firm to be .......

The clauses of a partnership deed can be altered with the consent of ________.

Arrange the steps involved under the super profit method of calculating goodwill- (A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return (B) Calculate the average profit (C) Calculate goodwill by multiplying the super profits by the given number of years' purchase (D) Calculate the super profits by deducting normal profit from the average profits Choose the correct answer from the options given below: 1. (A), (B), (C), (D) 2. (B), (C), (A), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)

Match List-I with List-II | List-I | List-II | |---|---| | (A) Increase in assets at the time of retirement | (I) Debit side of Realisation Account | | (B) Asset taken over by the partner at the time of dissolution of the firm | (II) Credit side of Revaluation Account | | (C) Unrecorded Liability at the time of admission of the partner | (III) Credit side of Realisation Account | | (D) Remuneration paid for realization of assets | (IV) Debit side of Revaluation Account | Choose the correct answer from the options given below:

When a partnership firm is being dissolved, the private property of any partner shall be applied first, in payment of __________ and the surplus, if any, may be utilised for payment of __________, in case the firm's liabilities exceed the firm's assets.

________ is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.

Following are considered as appropriations out of profits (A) Rent paid to partners (B) Interest on capital (C) Salary paid to partners (D) Commission allowed to partners Choose the correct answer from the options given below:

Which statement is not true about Capital Accounts of Partner-

For distribution of profits among the partners, the following account is debited to the partners:

The important methods of valuation of goodwill are as follows: (A) Average Profits Method (B) Normal Profits Method (C) Super Profits Method (D) Capitalization Method Choose the correct answer from the options given below:

Which of the following is not the feature of partnership:

Ranjan and Anjan were Partners in a firm sharing profits and losses in 3:2. they admitted Sanjan for 1/4 share of profit on 1 Jan 2024. Goodwill of the firm will be valued at 3 years purchase of average profit of last 4 years which were 2024: Rs. 80,000 2023: Rs. 1,40,000. 2022: Rs. 2,00,000 2021: Rs. 1,60,000 The goodwill of the reconstituted firm will be

On the admission of a new partner, an increase in the value of assets is debited to:

Unrecorded assets when taken over by a partner are shown in :

Sindhu, Neha and Priya are partners, sharing profits in the ratio of 5:3:2. Calculate the new profit sharing ratio and gaining ratio if Neha retires:

On the Death of a Partner, which account is debited for his/her share of profit for the intervening period, i.e., the period from date of the last balance sheet till the date of the partner's death:

In case of dissolution of partnership firm, any liability assumed/paid by a partner is shown on ........?

Match List-I with List-II | List-I | List-II | |---|---| | (Different accounts. ) | (Related transaction.) | | (A) profit and loss account. | (I) dissolution of partnership. | | (B) profit and loss appropriation account. | (II) dissolution of firm. | | (C) revaluation account | (III) interest on loan to partner. | | (D) realization account. | (IV) transfer to reserve. | Choose the correct answer from the options given below:

Amount of Assets realized debited to Bank Account will be:

When a partner retires in the middle of the year and his share of profit is calculated based on previous years' profit. Which of the following account is to be debited?

Rohit and Mohit are partners in a firm sharing profits in the ratio of 5:3. They admitted Bijoy as a new partner for 1/7th share in the profit. The new profit sharing ratio will be 4:2:1. What will be the sacrificing ratio of Rohit and Mohit?

Match List-I with List-II | List-I | List-II | |---|---| | (Name of ratios.) | (used for) | | (A) old ratio. | (I)distribution of premium for goodwill. | | (B) new ratio. | (II) for adjustment of goodwill in death of partner. | | (C) sacrificing ratio. | (III) sharing revaluation profits. | | (D) gaining ratio. | (IV) sharing future profits. | Choose the correct answer from the options given below:

Hemant and Naman are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Samrat on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Samrat brought Rs. 60,000 as his capital. Calculate the value of goodwill of the firm?

In the event of the death of a partner, the ratio in which the continuing partners acquire the share from the deceased partner is called .......

Under which condition, dissolution of a Partnership Firm by Court may take place :-

By virtue of which section of the Indian Partnership Act 1932, partnership is defined as 'the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all'.

In the case of dissolution of firm, accumulated losses are transferred to:

Gaining Ratio is not calculated at the______.

The minimum guaranteed amount shall be paid to the new partner when his share of profit as per the profit sharing ratio:

Excess value of net assets over purchase consideration at the time of purchase of business is credited to

Which item among the following is NOT listed on the credit side of a Realization Account?

Bank A/c is credited by the Realisation A/c by _______ amount in total.

On dissolution of the firm, partner's capital accounts are closed through:

The profit for the five years of a firm are as follows: | Year | Profit (Rs.) | |---|---| | 2013 | 4,00,000 | | 2014 | 3,98,000 | | 2015 | 4,50,000 | | 2016 | 4,45,000 | | 2017 | 5,00,000 | Calculate goodwill of the firm on the basis of 4 years purchase of 5 years average profits.

According to Section ........... of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

The books of a business showed that the firm's capital employed on December 31, 2015, is Rs. 5,00,000 and the profits for the last five years were: 2011–Rs. 40,000; 2012-Rs. 50,000; 2013-Rs. 55,000; 2014- Rs.70,000 and 2015-Rs. 85,000. Find out the normal profits of the business, given that the normal rate of return is 10%.

Which statement is not true about Capital Accounts of Partner-

At the time of admission of partner ,Workmen Compensation Claim Exceeding Workmen Compensation Fund is transferred to

According to Section ………. of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

Which is not usually included / mentioned in the contents of the Partnership Deed:-

Naveen and Ghanshyam are partners in a firm sharing profits in the ratio of 3:2. They admitted Daniel as a new partner for 1/4 share. The new profit sharing ratio between Naveen and Ghanshyam will be 2:1. Calculate the New profit sharing ratio of Naveen, Ghanshyam and Daniel :

A and B are partners sharing profits in the ratio of 3:2. They admit C for 1/5th share in the future profits which he gets equally from both A and B. The new profit sharing ratio will be:

X and Y are partners sharing profits in the ratio 3:2. Capital introduced by X and Y is ₹ 1,00,000 and ₹ 5,00,000 respectively. Interest on capital is allowed to partners @ 10%p.a. Profit of the firm for the year ending March 31st, 2025 is ₹ 30,000. Calculate Interest on Capital to be allowed to the partners.

In case of dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order: (A) In paying to each partner proportionately what is due to him on account of capital. (B) The residue, if any, shall be divided among the partners in their profit sharing ratio. (C) In paying the debts of the firm to third parties. (D) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner loan). Choose the correct answer from the options given below:

Rohit and Mohit are partners in a firm sharing profits in the ratio 5:3. They admitted Bijoy as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. Calculate the sacrificing ratio of Rohit and Mohit

In the case of fixed capital method, following two accounts are maintained.

Which is not a method of valuation of goodwill

The goodwill based on capitalization of average profit method is valued at Rs 1,80,000. If Net Assets are Rs 8,20,000 then find the capitalized value of average profits.

A, B and C are partners sharing profits in the ratio of 3:2:1. A retires and his share is taken up by B and C in the ratio of 3:2. Calculate the new profit sharing ratio.

Goodwill is considered as

When goodwill has to be inferred from the arrangement of capital and profit sharing ratio, it is called.

The steps followed for calculating interest on drawing in the product method are. (A) Calculate number of month for which interest is due on each drawing (B) List down amount of drawing in decending order in a table.. (C) find the total of product and apply the formula to calculate interest on drawing. (D) Calculate product for each drawing by multiplying amount and number of month. Choose the correct answer from the options given below:

Which of the following factors leads to a higher goodwill for firms? (A) Firms having long term contracts for supply of materials (B) Firms with efficient management (C) Firms which are highly profitable (D) Firms which do not have competitive advantages Choose the correct answer from the options given below:

The Partnership Deed usually contains the following details: (A) Amount of capital to be contributed by each partner (B) The accounting period of the firm (C) Profit and loss sharing ratio (D) The rights, duties and liabilities of each partner Choose the correct answer from the options given below:

Which of the following statements relates to Fixed Capital Method? (A) The capitals of the partners shall remain fixed unless additional capital is introduced or capital is withdrawn. (B) All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in Partner's Current Account. (C) The partners' capital accounts will always show a debit balance. (D) The partners' current account may show a debit or a credit balance. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (Types of goodwill) | (Treatment to done.) | | (a) Existing Goodwill. | (I) no entry passed. | | (B) Goodwill premium | (II) inferred from the capital arrangement. | | (C) Goodwill paid privately. | (III) Written off. | | (D) Hidden goodwill | (IV) credited to sacrificing partner. | Choose the correct answer from the options given below:

On the dissolution of a firm, creditor's are transferred to:

On the admission of a new partner, an increase in the value of assets is debited to:

Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a partnership firm?

X and Y are partners sharing profits in the ratio 3:2. Z is entered into the business for 1/4th share of profits, with the guarantee of minimum profits of ₹ 30,000. Profit earned by the business for the year ended March 31st, 2024 is ₹ 1,00,000. Amount of deficiency, if any, will be borne by:

Which combination of statements is true about dissolution- (A) Dissolution of a partnership is different from dissolution of a firm. (B) A partnership is dissolved when there is a death of a partner. (C) A firm is dissolved when all partners give consent to it. (D) A firm is compulsorily dissolved when a partner decides to retire. Choose the correct answer from the options given below:

Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Deepa retires. After making all adjustments relating to revaluation, goodwill, Payment to Deepa and accumulated profit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners i.e Asha and Lata.

Match List-I with List-II | List-I | List-II | |---|---| | (Accounting standards Section of Act.) | (Issues) | | (A) AS-3 | (I) Settlement Of Accounts. | | (B) AS-26 | (II) Firm's debt and private debt | | (C) Section 48 of the Indian partnership Act | (III) Cash flow statement. | | (D) Section 49 of the Indian partnership Act | (IV) Treatment of goodwill. | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Payment of loans due to partners | (I) Realisation A/c Dr To Bank A/c | | (B) For settlement of partners' accounts, in case their capital account shows a debit balance | (II) Bank A/c Dr. A/c To loan to partners | | (C) For settlement of loan by a firm to a partner | (III) Bank A/c Dr. To Partner's Capital A/c | | (D) For settlement of any unrecorded liability | (IV) Partner's Loan A/c Dr. To Bank A/c | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Bank (fresh capital introduced) | (I) Debit side of Partner's Current Account | | (B) Interest on drawings | (II) Debit side of Partner's Capital Account | | (C) Bank (permanent withdrawal of capital) | (III) Credit side of Partner's Current Account | | (D) Commission | (IV) Credit side of Partner's Capital Account | Choose the correct answer from the options given below:

Which of the following is not a feature of a partnership deed?

On the death of a partner, the deceased partner's capital account will not be credited with :-

At the time of retirement of a partner, the difference between the Old Profit Sharing Ratio and the New Profit Sharing Ratio is a negative outcome for a remaining partner. It indicates that :-

The profits of the firm for the five years are as follows: | Year | Profit (Rs.) | |---|---| | 2012-13 | 20,000 | | 2013-14 | 24,000 | | 2014-15 | 30,000 | | 2015-16 | 25,000 | | 2016-17 | 18,000 | Calculate the value of goodwill on the basis of three years' purchase of weighted average profits based on weights of the last five years as 1,2,3,4 and 5 respectively.

Arrange the following regarding admission procedure in the correct sequence. (A) Giving share to the new partner. (B) Treatment of Goodwill (C) Calculating new profit sharing ratio & sacrificing ratio (D) Preparation of Revaluation A/c (E) Preparing Partner's Capital A/c and Balance Sheet Choose the correct answer from the options given below:

A partnership is not dissolved when:-

J and K are partners sharing profits and losses in the ratio of 3:1. Their capitals at the end of the financial year 2024-2025 were Rs. 1,50,000 and Rs. 75,000 respectively. During the year 2024-2025, J’s drawings were Rs. 20,000 and the drawings of K were Rs. 5,000, which had been duly debited to partner’s capital accounts. Profit before charging interest on capital for the year was Rs. 16,000. The same had also been credited in their profit sharing ratio. K had brought additional capital of Rs. 16,000 on October 1, 2024. Calculate interest on capital @ 12% p.a. for the year 2024-2025 for J.

Goodwill can also be ascertained by capitalising the super profit directly under which method?

In case of retirement, the profit and loss suspense account is closed by transferring the amount to the _________.

Which account is debited for Realisation expenses paid?

On dissolution of a firm, bank overdraft is transferred to:

A and B are partners in a firm sharing profits in the ratio of 3:2. They admitted M as a new partner for 1/4 share. The new profit sharing ratio between A and B will be 2:1. Calculate their sacrificing ratio.

Neha contributed Rs. 30,000 and Saloni Rs. 90,000 as capital. What will be Saloni's share in profits if the partnership agreement is silent?

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return for a similar business is 10%. Ascertain the value of goodwill by capitalization of average profits method, given that the value of net assets of the business is Rs. 8,20,000.

On dissolution of a partnership firm, the bills payable is transferred to :

Ram, one of the partners, has withdrawn ₹ 1,00,000 from Business for his personal work. If the rate of interest charged on drawings is 12% p.a., find the amount of interest on drawings to be charged from Ram:

R, S and K are partners sharing profits in the ratio 4:3:2. R retires; S and K decided to share profits in future in the ratio of 5:3. Calculate the Gaining Ratio.

Various accounting aspects involved on retirement or death of a partner are as follows (A) Adjustment in respect of unrecorded assets and liabilities (B) Treatment of goodwill (C) Preparation of Realization A/c (D) Preparation of Executor's A/c Choose the correct answer from the options given below:

When realisation expenses are paid by the firm on behalf of a partner, which among the following will be debited:

Arrange the Following Steps to Calculate Goodwill under the Super Profits Method- (A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return (B) Calculate the average profit (C) Calculate the super profits by deducting normal profit from the average profits (D) Calculate goodwill by multiplying the super profits by the given number of years' purchase Choose the correct answer from the options given below:

Which combination of statements are correct about Death of a partner- (A) Ascertainment of new profit sharing ratio and gaining ratio (B) Preparation of Realization Account (C) Revaluation of assets and liabilities (D) Adjustment of capital, if required Choose the correct answer from the options given below:

Which of the following will lead to the Reconstitution of a partnership Firm? (A) Admission of a new partner (B) Change in the profit sharing ratio among the existing partners (C) Retirement of an existing partner (D) Death of a partner Choose the correct answer from the options given below:

At the time of Reconstitution, Goodwill already appearing in books of accounts is distributed among partners in_______.

Which of the following is correct? The important provision affecting partnership accounting, in the absence of a partnership deed is:

What is the amount of T's deficiency in profits?

Arrange the following in a sequence, in which they will be utilize for the payment of losses: (A) Out of capital of partners. (B) Out of profits. (C) By the partners individually in their profit sharing ratio. Choose the correct answer from the options given below:

On dissolution of the firm, partner's capital accounts are closed through:

Rent payable to partner is .

On retirement or death of a partner, the remaining partners who have gained due to change in the profit sharing ratio should compensate the:

Ram and Laxman started business on 1st Jan 2020 with a capital of Rs 1,20,000 and Rs 80,000 respectively. Ram introduced Rs. 50,000 to the firm on 1st July 2020 as additional capital. If the rate of interest is 15% p.a. Assuming that accounts are closed as per calender year then the Interest payable to Ram on Capital would be:

Which of the following will lead to dissolution of partnership firm?

Anupam and Abhishek are partners. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01, 2019. Show the interest on capital for the year ending march 31, 2020 allowed, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year:

Opening capital balances of partners will be calculated by using which of the following formula :-

Choose the correct statement if a partnership deed does not exist.

If, at the time of admission of a new partner, profit and loss account appears in the books, it will be transferred to:

Arrange the steps of method, Capitalization of Average for the calculation of goodwill, in the correct sequence: (A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows: Average Profits × 100/Normal Rate of Return (B) Ascertain the average profits based on the past few years' performance. (C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets). Firms' Capital = Total Assets (excluding goodwill) – Outside Liabilities Where outside Liabilities include both long term and short term Liabilities (D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits. Choose the correct answer from the options given below:

In the case of a dissolution of a firm, accumulated losses are transferred to:

Naveen, Suresh and Tarun are partners, sharing profits and losses in the ratio of 5:3:2. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio of 2:1. Calculate the new share of profit :

Kumar, Lakshya, Manoj and Naresh are partners sharing profits in the ratio of 3 : 2 : 1 : 4. Kumar retires and his share is acquired by Lakshya and Manoj in the ratio of 3:2. The gaining ratio of the remaining partners is .....?

Which section of the Partnership Act 1932, defines partnership?

In case there is no information regarding the acquisition of a share in profit of the retiring/deceased partner by the remaining partners, the assumption is that they will acquire his/her share in the:

Which of the following characteristics is highlighted in the statement: "He can bind other partners by his acts and also is bound by the acts of other partners with regard to the business of the firm."

Ram and Laxman started business on 1st Jan 2020 with a capital of Rs 1,20,000 and Rs 80,000 respectively. Ram introduced Rs. 50,000 to the firm on 1st July 2020 as additional capital. If the rate of interest is 15% p.a. Assuming that accounts are closed as per calender year then the Interest payable to Ram on Capital would be:

Match List-I with List-II | List-I | List-II | |---|---| | Method of Valuation of Goodwill | Formula | | (A) Average profit method | (I) Goodwill = Super profit × No. of years purchased | | (B) Super Profit Method | (II) Goodwill = capitalized value of average profit - actual firm's capital. | | (C) Capitalization of super profit method | (III) Goodwill = Average Profits × No. of years purchased | | (D) Capitalization of average profit method | (IV) Goodwill = (Super profit/ Normal Rate of Return) × 100 | Choose the correct answer from the options given below:

The journal entries are as under Incoming partners' current A/c. Dr. To Sacrificing partners capital A/c. What statement among the following is TRUE for the above entry?

When the deceased partner's share in the estimated loss is calculated for a period from the date of the latest Balance Sheet to the date of death of the partner, then :

In which of the following case court can order dissolution of a partnership firm.

On dissolution of a firm, the amount of loan taken from partner by firm will be transferred to

Reconstitution of partnership does not involves

The Central government has prescribed the maximum number of partners in a firm to be

The profit or loss on revaluation of assets and liabilities are distributed in

At the time of admission of a new partner, in the case of fixed capital method, if the sacrificing partner withdraw their amounts of goodwill (in full or in part), the following journal entry will be recorded :-

In which of the following ways does dissolution of a firm take place? (A) Dissolution by agreement (B) Compulsory dissolution (C) On the happening of certain contingencies (D) Dissolution by notice Choose the correct answer from the options given below:

M and N are partners in a firm and agree that an interest @12% per annum should be charged on drawings. M draws Rs. 20,000 per month at the beginning of each month. The amount of interest to be charged from M is:

A firm is dissolved compulsorily in the following cases: (A) when all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract (B) when the business of the firm becomes illegal (C) when the business of the firm is earning a large amount of profit. (D) when some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership Choose the correct answer from the options given below:

Which of the following item is not shown in the Profit and Loss Appropriation Account?

P, Q and R are partners in a firm. If S is admitted as a new partner then:

In the absence of any information, it is assumed that the remaining partners acquire the share of profit of the retiring/deceased partner in:

Which of the following is NOT a feature of partnership?

The accumulated profits and reserves are transferred to:

Partners' current accounts are transferred to respective Partners' ______ Accounts.

Which of the following statements are correct about partnership:- (A) Each partner carrying on the business is the principal as well as the agent for all the other partners (B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner (C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners (D) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate Choose the correct answer from the options given below:

John Ibrahim, a partner in Ancient Tours and Travels withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. He withdrew Rs. 3,000 per month at the beginning of the month. Calculate interest on drawings that should be charged from John Ibrahim, if the rate of interest charged on drawing is 9% per annum.

Arrange the following in correct sequence for application of assets in the Settlement of Accounts in Case Of Dissolution of a Partnership firm - (A) The balance should be applied to repay loans made by the partners to the firm. (B) The assets of the firm should be used in paying the debts of the firm to third parties. (C) The balance assets may be used for paying partners proportionately, on account of capital. (D) The asset's residue, if any, shall be divided among the partners in their profit sharing ratio. Choose the correct answer from the options given below:

Which among the following is NOT true?

On the admission of a new partner increase in the value of assets is debited to:

Which of the following statements are true: (A) Dissolution of a partnership is different from dissolution of a firm. (B) A partnership is dissolved when there is a death of a partner. (C) A firm is dissolved when all partners give consent to it. (D) A firm is compulsorily dissolved when a partner decide to retire. Choose the correct answer from the options given below:

Which of the following is not always an essential feature of partnership?

Vijay and Manohar share profits and losses in the ratio of 2:1. They admit Prakash as a partner with 1/4 share in profits with a guarantee that his share of profit will be at least Rs. 50,000. The net profit of the firm for the year ending March 31, 2015, was Rs. 1,60,000. Calculate the amount of profit Vijay will get:

Dissolution by Court happens:

Partner's current accounts are transferred to respective________ partner's accounts.

Match List-I with List-II | List-I | List-II | |---|---| | (A) Compulsory Dissolution | (I) A partner persistently commits breach of partnership agreement. | | (B) Happening of contingencies | (II) Death of a partner | | (C) Dissolution by Court | (III) According to contract between the partners. | | (D) Dissolution by agreement | (IV) Business becomes illegal | Choose the correct answer from the options given below: 1. (A) - (IV), (B) - (I), (C) - (III), (D) - (II) 2. (A) - (II), (B) - (I), (C) - (IV), (D) - (III) 3. (A) - (IV), (B) - (II), (C) - (I), (D) - (III) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Unrecorded assets when taken over by a partner are shown on:

Which of the following is NOT a method of valuation of goodwill?

Arrange the following in correct sequence in the case of dissolution of a partnership. (A) Preparing a Bank account (B) Realizing assets and payments of liabilities. (C) Transferring of assets and liabilities in realization account. (D) Preparation of capital account of partners. Choose the correct answer from the options given below: 1. (A), (C), (B), (D) 2. (B), (C), (D), (A) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)

Choose combination of statements that are true about dissolution- (A) Dissolution of partnership can not take place without intervention of the court. (B) Court can order a firm to be dissolved when a partner becomes insane. (C) A firm is compulsorily dissolved when a partner decide to retire. (D) A partnership is dissolved when there is a death of a partner. Choose the correct answer from the options given below: 1. (B) and (D) only 2. (A), (B) and (D) only 3. (A) and (D) only 4. (B), (C) and (D) only

Identify the true statement in respect of the Fixed Capital Method for a Partnership Firm :-

K, N and P are partners sharing profits and losses in the ratio of 4 : 3 : 2. N retires and the goodwill is valued at Rs. 72,000. K and P decided to share future profits and losses in the ratio of 5 : 3. Identify the correct journal entry in this scenario.

Identify the steps involved in calculating goodwill under the capitalized value of average profits method: (A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits (B) Ascertain the average profits based on the past few years' performance (C) Compute the value of goodwill by deducting net assets from the capitalized value of average profits (D) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets) Choose the correct answer from the options given below:

Which Journal Entry will be recorded for realization of unrecorded asset at the time of dissolution of a Partnership Firm.

A, B and C are partners in a firm. If C retires/dies, his capital account is credited with:

Identify the steps involved in calculating goodwill under the capitalization of super profits method: (A) Calculate capital of the firm, which is equal to total assets (excluding goodwill and fictitious assets) minus outside liabilities (B) Multiply the super profits by the required rate of return multiplier (C) Calculate normal profits on capital employed (D) Calculate super profits by deducting normal profits from average profits (E) Calculate average profit for past years Choose the correct answer from the options given below:

Identify the true statement in respect of a partnership Firm-

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, Which, among the following, is not shown in the Profit and Loss Appropriation Account?

On the happening of certain contingencies, Subject to contract between the partners, a firm is dissolved , (A) if constituted for a fixed term, by the expiry of that term. (B) If constituted to carry out one or more ventures, by the completion thereof. (C)by the death of a partner (D) by the adjudication of a partner as an insolvent Choose the correct answer from the options given below:

The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called:

A, B, and C were in partnership, sharing profits in the ratio of 3:2:1 respectively, B retires and the new profit sharing ratio between A and C is 3:2 . The gaining ratio is .

The new partner acquired the rights on admission into the firm. He acquires : (A) Rights in past profits of firm before admission. (B) Right to share in the future profits of the firm. (C) Right to share assets of the firm. (D) The right to carry on competing business. Choose the correct answer from the options given below:

Unrecorded liabilities when paid are shown in:

The following are the features of the fluctuating capital method by which the capital accounts of partners can be maintained. (A) Under the fluctuating capital method, only one account, i.e. capital account is maintained for each partner. (B) All the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings, etc. are recorded directly in the capital accounts of the partners. (C) the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners. (D) The capital account may sometimes show a debit balance. Choose the correct answer from the options given below:

Which among the following is NOT true about the Partnership?

In the Proforma of Partner's Capital Account under the Fluctuating capital Method, the Credit side includes the following items: (A) Balance b/d (in case of credit opening balance) (B) Salaries (C) Interest on drawings (D) Profit and Loss Appropriation (for share of profit) Choose the correct answer from the options given below:

At the time of admission of a new partner, general reserve appears in the old balance sheet is transferred to:

When a firm is dissolved, the Balance of Investment Account and Balance of Investment Fluctuation Fund Account, shown by Firm's Balance Sheet are transferred into _________and into _________respectively:-

On the admission of a new partner, an increase in the value of assets is debited to:

A partnership deed usually doesn't contain the following details:

At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to:

Mohan and Shyam are partners in a firm. Which statement among the below can be claimed valid if the Partnership Agreement is silent regarding the same.

On the dissolution of a firm, the Creditors are transferred to .....................:

A, B and C are partners in a firm. If D is admitted as a new partner then:

Which combination of statements is true about dissolution- (A). Dissolution of a partnership is different from dissolution of a firm. (B). A partnership is dissolved when there is a death of a partner. (C). A firm is dissolved when all partners give consent to it. (D). A firm is compulsorily dissolved when a partner decides to retire. Choose the correct answer from the options given below:

Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of 4 : 3 : 2. Nirmal retires and the goodwill is valued at Rs. 72,000. Keshav and Pankaj decided to share future profits and losses in the ratio of 5 : 3. Gaining Ratio of Keshav and Pankaj is:

All assets (except cash/bank and fictitious assets) are transferred to the ................... side of ................... Account.

When realisation expenses are paid by the firm on behalf of a partner, which account will be debited:

Unrecorded liabilities when paid are shown in:

When the date of drawing is not specified, interest on drawings are calculated for

Which of the following is not included in the Contents of the Partnership Deed-

In case partner's capital is fixed, then where interest on drawings charged will be shown?

The Court may order a partnership firm to be dissolved in which of the following case?

Dissolution of a firm cannot take place in which of the situation-

Match List-I with List-II | List-I | List-II | |---|---| | (A) Gaining Ratio | (I) New Share - old Share. | | (B) Sacrificing Ratio | (II) Old Share - New Share. | | (C) Admission of Partner | (III) Partner may be paid amount more that what has actually due to him for hidden goodwill share. | | (D) Retirement of Partner | (IV) Partner may or may not bring his share of goodwill in cash. | Choose the correct answer from the options given below:

In the case of dissolution of a partnership firm, the accumulated profits and reserves are transferred to :

Which combination of statements is true about partnership- (A) Valid partnership can be formulated even without a written agreement between the partners. (B) Methods of settlement of disputes among the partners can't be part of the partnership deed. (C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. (D) Each partner carrying on the business is the principal as well as the agent for all the other partners. Choose the correct answer from the options given below:

After transferring liabilities like creditors and bills payables in the Realisation Account, in the absence of any information regarding their payment, such liabilities are treated as:

Contents of the Partnership Deed does not include

In case of Fixed Capital Account, Interest on Drawings are

A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a partner for 1/3 share, the sacrificing ratio between A and B is

When realisation expenses are paid by the Partner on behalf of a Firm, which account will be credited:

The past average profits of a business works out at Rs. 20,000 and it is expected that such profits are likely to continue for another three years, the value of goodwill based on average profit method will be....... .

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Tarun retires from the firm and his share was taken over by Naveen and suresh in the ratio 2:1. In such a case, the new share of profit will be .

Anubha looked after the dissolution work for remuneration of Rs. 8,500 and agreed to bear dissolution expenses upto Rs. 6,000. Actual expenses paid by her were Rs. 7,600. What will be the journal entry for remuneration payable to Anubha? (A) Realisation A/c is debited by 8,500 (B) Anubha's Capital A/c is credited by 8,500. (C) Realisation A/c is debited by13,600. (D) Anubha's Capital is credited by13,600. Choose the correct answer from the options given below:

In the case of guarantee of profit ,the sequence of Steps to be followed are. (A) divide the profit in the given ratio. (B) prepare profit and loss appropriation account as usual. (C) deduct the deficiency from guaranteeing partner and add the same to guaranteed partner. (D) find the deficiency. Choose the correct answer from the options given below:

At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

Steps involved in accounting treatment at the time of death/retirement of a partner - (A) Adjustment of capital, if required (B) Preparation of revaluation account, if required (C) Ascertainment of new profit sharing ratio and gaining ratio (D) Settlement of the amounts due to retired / deceased partner Choose the correct answer from the options given below:

In the absence of any information regarding the acquisition of a share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share:

A new partner can be admitted:

Romesh took over stock at Rs.8,100, which is 10% less then its book value. The book value of the stock was .........

Which statements are true about the dissolution of a partnership- (A) Dissolution of a partnership is different from dissolution of a firm. (B) A partnership is dissolved when there is a death of a partner. (C) A firm is compulsorily dissolved when a partner decide to retire. (D) Dissolution of partnership can not take place without intervention of the court. Choose the correct answer from the options given below:

X, Y and Z are partners in a firm. If M is admitted as a new partner, what would be its implication?

Which statements are true about partnership: (A) Each partner carrying on the business is the principal as well as the agent for all the other partners. (B) Valid partnership can be formulated even without a written agreement between the partners. (C) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate (D) The maximum number of partners can be 50. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Admission of a partner | (I) Executor Accounts | | (B) Retirement of a partner | (II) Sacrificing Ratio | | (C) Death of a partner | (III) Realisation Account | | (D) Dissolution of a partnership | (IV) Gaining Ratio | Choose the correct answer from the options given below:

Which among the following is NOT true for New Profit Sharing Ratio:

P, Q and R share profits equally. At the time of P's retirement, goodwill appears in the books at Rs. 3000. P will be credited with ___ amount for Goodwill share.

Which statement among the following is NOT true about Goodwill?

Arrange the following in correct order in which assets of the firm can be used in the settlement. (A) Residue shall be divided between the partners in their profit sharing ratio. (B) In paying the partners proportionately what is due to him/her on account of capital. (C) In paying the partners proportionately what is due to him/her from the firm for advances/loans. (D) In paying the debts of the firm to the third parties. Choose the correct answer from the options given below:

At the time of dissolution of a firm, the Bank Loan was Rs. 60,000 which was paid by Bhuvan (a partner) along with one-year interest at 6 %, which journal entry will be passed in the books of the firm :-

The dissolution of partnership may take place in any of the following ways except:

Das and Sinha are partners in a firm sharing profits in 4:1 ratio. They admitted Pal as a new partner for 1/4 share in the profits, which he acquired wholly from Das. Determine the new profit sharing ratio among Das, Sinha and Pal.

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

In case of dissolution of firm, the bank overdraft is transferred to:

Which combination of statements is true about the fixed and fluctuating capital: (A). Under the Fixed capital method, two separate accounts are maintained for each partner, viz., 'capital account' and 'current account'. (B). Under the Fluctuating capital method, the balance of the capital account fluctuates from year to year. (C). Under the Fixed capital method, drawings, salary, interest on capital etc. are posted (transferred) in the current accounts and not in the capital accounts. (D). Under the Fixed capital method, the capital accounts always show a debit balance. Choose the correct answer from the options given below:

According to section .......... of the Partnership Act, 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

Hem and Nem are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Sam on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Sam brought Rs. 60,000 as his capital. Sam share of goodwill will be:

At the time of dissolution, when creditor accepts an asset whose value is much more than the amount due to him, he will _________ the excess amount which will be credited to _________ account?

Arrange the following steps in correct sequence in case of retirement of a partner: (A) Adjustment of Capital, if required (B) Ascertain new profit sharing ratio and gaining ratio (C) Distribution of Revaluation/Accumulated profits and losses (D) Undertake revaluation of assets and liabilities Choose the correct answer from the options given below:

Which of the following combination of statements are true about dissolution- (A). A firm is compulsorily dissolved when a partner decide to retire. (B). Dissolution of a partnership is different from dissolution of a firm. (C). A partnership is dissolved when there is a death of a partner. (D). Dissolution of a firm necessarily involves dissolution of partnership. Choose the correct answer from the options given below:

Anshu and Nitu are partners sharing profits in the ratio of 3:2. They admitted Jyoti as a new partner for 3/10 share which she acquired 2/10 from Anshu and 1/10 from Nitu. The new profit sharing ratio of Anshu, Nitu and Jyoti.

Arrange in correct sequence at a time of admission of partner- (A) Adjustments of capital accounts. (B) Valuation of goodwill (C) Calculation of new profit sharing ratio and sacrificing ratio. Choose the correct answer from the options given below:

Unrecorded liabilities when paid at the time of dissolution of a partnership firm, are shown in:

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio 2:1. The new profit sharing ratio is

The sum due to the retiring partner and to the legal representatives/executors (in case of death) includes the following, in addition to credit balance of his capital/current A/c, share of goodwill, gain on revaluation of assets and liabilities.

In this case, Normal profit is -

Super profit is -

If partnership deed is silent on the profit sharing ratio and other provisions: interest @_____ per annum is allowed on loans advanced by partners:

Which of the following combination of statements are true about dissolution- (A) A firm is compulsorily dissolved when a partner decide to retire. (B) Dissolution of a partnership is different from dissolution of a firm. (C) A partnership is dissolved when there is a death of a partner. (D) Dissolution of a firm necessarily involves dissolution of partnership. Choose the correct answer from the options given below:

Which of the following is the feature of fluctuating capital:

The reserve fund at the time of admission of a new partner is transferred to -

Dissolution of a firm cannot take place in which of the situation:

In case normal profit is Rs 60,000 then what will be the normal rate of return?

The profit for the five years of a firm are as follows – year 2013 Rs. 4,00,000; year 2014 Rs. 3,98,000; year 2015 Rs. 4,50,000; year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. The goodwill of the firm on the basis of 4 years purchase of 5 years average profits is-

Which of the following is not a general feature of partnership-

On dissolution of the firm, partner's capital accounts are closed through-

Arrange the following steps involved in various accounting aspects of retirement/death of a partner in a sequence - (A) Settlement of the amounts due to retired/deceased partner (B) Ascertainment of new profit sharing ratio and gaining ratio (C) Adjustment of capital, if required (D) Revaluation of assets and liabilities Choose the correct answer from the options given below:

Arrange the steps in proper sequence to calculate Goodwill through Super profits Method. (A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return. (B ) Calculate the average profit. (C) Calculate the super profits by deducting normal profit from the average profits. (D) Multiply super profits by the given number of years purchased. Choose the correct answer from the options given below:

When realisation expenses are paid by the firm on behalf of a partner, which account will be debited :

A, B and C are partners in a firm. If D is admitted as a new partner, what will be its affect?

A and B are partners sharing profits in the ratio of 2:1. C is admitted into the firm for 1/4 share of profits. C brings in Rs. 20,000 in respect of his capital. The capitals of old partners A and B, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Determine the new profit sharing ratio

Match List-I with List-II | List-I | List-II | |---|---| | (A) Compulsory Dissolution | (I) Partner becomes insane | | (B) Dissolution by notice | (II) Death of a partner | | (C) Dissolution by Court | (III) Business become illegal | | (D) Dissolution on certain contingencies | (IV) Partnership at will | Choose the correct answer from the options given below:

Arrange the following in the sequence in which they shall be applied in payment at the time of dissolution of a firm: (A) The debts of the firm to the third parties. (B) Partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan). (C) Each partner proportionately what is due to him on account of capital. (D) Divided among the partners in their profit sharing ratio. Choose the correct answer from the options given below:

What is the amount of profit to be credited to A's Capital account?

Which of the following are shown under capital account in case capital of partner's are fixed? (A) Fresh capital introduced (B) Permanent capital withdrawn (C) Interest on capital (D) Amount of capital brought down from the previous year Choose the correct answer from the options given below:

In which of the following case court can order dissolution of a partnership firm.

In line with what is prescribed by the Accounting Standard, goodwill appearing in the balance sheet is written off at the time of

Which of the following is not one of the method of valuation of goodwill?

Which of the following event take place in the case of dissolution of a partnership firm

A new partner can be admitted:

After transferring liabilities like creditors and bills payables in the Realization Account, in the absence of any information regarding their payment, such liabilities are treated as:

In case at the time of retirement of Kabir, his share of goodwill is valued at Rs 15,000, then what will be the total value of firm valued goodwill on his retirement?

Net Amount of installment payable at the end of 2nd year to Kabir is

If nothing is mentioned, the amount due to retiring partner is transferred to _______.

Under which method No. of Year's Purchase are not considered

Which of the below mentioned methods are considered while valuing goodwill (A) Average Profits Method (B) Super Profits Method (C) Peacemeal distribution Method (D) Capitalization Method Choose the correct answer from the options given below:

There is a need for valuation of goodwill under which of the following cases (A) Admission of new partner (B) Retirement of a partner (C) Dissolution of a firm involving sale of business as a going concern. (D) Amalgamation of partnership firms. Choose the correct answer from the options given below:

For taking over investment, Bharat's capital will be

Which of the following factors affects the value of goodwill? (A) Location of Business (B) Partners Performance (C) Nature of Business (D) Market Situation Choose the correct answer from the options given below:

R, S and K are partners sharing profits in the ratio 8:6:4. On the retirement of R, the new profit sharing ratio between S and K was decided to be 5:3. The Gaining ratio is -

Match List-I with List-II | List-I | List-II | |---|---| | (A) Admission of a New Partner | (I) Realisation Account | | (B) Retirement of a Partner | (II) Sacrificing ratio | | (C) Dissolution of Partnership | (III) Executors Account | | (D) Death of A Partner | (IV) Gaining Ratio | Choose the correct answer from the options given below:

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Losses, including deficiencies of capital, shall be paid in the following manner and order: (A) Out of capital of partners. (B) By the partners individually in their profit sharing ratio. (C) Profits. Choose the correct answer from the options given below:

Which of the following statement is incorrect?

At the time of retirement of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of:

K, N and P are partners sharing profits and losses in the ratio of 4:3:2. N retires and the goodwill is valued at Rs 72,000. K and P decided to share future profits and losses in the ratio of 5:3. Find which of the following is not correct?

One of the partner took-over furniture at the time of dissolution of the firm, which account will be debited:

All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through:

A and B share profits in the ratio of 3:2. C was admitted as a partner who gets 1/5 share. New profit sharing ratio, if C acquires 3/20 from A and 1/20 from B, would be:

When a firm is dissolved with the consent of all the partners, it is called:

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01, 2018 were: Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidu is 3,50,000. As per the partnership deed, partners are entitled to interest on capital @5% p.a. and Yadu has to be paid a salary of Rs. 2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to Rs. 75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

In the case of guarantee of profit the Sequence of steps to be Followed are. (A) divide the profit in the given ratio. (B) prepare profit and loss appropriation account as usual. (C) deduct the deficiency from the guaranteeing partner and add the same to guaranteed partner. (D) find the deficiency. Choose the correct answer from the options given below:

When a new partner brings his share of goodwill in cash, the amount is credited to:

Which of the following indicate the situation of compulsory dissolution.

'The business of a partnership concern may be carried on by all the partners or any of them acting for all.' Which feature of partnership is indicated by the above statement?

The past average profits of a business works out at Rs. 20,000 and it is expected that such profits are likely to continue for another three years, the value of goodwill based on average profit method will be……. .

Share of loss of deceased partner, calculated on the basis of previous years profit is

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Tarun retires from the firm and his share was taken over by Naveen and suresh in the ratio 2:1. In such a case, the new profit sharing ratio will be:

In case of dissolution Machine costing Rs 20,000, alongwith cash of Rs 5,000 were given to creditors of Rs 30,000 in full settlement of their claim. In this case Realisation A/c will be Debited with ………….

Ram, a partner, has been assigned the responsibility for realization of assets and settlement of liability for which he will be given remuneration of ₹ 10,000. He has to bear all the realization expenses. Actual realization expenses are 12,000. Journal Entry will be

Which of the following is not a part of capital account under the fixed Capital Method?

Which of the following are charges against profits? (A) Rent paid to partners (B) Interest on loan, paid to partners (C) Interest on Capital (D) Manager's commission Choose the correct answer from the options given below:

In case of dissolution of a firm, Losses including deficiencies of capital, shall be paid first out of ....

Calculate interest on drawings for the amount Rs. 6000 on January 31, 2019.

Calculate Interest on drawings for the amount Rs. 12000 on June 1, 2019.

The steps involved in calculation of Goodwill under Super Profit method are: (A) Calculate the super profits by deducting normal profit from the average profits. (B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return. (C) Calculate the average profit. (D) Calculate goodwill by multiplying the super profits by the given number of years' purchase. Choose the correct sequence of steps from the options given below:

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Arrange in the correct manner and order the assets of the firm, including any sum contributed by the partners to make up for deficiencies of capital: (A) In paying to each partner proportionately what is due to him on account of capital (B) In paying the debts of the firm to the third parties (C) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan) (D) The residue, if any, shall be divided among the partners in their profit sharing ratio Choose the correct answer from the options given below:

Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs 10,00,000 respectively. They agreed to share profits in the ratio of 3:2. The books are closed on March 31, every year. They admit Ravi on October 1, 2019 in the partnership, who bring Rs 12,00,000 as capital and Sameer also introduced additional capital Rs 3,00,000 on that date. Interest on partner's capital is provided @5% p.a. The amount of interest on the capital of Sameer for the year 2019-20 is-

Which of the following statements are correct in respect of goodwill? (A) the present value of a firm's anticipated excess earnings (B) the capitalised value attached to the differential profit capacity of a business'. (C) goodwill exists only when the firm earns super profits (D) Any firm that earns normal profits or is incurring losses also has goodwill. Choose the correct answer from the options given below:

Partner's current accounts are transferred to the respective partners' ________ at the time of dissolution of a partnership.

Gobind, Hari and Pratap are partners. On retirement of Gobind, the goodwill already appears in the Balance Sheet at Rs. 24,000. The goodwill will be written-off -

Identify the steps involved in the accounting treatment in the case of dissolution of firm: (A) Capital accounts of partners are prepared and their final settlement is done. (B) The balance of realisation account (profit or loss on realization) is transferred to partners' capital accounts in the profit sharing ratio. (C) All assets and all external liabilities are transferred to realisation account. (D) Realisation account is prepared. (E) Bank account is prepared. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Gaining Ratio | (I) An advantage of good name, reputation and wide business connections. | | (B) New Profit Sharing Ratio | (II) The ratio in which the continuing partners have acquired the share from the retiring/deceased partner | | (C) Sacrificing Ratio | (III) The ratio in which the remaining partners will share future profits after the retirement or death of any partner | | (D) Goodwill | (IV) The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner | Choose the correct answer from the options given below:

A and B are partners without any partnership deed. B has given loan of Rs.2,00,000 to the firm on 1st July 2023. B claim interest on loan @ 10% p.a. How much interest on loan will be paid to B for the year ending on 31st March 2024. ?