Admission of a Partner Model Questions

12th Standard EM

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Accountancy

Time : 01:00:00 Hrs
Total Marks : 50
    5 x 1 = 5
  1. Revaluation A/c is a

    (a)

    Real A/c

    (b)

    Nominal A/c

    (c)

    Personal A/c

    (d)

    Impersonal A/c

  2. At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of

    (a)

    all the partners

    (b)

    the old partners

    (c)

    the new partner

    (d)

    the sacrificing partne

  3. Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2:1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3:1:1. Find the sacrificing ratio between Balaji and Kamalesh.

    (a)

    1:3

    (b)

    3:1

    (c)

    2:1

    (d)

    1:2

  4. Revaluation account is also called

    (a)

    Accumulation profit and loss account

    (b)

    Profit and loss adjustment account

    (c)

    Profit and loss appropriation account

    (d)

    None of these

  5. When the value of an asset increases, it results in

    (a)

    profit

    (b)

    loss

    (c)

    income

    (d)

    expense

  6. 5 x 2 = 10
  7. Mala and Vimala were partners sharing profits and losses in the ratio of 3:2. On 31.3.2017, Varshini was admitted as a partner. On the date of admission, the book of the firm showed a reserve fund of Rs.50,000. Pass the journal entry to distribute the reserve fund.

  8. Sriram and Raj are partners sharing profits and losses in the ratio of 2:1. Nelson joins as a partner on 1st April 2017. The following adjustments are to be made:
    (i) Increase the value of stock by Rs.5,000
    (ii) Bring into record investment of Rs.7,000 which had not been recorded in the books of the firm.
    (iii) Reduce the value of office equipment by Rs.10,000
    (iv) A provision would also be made for outstanding wages for Rs.9,500.
    Give journal entries and prepare revaluation account.

  9. How are accumulated profits and losses distributed among the partners at the time of admission of a new partner?

  10. On the admission of C, A and B decide to record an unrecorded asset worth Rs.10,000 State whether the revaluation account will be debited or credited.

  11. The value of Plant and machinery increased by 10%. State whether revaluation account will be debited or credited.

  12. 5 x 3 = 15
  13. Ramesh and Raju are partners sharing profits in the ratio of 2:1. They admit Ranjan into partnership with 1/4 share of profit. Ranjan acquired the share from old partners in the ratio of 3:2. Calculate the new profit sharing ratio and sacrificing ratio.

  14. Vimal and Athi are partners sharing profits in the ratio of 2:1. Jeyam is admitted for 1/4 share in the profits. Calculate the new profit sharing ratio and sacrificing ratio.

  15. What are the adjustments required at the time of admission of a partner?

  16. What are the journal entries to be passed on revaluation of assets and liabilities?

  17. Write a short note on accounting treatment of goodwill.

  18. 3 x 5 = 15
  19. Aravind and Balaji are partners sharing profits and losses in 3:2 ratio. They admit Anirudh into partnership. The new profit sharing ratio is agreed at 1:1:1. Anirudh’s share of goodwill is valued at Rs.20,000 of which he pays Rs.12,000 in cash. Pass necessary journal entries for goodwill on the assumption that the fluctuating capital method is followed.

  20. Sai and Shankar are partners, sharing profits and losses in the ratio of 5:3. The firm’s balance sheet as on 31st December, 2017, was as follows:

    Liabilities Rs. Rs. Assets Rs. Rs.
    Capital accounts:     Building   34,000
    Sai 48,000   Furniture   6,000
    Shankar 40,000 88,000 Investment   20,000
    Creditors   37,000 Debtors 40,000  
    Outstanding wages   8,000 Less: Provision for
    bad debts
    3,000 37,000
          Bills receivable   12,000
          Stock   16,000
          Bank   8,000
        1,33,000     1,33,000

    On 31st December, 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with Rs.12,000 as capital subject to the following adjustments.
    (a) Furniture is to be revalued at Rs.5,000 and building is to be revalued at Rs.50,000.
    (c) Provision for doubtful debts is to be increased to Rs.5,500
    (d) An unrecorded investment of Rs.6,000 is to be brought into account
    (e) An unrecorded liability Rs.2,500 has to be recorded now.
    Pass journal entries and prepare Revaluation Account and capital account of partners after
    admission.

  21. Eswari and Ranikumari are partners sharing profits and losses in the ratio of 7:5. They agree to admit Chitra into partnership. Eswari surrenders \(\frac{1}{7}\) th of her share and Ranikumari \(\frac{1}{5}\) th of her share in the favour of Chitrao Calculate the New profit ratio and the sacrificing ratio.

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