Admission Of New Partner(Commerce ) Questions and answers for exam Preparation

Question 1. The ratio in which general reserve is distributed to the old partners

Capital
Sacrifice
Old ratio
Machinery

Explanation:-

Answer: Option C. -> Old ratio

Question 2. When Goodwill is withdrawn by partner ___________ account is credited

Cash/Bank
Revaluation
Current
P&L adjustment

Explanation:-

Answer: Option A. -> Cash/Bank

Question 3. New partner can bring capital in cash or kind

True
False

Explanation:-

Answer: Option A. -> True

Question 4. X and Y are sharing profits and losses in the ratio of 3 : 2

12 : 8 : 5
8 : 12 : 5
2 : 2 : 1
2 : 2 : 2

Explanation:-

Answer: Option C. -> 2 : 2 : 1

Question 5. In the balance sheet debtors shown Rs 50000 and in adjustment bad debts written off 10% and make provision 5% on remaining debtors

45000
42750
7250
47250

Explanation:-

Answer: Option B. -> 42750

Question 6. P and Q are two partners in a firm having capitals of Rs 15000 each

5000
15000
10,000
None of these

Explanation:-

Answer: Option C. -> 10,000

Question 7. Increase in the value of assets is credited to revaluation account

True
False

Explanation:-

Answer: Option A. -> True

Question 8. At the time of admission of a partner, revaluation account is debited to record the increase in provision for doubtful debts

True
False

Explanation:-

Answer: Option A. -> True

Question 9. What right a newly admitted partner acquires in the firm after his admission?

Right to vote
Right to admit any partner
Right to share assets of the firm
None of the above

Explanation:-

Answer: Option C. -> Right to share assets of the firm

Question 10. At the time of admission if the profit sharing ratio among the old partner does not change then sacrificing ratio will be

Equal
According to the contribution of capital
Their old profit sharing ratio
According to new partner

Explanation:-

Answer: Option C. -> Their old profit sharing ratio