# Reconstitution of Partnership Firm: Admission of a Partner MCQ Questions for Class 12 Accountancy Chapter 3 with Answers

NCERTCOURSE.COM- Find here the NCERT/CBSE chapter-wise Multiple Choice Questions from Class 12 Accountancy book Chapter 3 Reconstitution of Partnership Firm: Admission of a Partner with Answers Pdf free download. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Reconstitution of Partnership Firm: Admission of a Partner. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

## Q1. Gaining Ratio is

(i) New Ratio – Old Ratio
(ii) Old Ratio – New Ratio
(iii) New Ratio + Old Ratio
(iv) Old Ratio + New Ratio

(i) New Ratio – Old Ratio

(i) asset
(ii) revaluation
(iii) capital

(iii) capital

## Q3. Sacrifice Ratio is

(i) New Ratio – Old Ratio
(ii) Old Ratio – New Ratio
(iii) New Ratio + Old Ratio
(iv) Old Ratio + New Ratio

(ii) Old Ratio – New Ratio

## Q4. Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in:

(i) Gaining Ratio
(ii) Sacrificing Ratio
(iii) Capital Ratio
(iv) Profit Sharing Ratio

(i) Gaining Ratio

(i) 5% p.a.
(ii) 6% p.a.
(iii) 7% p.a.
(iv) 8% p.a.

(ii) 6% p.a.

(i) Royalty
(ii) Assets
(iii) Goodwill
(iv) Patents

(iii) Goodwill

## Q7. When goodwill is withdrawn by old partners __ a/c is credited.

(i) cash/bank
(ii) capital
(iii) revaluation

(i) cash/bank

## Q8. On the death of a partner in a firm payments are made to;

(i) Capital A/c
(ii) Executor’s A/c
(iii) Current A/c
(iv) Loan A/c

(ii) Executor’s A/c

(i) fixed
(ii) intangible
(iii) current
(iv) fictitious

(ii) intangible

## Q10. Balance in the Investment Fluctuation Reserve, after meeting the loss on Revaluation of Investments, at the time of admission of a partner will be transferred to :

(i) Old Partners’ Capital Accounts
(ii) Revaluation Account
(iii) Sacrificing Ratio
(iv) None of the above

(i) Old Partners’ Capital Accounts.

(i) Father
(ii) Friend
(iii) Wife
(iv) Executors

(iv) Executors

## Q12. Any change in the relationship of existing partners which results at an end of the existing agreement and enforces making of a new agreement is called

(i) Revaluation of partnership
(ii) Reconstitution of partnership
(iii) Realisation of partnership
(iv) None of the above

(ii) Reconstitution of partnership

## Q13. Z is admitted to a firm for 1/4 share in the profits for which he brings in Rs. 10000towards premium for goodwill, it will be taken by the old partners in

(i) The new profit sharing ratio
(ii) The old Profit sharing ratio
(iii) the Sacrificing ratio
(iv) None of the options

(iii) the Sacrificing ratio

## Q14. A decrease in the value of a liability will be recorded on the __ side of revaluation account.

(i) debit
(ii) either debit or credit
(iii) credit
(iv) debit and credit both

(iii) credit

## Q15. The goodwill of the firm is not affected by:

(i) Location of the firm
(ii) reputation of the firm
(iii)Better customer services
(iv)None of the above

(ii) reputation of the firm

## Q16. On retirement of a partner’s the amount of General Reserve is transferred to all partner’s capital account in:

(i) New Profit Sharing Ratio
(ii) Capital Ratio
(iii) Old Profit Sharing Ratio
(iv) None of these

(iii) Old Profit Sharing Ratio

## Q17. An increase in the value of an assets will be recorded in the _ side of revaluation account.

(i) debit
(ii) credit
(iii) either debit or credit
(iv) debit and credit both

(ii) credit

## Q18. When Goodwill is not purchased goodwill account can :

(i) Never be raised in the books
(ii) Be raised in the books
(iii)Be partially raised in the books
(iv)Be raised as per the agreement of the partners

(i) Never be raised in the books

## Q19. On the retirement of a partner, full amount of goodwill may be credited to the capital accounts of:

(i) Retiring partners
(ii) Remaining partners
(iii) All partners
(iv) None of these

(iii) All partners

## Q20. Goodwill brought in cash by new partners will be transferred in old partners capital account in _ Ratio.

(i) new
(ii) old
(iii) sacrificing
(iv) gaining

(iii) sacrificing

## Q21. A firm is reconstituted , whenever there is a

(i) Death of a partner
(ii) Retirement of Existing Partner
(iii) All of the options
(iv) Admission of a new partner

(iii) All of the Above

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