12th Class Accountancy Admission of a Partner Question Bank

done Assertion and Reason - Reconstitution Of a Partnership Firm : Admission of a Partner Total Questions - 9

• question_answer1)

  Assertion (A) :

  A new partner can be admitted, if it is agreed in the partnership deed but in the absence of partnership deed, a new partner can be admitted only if all the partners agree to admit that partner.

  Reason (R) :

  Section 31 of the Indian Partnership Act, 1932 will be applicable.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct in view of Introduction of a new partner done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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• question_answer2)

  Assertion (A) :

  A new partner brings Capital to get right in the assets of the firm, he also brings premium for goodwill to get the right to share future profits of the firm.

  Reason (R) :

  A partner may be exempted from the premium for goodwill, in such a case he will bring only his capital amount but he will get both the rights, right to share the assets of the firm as well as right to share the future profits of the firm.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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• question_answer3)

  Assertion

  At the time of admission of a new partner:

  Assets will be revalued

  Liabilities will be reassessed

  Gain or loss on Revaluation will be shared by the old partners in their old profit sharing ratio

  Reason (R):

  At the time of admission of a partner, the assets and liabilities should be brought to their current values so that new partner is not put to an advantage or disadvantage because of the change in values of assets and liabilities.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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• question_answer4)

  Assertion (A) :

  When a new partner is admitted, all free reserves and accumulated profits/losses exist in the balance sheet, should be transferred to the old partners capital/current accounts in their old profit sharing ratio.

  Reason (R) :

  Employees Provident Fund is a liability of the firm; hence it should not be distributed among the partners.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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• question_answer5)

  Assertion (A):

  At the time of admission of a new partner, if any outstanding liability (given in balance sheet) is paid by the firm, it will not be shown in the Revaluation Account.

  Reason (R) :

  Revaluation Account is prepared to revalue the assets and to reassess the liabilities.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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• question_answer6)

  Assertion (A) :

  At the time of admission of a partner. Goodwill appearing in the existing balance sheet, will be Debited to old partners capital/current account in their old profit sharing ratio.

  Reason (R):

  Premium for goodwill brought by new partner will be credited to only sacrificing partners capital/current account.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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• question_answer7)

  Assertion (A) :

  When partners Capitals are fixed, Asset taken over by the partner will be shown in the debit side of his capita account instead of his current account.

  Reason (R) :

  Fixed Tangible Asset taken over by the partner will be considered as withdrawal of capital, in the absence of any other information.

  Choose the Correct Option from the following:

   
  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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• question_answer8)

  Assertion (A) :

  At the time of admission of a new partner, purchase of a new asset will not be recorded in the revaluation account but if asset was written off earlier is brought back into the books, it will be shown in the Credit side of Revaluation Account.

  Reason (R) :

  Revaluation Account is prepared to Record all types of assets whether assets are old or new, purchased or sold.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is corrects done clear
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• question_answer9)

  Assertion (A) :

  At the time of admission of a new partner, if partners have decided not to distribute the General Reserve (given in balance sheet), instead of crediting the amount of General Reserve to the partners directly, an adjustment entry is to be recorded.

  Reason (R) :

  Adjustment entry is recorded to determine the amount of compensation to be paid to the sacrificing partners.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Both Assertion and Reason are not correct done clear
  D)
  Only Assertion is correct done clear
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