12th Class Accountancy Change in Profit Sharing Ratio Among Existing Partner Question Bank

done MCQs - Change in Profit-Sharing Ratio Among Existing Partners Total Questions - 42

• question_answer1)
  Any change in the relationship of existing partners which results in an end of the existing agreement and enforce making of a new agreement is called:
  A)
  Revaluation of Partnership done clear
  B)
  Reconstitution of Partnership done clear
  C)
  Relationship of Partnership done clear
  D)
  Dissolution of Partnership Firm done clear
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• question_answer2)
  Which of the following does not result into reconstitution of a firm?
  A)
  Dissolution of partnership firm. done clear
  B)
  Dissolution of partnership. done clear
  C)
  Change in profit-sharing-ratio of existing partners done clear
  D)
  Death of partner done clear
  View Solution play_arrow

• question_answer3)
  Identify the situation where Sacrifice/Gain Ratio is not applicable:
  A)
  When there is change in profit sharing ratio  done clear
  B)
  When a new partner is admitted done clear
  C)
  At the time of retirement/death of a partner done clear
  D)
  When Purchased goodwill is written off from the books done clear
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• question_answer4)
  Which of the following is written off by the partners at the time of reconstitution of firm?
  A)
  Goodwill (given in B/S)  done clear
  B)
  Preliminary Expense done clear
  C)
  Advertisement Suspense done clear
  D)
  All of the above done clear
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• question_answer5)
  State the ratio in which the partners share all the accumulated profits, reserves, losses & fictitious assets in case of change in profit sharing ratio.
  A)
  Old Profit Sharing Ratio done clear
  B)
  New Ratio done clear
  C)
  Sacrificing Ratio done clear
  D)
  Only Gain Ratio done clear
  View Solution play_arrow

• question_answer6)
  Which of the following is not transferred to partners' capital account?
  A)
  Retained earnings done clear
  B)
  General reserve done clear
  C)
  Employees provident fund done clear
  D)
  Contingency reserve done clear
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• question_answer7)
  Which of the following is shown in the debit side of partners' capital account?
  A)
  Profit on revaluation done clear
  B)
  Loss on revaluation done clear
  C)
  P/L Appropriation Account (Profit) done clear
  D)
  Profit and Loss Account (Cr. Balance) done clear
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• question_answer8)
  Which of the following statement is not correct?
  A)
  Change in profit sharing ratio leads to dissolution of partnership and not the firm. done clear
  B)
  Sacrificed Share = Old Share – New Share  done clear
  C)
  Gain Share = New Share – Old Share done clear
  D)
  Self-generated goodwill is shown in the assets side of Balance Sheet done clear
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• question_answer9)
  Vinod and Ashish are sharing profits in the ratio of 2:1. Now they have decided that new profit sharing ratio will be equal. What will be the Gain/Sacrifice Ratio?
  A)
  Vinod Gain 1/6 and Ashish Sacrifice 1/6 done clear
  B)
  Vinod Sacrifice 1/6 and Ashish Gain 1/6 done clear
  C)
  Vinod Gain 4/5 and Ashish Sacrifice 4/5  done clear
  D)
  Vinod Sacrifice 2/3 and Ashish Gain 1/6 done clear
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• question_answer10)
  Yuvraj, Simran and Vinod are sharing profits in the ratio of 3:2:1. As per the new Agreement, Vinod Acquires 1/6th share from Yuvraj. What will be the new profit sharing ratio of the partners?
  A)
  1:1:1 done clear
  B)
  2:2:1  done clear
  C)
  3:2:1 done clear
  D)
  2:3:1 done clear
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• question_answer11)
  SK and PK were partners in a firm sharing profits in 3:2 ratio. From 1st April, 2021 they decided to change it to 3:1. The Sacrifice/Gain share of SK__________
  A)
  Sacrifice 3/20  done clear
  B)
  Sacrifice 3/10 done clear
  C)
  Gain 3/10 done clear
  D)
  Gain 3/20 done clear
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• question_answer12)
  X, Y and Z are sharing profits in the ratio of 1:1:1. They decided to share profits in the ratio of 2:3:5. The goodwill of the firm was valued at Rs.3,60,000. Z's Capital Account will be:
  A)
  Credited by 48,000 done clear
  B)
  Credited by 12,000 done clear
  C)
  Credited by 1,20,000 done clear
  D)
  Debited by 60,000 done clear
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• question_answer13)
  Which of the following statement is correct?
  A)
  Increase in the value of an asset is recorded in the debit side of Revaluation Account done clear
  B)
  Increase in the value of a liability is recorded in the credit side of Revaluation Account done clear
  C)
  Decrease in the value of an asset is recorded in the debit side of Revaluation Account done clear
  D)
  Decrease in the value of a liability is recorded in the debit side of Revaluation Account done clear
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• question_answer14)
  Revaluation Account will be debited when:
  A)
  Value of fixed assets decreases done clear
  B)
  Value of fixed assets increases done clear
  C)
  Value of liabilities reduces done clear
  D)
  None of these done clear
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• question_answer15)
  Which of the following is transferred to the partners' capital account?
  A)
  Land and Buildings done clear
  B)
  Loan (short-term) done clear
  C)
  General Reserve  done clear
  D)
  Creditors done clear
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• question_answer16)
  Meera, Myra and Neera were partners sharing profits in the ratio of 2 : 2 : 1. They decided to share future profits in the ratio of 7 : 5 : 3 with effect from 1st April, 2021. Their Balance Sheet as on that date showed a valance of Rs.45,000 in Advertisement Suspense Account. The amount to be debited respectively to the capital accounts of Meera, Myra and Neera for writing off the amount in Advertisement Suspense Account will be:
  A)
  18,000, 18,000 and 9,000 done clear
  B)
  15,000, 15,000 and 15,000 done clear
  C)
  21,000, 15,000 and 9,000 done clear
  D)
  22,500, 22,500 and Nil done clear
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• question_answer17)
  AK, GK and KK were sharing profits in the ratio of 5:3:2. From 1st April 2021, they decided to share the profits equally. Goodwill of the firm was valued Rs.2,40,000. For adjustment of Goodwill, KK's Capital Account will be:
  A)
  Debited with Rs.8,000  done clear
  B)
  Credited with Rs.8,000 done clear
  C)
  Debited with Rs.32,000 done clear
  D)
  Credited with Rs.32,000 done clear
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• question_answer18)
  SK and PK were partners in a firm sharing profits in 3:2 ratio. From 1st April 2021, they decided to change it to 3:1, For this purpose the goodwill of the firm was valued at Rs.1,20,000. PK's Capital Account will be:
  A)
  Debited by Rs.48,000 done clear
  B)
  Debited with Rs.30,000 done clear
  C)
  Credited with Rs.18,000 done clear
  D)
  Debited with Rs.18,000 done clear
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• question_answer19)
  Ankit, Unnati and Aryan are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5 with effect from 1st April 2021. They had the following balance in their Balance Sheet. Profit and Loss Account (Dr.) 60,500. Aryan's Capital Account will be:
  A)
  Debited by Rs.30,250 done clear
  B)
  Debited by Rs.18,150 done clear
  C)
  Debited by Rs.60,500 done clear
  D)
  Debited by Rs.12,100 done clear
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• question_answer20)
  AK, GK and KK were partners in a firm sharing profits in the ratio of 5:3:2. From 1st April, 2021 they decided to share the profits equally. For this purpose, the goodwill of the firm was valued at Rs.2,40,000. With what amount partners are to be debited or credited at the time of change in profit sharing ratio?
  A)
  GK Dr. 8,000; KK Dr. 32,000 and AK Cr. 40,000 done clear
  B)
  GK Cr. 8,000; KK Cr. 32,000 and AK Dr. 40,000 done clear
  C)
  GK Dr. 32,000; KK Dr. 8.000 and AK Cr. 40,000  done clear
  D)
  GK Cr. 32,000; KK Cr. 8,000 and AK Dr. 40,000 done clear
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• question_answer21)
  Avya, Divya and Kavya were equal partners. They decided to change the profit sharing ratio to 4 : 3 : 2. For this purpose the goodwill of the firm was valued at Rs.90,000. The journal entry for the treatment of Goodwill of change in profit sharing ratio will be :
  A)

  Kavya’s Capital A/c Dr.	10,000
  To Avya’s Capital A/c.		10,000

  done clear
  B)

  Divya’s Capital A/c Dr.	10,000
  To Avya’s Capital A/c Dr.		10,000

    done clear
  C)

  Avya’s Capital A/c Dr.	10,000
  To Kavya’s Capital A/c.		10,000

    done clear
  D)

  Avya’s Capital A/c Dr.	10,000
  To Kavya’s Capital A/c.		10,000

    done clear
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• question_answer22)
  X, Y and Z sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5 Workmen compensation Reserve of Rs.60,000 was available at the time of change in ratio and there was no claim against it. Y's Capital Account will be:
  A)
  Credited by Rs.30,000 done clear
  B)
  Credited by Rs.18,000 done clear
  C)
  Credited by Rs.12,000 done clear
  D)
  Debited by Rs. 18,000 done clear
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• question_answer23)
  X, Y and Z sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. Workmen compensation Reserve of Rs.60,000 was available at the time of change in ratio, and claim of 40,000 against it. Z's Capital Account will be:
  A)
  Credited by Rs. 10,000 done clear
  B)
  Credited by Rs. 12,000 done clear
  C)
  Credited by Rs. 30,000 done clear
  D)
  Credited by Rs. 4,000 done clear
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• question_answer24)
  X, Y and Z sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. Investment Fluctuation Reserve of Rs.4,000 was available at the time of change in profit sharing ratio, when investment (market value Rs. 19,000) appears at Rs.20,000. Y's Capital Account will be:
  A)
  Debited by Rs. 1,500 done clear
  B)
  Credited by Rs. 1,500 done clear
  C)
  Credited by Rs.900 done clear
  D)
  Credited by Rs.600 done clear
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• question_answer25)
  Red Blue and White were sharing profits in the ratio of 1:2:2. They decided to share future profits in the ratio of 7:5:3 with effect from 1st April 2021. On that date, their Balance Sheet showed balance in Deferred Revenue Expenditure Account of Rs. 22,500. The amount will be debited to the partners' capital account as:
  A)
  7,500; 7,500 and 7,500 done clear
  B)
  4,500; 9,000 and 9,000 done clear
  C)
  10,500; 7,500 and 4,500  done clear
  D)
  11,250; Nil and 11,250 done clear
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• question_answer26)
  X, Y and Z are sharing profits in the ratio of 1:1:1. They decided to share profits in the ratio of 2:3:5. On this date balance sheet of the firm showed a balance of Rs.60,000 in Contingency Reserve. Z Capital Account will be:
  A)
  No effect because partners cannot distribute Contingency Reserve done clear
  B)
  Debit by Rs. 20,000 done clear
  C)
  Credit by 12,000 done clear
  D)
  Credit by 20,000 done clear
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• question_answer27)
  Vinod and Yuvraj were partners in a firm sharing profits in 3:2 ratio. From 1st March, 2021 they decided to change it to 3:1. For this purpose the goodwill of the firm was valued at Rs. 1,20,000. Journal entry for the above transaction will be:
  A)
  Yuvraj's Capital A/c Dr 20,000 and Vinod's Capital A/c Cr. 20,000 done clear
  B)
  Yuvraj's Capital A/c Dr 18,000 and Vinod's Capital A/c Cr. 18,000 done clear
  C)
  Vinod's Capital A/c Dr.20,000 and Yuvraj's Capital A/c Cr 20,000 done clear
  D)
  Vinod's Capital A/c Dr. 18,000 and Yuvraj' s Capital A/c Cr 18,000 done clear
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• question_answer28)
  X, Y and Z are sharing profits and losses in the ratio of 5:3:2. They have decided to share future profits in the ratio of 2:3:5. At the time of reconstitution of partnership firm there was Investment Fluctuation Reserve Rs.4,000 and Short term Investment Rs.20,000 (Market value Rs.19,000). How much amount of reserve is to be credited to Z?
  A)
  1,500 done clear
  B)
  900 done clear
  C)
  600 done clear
  D)
  1,000 done clear
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• question_answer29)
  A, B and C are sharing profits in the ratio of 1:1:1. They decided to share profits in the ratio of 2:3:5. On this date balance sheet of the firm showed a debit balance of Rs. 1,20,000 in Profit and Loss Account. B's Capital Account will be:
  A)
  Debit by 36,000 done clear
  B)
  Debit by 40,000 done clear
  C)
  Credit by 36,000 done clear
  D)
  Credit by 40,000 done clear
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• question_answer30)
  X and Y are partners sharing profits and losses in the ratio of 3:2. With effect from 1st January 2020 they agreed to share future profits equally. The goodwill of the firm was valued at Rs.30,000. How much amount is debited or credited to X? 
  A)
  Debit X's Capital Account by Rs. 2,000 done clear
  B)
  Debit X's Capital Account by Rs. 3,000 done clear
  C)
  Credit X's Capital Account by Rs. 2,000  done clear
  D)
  Credit X's Capital Account by Rs.3,000 done clear
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• question_answer31)

  Ram, Shyam and Mohan are partners sharing profits in the ratio of 5:3:2. They decided to share the future profits in the ratio of 2:3:5 with effect from 1st April, 2021. They decided to record the following without affecting the values:

  Profit & Loss A/c (Cr) .............................................................Rs.24,000

  Advertisement Suspense A/c ...................................................Rs. 12,000

  What is the impact of the following adjustment on Shyam's Capital Account:

  A)
  No Effect on Shyam's Capital Account done clear
  B)
  Shyam's Capital Account Debit by Rs. 3,600 done clear
  C)
  Shyam's Capital Account Credit by Rs. 3,600 done clear
  D)
  Shyam's Capital Account Debit by Rs. 12,000 done clear
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• question_answer32)

  P, Q and R sharing profits in the ratio of 3:2:1. They decided to change their profit sharing ratio to 2:2:1 from 1st April 2021. On that date:

  Liabilities                             Amount Assets Amount                                    Debtors 60,000

  Additional information:

  Bad Debts Rs. 6,000 were to be written off and a provision of Rs.3,000 was to be made for bad and doubtful debts.

  What will be the Revaluation Profit/Loss?

  A)
  Profit Rs.6,000 done clear
  B)
  Loss Rs.6,000 done clear
  C)
  Profit Rs.9,000 done clear
  D)
  Loss Rs.9,000 done clear
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• question_answer33)

  P, Q and R sharing profits in the ratio of 2:2:1. They decided to change their profit sharing ratio to 1:1:1 from 1st April 2021. On that date:

  Liabilities                            Amount Assets Amount                      Debtors 2,60,000 Less: Provision                  For Doubtful Debts 20,000 2,40,000

  Additional information:

  Bad Debts Rs.40,000 were to be written off. A provision of 5 % on Debtors to be made for bad and doubtful debts.

  What will be the Revaluation Profit/Loss?

  A)
  Profit Rs.40,000 done clear
  B)
  Loss Rs. 31,000 done clear
  C)
  Profit Rs. 31,000 done clear
  D)
  Loss Rs.40,000 done clear
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• question_answer34)
  X, Y and Z are sharing profits 50% : 30% and 20%. As per new agreement profit will be shared by the partners in the ratio of 5:9:6. At the time of this change, General Reserve Rs.60,000 appears in the balance sheet. They decided not to distribute it. X's Capital Account will be:
  A)
  No effect at all done clear
  B)
  Debited with Rs.9,000 done clear
  C)
  Debited with Rs.6,000 done clear
  D)
  Credited with Rs. 15,000 done clear
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• question_answer35)

  Match the followings:

  A, B and C are partners in a firm sharing Profits and loss in the ratio of 3:2:1, they decided to share profits and losses in the ratio of 4:3:2 w.e.f. 01.04.2021. Workmen compensation reserve on that date is Rs. 90,000 (i) There is no claim against Workmen Compensation Reserve (a) A = 30,000 ; B = 20,000 ; C = 10,000 (ii) Claim for workmen compensation is estimated at Rs. 30,000 (b) Nil (iii) Claim for workmen compensation is estimated at Rs. 84,000 (c) A=45,000; B=30,000; C= 15,000 (iv) Claim for workmen compensation is estimated at Rs. 90,000 (d) A=3,000; B=2,000; C= 1,000

   
  A)
  (i)-c; (ii)-a; (iii)-d; (iv)-b done clear
  B)
  (i)-b; (ii)-c; (iii)-d; (iv)-a done clear
  C)
  (i)-d, (ii)-a, (iii)-c, (iv)-b done clear
  D)
  (i)-c; (ii)-a; (iii)-b; (iv)-d done clear
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• question_answer36)

  Match the followings:

  A, B and C are partners in a firm sharing Profits and loss in the ratio of 3:2:3, they decided to share profits and losses in the ratio of 2:5:1 w.e.f. 01.04.2021. (i) General reserve Rs. 8000 (Distribute) (a) A = 1500 (Dr.); B = 1000 (Dr); C = 1500 (Dr.) (ii) General reserve Rs. 8000 (Not distribute) (b) A = 3000 (Cr.); B = 2000 (Cr); C = 3000 (Cr.) (iii) Advertisement Suspense Rs. 8000 (to be written off) (c) A = 1000 (Cr.); B = 3000 (Dr); C = 2000 (Cr.) (iv) Profit and Loss Account (Dr. Balance) Rs. 4000 (d) A = 3000 (Dr.); B = 2000 (Dr); C = 3000 (Dr.)

   
  A)
  (i)-c; (ii)-a; (iii)-d; (iv)-b done clear
  B)
  (i)-b; (ii)-c; (iii)-d ; (iv)-a done clear
  C)
  (i)-d; (ii)-a; (iii)-c; (iv)-b done clear
  D)
  (i)-c; (ii)-a; (iii)-b; (iv)-d, done clear
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• question_answer37)

  Match the followings:

  A, B and C are partners in a firm sharing Profits and loss in the ratio of 5:3:2, they decided to share profits and losses in the ratio of 1:1:1 w.e.f. 01.04.2021. Investment fluctuation reserve as on that date was Rs. 30,000 and the current investment is Rs. 2,00,000.   (i) No other information is given (Cost and market value are same) (a) A = 5,000 (Cr.); B = 3,000 (Cr.); C = 2,000 (Cr.) (ii) Investment revalued at Rs. 1,80,000 (b) A = 10,000 (Dr.); B = 6,000 (Dr.); C = 4,000 (Dr.) (iii) Investment revalued at Rs. 1,60,000 (c) A = 5,000 (Dr.); B = 3,000 (Dr.); C = 2,000 (Dr.) (iv) Investment revalued at Rs. 1,50,000 (d) A = 15,000 (Cr.); B = 9,000 (Cr.); C = 6,000 (Cr.)

   
  A)
  (i)-c; (ii)-a; (iii)-d; (iv)-b done clear
  B)
  (i)-b; (ii)-c; (iii)-d; (iv)-a done clear
  C)
  (i)-d; (ii)-a; (iii)-c; (iv)-b done clear
  D)
  (i)-c; (ii)-a; (iii)-b; (iv)-d done clear
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• question_answer38)

  Match the followings:

  A, B and C are partners in a firm sharing Profits and loss in the ratio of 5:3:2, they decided to share profits and losses in the ratio of 4:3:3 w.e.f. 01.04.2021. (i) Revaluation Profit = 10000 (a) A = 5,000 (Dr.); B = 3,000 (Dr.); C = 2,000 (Dr.) (ii) Revaluation Loss = 10000 (b) A = 10000 (Dr.); B = 6000 (Dr.); C = 4000 (Dr) (iii) Goodwill appeared in the book = 20000 (c) A = 5000 (Cr.); B = 3000 (Cr.); C = 2000 (Cr.) (iv) Goodwill valued = 20000 (d) A = 2000 (Cr.); B = Nil; C = 2000 (Dr.)

  A)
  (i)-c; (ii)-a; (iii)-d; (iv)-b done clear
  B)
  (i)-b; (ii)-c; (iii)-d; (iv)-a done clear
  C)
  (i)-d; (ii)-a; (iii)-c; (iv)-b done clear
  D)
  (i)-c; (ii)-a; (iii)-b; (iv)-d done clear
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• question_answer39)
  Match the followings:

  (i)	Old Ratio – New Ratio	(a)	Gaining Ratio
  (ii)	New Ratio – old ratio	(b)	Nil
  (iii)	Goodwill appeared in balance sheet	(c)	Old ratio
  (iv)	Workmen compensation reserve 10,000; Workmen compensation claim 10,000	(d)	Sacrificing Ratio

   
  A)
  (i)-c; (ii)-a; (iii)-d; (iv)-b done clear
  B)
  (i)-b; (ii)-c; (iii)-d; (iv)-a done clear
  C)
  (i)-d; (ii)-a; (iii)-c; (iv)-b done clear
  D)
  (i)-c; (ii)-a; (iii)-b; (iv)-d done clear
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• question_answer40)
  Match the followings:

  (i)	Stock is overvalued by Rs. 10,000	(a)	Revaluation Profit = 10,000
  (ii)	Stock is undervalued by Rs. 10,000	(b)	Revaluation loss = 12,000
  (iii)	Unrecorded asset 12,000	(c)	Revaluation loss = 10000
  (iv)	Unrecorded liability = 12,000	(d)	Revaluation Profit = 12,000

   
  A)
  (i)-c; (ii)-a; (iii)-d; (iv)-b done clear
  B)
  (i)-b; (ii)-c; (iii)-d; (iv)-a done clear
  C)
  (i)-d; (ii)-a; (iii)-c; (iv)-b done clear
  D)
  (i)-c; (ii)-a; (iii)-b; (iv)-d done clear
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• question_answer41)
  When old partners change their profit sharing ratio it is called dissolution or reconstitution of partnership.
  A)
  True       done clear
  B)
  False done clear
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• question_answer42)
  When a firm calculates its Goodwill by using Average profit method. Super profit method or Capitalisation method, it is known as Self-Generated Goodwill.
  A)
  True done clear
  B)
  False done clear
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