**MCQ of Change in Profit Sharing Ratio Among the Existing Partners, Accountancy, Class 12, CBSE**

**Q1. The ratio of surrender of profit sharing ratio is called**

**New ratio****Gaining ratio****Sacrificing ratio****Old ratio**

**Answer: Sacrificing ratio**

**Q2. The ratio of gain of profit sharing ratio is called**

**New ratio****Gaining ratio****Sacrificing ratio****Old ratio**

**Answer: Gaining ratio**

**Q3. Sacrificing ratio =**

**Old ratio – new ratio****New ratio- old ratio****Old ratio/ new ratio****New ratio/ old ratio**

**Answer: Old ratio – new ratio**

**Q4. Gaining ratio =**

**Old ratio – new ratio****New ratio – old ratio****Old ratio / new ratio****New ratio / old ratio**

**Answer: New ratio – old ratio**

**Q5. The term goodwill is generally used to**

**Pay off liabilities of the business****Purchase goods on credit****Denote the benefit arising from connections and reputation****None of the above**

**Answer: Denote the benefit arising from connections and reputation**

**Q6. Essential Features of goodwill don’t involve**

**It is a valuable asset****It is helpful in earning excess profit****It is an intangible asset****It is very easy to place an exact value on goodwill**

**Answer: It is very easy to place an exact value on goodwill**

**Q7. Excess of actual average profit over normal profits is known as**

**Average profit****Accumulated profit****Unearned profit****Super profit**

**Answer : Super profit**

**Q8. When there is a change in profit sharing ratio amongst existing partners, so in …… ratio, partners will share profit or losses on revaluation of assets and liabilities.**

**Old profit sharing****New profit sharing****Sacrificing****Gaining**

**Answer : Old profit sharing**

**Q9. Goodwill is a/an …… Asset**

**Fictitious****Current****Wasting****Intangible**

**Answer : Intangible **

**Q10. A and B had been partners in a firm sharing profit or loss equally. With effect from 1st April 2019 they agreed to share profits in the ratio of 4 : 3. Due to change in profit sharing ratio, A’s gain or sacrifice would be :**

**Gain 1/ 14****Sacrifice 1/14****Gain 4/7****Sacrifice 3/7**

**Answer : Gain 1/ 14**

**You may also read MCQ of Accounting Ratios, MCQ of Accounting For Partnership Firm-Fundamentals, MCQ of Admission of a Partner, MCQ of Financial Statements of Companies for better score and understanding of Accountancy**

**Q11. A and B had been partners in a firm sharing profit or loss equally. With effect from 1st April, 2019 they agreed to share profits in the ratio of 4 : 3. Due to change in profit sharing ratio, B’s gain or sacrifice would be :**

**Gain 1/14****Sacrifice 1/14****Gain 4/7****Sacrifice 3/7**

**Answer : Sacrifice 1/14**

**Q12. A and B had been partners in a firm sharing profit or loss in the ratio of 3 : 5. With effect from 1st April, 2019, they agreed to share profits or losses equally. Due to change in profit sharing ratio, A’s gain or sacrifice would be :**

**Gain ⅜****Gain ⅛****Sacrifice ⅜****Sacrifice ⅛**

**Answer : Gain ⅛**

**Q13. A and B had been partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1st January 2019 they agreed to share profits and losses equally. Individual partner’s gain or sacrifice due to change in the ratio would be:**

**Gain by A ⅙; sacrifice by B ⅙****Sacrifice by A ⅙;gain by B ⅙****Gain by A ½ ; sacrifice by B ½****Sacrifice by A ½; Gain by B ½**

**Answer : Sacrifice by A ⅙;gain by B ⅙**

**Q14. A and B shared profits and losses in the ratio of 3 : 2. With effect from 1st January, 2019, they agreed to share profits equally. Sacrificing ratio and Gaining Ratio would be :**

**Sacrifice by A 1/10;sacrifice by B 1/10****Gain by A 1/10 ; gain by B 1/10****Sacrifice by A1/10; gain by B1/10****Gain by A 1/10 ; sacrifice by B 1/10**

**Answer: Sacrifice by A1/10; gain by B1/10**

**Q15. A and B had been partners in a firm sharing profit or loss in the ratio of 3 : 1. With effect from Jan. 1, 2019 they agreed to share profit or loss in the ratio of 2 : 1. Due to change in profit-loss sharing ratio, B’s gain or sacrifice would be :**

**Gain 1/12****Sacrifice 1/12****Gain 1/3****Sacrifice ⅓**

**Answer : Gain 1/12**

**Q16. A, B and C had been partners sharing profit or loss in the ratio of 7 : 3 : 2. From Jan. 1,2019 they decided to share profit or loss in the ratio of 8 : 4 : 3. Due to change in the profit-loss sharing ratio, B’s gain or sacrifice would be :**

**Gain 1/60****Sacrifice 1/60****Gain 2/60****Sacrifice 3/60**

**Answer : Gain 1/60**

**Q17. X, Y and Z are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. The partners decide to share future profits and losses in the ratio of 2:2: 1. Each partner’s gain or sacrifice due to change in the ratio would be :**

**Answer : X nil ; Y gain 1/30 ; Z sacrifice 1/30**

**Q18. A, B and C had been partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The partners decide to share future profits and losses in the ratio of 2:2:1. Each partner’s gain or sacrifice due to change in ratio would be :**

**Answer: sacrifice A 3/30;gain B 2/30; gain C 1/30**

**Q19. A, B and C had been partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. The partners decide to share future profits and losses in the ratio of 2:2: 1. Each partner’s gain or sacrifice due to change in the ratio would be :**

**Answer: sacrifice A 2/45 ; gain B 3/45 ; sacrifice C 1/45**

**Q20. A, B and C had been partners in a firm sharing profits in 4 : 3 : 2 ratio. They decided to share future profits in 4 : 3 : 1 ratio. Sacrificing ratio and gaining ratio would be :**

**Answer: A gain 4/72; B gain 3/72; C sacrifice 7/72 **

**Q21. X, Y and Z had been partners sharing profits in the ratio 2:3:4 with effect from 1st January, 2019 they agreed to share profits in the ratio 3:4:5. Each partner’s gain or sacrifice due to change in the ratio would be :**

**Answer : X gain 1/36; Y nil ; Z sacrifice 1/36**

**Q22. X, Y and Z had been in partnership sharing profits in the ratio 4 : 3 : 1. The partners agreed to share future profits in the ratio 5 : 4 : 3. Each partner’s gain or sacrifice due to change in ratio would be:**

**Answer : X sacrifice 2/24; Y sacrifice 1/24; Z gain 3/24 **

**Q23. A, B and C are equal partners in the firm. It is now agreed that they would share the future profits in the ratio 5:3:2. Sacrificing ratio and gaining ratio of different partners would be :**

**Answer : A gain 5/30; B sacrifice 1/30 ; C sacrifice 4/30 **

**Q24. The excess amount which the firm gets on selling its assets over and above the saleable value of its assets is called**

**Surplus****Super profits****Reserve****Goodwill**

**Answer : Goodwill**

**Q25. Which of the following is NOT true in relation to goodwill?**

**It is an intangible asset****It is fictitious asset****It has a****realizable****value****None of the above**

**Answer : It is fictitious asset**

**Q26. When Goodwill is not purchased goodwill account can :**

**Never be raised in the books****Be raised in the books****Be partially raised in the books****Be raised as per the agreement of the partners**

**Answer :Never be raised in the books**

**Q27. The Goodwill of the firm is not affected by :**

**Location of the firm****Reputation of firm****Better customer service****None of the above**

**Answer: None of the above**

**Q28. Capital employed by a partnership firm is ₹5,00,000. Its average profit is ₹60,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?**

**₹50,000****₹10,000****₹6,000****₹56,000**

**Answer: ₹10,000**

**Q29. Weighted average method of calculating goodwill is used when :**

**Profits are not equal****Profits show a trend****Profits are fluctuating****None of the above**

**Answer :Profits show a trend**

**Q30. The profits earned by a business over the last 5 years are as follows : ₹12,000; ₹13,000; ₹14,000; ₹18,000 and ₹2,000 (loss). Based on 2 years purchase of the last 5 years profits, value of Goodwill will be :**

**₹23,600****₹22,000****₹1,10,000****₹1,18,000**

**Answer: ₹22,000**

**Q31. The average profit of a business over the last five years amounted to ₹60,000. The normal commercial yield on capital invested in such a business is deemed to be 10% p.a. The net capital invested in the business is ₹5,00,000. Amount of goodwill, if it is based on 3 years purchase of last 5 years super profits will be :**

**₹1,00.000****₹1,80,000****₹30,000****₹1,50,000**

**Answer: ₹30,000**

**Q32. The net assets of a firm including fictitious assets of ₹5,000 are ₹85,000. The net liabilities of the firm are ₹30,000. The normal rate of return is 10% and the average profits of the firm are ₹8,000. Calculate the goodwill as per ****capitalization**** of super profits.**

**₹20,000****₹30,000****₹25,000****None of these**

**Answer: ₹30,000**

**Q33. Capital invested in a firm is ₹5,00,000. Normal rate of return is 10%. Average profits of the firm are ₹64,000 (after an abnormal loss of 4,000). Value of goodwill at four times the super profits will be :**

**₹72,000****₹40,000****₹2,40,000****₹1,80,000**

**Answer: ₹72,000**

**Q34. The average capital employed of a firm is Rs. 4,00,000 and the normal rate of return is 15%. The average profit of the firm is rs80,000 per annum. If the . remuneration of the partners is estimated to be Rs. 10,000 per annum, then on the basis of two years purchase of super-profit, the value of the Goodwill will be :**

**₹10,000****₹20,000****₹60,000****₹80,000**

**Answer: ₹20,000**

**Q35. A, B and C were partners sharing profits and losses in the ratio of 7 : 3 : 2. From 1st January, 2019 they decided to share profits and losses in the ratio of 8:4:3. Goodwill is ₹1,20,000. In Adjustment entry for goodwill:**

**Cr. A by ₹6,000; Dr. B by Rs. 2,000; Dr. C by ₹4,000****Dr. A by ₹6,000; Cr. B by Rs. 2,000; Cr. C by ₹4000****Cr. A by ₹6,000; Dr. B by Rs. 4,000; Dr. C by ₹2,000****Dr. A by ₹6,000; Cr. B by Rs. 4,000; Cr. C by ₹2,000**

**Answer : Cr. A by ₹6,000; Dr. B by rs. 2,000; Dr. C by ₹4,000**

**Q36. Which of the following is responsible for the Reconstitution of Partnership?**

**Retirement of an existing partner****Change in existing profit sharing ratio****Death of a partner****All of these**

**Answer: All of these**

**Q37. What is the meaning of change in the profit sharing ratio:**

**In which all partner including the deceased partner executor partner share future profit and loss****Purchase of shares of profit by one partner form another partner****In which all partner including the retired partner share future profit and loss****In which all partner including the new partner share future profit and loss**

**Answer: Purchase of shares of profit by one partner form another partner**

**Q38. The circumstances when change in profit sharing ratio is needed:**

**When new partner admitted****When existing partner’s decide****When existing partner retires****All of these**

**Answer: All of these**

**Q39. The partner whose share has increased as a result of change is called**

**Sacrificing partner****Sacrificing ratio****Gaining partner****Gaining ratio**

**Answer: Gaining partner**

**Q40. What is gaining ratio:**

**In which profit sharing ratio of sacrificing partners increase****In which profit sharing ratio of sacrificing partners decrease****In which profit sharing ratio of gaining partners increase****In which profit sharing ratio of gaining partners decrease**

**Answer: In which profit sharing ratio of gaining partners increase**

**Related**

**Do share the post if you liked the MCQ of Change in Profit Sharing Ratio. For more updates, keep logging on BrainyLads**