August 28, 2021

MCQ of Change in Profit Sharing Ratio | Accountancy | Class 12 | CBSE |

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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

  1. New ratio
  2. Gaining ratio
  3. Sacrificing ratio
  4. Old ratio

Answer: Sacrificing ratio

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

  1. New ratio
  2. Gaining ratio
  3. Sacrificing ratio
  4. Old ratio

Answer: Gaining ratio

Q3. Sacrificing ratio =

  1. Old ratio – new ratio
  2. New ratio- old ratio
  3. Old ratio/ new ratio
  4. New ratio/ old ratio

Answer: Old ratio – new ratio

Q4. Gaining ratio =

  1. Old ratio – new ratio
  2. New ratio – old ratio
  3. Old ratio / new ratio
  4. New ratio / old ratio

Answer: New ratio – old ratio

Q5. The term goodwill is generally used to

  1. Pay off liabilities of the business
  2. Purchase goods on credit
  3. Denote the benefit arising from connections and reputation
  4. None of the above

Answer: Denote the benefit arising from connections and reputation

Q6. Essential Features of goodwill don’t involve

  1. It is a valuable asset
  2. It is helpful in earning excess profit
  3. It is an intangible asset
  4. 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

  1. Average profit
  2. Accumulated profit
  3. Unearned profit
  4. 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.

  1. Old profit sharing
  2. New profit sharing
  3. Sacrificing
  4. Gaining

Answer : Old profit sharing

Q9. Goodwill is a/an …… Asset

  1. Fictitious
  2. Current
  3. Wasting
  4. 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 :

  1. Gain 1/ 14
  2. Sacrifice 1/14
  3. Gain 4/7
  4. 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 :

  1. Gain 1/14
  2. Sacrifice 1/14
  3. Gain 4/7
  4. 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 :

  1. Gain ⅜
  2. Gain ⅛
  3. Sacrifice ⅜
  4. 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:

  1. Gain by A ⅙; sacrifice by B ⅙
  2. Sacrifice by A ⅙;gain by B ⅙
  3. Gain by A ½ ; sacrifice by B ½
  4. 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 :

  1. Sacrifice by A 1/10;sacrifice by B 1/10
  2. Gain by A 1/10 ; gain by B 1/10
  3. Sacrifice by A1/10; gain by B1/10
  4. 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 :

  1. Gain 1/12
  2. Sacrifice 1/12
  3. Gain 1/3
  4. 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 :

  1. Gain 1/60
  2. Sacrifice 1/60
  3. Gain 2/60
  4. 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

  1. Surplus
  2. Super profits
  3. Reserve
  4. Goodwill

Answer : Goodwill

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

  1. It is an intangible asset
  2. It is fictitious asset
  3. It has a realizable value
  4. None of the above

Answer : It is fictitious asset

Q26. When Goodwill is not purchased goodwill account can :

  1. Never be raised in the books
  2. Be raised in the books
  3. Be partially raised in the books
  4. 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 :

  1. Location of the firm
  2. Reputation of firm
  3. Better customer service
  4. 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?

  1. ₹50,000
  2. ₹10,000
  3. ₹6,000
  4. ₹56,000

Answer: ₹10,000

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

  1. Profits are not equal
  2. Profits show a trend
  3. Profits are fluctuating
  4. 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 :

  1. ₹23,600
  2. ₹22,000
  3. ₹1,10,000
  4. ₹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. ₹1,00.000
  2. ₹1,80,000
  3.  ₹30,000
  4.  ₹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.

  1. ₹20,000
  2. ₹30,000
  3. ₹25,000
  4.  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 :

  1. ₹72,000
  2. ₹40,000
  3. ₹2,40,000
  4.  ₹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 :

  1. ₹10,000
  2.  ₹20,000
  3. ₹60,000
  4. ₹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:

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

  1. Retirement of an existing partner
  2. Change in existing profit sharing ratio
  3. Death of a partner
  4. All of these

Answer: All of these

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

  1. In which all partner including the deceased partner executor partner share future profit and loss
  2. Purchase of shares of profit by one partner form another partner
  3. In which all partner including the retired partner share future profit and loss
  4. 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:

  1. When new partner admitted
  2. When existing partner’s decide
  3. When existing partner retires
  4. All of these

Answer: All of these

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

  1. Sacrificing partner
  2. Sacrificing ratio
  3. Gaining partner
  4. Gaining ratio

Answer: Gaining partner

Q40. What is gaining ratio:

  1. In which profit sharing ratio of sacrificing partners increase
  2. In which profit sharing ratio of sacrificing partners decrease
  3. In which profit sharing ratio of gaining partners increase
  4. In which profit sharing ratio of gaining partners decrease

Answer: In which profit sharing ratio of gaining partners increase

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