COMMERCE TEACHERS FORUM DELHI

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MCQ TEST - Change in PSR in existing Partners based on Class dated 16/07/2020

NAME OF STUDENT *

NAME OF SCHOOL *

NAME OF TEACHER *

Q. : 01 X and Y shared profits & loss in the ratio of 2:3, starting 1st April, 2019, they agreed to distribute profits equally. The firm goodwill was valued at Rs. 60000. The adjustment entry will be. *

1 point

1. Dr. Y and Cr. X with Rs. 6,000

2. Dr. X and Cr. Y with Rs. 6,000

3. Dr. X and Cr. Y with Rs. 600

4. Dr. Y and Cr. X with Rs. 600

Q. : 02 Existing goodwill is written off in.........Ratio among partners. *

1 point

New

equal

old

New and old

Q. : 03 When Capitals are fixed partners...............A/c s are debited to write off old (existing) goodwill. *

Please Answer in small letter only.

1 point

Capital

Partner's

current

goodwill

True/False Q. : 04 If goodwill is raised at the time of change in PSR it must be written off among the partners. *

1 point

False

True

Q. : 05 Treatment of Goodwill is done as per AS. *

1 point

Q. : 06 P, Q and R are partners sharing profits in the ratio of 5:3:2. They decided to share future profits equally. What will be the accounting treatment of Workmen Compensation reserve of Rs. 40, 000 appearing in the balance sheet on that date and the claim on account of it is Rs. 15,000. *

1 point

a. Distribute among partners in their capital ratio Rs. 25,000.

b. Distribute among partners in their new profit sharing ration Rs. 15,000.

c. Distribute among partners in their old profit sharing ration Rs. 25,000.

d. Carried forward to new balance sheet WCR as Rs. 40,000.

Q. : 07 A,B & C are partners sharing profits in the ratio of 4:3:2, decided to share profit equally Goodwill of the firm is valued at (Rs.) 10,800.Good adjusting entry will then be: *

1 point

a) A’s Capital A/c Cr. by Rs. 4800; B’s Capital A/c Cr. by Rs. 3600; C’s Capital A/c Cr. by Rs. 2400.

b) A’s Capital A/c Cr. by Rs. 3600; B’s Capital A/c Cr. by Rs.3600; C’s Capital A/c Cr. by Rs. 2400.

c) A’s Capital A/c Cr. by Rs. 1200; C’s Capital A/c Cr. by Rs. 1200

d) C’s Capital A/c Dr. by Rs. 1200; A’s Capital A/c Cr. by Rs. 1200

Q. : 08 A, B & C are partners sharing profit in the ratio of 1:2:3 On April 1st,2019, they decided to share the profit equally on that date there was a credit balance of Rs. 1,20,000 in Their profit & Loss Account & a balance of Rs. 1,80,000 in General Reserve Account. Instead of closing the General Reserve Account & Profit and Loss Account, it is decided to record on adjustment entry which will be *

1 point

a) Dr. A by Rs. 50,000 ; Cr. B by Rs. 50,000

b) Dr. A by Rs. 50,000 ; Cr C by Rs. 50,000

c) Cr. A by Rs. 50,000 ; Dr. B by Rs. 50,000

d) Cr. A by Rs. 50,000 ; Dr. C by Rs. 50,000

Q. : 09 A, B & C are partners sharing profits are losses in the ratio of 4:3:2, decided to share future profit & losses in the ratio of 2:3:4, w.e.f. 1-April-2019. Workmen Compensation Reserve appearing in the balance sheet is Rs. 45,000 & a claim on account of Workmen Compensation is estimated at Rs. 54,000, Then - *

1 point

a) Rs. 9000 in debit side of Revaluation Account

b) Rs. 9000 is distributed amongst partner in new profit sharing ratio

c) Rs. 9000 is shown as provision in new balance sheet

d)a) Rs. 9000 in Cr. side of Revaluation Account

Q. : 10 Any change in the relationship of exiting partners Which results in an end of the existing agreement and enforces making of a new agreement is called *

1 point

a) Revaluation of Partnership

b) Reconstitution of Partnership

c) Realization of Partnership

d) Rs. 9000 is distributed amongst partner in their Capital ratio.

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