A and B are equal partners. They admit C as a partner with 1/7th share. What is the new profit sharing ratio of A and B ?
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Question 2 of 20
2. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Radha, Seeta and Laxmi were partners sharing profits and losses in the ratio of 2 : 3 : 5. Seeta retired on 1st June, 2013 and Goodwill of the firm is to valued at Rs.1,20,000 on that date, Goodwill A/c is to be raised. What will be the treatment for goodwill ?
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Question 3 of 20
3. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
When Goodwill is withdrawn by the Partners ______ account is credited.
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Question 4 of 20
4. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Neeraj and Gopi are partners in a firm with capitals of Rs.5,00,000 each. They admit Champak as a partner with 1/4th share in the profits of the firm. Champak brings Rs.8,00,000. The Profit and Loss Account showed a credit balance of Rs.4,00,000 as on the date of admission. The value of hidden goodwill is :
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Question 5 of 20
5. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
A and B are partners sharing profit and loss in the ratio of 3 : 2. They take C as the new partner who is supposed to bring Rs.35,000 against capital and Rs.15,000 against goodwill. New profit sharing ratio is 1 : 1 : 1. C is able to bring Rs.45,000 only. How this will be treated in the books of the firm ?
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Question 6 of 20
6. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Mary and Lary were partners sharing profits and losses in ratio of 5 : 3. Mary was admitted to the firm. Mary gave 1/4th of her share and Lary gave 1/10th of her share to Harry.
New profit sharing ratio would be :
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Question 7 of 20
7. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
A partnershilp firm earns profit of Rs.3,72,000 during the financial year 2013-14. The normal rate of return in the same industry is 12%. The value of total assets (Excluding goodwill) and total liabilities are Rs.68 lakhs and Rs.42 Lakhs respectively. Compute the value of goodwill of the firm according to the capitalization of goodwill method .
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Question 8 of 20
8. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
The profits and losses of Mr. Rathore for the last year are 2011-12 profit Rs.4,00,000; 2012-13 profit Rs.3,60,000; 2013-14 Loss Rs.60,000; 2014-15 Profit Rs.5,00,000; Capital investment Rs.15,00,000. The market rate of interest on investment 10%; rate of risk return on capital invested 2%, Remuneration of alternative employment of the proprietor (if not engaged in business) Rs.60,000 p.a. calculate the value of goodwill on the basis of 5 year’s purchase of super profit of the business based on the average profits of the last four years :
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Incorrect
Question 9 of 20
9. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
X and Y are in partnership sharing profits and losses in the ratio of 3 : 2. They admitted Z as 1/4 partner. Find out new ratio.
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Incorrect
Question 10 of 20
10. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
K, L and M are partners. The relative profit sharing ratio between K and L is 3 : 2 and between L and M is also 3 : 2. Find out the profit sharing ratio between K, L and M.
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Question 11 of 20
11. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
A, B and C are partners sharing profits in the ratio of 8 : 6 : 4. D is admitted for 4/18th share of profits and he brings Rs.30,000 as his capital and 10,000 for his share of goodwill. The new profit sharing ratio between partners will be 6 : 4: : 4. Goodwill amount will be credited in capital accounts of :
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Question 12 of 20
12. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Find the goodwill of the firm using capitalisation method from the following information.
Total capital employed in the firm Rs.4,00,000. Reasonable Rate of Return 15%
Profit for the year Rs.6,00,000.
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Question 13 of 20
13. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
A and B are partner in a firm with capital of Rs.5,00,000 each. They admit ‘C’ as a partner with 1/4th share in the profits of the firm. C brings Rs.8,00,000. The Profit and Loss Account showed a Credit Balance of Rs.4,00,000 as on the date of admission. The value of hidden goodwill will be :
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Incorrect
Question 14 of 20
14. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Pee and Que share profits and losses in the ratio of 5 : 3. They admit A as for 1/5th share of profit. The ratio of sacrifice is :
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Question 15 of 20
15. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Akash and Vikas are partners with capitals of Rs.60,000 each. Mukesh is admitted and he brings Rs.80,000 as capital and gets 1/5th share in the firm. What is the inherent goodwill ?
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Incorrect
Question 16 of 20
16. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
A, B, C and D are partners sharing profits and losses equally. After one year they decided to share profits in the ratio of 2 : 2 : 1 : 1. D’s sacrifice is :
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Question 17 of 20
17. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
A and B share profits in the ratio of 2 : 3. C joined the firm A gives 1/3rd of his share, while B gives 1/4th of his share in favour of C. What is the new profit sharing ratio ?
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Incorrect
Question 18 of 20
18. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
A, B and C are partners sharing profits in the ratio 2 : 2 : 1. On retirement of B, Goodwill was valued at Rs.30,000. Find the contribution of A & C to compensate B.
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Incorrect
Question 19 of 20
19. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Radha and Gopi are partners with Rs.5,00,000 capital each. They admitted Champa for 1/4th share with Rs.8,00,000 capital. The P & L credit balance is Rs.4,00,000. Find the amount of hidden goodwill :
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Incorrect
Question 20 of 20
20. Question
1 points
Category: FUNDAMENTAL OF ACCOUNTING
Capital employed by a partnership firm is Rs.6,00,000. Its average profit is Rs.1,05,000. Normal rate of return is 15%. Find the goodwill of the firm using capitalization method.