# ICSE XII/MCQ Questions for Class 12 Accountancy set-3 Sample Test,Sample questions

## Question: ```A and B are partners. C is admitted with 1/5 share. C brings 7 1,20,000 as his share towards capital. The total net worth of the firm is : ```

1. â‚¹ 1,00,000

2. â‚¹ 4,00,000

3. â‚¹ 1,20,000

4.â‚¹ 6,00,000

Posted Date:-2022-10-14 07:38:52

## Question: ```A and B share profits and losses in the ratio of 3 : 1.C is admitted into partnership for 1/4 share. The sacrificing ratio of A and B is : ```

1. Equal

2.3 : 1

3. 2 : 1

4.3 : 2

Posted Date:-2022-10-14 07:41:34

## Question: ```A and B share profits and losses in the ratio of 3:4. C was admitted for 1/5 th share. New profit sharing ratio will be: ```

1.3 : 4 : 1

2. 12 : 16 : 7

3. 16 : 12 : 7

4. None of these

Posted Date:-2022-10-14 07:39:21

## Question: ```A, B and C are equal partners. D is admitted to the firm for non-ourth share. D brings â‚¹ 20,000 as capital and â‚¹ 5,000 being half of the premium for goodwill. The value of goodwill of the firm is : ```

1.â‚¹ 10,000

2. â‚¹ 40,000

3.â‚¹ 30,000

4. None of these

Posted Date:-2022-10-14 07:43:29

## Question: ```A, B and C are partners in a firm, if D is admitted as a new partner: ```

1. Old firm is dissolved

2. Old firm and old partnership are dissolved

3.Old partnership is reconstituted

4. None of these

Posted Date:-2022-10-14 07:54:40

## Question: ```A, B, C and D are partners sharing their profits and losses equally. They change their profit sharing ratio to 2:2:1:1. How much will C sacrifice ? ```

1.1/6

2. 1/12

3. 1/24

4.None of these

Posted Date:-2022-10-14 07:56:13

## Question: ```An asset which is not ficitious but intangible in nature, having realisable value is : ```

1.Machinery

2. Building

3. Furniture

4.Goodwill

Posted Date:-2022-10-14 08:02:38

## Question: ```At the time of admission of a new partner, General Reserve a appearing in the old Balances Sheet is transferred to: ```

1.All Partnerâ€™s Capital Accounts .

2.New Partnersâ€™ Capital Accounts

3. Old Partnerâ€™s Capital Accounts

4. None of these

Posted Date:-2022-10-14 07:58:32

## Question: ```At the time of admission of a new partner, Undistributed Profits appearing in the Balance Sheet of the old firm is transferred to the Capital Account of: ```

1.Old partners is old profit-sharing ratio

2.Old partners in new profit-sharing ratio

3. All the partners in the new profit-sharing ratio

4. None of these

Posted Date:-2022-10-14 07:48:41

## Question: ```Capital employed in a business is â‚¹ 1,50,000. Profits are â‚¹ 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalisation method will be: ```

1.â‚¹ 2,00,000

2.â‚¹ 1,50,000

3. â‚¹ 3,00,000

4. â‚¹ 1,00,000

Posted Date:-2022-10-14 08:06:21

## Question: ```Change in profit-sharing ratio of existing partners results in: ```

1.Revaluation of Firm

2. Reconstitutions of Firm

3. Dissolution of Firm

4.None of these

Posted Date:-2022-10-14 07:50:25

## Question: ```Change in the partnership agreement results in: ```

1. Reconstitution of Firm

2.Dissolution of Firm

3.Amalgamation of Firm

4. None of these

Posted Date:-2022-10-14 07:53:10

## Question: ```Change in the partnership agreement: ```

1.Changes the relationship among the partners

2. Results in end of partnership business

3. Dissolves the partnership firm

4.None of these

Posted Date:-2022-10-14 07:53:41

## Question: ```Excess of credit side over the debit side in Revalution Account is: ```

1. Profit

2.Loss

3.Receipt

4.Expense

Posted Date:-2022-10-14 07:54:09

## Question: ```Following are the factors affecting goodwill except: ```

2. Efficiency of Management

3. Technical Knowledge

4.Location of the Customers

Posted Date:-2022-10-14 08:00:24

## Question: ```Formula of Sacrificing ratio is: ```

1.New Ratio â€“ Old Ratio

2. Old Ratio â€“ New Ratio

3.Gain Ratio â€“ Sacrificing Ratio

4. New Ratio â€“ Sacrificing Ratio .

Posted Date:-2022-10-14 07:42:29

## Question: ```Gaining Ratio: ```

1.New Ratio â€“ Old Ratio

2.Old Ratio â€“ Sacrificing Ratio

3. New Ratio â€“ Sacrificing Ratio

4.Old Ratio â€“ New Ratio

Posted Date:-2022-10-14 07:57:16

## Question: ```General Reserval at the time of admission of a new partner is transferred to : ```

1. Revaluation Account

2.Old Partnerâ€™s Capital Account

4. Realisation Account

Posted Date:-2022-10-14 07:49:54

## Question: ```Generally the interest on capital is considered as : ```

1. An appropriation of profit

2. An Asset

3.An Expense

4.None of these

Posted Date:-2022-10-14 07:59:21

## Question: ```Goodwill is aâ€¦â€¦â€¦â€¦â€¦.asset ```

1.Useless

2. Tangible

3. Worthless

4.Valuable

Posted Date:-2022-10-14 08:04:15

## Question: ```Goodwill is: ```

1. Tangible Asset

2. Intangible Asset

3.Current Asset

4. None of these

Posted Date:-2022-10-14 08:02:08

## Question: ```If the incoming partner brings the amount of goodwill in cash and also a balance exists in Goodwill A/c, then the Goodwill A/c is written off among the old partners: ```

1.In new profit-sharing ratio

2.In old profit-sharing ratio

3.In sacrificing ratio

4. In gaining ratio

Posted Date:-2022-10-14 07:41:01

## Question: ```Increase In the value of assets on reconstitution of the partnership firm results into : ```

1.Gain to the existing partners

2. Loss to the existing partners

3.Neither gain nor loss to the existing partners

4. None of these

Posted Date:-2022-10-14 07:51:30

## Question: ```Increase in the value of assets on reconstitution of the partnership firm results into: ```

1. Gain to the existing partners

2. Loss to the existing partners

3.Neither a gain nor a loss to the existing partners

4.None of these

Posted Date:-2022-10-14 07:59:54

## Question: ```On reconstitution of a partnership firm, recording of an unrecorded liability wil result in: ```

1. Gain to the existing partners

2. Loss to the existing partners

3. Neither gain nor loss to the existing partners

4.None of these

Posted Date:-2022-10-14 07:50:55

## Question: ```On the admission of a new partner, increase in the value of assets is debited to which account ? ```

1. Revaluation Account

2. Assets Account

3. Old Partnersâ€™ Capital Accounts

4. None of these

Posted Date:-2022-10-14 07:44:00

## Question: ```On the admission of a new partner, the decrease in the value of assets is debited to: ```

1.Revaluation Account

2.Assets Account

3. Old Partnersâ€™ Capital Accounts

4.None of these

Posted Date:-2022-10-14 07:45:18

## Question: ```Profits of the last three years were â‚¹ 6,000, â‚¹ 13,000 and â‚¹ 8,000 respectively. Goodwill at two years purchase of the average net profit will be : ```

1.â‚¹ 81,000

2. â‚¹ 27,0000

3. â‚¹ 9,000

4. â‚¹ 18,000

Posted Date:-2022-10-14 08:05:16

## Question: ```Recording of an unrecorded asset on the reconstltutlam of a partnership firm will be: ```

1. A gain to the existing partners

2. A loss to the existing partners

3.Neither a gain nor a loss to the existing partners

4.None of these

Posted Date:-2022-10-14 07:55:09

## Question: ```Revaluation Account or Profit & Loss Adjustment Account is a: ```

1. Personal Account

2.Real Account

3.Nominal Account

4. None of these

Posted Date:-2022-10-14 07:55:43

## Question: ```Sacrificing Ratio: ```

1. New Ratio â€“ Old Ratio

2. Old Ratio â€“ New Ratio

3. Gaining Ratio â€“ Old Ratio

4.Old Ratio â€“ Gaining Ratio

Posted Date:-2022-10-14 07:56:43

## Question: ```Share of goodwill brought in cash by the new partner is called: ```

1.Assets

2. Profit

4. None of these

Posted Date:-2022-10-14 07:40:26

## Question: ```The accumulated profits and reserves are transferred to: ```

1.Realisation A/c

2. Partnerâ€™s Capital A/cs

3. Bank A/c

4.Savings A/c

Posted Date:-2022-10-14 07:43:01

## Question: ```The balance of Revaluation Account is transferred to old Partnerâ€™s Capital Accounts in their: ```

1. Old Profit-sharing Ratio

2.New Profit-sharing Ratio

3.Equal Ratio

4. None of these

Posted Date:-2022-10-14 07:52:02

## Question: ```The balance of Revaluation Account or Profit & Loss Adjustment Account is transferred to Old Partnersâ€™ Capital Accounts in their : ```

1. Old profit-sharing ratio

2. New profit-sharing ratio

3.Equal ratio

4.Capital ratio

Posted Date:-2022-10-14 07:47:00

## Question: ```The excess of average profits over the normal profits are called : ```

1.Super Profits

2.Fixed Profits

3.Abnormal Profits

4. Normal Profits

Posted Date:-2022-10-14 08:03:48

## Question: ```The monetary value of reputation of the business is called: ```

1. Goodwill

2. Super Profit

3.Surplus

4. Abnormal Profit

Posted Date:-2022-10-14 08:09:17

## Question: ```The opening balance of Partnerâ€™s Capital Account is credited with: ```

1. Interest on Capital

2. Interest on Drawings

3. Drawings

4. Share in loss

Posted Date:-2022-10-14 07:39:54

## Question: ```The profit of the last three years are â‚¹ 42,000, â‚¹ 39,000 and â‚¹ 45,000. Value of goodwill at two years purchases of the average profits will be : ```

1. â‚¹ 42,000

2. â‚¹ 84,000

3.â‚¹ 1,26,000

4. â‚¹ 36,000

Posted Date:-2022-10-14 08:01:03

## Question: ```Under average profit basis goodwill is calculated by : ```

1.No. of yearsâ€™ purchased x Average profit

2.No. of yearsâ€™ purchased x Super profit

3.Super Profit -r Expected Rate of Return

4.None of these

Posted Date:-2022-10-14 08:01:40

## Question: ```Under super profit basis goodwill is calculated by : ```

1. No. of yearsâ€™ purchased x Average Profit

2.No. of yearsâ€™ purchased x Super profit

3. Super profit -r Expected rate of return

4.None of these

Posted Date:-2022-10-14 08:04:48

## Question: ```Weighted average method of calculating goodwill is used when: ```

1.Profits are equal

2.Profit has increasing trend

3. Profit has decreasing trend

4. Either (b) or (c)

Posted Date:-2022-10-14 08:08:39

## Question: ```What do you mean by Super Profit ? ```

1.Total Profit/No. of Years

2. Average Profit â€“ Normal Profit

3.Weighted Profit/No. of Yearsâ€™ Purchase

4.None of these

Posted Date:-2022-10-14 08:05:51

## Question: ```When the new partner pays for goodwill in cash, the amount should be debited in the firmâ€™s book to: ```

1.Goodwill Account

2.Cash Account

3. Capital Account of new partner

4. None of these

Posted Date:-2022-10-14 07:46:30

## Question: ```Which of the following is not a method of valuation of Goodwill: ```

1.Revaluation Method

2. Average Profit Method

3. Super Profit Method

4.Capitalisation Method

Posted Date:-2022-10-14 08:03:12

## Question: ```X and Y share profit and loss in 3:2. From 1st January, 2017 they agreed to share profit equally. Their sacrifice or gain will be : ```

1.Sacrifice by X: 1/10

2. Sacrifices by Y : 1/10

3.Both (a) and (b)

4. Non of these

Posted Date:-2022-10-14 07:58:01

## Question: ```X and Y share profits in the ratio 2 :3. In future they have decided to share profits in equal ratio. Which partner will sacrifice in which ratio ? ```

1. X sacrifice 1/10

2. Y sacrifice 1/5

3.Y sacrifice 1/10

4.None of these

Posted Date:-2022-10-14 07:52:41

## Question: ```X and Y share profits in the ratio of 3 : 2 Z was admitted as a partner who gets 1/5 share. Z acquires 3/20 from X and 1/20 from Y. The new profit sharing ratio will be : ```

1.9 : 7 : 4

2.8 : 8 : 4

3. 6 : 10 : 4

4. 10 : 6 :4

Posted Date:-2022-10-14 07:47:30

## Question: ```Z is admitted in a firm for a 1/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in : ```

1.Old profit-sharing ratio

2. New profit-sharing ratio

3.Sacrificing ratio

4. Capital ratio

Posted Date:-2022-10-14 07:44:33

## Question: ```Z is admitted in a firm for al/4 share in the profit for which he brings 7 30,000 for goodwill. It will be taken away by the old partners X and Y in : ```

1.Old profit-sharing ratio

2.New profit-sharing ratio

3. Sacrificing ratio

4. Capital ratio

Posted Date:-2022-10-14 07:49:11

## More MCQS

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