At the time of admission of a new partner the firm is:
ADissolved
BContinued
CNot effected
DRE-organized
Question - 2
At the time of admission an incoming partner contributes as goodwill:
AIn cash
BDoes not pay cash
CMay or may not pay cash for good will
D None of these
Question - 3
Good will is valued as two years purchase of the average profits of three previous years are Rs. 15000, the value of good-will be:
A Rs. 15000
BRs. 30000
CRs. 20000
D Rs. 50000
Question - 4
Value of good will agreed upon Rs. 30000 on C,S admission and allowing him 1/4 share of total profit Good will is brought in cash, the amount of good-will be as:
ARs. 30000
BRs. 7500
CRs. 150000
D Rs. 120000
Question - 5
Good will of the firm is valued Rs. 30000. C an incoming partner purchase 1/4 share of total profit Good will be raised in the books.
ARs. 30000
BRs. 7500
CRs. 120000
D Rs. 7000
Question - 6
An incoming partner pays his share of good will in cash, and profit sharing ration of old partner is changed, Good – will be distributed among old partners:
AAs their old profit ratio
BAccording to new ration
CAccording to sacrifice ratio
DNone of these
Question - 7
At the time of admission of a new partner, general reserve is:
A Debited to capital of old partners
BCredited to capital of old partners
CAllowed to remain is balance sheet
DDebited to current account
Question - 8
At the time of a new partner Good will:
ABelongs to all partners, new and old
BBelongs only to the new partners who is going to be admitted.
CBelongs only to the old partner who have credited it
DNone of the above.
Question - 9
In the revaluation account a decrease in the value of plant and machinery:
AAppears on the debit side
BAppears on the credit side.
CAppears on the debit side of good will account
D Does not appear at all
Question - 10
In the revaluation account an increase in the value of land and building:
