Online Test — Admission of a Partner
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
On admission, the new partner acquires a share of profits and a share of:
Liabilities only
The firm's assets
Nothing
Drawings
Explanation: He gains a share in future profits and in the assets.
Question 2 of 15
Sacrificing ratio =
New − Old
Old − New
Old + New
New × Old
Explanation: Sacrificing ratio = Old share − New share.
Question 3 of 15
A and B share 3:2; C admitted for 1/5, old partners surrender in old ratio. New ratio =
12:8:5
3:2:1
2:2:1
1:1:1
Explanation: A 12/25, B 8/25, C 5/25 → 12:8:5.
Question 4 of 15
The goodwill premium is credited to old partners in the:
New ratio
Sacrificing ratio
Capital ratio
Equal ratio
Explanation: It compensates sacrificers in the sacrificing ratio.
Question 5 of 15
Self-generated goodwill is not raised in the books because of:
AS-26
AS-3
GST
The Partnership Act
Explanation: AS-26 bars recording self-generated goodwill.
Question 6 of 15
If the new partner brings goodwill in cash, the Premium A/c is credited to the:
New partner
Sacrificing partners
Bank
Creditors
Explanation: The premium goes to the sacrificing partners.
Question 7 of 15
If goodwill is NOT brought in cash, the entry debits the:
Old partners' capitals
New partner's capital
Goodwill A/c
Revaluation A/c
Explanation: New partner's capital is debited; sacrificers' credited.
Question 8 of 15
C brings Rs 30,000 for 1/4 share. Implied total capital =
Rs 1,20,000
Rs 30,000
Rs 7,500
Rs 90,000
Explanation: 30,000 × 4 = 1,20,000.
Question 9 of 15
Revaluation profit on admission is shared by the:
New partner only
Old partners in the old ratio
All in the new ratio
Creditors
Explanation: It belongs to the old partners in the old ratio.
Question 10 of 15
An increase in an asset is ____ in the Revaluation Account.
Debited
Credited
Ignored
A liability
Explanation: An asset increase is a gain — credited.
Question 11 of 15
Accumulated reserves on admission are credited to:
The new partner
Old partners in the old ratio
All equally
Cash
Explanation: They belong to old partners in the old ratio.
Question 12 of 15
Hidden goodwill = implied total capital −
Actual total capital
New partner's capital
Reserves
Cash
Explanation: Hidden goodwill = implied total capital − actual total capital.
Question 13 of 15
Capital adjustment usually brings capitals into the:
Old ratio
New profit-sharing ratio
Sacrificing ratio
Gaining ratio
Explanation: Capitals are adjusted to the new ratio.
Question 14 of 15
If a partner's actual capital exceeds his required capital, the surplus is:
Brought in
Withdrawn or kept in his current account
Ignored
Given to the bank
Explanation: The surplus is paid out or transferred to his current account.
Question 15 of 15
On admission, an unrecorded liability discovered is treated in Revaluation as a:
Gain (credit)
Loss (debit)
Capital
Reserve
Explanation: An unrecorded liability is a loss — debited to Revaluation.