Chapter Exam

Chapter 2: Reconstitution of a Partnership Firm Admission of a Partner — Online MCQ Test

Q: Admission of a partner leads to which of the following?

Answer: A. Reconstitution of partnership firm — Admission of a partner changes the existing agreement among partners, so it is treated as reconstitution of the partnership firm.

Q: The ratio in which old partners agree to share future profits with the incoming partner is called the ________.

Answer: B. New profit sharing ratio — After admission, all partners including the new partner share profits in the new profit sharing ratio.

Q: Sacrificing ratio is calculated as:

Answer: B. Old ratio - New ratio — Sacrificing ratio shows the share of profit given up by old partners, so it is calculated as Old share minus New share.

Q: At the time of admission of a partner, goodwill is compensated by the new partner to:

Answer: C. Sacrificing partners in sacrificing ratio — The new partner gets a share in future profits, which is sacrificed by old partners; hence compensation for goodwill is given to sacrificing partners.

Q: A and B share profits in the ratio 3:2. C is admitted for 1/5 share, which he acquires from A and B in their old ratio. What is the new profit sharing ratio?

Answer: A. 12:8:5 — C gets 1/5, so remaining 4/5 is shared by A and B in 3:2. A = 3/5 × 4/5 = 12/25, B = 2/5 × 4/5 = 8/25, C = 5/25.

Q: A and B share profits equally. C is admitted for 1/4 share, which he acquires entirely from A. What is the sacrificing ratio of A and B?

Answer: B. 1:0 — C acquires his entire 1/4 share from A only. Therefore, only A sacrifices and the sacrificing ratio is 1:0.

Q: A and B share profits in the ratio 4:3. C is admitted for 1/7 share. C gets 1/14 from A and 1/14 from B. What is the new profit sharing ratio?

Answer: A. 7:5:2 — A's new share = 4/7 - 1/14 = 7/14; B's new share = 3/7 - 1/14 = 5/14; C's share = 2/14. Ratio is 7:5:2.

Q: A and B share profits in the ratio 3:1. C is admitted for 1/4 share. A sacrifices 1/8 and B sacrifices 1/8. What is the new profit sharing ratio?

Answer: A. 5:1:2 — A's new share = 3/4 - 1/8 = 5/8; B's new share = 1/4 - 1/8 = 1/8; C = 1/4 = 2/8. New ratio is 5:1:2.

Q: A and B share profits in the ratio 4:1. They admit C for 1/5 share. The new ratio is 3:1:1. Which partner sacrifices more and by how much?

Answer: A. A sacrifices more by 1/5 — A's sacrifice = 4/5 - 3/5 = 1/5. B's sacrifice = 1/5 - 1/5 = 0. Hence A sacrifices more by 1/5.

Q: A and B share profits in the ratio 2:1. C is admitted for 1/4 share. C brings ₹36,000 as goodwill, which is only 60% of his share of goodwill. What is the total goodwill of the firm?

Answer: C. ₹2,40,000 — If ₹36,000 is 60% of C's share of goodwill, C's full share = ₹60,000. Since C's share is 1/4, total goodwill = ₹60,000 × 4 = ₹2,40,000.

ACCOUNTANCY · Grade 12 · CBSE(NCERT)

Practice Chapter 2: Reconstitution of a Partnership Firm Admission of a Partner with a free chapter-wise online MCQ test for CBSE(NCERT) Grade 12 ACCOUNTANCY. This chapter covers: Admission of Partner Reconstitution New Profit Sharing Ratio Sacrificing Ratio Goodwill AS 26 Revaluation Account Assets Liabilities Accumulated Profits Reserves Capital Adjustment. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2: Reconstitution of a Partnership Firm Admission of a Partner — Important Questions & Answers (FAQ)

Frequently asked questions from CBSE(NCERT) Grade 12 ACCOUNTANCY — Chapter 2: Reconstitution of a Partnership Firm Admission of a Partner, with answers and explanations. These are sample questions; the exam has its own separate question set.

Admission of a partner leads to which of the following?

A. Reconstitution of partnership firm ✓
B. Dissolution of partnership firm only
C. Compulsory liquidation of business
D. Conversion of firm into a company

Answer: A. Reconstitution of partnership firm
Admission of a partner changes the existing agreement among partners, so it is treated as reconstitution of the partnership firm.

The ratio in which old partners agree to share future profits with the incoming partner is called the ________.

A. Old profit sharing ratio
B. New profit sharing ratio ✓
C. Sacrificing ratio
D. Gaining ratio

Answer: B. New profit sharing ratio
After admission, all partners including the new partner share profits in the new profit sharing ratio.

Sacrificing ratio is calculated as:

A. New ratio - Old ratio
B. Old ratio - New ratio ✓
C. Old ratio + New ratio
D. Capital ratio - Profit ratio

Answer: B. Old ratio - New ratio
Sacrificing ratio shows the share of profit given up by old partners, so it is calculated as Old share minus New share.

At the time of admission of a partner, goodwill is compensated by the new partner to:

A. All partners in new ratio
B. Only the new partner
C. Sacrificing partners in sacrificing ratio ✓
D. Partners in capital ratio

Answer: C. Sacrificing partners in sacrificing ratio
The new partner gets a share in future profits, which is sacrificed by old partners; hence compensation for goodwill is given to sacrificing partners.

A and B share profits in the ratio 3:2. C is admitted for 1/5 share, which he acquires from A and B in their old ratio. What is the new profit sharing ratio?

A. 12:8:5 ✓
B. 3:2:1
C. 9:6:5
D. 8:12:5

Answer: A. 12:8:5
C gets 1/5, so remaining 4/5 is shared by A and B in 3:2. A = 3/5 × 4/5 = 12/25, B = 2/5 × 4/5 = 8/25, C = 5/25.

A and B share profits equally. C is admitted for 1/4 share, which he acquires entirely from A. What is the sacrificing ratio of A and B?

A. 1:1
B. 1:0 ✓
C. 0:1
D. 3:1

Answer: B. 1:0
C acquires his entire 1/4 share from A only. Therefore, only A sacrifices and the sacrificing ratio is 1:0.

A and B share profits in the ratio 4:3. C is admitted for 1/7 share. C gets 1/14 from A and 1/14 from B. What is the new profit sharing ratio?

A. 7:5:2 ✓
B. 8:6:1
C. 1:1:1
D. 4:3:1

Answer: A. 7:5:2
A's new share = 4/7 - 1/14 = 7/14; B's new share = 3/7 - 1/14 = 5/14; C's share = 2/14. Ratio is 7:5:2.

A and B share profits in the ratio 3:1. C is admitted for 1/4 share. A sacrifices 1/8 and B sacrifices 1/8. What is the new profit sharing ratio?

A. 5:1:2 ✓
B. 3:1:1
C. 4:2:1
D. 1:1:1

Answer: A. 5:1:2
A's new share = 3/4 - 1/8 = 5/8; B's new share = 1/4 - 1/8 = 1/8; C = 1/4 = 2/8. New ratio is 5:1:2.

A and B share profits in the ratio 4:1. They admit C for 1/5 share. The new ratio is 3:1:1. Which partner sacrifices more and by how much?

A. A sacrifices more by 1/5 ✓
B. B sacrifices more by 1/10
C. A sacrifices more by 1/10
D. Both sacrifice equally

Answer: A. A sacrifices more by 1/5
A's sacrifice = 4/5 - 3/5 = 1/5. B's sacrifice = 1/5 - 1/5 = 0. Hence A sacrifices more by 1/5.

A and B share profits in the ratio 2:1. C is admitted for 1/4 share. C brings ₹36,000 as goodwill, which is only 60% of his share of goodwill. What is the total goodwill of the firm?

A. ₹60,000
B. ₹1,44,000
C. ₹2,40,000 ✓
D. ₹90,000

Answer: C. ₹2,40,000
If ₹36,000 is 60% of C's share of goodwill, C's full share = ₹60,000. Since C's share is 1/4, total goodwill = ₹60,000 × 4 = ₹2,40,000.

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