CHAPTER 2: Accounting for Partnership: Basic Concepts NCERT MCQ CLASS 12TH ACCOUNTS | EDUGROWN
NCERT MCQ ON Accounting for Partnership: Basic Concepts:
Question1: Goodwill can be classified into which categories
- a) Purchased Goodwill
- b) Self generated Goodwill
- c) Both
- d) None of the options
Answer: Purchased Goodwill
Question2: Super profit method is for goodwill valuation
- a) Super profit x No. of years
- b) Average profit x No. of years
- c) Weighted Average profit x No. of years
- d) None of the options
Answer: Super profit x No. of years
Question3: Purchased Goodwill is
- a) Assets-Liabilities
- b) Assets-Profit
- c) Both
- d) None of the options
Answer: Assets-Liabilities
Question4: If the amount of super profit is negative , what does it indicate?
- a) There is no goodwill
- b) There is average goodwill
- c) Both
- d) None of the options
Answer: There is no goodwill
Question5: Which goodwill is recorded in books of accounts ?
- a) Purchased Goodwill
- b) Self -generated Goodwill
- c) Both
- d) None of the options
Answer: Purchased Goodwill
Question6: When does need valuation of goodwill
- a) Both
- b) On Retirement or death of a partner
- c) Admission of partner
- d) None of the options
Answer: Both
Question7: Which Factors affecting the value of Goodwill :
- a) All of the options
- b) Quality of products
- c) Location of business
- d) Efficient management
Answer: All of the options
Question8: Which Methods of valuation of goodwill
- a) All of the options
- b) Super profit method
- c) Capitalization method
- d) Average profit method
Answer: All of the options
Question9: When sacrificing ratio is used
- a) Admission of New partner
- b) dissolution of partnership agreement
- c) dissolution of partnership firm
- d) None of the options
Answer: Admission of New partner
Question10: In which ratio the profit or loss on revaluation is shared by the old partners
- a) Old Profit sharing ratio
- b) New Profit sharing ratio
- c) Equally
- d) None of the options
Answer: Old Profit sharing ratio
Question11: Old profit sharing ratio- new profit sharing ratio is equal to
- a) Sacrificing Ratio
- b) Gaining Ratio
- c) Profit sharing Ratio
- d) None of the options
Answer: Sacrificing Ratio
Question12: A new Partner can be admitted in the firm, When
- a) All partners Agreed
- b) Some Partners Agreed
- c) Dormant Partner agreed
- d) None of the options
Answer: All partners Agreed
Question13: When a partner does bring cash for goodwill, an account is raised at
- a) New Profit sharing
- b) Old Profit sharing Value
- c) Profit Sharing
- d) None of the options
Answer: New Profit sharing
Question14: When partners decide to show assets and liabilities at old value, Which accounts is opened
- a) Memorandum Revaluation A/C
- b) Capital A/c
- c) Profit & Loss Appropriation A/c
- d) None of the options
Answer: Memorandum Revaluation A/C
Question15: When Goodwill account is raised , then credit is given to old partners capital Account in
- a) New Profit sharing Ratio
- b) Old Profit sharing ratio
- c) Gaining Ratio
- d) None of the options
Answer: New Profit sharing Ratio
Question16: The valuation of goodwill is not necessary in sole trading
- a) On closing the firm
- b) On making a partner
- c) On selling the firm
- d) None of the options
Answer: On closing the firm
Question17: The profit of the last three years are 42000, 39000, 45000 Rs., Value of goodwill at two years purchase of the average profit will be
- a) 84000
- b) 42000
- c) 126000
- d) None of the options
Answer: 84000
Question18: find the goodwill of firm using capitalisation method, the total capital employed in the firm 80000 Rs., reasonable rate of return 15%, Profit for the year 120000 Rs.
- a) 720000
- b) 820000
- c) 120000
- d) None of the options
Answer: 720000
Question19: What do you mean by super profit
- a) Average profit – Normal profit
- b) Total Profit/No. of years
- c) Average profit + Normal profit
- d) None of the options
Answer: Average profit – Normal profit
Question20: The excess of average profit over the normal profit is called
- a) Super Profit
- b) Fixed Profit
- c) Abnormal Profit
- d) Net profit
Answer: Super Profit
Question21: Weighted Average method of calculating goodwill is used when
- a) Both
- b) Profit has increasing trend
- c) Profit has decreasing trend
- d) None of the options
Answer: Both
Question22: The monetary value of reputation of the business is called
- a) Goodwill
- b) Super profit
- c) Surplus
- d) None of the options
Answer: Goodwill
Question23: When the value of goodwill is not given at the time of admission of a new partner, it IS inferred from the capital of the new firm and profit sharing ratio. This concept is called
- a) Hidden Goodwill
- b) Purchased Goodwill
- c) Average Goodwill
- d) None of the options
Answer: Hidden Goodwill
Question24: Why new partner needs to bring goodwill?
- a) To compensate the sacrificing partners
- b) For Revaluation Account
- c) For Revaluation Assets
- d) All of the options
Answer: To compensate the sacrificing partners
Question25: The balance of revaluation A/c is transferred to old partners capital account in their
- a) Old Profit sharing ratio
- b) New profit sharing ratio
- c) Equal ratio
- d) None of the options
Answer: Old Profit sharing ratio
Question26: Interest on partners capital is calculated on
- a) Capital in the beginning
- b) Capital in the end
- c) Average capital
- d) None of the options
Answer: Capital in the beginning
Question27: Account is prepared only one time in during the life of firm
- a) Realisation Account
- b) Revaluation A/c
- c) Profit & loss A/c
- d) None of the options
Answer: Realisation Account
Question28: Revaluation account is prepared on
- a) Reconstitution of partnership firm.
- b) Dissolution of partnership firm
- c) Both
- d) None of the options
Answer: Reconstitution of partnership firm.
Question29: Goodwill can be classified into which categories
- a) Purchased Goodwill
- b) Self generated Goodwill
- c) Both
- d) None of the options
Answer: Purchased Goodwill
Question30: When a partner does bring cash for goodwill, an account is raised at
- a) New Profit sharing
- b) Old Profit sharing Value
- c) Profit Sharing
- d) None of the options
Answer: New Profit sharing
Discover more from EduGrown School
Subscribe to get the latest posts sent to your email.