Jagran Josh
MCQs for CBSE Class 12 Accountancy Chapter 2: Jagran Josh brings to you list of some important MCQs for Class 12 Accountancy Chapter 2, Reconstitution of a firm-Admission of a partner. All the questions and answers have been prepared by our subject matter experts, as per Revised CBSE Syllabus (2023-2024).
MCQs can help you score high marks in upcoming CBSE Board Examinations(2023-24) because CBSE in its latest CBSE Exam Pattern has included MCQ type questions in the question paper. These are great scorers in examination, if your concepts about the subject topics are clear. Some tips for solving MCQ type questions, easily in examinations are:
- Read all the questions carefully since they are tricky but general in nature.
- Options consisting all of the above should be analysed clearly.
- Follow instructions of the exam.
- Don’t misread any question or option.
- Be patient
- Divide your time carefully
Related:
CBSE Class 12 Accountancy Syllabus 2023-24 (PDF)
CBSE Class 12 Accountancy Sample Paper 2023-24 (PDF)
Important MCQs for CBSE Class 12 Accountancy Chapter 2 are mentioned below as:
1.The ratio in which a partner surrenders his share in favour of a partner is known as:
(a) New profit-sharing ratio
(b) Sacrificing Ratio
(c) Gaining Ratio
(d) Capital Ratio
Answer. (b) sacrificing ratio
2.A and B are partners sharing profits in the ratio of 3:2. On admission of C for 1/5th share, Land is appreciated by 10% (Book Value ₹ 80,000), Building is decreased by 20% (₹ 2, 00,000), Unrecorded Debtors of ₹ 1,250 are bought in the books and Creditors of ₹ 2,750 need not be paid. The Gain (profit) /loss on revaluation will be:
a)Loss ₹ 28,000
b) Loss ₹ 40,000
c) Profit ₹ 28,000
d) Profit ₹ 40,000
Answer. (a) Loss of Rs 28,000
3.When goodwill is not recorded in the books at all on admission of a partners
(a) If paid privately
(b) If brought in cash
(c) If not brought in cash
(d)If brought in Kind
Answer. (a) If paid privately
4.X, Y and Z are partners sharing profits and losses in the ratio of 5:3:2.They decide to share the future profits in the ratio of 3:2:1. Workmen compensation reserve appearing in the balance sheet on the date if no information is available for the same will be:
(a) Distributed among the partners in old profit sharing ratio
(b) Distributed among the partners in new profit sharing ratio
(c) Distributed among the partners in capital ratio
(d)Carried forward to new balance sheet without any adjustment
Answer. (a) distributed among the partners in old profit sharing ratio
5.Assertion (A): Employees provident fund is not distributed to the Partners’ Capital Accounts.
Reason (R): Employees provident fund is a liability towards the employees, thus, partners have no claim over it.
a) Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
b) Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
c) Assertion is correct but Reason is incorrect
d) Both Assertion and Reason are incorrect
Answer. (a) Both Assertion and Reason are correct and reason is the correct explanation for assertion
6.In case of change in profit-sharing ratio, the gaining partner must compensate the sacrificing partners by paying the proportional amount of
(a) capital
(b) cash
(c) goodwill
(d) none of the above
Answer. (c) goodwill
7.Assertion (A): If the amount of any liability is understated, then revaluation account will be debited to restore the liability’s amount to its actual value.
Reason (R): Increase in amount of liability is a profit for the firm.
(a) Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
(b) Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
(c) Assertion is correct but Reason is incorrect
(d) Both Assertion and Reason are incorrect
Answer. (d) Both Assertion and Reason are incorrect.
8.Revaluation Account is a :
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the Above
Answer. (b) nominal account
9.A and B are partners sharing profits in the ratio of 7:3. C is admitted as a new partner. A gave 1/7th of his share and B gave 1/3rd of his share to C. New Profit-sharing Ratio will be:
(a) 6:2:2
(b) 4:1:1
(c) 3:2:2
(d) None
Answer. (a) 6:2:2
10.The following question consist of two statements, one labelled as the ‘Assertion (A)’ and the other as ‘Reason (R)’. You are to examine these two statements carefully and select the answers using the code given below:
(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Assertion (A): In order to compensate a partner for contributing capital to the firm in excess of the profit-sharing ratio, firm pays such interest on partner’s capital.
Reason (R): Interest on capital is treated a charge against profit.
Answer. (c) A is true but R is false
11.On admission of a partner, which of the following items in the Balance Sheet is transferred to the credit of Capital Accounts of old partners in the old Profit-sharing Ratio, if Capital Accounts are maintained following Fluctuating Capital Accounts Method
(a) Deferred Revenue Expenditure;
(b) Profit and Loss Account (Debit Balance);
(c) Profit and Loss Account (Credit Balance);
(d) Balance in Drawings Account of partners.
Answer. (c) Profit and loss account (credit balance)
12.A and B are sharing profits and losses in the ratio of 3:2. They admit C as partner for 1/3rd share in the profits. He takes this share 3/5th from A and 2/5th from B. New profit-sharing ratio will be
a) 5 : 6 : 3
b) 2 : 4 : 6
c) 6 : 4 : 5
d) 18 : 29
Answer. (c) 6:4:5
13.There is a need of revaluation of assets and liabilities on admission of a partner because
(a) Assets and Liabilities should appears at revised values
(b) Any profit and loss an account of change in values belong to old partners
(c) All unrecorded assets and liabilities get recorded
(d) None of Above
Answer. (b) any profit and loss an account of change in values belong to old partners
14.Reserves and accumulated profits are transferred to partners ‘ capital accounts at the time of reconstitution in:
(a) Old profit-sharing ratio
(b) Sacrificing Ratio
(c) Gaining ratio
(d) New profit-sharing ratio
Answer. (a) Old profit-sharing ratio
15.If the new partner brings any additional amount of cash other than his capital contributions then it is termed as :
(a) Capital
(b) Reserves
(c) Profits
(d) Premium for Goodwill
Answer. (d) premium for goodwill
To download the MCQs for Class 12 Accountancy Chapter 2, click on the link below.
Important resources for CBSE Board Examination(2023-2024)
CBSE Class 12 Syllabus 2023-24 (All Subjects)
CBSE Class 12 Sample Papers 2023-24 (All Subjects)
NCERT Books for Class 12 (All Subjects)
NCERT Solutions for Class 12 (All Subjects)
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