Accounting for Partnership Firms Fundamentals

23 solved questions from Class 12 Accountancy, each with the full working. Tap any question to see the step-by-step solution.

• 1 What is the primary topic or theoretical principle explored in 'Accounting for Partnership Firms Fundamentals' (Class 12 ACCOUNTANCY)? medium MCQ Chapter Core Principle
• 2 Which key mechanism or analytical rule is highlighted in 'Accounting for Partnership Firms Fundamentals'? medium MCQ Key Analytical Mechanism
• 3 What is the primary topic or principle explained in 'Accounting for Partnership Firms Fundamentals' (Class 12 Accountancy)? medium MCQ Chapter Core Concept
• 4 Which key observation or fact is central to understanding 'Accounting for Partnership Firms Fundamentals'? medium MCQ Key Fact & Mechanism
• 5 Why is the study of 'Accounting for Partnership Firms Fundamentals' important for students of Class 12? medium MCQ Learning Significance
• 6 What is a common application or real-world example related to 'Accounting for Partnership Firms Fundamentals'? medium MCQ Real World Application
• 7 What key takeaway should students retain after completing 'Accounting for Partnership Firms Fundamentals'? medium MCQ Chapter Summary & Takeaway
• 8 Partners A, B and C share profits in the ratio 3:2:5 (total 10 parts). The firm's balance sheet shows net assets (book value) of Rs. 3,00,000. Goodwill is valued at Rs. 80,000. On the retirement of partner C, the partners decide to write off goodwill in the sacrificing ratio of the remaining partners A and B (i.e., 3:2). Additionally, assets are revalued: machinery increases by Rs. 15,000 and stock decreases by Rs. 5,000. Calculate the amount that should be paid to the retiring partner C. hard 5 marks Retirement of partner – settlement with goodwill and revaluation
• 9 A partnership firm has two existing partners, A and B, sharing profit in the ratio 3:2. A new partner C is to be admitted. The existing partners agree to give C goodwill of Rs. 30,000 in their old profit sharing ratio. How much goodwill will be transferred from partner A to C? easy MCQ 1 mark Admission of partner – goodwill transfer
• 10 A partnership of X and Y has a profit sharing ratio of 4:1 and net assets (book value) of Rs. 1,20,000. On the admission of a new partner Z, the assets are revalued: building is increased by Rs. 20,000 and stock is decreased by Rs. 5,000. What amount should be credited to the revaluation reserve? medium 2 marks Revaluation of assets on admission
• 11 Partners K, L, and M share profits in the ratio 5:3:2. The firm’s net assets before L’s retirement are Rs. 8,00,000 and goodwill is Rs. 1,20,000. Upon retirement of L, the remaining partners decide to write off goodwill in sacrificing ratio 5:2. The assets are revalued: machinery increases by Rs. 30,000 and stock decreases by Rs. 15,000. Calculate the amount that should be paid to retiring partner L. hard 5 marks Goodwill write‑off on retirement
• 12 Partners G, H, and I share profits in the ratio 4:3:3. The firm’s net assets before admission of a new partner J are Rs. 6,00,000. After J is admitted, the assets are revalued: the building increases by Rs. 40,000 and the stock decreases by Rs. 10,000. What amount should be credited to the revaluation reserve? medium 3 marks Revaluation reserve on admission
• 13 Partners D and E share profits in the ratio 5:3. A new partner F is admitted. Existing partners agree to give F goodwill of Rs. 24,000 in their old profit sharing ratio. How much goodwill is transferred from partner D to F? easy 1 mark Goodwill transfer on admission
• 14 Which of the following best describes the effect of admitting a new partner on the existing partners’ goodwill account? easy MCQ 2 marks Goodwill accounting on admission
• 15 Partners P, Q, and R share profits in the ratio 4:3:3. The firm's net assets before R’s retirement are Rs. 6,40,000 and goodwill is Rs. 1,00,000. After R retires, the assets are revalued: the building increases by Rs. 20,000 and the stock decreases by Rs. 8,000. The goodwill is written off in the sacrificing ratio of P and Q which is 4:1. Calculate the amount that should be paid to retiring partner R. medium 3 marks Retirement payment calculation
• 16 Partners M and N share profits in the ratio 3:2. A new partner O is admitted. The existing partners agree to transfer goodwill of Rs. 18,000 in their old profit sharing ratio. How much goodwill will be transferred from partner M to partner O? easy 2 marks Goodwill transfer upon admission
• 17 Which of the following statements best describes the effect of admitting a new partner on the goodwill accounts of existing partners? easy MCQ 2 marks Effect of new partner admission
• 18 Partners S and T share profits in the ratio 5:4. A new partner U is to be admitted. The firm’s net assets before admission are Rs. 9,00,000. The assets are revalued: the building increases by Rs. 30,000 and the machinery decreases by Rs. 10,000. The goodwill to be transferred to U is Rs. 36,000 in the partners’ old profit sharing ratio. Compute the total amount that will be credited to the firm's books as a result of U’s admission (i.e., the sum of the goodwill transferred and the revaluation reserve). hard 4 marks Credit to firm’s books on admission
• 19 Partners M, N and O share profits in the ratio 5:3:2. The firm’s net assets before retirement are Rs. 12,00,000 and goodwill is Rs. 1,20,000. Partner N retires. The remaining partners M and O agree to write off goodwill in their sacrificing ratio 5:2. During retirement the assets are revalued as follows: machinery increases by Rs. 25,000, building increases by Rs. 18,000 and stock decreases by Rs. 12,000. Calculate the total amount that should be paid to retiring partner N, including his share of goodwill and his share of the net revaluation surplus. hard 4 marks Retirement – goodwill and revaluation allocation
• 20 Partners A and B share profits in the ratio 3:2. Partner B retires. The firm's net assets before retirement are Rs. 5,00,000 and goodwill is valued at Rs. 80,000. Goodwill is to be written off in the sacrificing ratio of the remaining partner A (i.e., 3:2). Calculate the amount of goodwill that should be paid to retiring partner B. easy 2 marks Retirement – goodwill settlement
• 21 Partners X and Y share profits in the ratio 4:1. Before admission of a new partner Z, the firm’s net assets are Rs. 9,20,000 and goodwill is valued at Rs. 50,000. Z is to be admitted and is given goodwill of Rs. 30,000 in the old profit‑sharing ratio. At the same time the firm revalues its assets: the building increases by Rs. 15,000 and the stock decreases by Rs. 5,000. Compute the total amount that will be credited to the firm’s books as a result of Z’s admission (goodwill transferred + revaluation reserve). medium 3 marks Admission – goodwill and revaluation
• 22 Partners G, H and I share profits in the ratio 4:3:3. The firm’s net assets before admission of a new partner J are Rs. 6,00,000. After J is admitted, the assets are revalued: the building increases by Rs. 40,000 and the stock decreases by Rs. 10,000. The goodwill to be transferred to J is Rs. 36,000 in the partners’ old profit‑sharing ratio. Compute the total amount that will be credited to the firm’s books as a result of J’s admission (i.e., the sum of the goodwill transferred and the revaluation reserve). hard 5 marks Admission of new partner and revaluation reserve
• 23 Partners D and E share profits in the ratio 5:3. A new partner F is admitted. The existing partners agree to give F goodwill of Rs. 24,000 in their old profit‑sharing ratio. How much goodwill will be transferred from partner D to F? easy 2 marks Goodwill transfer to new partner