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CHAPTER 2: ADMISSION OF PARTNER

CHAPTER 2: ADMISSION OF PARTNER Multiple Choice Questions 1. Complete the following journal entry: ………………………………..a/c Dr To Cash a/c (The amount of goodwill brought in by the new partner is withdrawn by the existing partners) (2019 Mar- 1 Mark) Answer: Old Partners' Capital A/c Dr To Cash a/c 2. If an incoming partner brings the premium of goodwill in cash, it will be shared by the old partners in : (a) new profit sharing ratio (b) old profit sharing ratio (c) capital ratio (d) sacrificing ratio (2019 Say- 1 Mark) Answer: (d) sacrificing ratio 3. Goodwill brought in by the incoming partner in cash is credited to: (a) old Partners capital Account in sacrificing ratio (b) old Partners capital Account in new ratio (c) Ne...

Partnership - Basic Concepts | Accounting Questions

CHAPTER 1: PARTNERSHIP – BASIC CONCEPTS CHAPTER 1: PARTNERSHIP – BASIC CONCEPTS Multiple Choice Questions (1 Mark Each) 1. Identify the name of account which is prepared to show how the profits are distributed among partners a) Income & Expenditure a/c b) Profit & Loss a/c c) Profit & Loss appropriation a/c d) None of these (2019 Mar and 2020 Say - 1 Mark) Answer: c) Profit & Loss appropriation a/c 2. Under fixed capital method, the interest on drawings is : (a) credited to capital account (b) debited to capital account (c) credited to current account (d) debited to current account (2019- Say -1 Mark) Answer: d) debited to current account 3. A Partnership firm incurs a loss of Rs. 28,000 during the year 2018-19. Which of the following is admiss...