DPP - 1 Accounts Chapter - Admission of A Partner

DPP – 1 Accounts
Chapter – Admission of a Partner
Q 1. At the time of admission credit balance of profit and loss account appearing in books will be
transferred to:
a) Profit and loss account
b) Revaluation account
c) Old partner capital account
d) All partners capital account
Q 2. Identify the correct sequence where new partner is to bring proportionate capital
A. Calculation of capital balance of old partners
B. Preparation of Revaluation A/c
C. Determination of Revaluation gain/loss
D. Presentation of Treatment of goodwill
E. Calculation of capital to be brought in by the new partner
Choose the correct answer from the options given below:
a) C,B,D,A,E
b) D,B,C,E,A
c) D,C,B,A,E
d) B,C,D,A,E
Q 3. The journal entry for payment of unrecorded liability at the time of admission of partner is:-
a) Unrecorded liability a/c dr.
To Revaluation a/c
b) Unrecorded liability a/c dr.
To Cash a/c
c) Revaluation a/c dr.
To Cash a/c
d) Liability a/c dr.
To Revaluation a/c
Q 4. Read the following facts about admission of a partner
1
A. A new partner acquires his share from the old partners that reduces the old partners share in profits
B. The partners capital must be adjusted so as to be proportionate to their new profit sharing ratio
C. Assets and liabilities may be revalued and reassessed on admission of a partner
D. Adjustment for Reserve and Accumulated profits/loss is done
E. Profit sharing ratio of existing partners may change on admission of a new partner
a) A, B, C and D Only
b) B, C, D and E Only
c) C, D and E Only
d) A, C, D and E only
Q 5. On the admission of a partner increase in the value of assets is debited to:
a) Profit and loss adjustment a/c
b) Assets a/c
c) Old partners capital a/c
d) Profit and loss account
Q 6. A and B are partners sharing profits in the ratio of 3:2. They decided to expand the business by
admitting C as new partner of 1/4th share. C share of goodwill is valued at 90,000 for which he
compensated A and B in the ratio 1:4. Following information is also provided:
Book value Revalued figure
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
Workmen compensation fund 5,00,000
Claim against workmen compensation is 2,00,000 and goodwill appeared in the books at 60,000
Goodwill brought by C will be distributed as:
a) 54,000; 36,000
b) 2,16,000; 1,44,000
c) 18,000; 72,000
d) 72,000; 18,000
2
Q 7. P and Q are partners in a partnership firm sharing profits in 3:2 ratio. They agreed to admit new
partner R. P sacrifice 1/6 from his share and Q sacrifice 1/4 from his share. Calculate new profit sharing
ratio between P, Q and R.
a) 26:9:25
b) 5:3:2
c) 1:1:1
d) 25:20:15
Q 8. Based on following answer the question
A and B are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting
C as new partner of 1/4th share. C share of goodwill is valued at 90,000 for which he compensated A and
B in the ratio 1:4. Following information is also provided:
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
What journal entry will be passed for goodwill appearing in the books?
a) Dr. Goodwill a/c 60,000
Cr. A capital a/c 36,000
Cr. B capital a/c 24,000
b) Dr. A capital a/c 36,000
Dr. B capital a/c 24,000
Cr. Goodwill a/c 60,000
c) Dr. A capital a/c 12,000
Dr. B capital a/c 48,000
Cr. Goodwill a/c 60,000
d) Dr. Goodwill a/c 60,000
Cr. All partners capital a/c 60,000
Q 9. Which of the following are shown in Revaluation a/c?
3
A. Unrecorded asset
B. Workmen compensation reserve
C. Decrease in fixed asset
D. Increase in inventory
E. Drawings of partner
a) A and B only
b) B and E only
c) A, C, and D only
d) C and D only
Q 10. Answer based on following information:
A and B are partners in a firm sharing profits and losses in the ratio of 2:1. C is admitted into the firm
with 1/4 share in profits. C will bring in ₹30,000 as his capital and the capital of A and B are to be
adjusted in the profit sharing ratio. The balance sheet of A and B as on December 31,2016 (before C’s
admission) was as follows:
Liabilities Amount Assets Amount

Creditors 8,000 Cash in hand 2,000
Bills Payable 4,000 Cash at bank 10,000
General reserve 6,000 Sundry debtors 8,000
Capital of A 50,000 Stock 10,000
Capital of B 32,000 Furniture 5,000
Machinery 25,000
Buildings 40,000
1,00,000 1,00,000
It was agreed that:
I. C will bring in 12,000 as his share of goodwill premium
II. Building were valued at 45,000 and machinery at 23,000
III. A provision for doubtful debts is to be created @ 6% on debtors
IV. The Capital account of A and B are to be adjusted by opening current accounts.
Current accounts of partners are reflected in the books of account as per __________ method
a) Fluctuating
b) Fixed
c) Volatile
4
d) Dynamic

Machinery 25,000
Buildings 40,000
1,00,000 1,00,000
It was agreed that:
Which of the following is not a factor affecting value of goodwill?
a) Efficiency of management
b) Location of business
c) Number of partners
d) Nature of business

Machinery 25,000
5
Buildings 40,000
1,00,000 1,00,000
It was agreed that:
State the amount of A’s share in Revaluation gain
a) 1,680
b) 2,520
c) 640
d) 1,260

Machinery 25,000
Buildings 40,000
1,00,000 1,00,000
It was agreed that:
State journal entry to be passed for treatment of general reserve
a) A capital a/c dr. 4,000
B capital a/c dr. 2,000
6
To C capital a/c 6,000
b) General reserve a/c dr. 6,000
To A capital a/c 4,000
To B capital a/c 2,000
c) General reserve a/c dr. 6,000
To C capital a/c 1,500
d) C capital a/c 6,000

Machinery 25,000
Buildings 40,000
1,00,000 1,00,000
It was agreed that:
Computer new capital of B:
a) 30,000
b) 60,000
7
c) 45,000
d) 54,000
Q 15. Which of the given transaction are to be transferred to revaluation account
A. Stock was overvalued by 20%
B. General reserve appearing in books 2,00,000
C. Goodwill valued at 1,50,000
D. Workers claim of 20,000 when there was no workmen compensation fund
E. Goodwill appearing in the books 1,00,000
Choose the correct answer from the options given below
a) A, C, and D only
b) A, D, and E only
c) A, and D only
D) B, C, and D only
Q 16. Correct sequences of activities involved in case of admission of a partner is
A. Calculation of new and Sacrificing ratios
B. Preparing of revaluation account
C. Preparation of partners’ capital account
D. Adjustment of capital
E. Preparation of new balance sheet
a) B, A, C, D, E
b) A, B, C, D, E
c) C, D, E, A, B
d) E, A, B, C, D
Q 17. Match the list I with list II
List I List II
A. Increase in furniture value I. Credit side of partners’ capital a/c
B. Depreciation on machinery II. Debit side of partners’ capital a/c
C. General reserve III. Credit side of revaluation a/c
D. Goodwill appearing in books IV. Debit side of revaluation a/c
8
a) A-IV, B-III, C-II, D-I
b) A-III, B-IV, C-I, D-II
c) A-III, B-IV, C-II, D-I
d) A-IV, B-III, C-I, D-II
Q 18. P and Q are partners in a firm sharing profit in 4:1 ratio. They admitted R as a new partner for 25%
share in the profit which he acquired wholly from P. Determine the new profit sharing ratio
a) 11:4: 5
b) 4:1:1
c) 3:1:1
d) 8:1:1
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
Share of revaluation profit of A and B is:
a) 24,00,000 and 16,00,000
b) 16,00,000 and 24,00,000
c) 8,00,000 and 32,00,000
d) 20,00,000 and 20,00,000
9
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
What is A’s share in workmen compensation fund?
a) 3,00,000
b) 1,80,000
c) 1,20,000
d) 1,00,000
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
A new partner can be admitted:
a) If all the existing partner agree
b) If majority of the existing partner agree
c) If any one of the existing partners agree
d) If 4/5th of the existing partner agree
10
Answer Key
Ans 1. C
Ans 2. D
Ans 3. C
Ans 4. D
Ans 5. B
Ans 6. C
Ans 7. A
Ans 8. B
Ans 9. C
Ans 10. B
Ans 11. C
Ans 12. A
Ans 13. B
Ans 14. A
Ans 15. C
Ans 16. B
Ans 17. B
Ans 18. A
Ans 19. A
Ans 20. B
Ans 21. A
11
Business Studies
Chapter – Principles of Management
Q 1. Fredrick Winslow Taylor was an American ________ who sought to improve industrial efficiency
a) Civil engineer
b) Computer engineer
c) Mining engineer
d) Mechanical engineer
Q 2. To reduce a given line or products to fixed types, size and characteristics is an objective of one of the
techniques of Taylor identify the technique
a) Method study
b) Motion study
c) Time study
d) Standardisation and simplification
Q 3. According to which principle of management. Organisation should have a chain of authority and
communication that runs from top to bottom and should be followed by managers and the subordinates.
a) Centralisation and Decentralisation
b) Subordination of individual interest to general interest
c) Scalar chain
d) Esprit de crops
Q 4. Match List I with List II
List I List II
A. Time study I. Amount and frequency of rest intervals to
complete a task
B. Motion study II. Different wage rate for efficient and inefficient
workers
C. Fatigue study III. Study of various movements
D. Differential piece wage system IV. Determining standard time taken for
performing a well defined job
a) A-I, B-II, C-III, D-IV
b) A-II, B-III, C-I, D-IV
c) A-IV, B-III, C-I, D-II
12
d)A-III, B-I, C-IV, D-II
Q 5. The techniques of Taylor which contradicts one of the principles of General management namely
unity of command is:
a) Method study
b) Standardisation and Simplification
c) Functional foremanship
d) Harmony not discord
Q 6. Which techniques of scientific management violates Fayol's Principle of Equity?
a) Standardization of work
b) Motion study
c) Differential piece wage system
d) Mental revolution
Q 7. The formal lines of authority from highest to lowest ranks are known as ____________
a) Scalar chain
b) Delegation of authority
c) Decentralisation of authority
d) Unity of command
Q 8. Principle of management do not provide readymade, straitjacket solutions to all managerial

problems. identify the features of principles of management highlighted in the given statement.
a) Flexible
b) General guidelines
c) Universal applicability
d) Contingent
Q 9. Which technique of Scientific management violates unity of command?
a) Time study
b) Standardisation of work
c) Functional foremanship
d) Simplification of work
13
List I List II
A. Flexible I. Aim at influencing conduct of humans
B. General guidelines II. Can be modified as per demand of situation
C. Mainly behavioural III. Dependent upon prevailing situation at a point
of time
D. Contingent IV. Do not provide readymade straitjacket
solutions
a) A-II, B-IV, C-I, D-III
b) A-III, B-II, C-I, D-IV
c) A-IV, B-II, C-I, D-III
d) A-II, B-III, C-I, D-IV
Q 11. The principles of management are not rigid prescriptions these can be modified by the manager
when the situation so demands
what nature of principles of management has been indicated in the above statement?
a) General guidelines
b) Flexible
c) Contingent
d) Mainly behavioural
Q 12. In Which departments did Taylor divide the work of factory manager?
A. Department of planning
B. Department of production
C. Department of research
D. Department of marketing
a) A, B and C only
b) A and B only
c) C and D only
d) A and D only
Q 13. Mohan a production Manager of X Ltd. has divided his factory operation under planning in charge
and production in charge
Identify the technique of scientific management being followed by Mohan
14
a) Motion study
b) Functional foremanship
c) Time study
d) Method study
Q 14. Read the following case study and answer the question
Param and Rajat run a burger store in Gangtop. While visiting their store Swati observed the following
points. The worker did not need to move much while serving a customer as the trays were placed on his
right hand upper shelf. Tissues were on right side of lower shelf and spoons on left side upper shelf. The
stews and cups were placed in a rack next to the vending machine. the burger were just behind him.
During her 3 days stay she visited the store daily and saw the staff doing different jobs. a worker who
was handling the cash was cleaning the floor on the next day was cleaning the tables on the third day
Everyone was dressed up in similar uniform, black shoes, cap, socks, black trousers, orange t-shirt, etc.
they carried their name badge also
She also overhead the staff discussing about the new worker, who was not upto the mark and how they
supported him by explaining the way thing had to done so that his performance could improve.
While looking around the store she saw a soft board on which a person picture was put up as employee
of the month. she began to smile as the name on the soft board was similar to hers.
While principle of management in neglected when the workers was working at three different places on
all three days.
a) Equity
b) Order
c) Sclar chain
d) Stability of personnel
right hand upper shelf. Tissues were on right side of lower shelf and spoons on left side upper shelf. The
staws and cups were placed in a rack next to the vending machine. the burger were just behind him.
15
The workers were all wearing black cap, shoes, trousers and orange t-shirts. the uniform were all similar
identify the principle of management followed here
a) Order
b) Discipline
c) Unity of command
d) Unity of direction
right hand upper
shelf. Tissues were on right side of lower shelf and spoons on left side upper shelf. The stews and cups
were placed in a rack next to the vending machine. the burger were just behind him.
In the burger store the worker did not need to move much. which principles of management was fulfilled
by the owner of the burger store?
a) Order
b) Stability of personnel
c) Equity
d) Initiative
List I List II
A. Unity of command I. Study of movements
B. Unity of direction II. Differentiates between efficient and inefficient
workers
C. Motion study III. One subordinate one superior
16
D. Differential piece wage system IV. One head and one plan
a) A-I, B-II, C-IV, D-III
b) A-III, B-IV, C-I, D-II
c) A-II, B-III, C-I, D-IV
d) A-II, B-IV, C-III, D-I
Q 18. Under functional foremanship Taylor proposed
a) Two specialists
b) Four specialists
c) Six specialists
d) Eight specialists
Q 19. Identify the correct features of principles of management
A. Flexible
B. Interrelated
C. General Guidelines
D. Pervasive
E. Contingent
a) A, C and E only
b) B, C, and E only
c) A, C, and D only
d) B, C, and D only
Q 20. Identify the scientific principle that called for complete mental revolution on the part of both
management and
workers
a) Harmony not discord
b) Science not rule of thumb
c) Development of each and every person to his or her greatest efficiency and prosperity
d) Cooperation not individualism
17
Q 21. Which of the following is not a nature of Principle of Management?
a) Universal applicability
b) Formed by practice and experimentation
c) Flexible
d) Does not depend upon the prevailing situation at a particular point of time
Q 22. Which of the following principle of management states that dual subordinates should be avoided?
a) Unity of direction
b) Unity of command
c) Discipline
d) Order
Q 23. Identify the term that refers to the process of setting standards for every business activity which
act as benchmarks that must be adhered to during production.
a) Simplification
b) Standardisation
c) Mental Revolution
d) Discipline
Q 24. Read the following passage and answer question
Mr. A has joined as a Vice President of a manufacturing unit manufacturing garments. As a vice president
he was given the responsibility of increasing the production and efficiency of workers.
He observed that managers relied on their personal judgement while attending to the problems they
confronted. so he recommended work study which will result in saving time efforts and increasing
efficiency. He also noticed that management was not honouring their commitment
He surveyed the market too. His study to survey showed that demand can be increased through
diversification. he decided to diversify into footwear and handbags. he created divisions for garments,
footwear and handbags and made the divisional managers responsible for performance. Each division is
self-contained with respect to various functions like production, purchase, finance, marketing, etc.
Now he decided to fill the various positions created with the right person. for this he analysed the
number and type of workers needed. he got his organisational registered at Naukri. com
Management is not honouring their commitment. identify the principle of Fayol being ignored in the
above statement
a) Unity of command
b) Equity
18
c) Discipline
d) Remuneration
Q 25. Read the following passage and answer question
Mr. A has joined as a Vice President of a manufacturing unit manufacturing garments. As a vice president
he was given the responsibility of increasing the production and efficiency of workers.
He observed that managers relied on their personal judgement while attending to the problems they
confronted. so he recommended work study which will result in saving time efforts and increasing
efficiency. He also noticed that management was not honouring their commitment
He surveyed the market too. His study to survey showed that demand can be increased through
diversification. he decided to diversify into footwear and handbags. he created divisions for garments,
footwear and handbags and made the divisional managers responsible for performance. Each division is
self-contained with respect to various functions like production, purchase, finance, marketing, etc.
Now he decided to fill the various positions created with the right person. for this he analysed the
number and type of workers needed. he got his organisational registered at Naukri. com
Identify the principle of management which emphasizes on creating place for people and things.
a) Initiative
b) Division of work
c) Esprit de crops
d) Order
Q 26. The concept the highlights that management should promote a team spirit of unity and harmony
among employee is _____________.
a) Initiative
b) Scalar chain
c) Esprit de crops
d) Equity
19
Answer Key
Ans 1. D
Ans 2. D
Ans 3. C
Ans 4. C
Ans 5. C
Ans 6. C
Ans 7. A
Ans 8. B
Ans 9. C
Ans 10. A
Ans 11. B
Ans 12. B
Ans 13. B
Ans 14. D
Ans 15. B
Ans 16. A
Ans 17. B
Ans 18. D
Ans 19. A
Ans 20. A
Ans 21. D
Ans 22. B
Ans 23. B
Ans 24. C
Ans 25. D
Ans 26. C
20
Economics
Chapter – Money & Banking
Q 1. Repo-rate is the rate at which RBI lends money to commercial banks for ___________
a) Long period
b) Short period
c) Very long period
d) Market period
Q 2. Calculate the total deposits made by commercial banks when the primary deposit is 20 crores and
cash reserve ratio is 20% choose the correct option
a) 40 crores
b) 60 crores
c) 80 crores
d) 100 crores
Q 3. Arrange the following statements relating to open market operations in the correct sequence
A. There by resulting in an increase in money supply
B. Central bank pays for it by giving a cheque
C. Central bank buys a government bond in the open market
D. This increase the total amount of reservation in the economy
a) A, B, C, D
b) B, A, C, D
c) D, C, B, A
d) C, B,D, A
Q 4. A fall in the bank rate ____the money supply
a) Decrease
b) Increase
c) Will not affect
d) May increase or decrease
21
Q 5. Reserve Bank is the only institution which can issue currency. The role of RBI is to lend money to all
commercial banks at all times. This function of RBI is called lender of Last Resort. RBI influences money
supply by buying or selling of bonds issued by the government in open market. When RBI buys a
government bond in the open market it pays for it by giving a cheque. This cheque increases the total
amount of reserves in the economy and thus increases money supply. Selling of bonds by RBI decreases
the money supply. When Central Bank buys the security this type of agreement is called repurchase
agreement and the rate at which the money is lent in this way is called Repo Rate. RBI also influences
money supply by changing the rate at which it gives loans to commercial banks called Bank Rate.
Reverse Repo rate is defined as:
a) Rate at which RBI gives loans to commercial banks
b) Rate at which commercial banks give loans to customers
c) Rate at which central bank sell securities through an agreement which has specification about rate and
price
d) Rate at which RBI sell the bonds
Lender the last resort function of RBI means:
a) It increase money supply in economy
b) It issues currency
c) It provides funds all times to commercial banks
d) It decreases money supply
Which is the only institution which issues currency?
a) SBI
22
b) RBI
c) PNB
d) ICICI bank
Selling of bonds by RBI result in which of the following?
a) It decrease money supply in economy
b) It increase money supply in economy
c) It change interest rate
d) It issues currency
Bank rate is defined as:
a) The rate at which RBI gives loans to commercial banks
b) The rate at which the money is lent without agreement
c) The rate at which money is lent through an agreement
d) The rate at which commercial bank gives loan to customers.
Q 10. The RBI can influence money supply by changing __________ at which it gives loan to the
commercial banks
a) Promissory rate
b) Lending rate
c) Fixed rate
23
d) Bank rate
Q 11. Identify the rate at which RBI gives loans to the commercial banks to influence money supply
a) Repo rate
b) Reverse repo rate
c) Bank rate
d) Call rate
Q 12. The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks 1.50lakhs on
Dr. Ambedkar Nagarik Sarkari Bank Maryadit; 25,000 on Nagarik Sarkari Bank Maryadit, and 1lakh on
Ravi commercial bank for violating the provision of its regulations. the banking regulator has imposed a
monetary penalty for contravention of non-compliance with the direction issued to Ravi commercial
bank an exposure norms and statutory and other restrictions & KYC.
Which of the following is correct statement?
a) RBI act as banker to commercial banks and central bank
b) Central bank creates credit in economy
c) All financial institutions are banking institutions
d) One rupee note and all coins are issued by the ministry of finance
Q 13. When Cash Reserve Ratio is 20% then with the deposit of 1000. Money creations will be 5000
a) 0.5
b) 0.05
c) 5
d) 1/5
Q 14. When the interest rate is increased the demand for money
a) Goes up
b) Remain constant
c) Comes down
d) Zero demand
Q 15. RBI can influence money supply by changing the bank rate. an increase in bank rate can be termed
as:
a) Contractionary monetary policy
b) Expansionary monetary policy
24
c) Contractionary fiscal policy
d) Expansionary fiscal policy
Q 16. Arrange the correct sequence of impact of increase in Bank rate of Central bankA. Costly loan for
general public
B. Increase in rate of interest by commercial bank
C. Expensive loan taken by commercial bank
D. Decrease in money supply
E. Control over the situation of inflation
a) B, A, C, E, D
b) B, C, A, D, E
c) A, C, B, E, D
d) C, B, A, D, E
Q 17. Identify the first and foremost role of money
a) Medium of exchange
b) Unit of account
c) Means of deferred payments
d) Measure of value
Dr. Ambedkar Nagarik Sarkari Bank Mayardit; 25,000 on Nagarik Sarkari Bank Mayardit, and 1lakh on
Which function of central bank is referred to in the above paragraph
a) Financial advisor
b) Supervisor to banks
c) Bankers bank
d) Lender the last resort
25
As a bankers bank what is the role played by RBI?
A. Custodian of cash reserves
B. Maintain foreign exchange reserves
C. Currency issue
D. Lender of last resort
E. Clearing house
a) A, C, D, and E only
b) B and C only
c) A only
d) A, D, and E only
How does RBI act as a supervisor to bank?
a) Bankers to government
b) Agent to government
c) Financial advisor to government
d) Inspection and imposing penalty
Q 21. The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks 1.50 lakhs on
If all the deposits one day come to withdraw all the cash, what would be role played by RBI?
a) Maintaining foreign exchange reserves
b) Lender the last resort
c) Maintaining cash reserves
26
d) Currency issue
Answer Key
Ans 1. B
Ans 2. D
Ans 3. D
Ans 4. B
Ans 5. C
Ans 6. C
Ans 7. B
Ans 8. A
Ans 9. A
Ans 10. D
Ans 11. C
Ans 12. D
Ans 13. C
Ans 14. C
Ans 15. A
Ans 16. D
Ans 17. A
Ans 18. B
Ans 19. D
Ans 20. D
Ans 21. B
27

DPP - 1 Accounts Chapter - Admission of A Partner

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DPP – 1 Accounts

Chapter – Admission of a Partner

a) Profit and loss account

c) Old partner capital account

d) All partners capital account

A. Calculation of capital balance of old partners

B. Preparation of Revaluation A/c

C. Determination of Revaluation gain/loss

D. Presentation of Treatment of goodwill

E. Calculation of capital to be brought in by the new partner

Choose the correct answer from the options given below:

a) Unrecorded liability a/c dr.

b) Unrecorded liability a/c dr.

c) Revaluation a/c dr.

d) Liability a/c dr.

Q 4. Read the following facts about admission of a partner

C. Assets and liabilities may be revalued and reassessed on admission of a partner

D. Adjustment for Reserve and Accumulated profits/loss is done

Choose the correct answer from the options given below:

Q 5. On the admission of a partner increase in the value of assets is debited to:

a) Profit and loss adjustment a/c

c) Old partners capital a/c

d) Profit and loss account

Book value Revalued figure

Machinery 25,00,000 27,00,000

Land 10,00,000 50,00,000

Computers 2,50,000 50,000

Workmen compensation fund 5,00,000

Goodwill brought by C will be distributed as:

Q 8. Based on following answer the question

Book value Revalued figure

Machinery 25,00,000 27,00,000

Land 10,00,000 50,00,000

Computers 2,50,000 50,000

Workmen compensation fund 5,00,000

a) Dr. Goodwill a/c 60,000

Cr. A capital a/c 36,000

Cr. B capital a/c 24,000

b) Dr. A capital a/c 36,000

Dr. B capital a/c 24,000

Cr. Goodwill a/c 60,000

c) Dr. A capital a/c 12,000

Dr. B capital a/c 48,000

Cr. Goodwill a/c 60,000

d) Dr. Goodwill a/c 60,000

Cr. All partners capital a/c 60,000

Q 9. Which of the following are shown in Revaluation a/c?

B. Workmen compensation reserve

C. Decrease in fixed asset

Choose the correct answer from the options given below:

Q 10. Answer based on following information:

Liabilities Amount Assets Amount

I. C will bring in 12,000 as his share of goodwill premium

II. Building were valued at 45,000 and machinery at 23,000

III. A provision for doubtful debts is to be created @ 6% on debtors

Q 11. Answer based on following information:

Liabilities Amount Assets Amount

I. C will bring in 12,000 as his share of goodwill premium

II. Building were valued at 45,000 and machinery at 23,000

III. A provision for doubtful debts is to be created @ 6% on debtors

Which of the following is not a factor affecting value of goodwill?

Q 12. Answer based on following information:

Liabilities Amount Assets Amount