CBSE Class 12

One Mark Questions for Class 12 Accountancy Chapter 4 Reconstitution of Partnership Firm: Retirement/Death of a Partner

Question 1.
What is meant by ‘Gaining Ratio’ on retirement of a partner?
Or
P, Q and R were partners in a firm. On 31st March, 2018 R retired. The amount payable to R ₹ 2,17,000 was transferred to his loan account. R agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. State the rate at which interest will be paid to R. (CBSE Delhi 2019)
Answer:
The ratio in which retiring Partner’s Share is distributed between remaining Partner is called gaining ratio.
Or
Rate of interest will be 6% p.a.

Question 2.
Aman, Bimal and Deepak are partners sharing profits in the ratio of 2 : 3 : 5. The goodwill of the firm has been valued at ₹ 37,500. Aman retired. Bimal and Deepak decided to share profits equally in future. Calculate gain/sacrifice of Bimal and Deepak on Aman’s retirement and also pass necessary journal entry for the treatment of goodwill. (CBSE Outside Delhi 2019)
Answer:
Old Ratio = 2:3:5
New Ratio =1:1 (on Aman’s Retirement)
Bimal’s Gain = 1/2 – 3/10 = 2/10
Deepak’s Gain = 1/2 – 5/10 = nil
Firm’s Goodwill = 37,500 .
A man’s share = 2/10 x 37,500 = 7,500

Question 3.
Riyansh, Garv and Kavleen were partners in a firm sharing profit and loss in the ratio of 8 : 7 : 5. On 2nd November 2018, Kavleen died. Kalveen’s share of profits till the date of her death was calculated at ₹ 9,375. Pass the necessary journal entry. (CBSE Sample Paper 2019-20)
Answer:

Question 4.
At the time of retirement how is the new profit sharing ratio among the remaining partners calculated₹ (CBSE Compt. 2019)
Answer:
The new share of each of the remaining partner is calculated as his/her own share in the firm plus the share acquired from the retiring partner.

Question 5.
In which ratio do the remaining partners acquire the share of profit of the retiring partner? (CBSE Compt. 2017)
Answer:
Gaining ratio.

Question 6.
At the time of retirement of a partner, state the condition when there is no need to compute gaining ratio. (CBSE 2013 Compartment OD)
Answer:
When the remaining partners share profits in old ratio.

Question 7.
On the retirement of a partner, how is the profit sharing ratio of the remaining partners decided?
Answer:
On the basis of old profit sharing ratio.

Question 8.
Why is gaining ratio of the remaining partners calculated at the time of retirement/death of a partner?
Answer:
Gaining ratio of the remaining partners is calculated to determine amount of goodwill payable by them to retired/deceased partner.

Question 9.
State the ratio in which share of goodwill of the retiring partner is debited to Capital Accounts of the remaining partners.
Answer:
In their gaining ratio.

Question 10.
Abha and Beena were partners sharing profits and losses in the ratio of 3 : 2 on April 1st 2013, they decided to admit Chanda for 1/5th share in the profits. They had a reserve of ₹ 25,000 which they wanted to show in their new balance sheet. Chanda agreed and the necessary adjustments were made in the books. On October 1st 2013, Abha met with an accident and died. Beena and Chanda decided to admit Abha’s daughter Fiza in their partnership, who agreed to bring ₹ 2,00,000 as capital. Calculate Abha’s share in the reserve on the date of her death. (CBSE Sample Paper 2015)
Answer:
₹ 12,000

Question 11.
X, Y and Z were partners sharing profits and losses in the ratio of 3:2:2. Z retired and the amount due to him was ₹ 85,000. He was paid ₹ 5,000 immediately. The balance was payable in three equal annual installments carrying interest @ 6% p.a. Pass necessary journal entry for recording the same on the date of Z’s retirement.
(Compt. Delhi 2017)
Answer:

Question 12.
Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 4 : 3 : 1. Mohan retired. His share was taken over equally by Ram and Sohan. In which ratio will the profit and loss on revaluation of assets and liabilities on the retirement of Mohan be transferred to capital accounts of the partners?
(CBSE 2010 Compartment Delhi)
Answer:
In old profit sharing ratio.

One Mark Questions for Class 12 Accountancy Chapter 3 Reconstitution of Partnership Firm: Admission of a Partner

Question 1.
What is meant by Issued Capital ? (CBSE Delhi 2019)
Answer:
Issued capital means such capital as the company issues from time to time for subscription-section 2(50) of the companies Act 2013.

Question 2.
What is meant by ‘ Employees Stock Option Plan? (CBSE Delhi 2019)
Answer:
FSOP means an option granted by the company to its employees & employee directors to subscribe the share at a price that lower than the market price i.e., fair value. It is an option granted by the company but it is not an obligation on the employee to subscribe it.

Question 3.
A and B were partners in a firm sharing profits in the ratio of 3 : 2. C and D were admitted as new partners.
A sacrificed ith of his share in favour of C and B sacrificed 50% of his share in favour of D. Calculate the 4 new profit sharing ratio of A, B, C and D.(CBSE Outside Delhi 2019)
Answer:
Old ratio = 3:2
A’s Sacrifice (in favour of C) = 1/4 x 3/5 = 3/20
B’s Sacrifice (in favour of D) = 1/2 x 2/5 = 2/10
A’s New Share = 3/5 – 3/20 = 9/20
B’s New Share = 2/5 – 2/10 = 2/10

Question 4.
Ankit, Unnati and Aryan are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5 with effect from 1st April, 2018. They had the following balance in their balance sheet, passing necessary Journal Entry:

Answer:

Question 5.
A and B are partners in a firm. They admit C as a partner with l/5th share in the profits of the firm. C brings ₹ 4,00,000 as his share of capital. Calculate the value of C’s share of Goodwill on the basis of his capital, given that the combined capital of A and B after all adjustments is ₹ 10,00,000. (CBSE Sample Paper 2019-20)
Answer:

Question 6.
A and B are partners in a firm sharing profits and losses in the ratio of 3:2.On 1st April, 2019 they decided to admit C their new ratio is decided to be equal. Pass the necessary journal entry to distribute Investment Fluctuation Reserve of ₹ 60,000 at the time of C’s admission, when Investment appear in the books at ₹ 2,10,000 and its market value is ₹1,90,000.
Answer:

Question 7.
A and B are in partnership sharing profits and losses in the ratio of 3:2. They admit C into partnership with 1/5th share which he acquires equally from A and B. Accountant has calculated new profit sharing ratio as 5:3:2. Is accountant correct:
Answer:

New Profit Sharing ratio of A: B: C ¡s 5:3: 2
Yes, new profit sharing ratio is 5:3:2

Question 8.
A, B and C were partners sharing profits in the ratio of 5 : 4 : 3. They decided to change their profit sharing ratio to 2:2:1 w.e.f. 1st April, 2019. On that date, there was a balance of ₹ 3,00,000 in General Reserve and a debit balance of ₹ 4,80,000 in the Profit and Loss Account.
Pass necessary journal entries for the above on account of change in the profit sharing ratio.
Answer:

Question 9.
At the time of admission of a partner, who decides the share of profit of the new partner out of the firm’s profit? (CBSE Compartment 2019)
Answer:
It is decided mutually among the old partners and the new partner.

Question 10.
Hari and Krishan were partners sharing profits and losses in the ratio of 2 : 1. They admitted Shyam as a partner for 1/5th share in the profit. For this purpose the Goodwill of the firm was to be value on the basis of three years’s purchase of last five years average profits. The profits for the last five years were:

Calculate Goodwill of the firm after adjusting the following:
The profit of 2014-15 was calculated after charging ₹ 10,000 for abnormal loss of goods by fire.
Answer:

Question 11.
Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3 : 1. Chaman was admitted as a new partner for 1/6th share in the profits. Chaman acquired 2/5th of his share from Amit. How much share did Chaman acquired from Beena? (CBSE 2018-19)
Answer:
Chaman acquired 1/6 – (1/6 x 2/5) = 3/30 from Beena.

Question 12.
Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amount and purchased a building for ₹2 crore. After 10 years they sold it for ₹3 crore and shared the profit equally. Are they doing the business in partnership.
Answer:
No.

Question 13.
Pawan and Jayshree are partners. Bindu is admitted for l/4th share. State the ratio in which Pawan and Jayshree will sacrifice their share in favour of Bindu? (CBSE Sample Paper 2014)
Answer:
Old ratio i.e. 1 : 1

Question 14.
X and Y are partners. Y wants to admit his son K into business. Can K become the partner of the firm?
Answer:
Yes, if X agrees to it otherwise not.

Question 15.
Name any one factor responsible which affect the value of goodwill.
Answer:
Location of a business.

Question 16.
Vishal & Co. is involved in developing computer software which is a high value added product and Tiny & Co. is involved in manufacturing sugar which is a low value item. If capital employed of both the firms is same, value of goodwill of which firm will be higher?
Answer:
Vishal & Co.

Question 17.
State a reason for the preparation of ‘Revaluation Account’ at time of admission of a partner.
Answer:
To record the effect of revaluation of assets and liabilities.

Question 18.
In which ratio is the profit or loss due to revaluation of assets and liabilities transferred to capital accounts?
Answer:
Old Ratio of existing partners.

Question 19.
Change in Profit Sharing Ratio amounts to dissolution of partnership or partnership firm?
Answer:
Dissolution of partnership.

Question 20.
State one occasion on which a firm can be reconstituted. (CBSE 2012, Delhi)
Answer:
Change of profit sharing ratio among the existing partners.

Question 21.
What is the formula of calculating sacrificing ratio? (CBSE 2011, Outside Delhi)
Answer:
Sacrificing Ratio = Old Ratio-New Ratio.

Question 22.
By which name the profit sharing ratio in which all partners, including the new partner, will share fixture profits?
Answer:
New profit sharing ratio.

Question 23.
If the new partner acquires his share in profits from all the old partners in their old profit sharing ratio, by which ratio will the old partners sacrifice their profit sharing ratio?
Answer:
Old profit sharing ratio.

Question 24.
Name the accounting standard, issued by the Institute of Chartered Accountants of India, which deals with treatment good will.
Answer:
AS 26.

Question 25.
When the new partner brings amount of premium for goodwill, by which ratio is this amount credited to old partners’ Capital Accounts?
Answer:
Sacrificing ratio.

Question 26.
What is the formula for calculating inferred goodwill?
Answer:
Net worth of business on the basis of new partner’s capital minus net worth of business in new firm.

One Mark Questions for Class 12 Accountancy Chapter 2 Accounting for Partnership: Basic Concepts

One Mark Questions for Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation

Question 1.
How are specific donations treated while preparing final accounts of a ‘Not-For-Profit Organisation’ (CBSE Delhi 2019)
Answer:
Specific donation is treated as capital receipt & it is shown on liabilities side of Balance Sheet.

Question 2.
State the basis of accounting of preparing ‘Income and Expenditure Account’ of a ‘Not-For-Profit Organisation. (CBSE Delhi 2019)
Answer:
Accrual basis.

Question 3.
Differentiate between ‘Receipts and Payments Account’ and ‘Income and Expenditure Account’ on the basis of ‘Period’. (CBSE Outside Delhi 2019)
Answer:

Question 4.
What is meant by ‘Life membership fees’ ₹ (Outside Delhi 2019)
Answer:
Membership fee paid in lump stun to become a life member of a not-for-profit organisation.

Question 5.
How are the following items presented in financial statements of a Not-for-Profit organisation: (CBSE Delhi 2019)
(a) Tournament Fund 80,000
(b) Tournament expenses 14,000
Answer:

Question 6.
How are general donations treated while preparing financial statements of a not-for-profit organisation (CBSE Compt. 2019)
Answer:
General donations are treated as revenue receipts.
or
How are general donations treated while preparing financial statements of a not-for-profit organisation (CBSE Compt. 2019)
Answer:
Life membership fee is the membership fee paid by some members as a lump sum amount instead of a periodic subscription.

Question 7.
State the basis of accounting on which ‘Receipt and Payment Account’ is prepared in case of Not-for Profit Organisation. (CBSE Sample Paper 2018-19)
Answer:
Cash basis of accounting.

Question 8.
Where will you show the ‘Subscription received in advance’ during the current year in the Balance Sheet of a Not-For-Profit Organisation₹ (CBSE Sample Paper 2018-19)
Answer:
Liability side of current year’s balance sheet.

Question 9.
A not-for-profit organisation sold its old furniture. State whether it will be treated as revenue receipt or capital receipt.
Answer:
Revenue.

Question 10.
Mention a fund who are specific in nature.
Answer:
Sports fund.

Question 11.
Income and Expenditure Account of a not-for-profit organisation has shown credit balance of ₹ 1,20,000 during 2012-13. When will you show it
Answer:
It will be added in the capital fund on the liability side.

Question 12.
Do not for profit organisation maintain proper system of accounts
Answer:
No.

Question 13.
Name any one account prepared by not for profit organisations.
Answer:
Receipts and Payment Account, Income and Expenditure Account and Balance Sheet.

Question 14.
Give one example of not for profit organisations.
Answer:
Charitable dispensaries, schools, educational institutions, trusts, societies etc.

Question 15.
State one source of not for profit organisations.
Answer:
Subscriptions, donations, legacies, government grant etc.

Question 16.
State the receipts relating to non-recurring in nature.
Answer:
Capital receipts.

Question 17.
State the payments relating to non-recurring in nature.
Answer:
The payments can be classified into capital payment and revenue payment.

Question 18.
Give an example of revenue receipt.
Answer:
Subscription.

Question 19.
Give an example of capital receipt.
Answer:
Government grant.

Question 20.
Give an example of capital payments.
Answer:
Purchase of assets.

Question 21.
What name is used for the cash book in case of not for profit organisations?
Answer:
Receipts and Payments Account.

Question 22.
Which side the revenue receipts are transferred in the income and enpenditure account?
Answer:
Credit side.

Question 23.
When the capital receipts are shown?
Answer:
Liabilities side.

Question 24.
Where the capital payments are shown?
Answer:
Assets side.

Question 25.
In which account the funds are transferred in case of not for profit organisation?
Answer:
Capital Fund.

Question 26.
What is the major source of income for not for profit organisations?
Answer:
Subscription.

Question 27.
What name is used for profit in case of not for profit organisations?
Answer:
Surplus.

Question 28.
What name is used for loss in case of not for profit organisations?
Answer:
Deficit.

Question 29.
Is the surplus or deficit in case of not for profit organisations distributed among members?
Answer:
No.

Question 30.
What type of rec eipts are recorded in the income and expenditure account?
Answer:
Revenue Receipts.

Question 31.
What type of payments are recorded in the income and expenditure account?
Answer:
Revenue Payments.

Question 32.
Which system of accountancy is followed to prepare receipts and payments account?
Answer:
Cash system of accounting.

Question 33.
Which system of account is followed to prepare income and expenditure account.
Answer:
Accrual system of accounting.