Question

(1) How will you consider the interest on debit balance of partners’ current accounts for

firm?

[A] Expense [B] Liability [C] Income [D] Loss

(2) Goods return debit means………

[A] Purchase [B] Purchase return [C] Sales [D] Sales return

(3) Value of goodwill is …. for business having licence, patent, trademark etc.

[A] Less [B] More [C] Negative [D] Zero

(4) What is the formula for super profit ?

[A] Average profit - Expected profit

[B] Average profit - Average profit

[C] Expected rate of return - Average profit

[D] Average profit ¸ Expected profit

(5) Revaluation account is also known as ……..

[A] Capital reserves account

[B] Profit-loss appropriation account

[C] Profit-loss adjustment account

[D] Profit-loss account

(6) In which ratio profit or loss of revolution account is distributed between the partners?

[A] Sacrifice ratio [B] Gain ratio

[C] New profit-loss ratio [D] Old profit-loss ratio

(7) In the reconstruction of partnership firm, sacrifice = …….

[A] New profit-loss share - Old profit-loss share

[B] New profit-loss share - Old profit-loss share

[C] Old profit-loss share - New profit-loss share

[D] Old capital share - New capital share

(8) When only old profit-loss sharing ratio is given; sacrificing ratio of partners = .........

[A] Equal [B] Old ratio

[C] Old share - new share [D] Cannot be calculated

(9) When newly admitted partner is not able to bring his share of goodwill in cash ..........

account is debited.

[A] Cash [B] Goodwill

[C] Premium for goodwill [D] His capital A/c​

Answer 1

Answer:

1- b,2-a, 3-b

I know only three ok