Partnership Questions

A, B and C are partners in a firm sharing profits in the ratio of $3:2:1$. D is admitted into the firm for $1/4$ th share in profits, which he gets as $1/8$ th from A and $1/8$ th from B. The total capital of the firm is agreed upon as $\text{Rs. }1,20,000$ and D is to bring in cash equivalent to $1/4$ th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are $\text{Rs. }40,000$, $\text{Rs. }35,000$ and $\text{Rs. }30,000$ respectively.The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. A will bring in cash as capital after adjustment amount:

Hanny, Pammy, and Sunny are partners sharing profits in the ratio of $3:2:1$. Goodwill is appearing in the books at a value of $\text{Rs. }60,000$. Pammy retires and at the time of Pammy's retirement, goodwill is valued at $\text{Rs. }84,000$. Hanny and Sunny decided to share future profits in the ratio of $2:1$. Pammy's share of the current value of goodwill is:

According to section _________ of the Indian Partnership Act, 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

The profits for the five years of a firm are as follows:Year 2013: $\text{Rs. }4,00,000$ Year 2014: $\text{Rs. }3,98,000$ Year 2015: $\text{Rs. }4,50,000$ Year 2016: $\text{Rs. }4,45,000$ Year 2017: $\text{Rs. }5,00,000$ The goodwill of the firm on the basis of $4$ years' purchase of $5$ years' average profits is:

Determine the value of a firm's goodwill by the capitalization of super profit method if the average profits are $\text{Rs. }1,00,000$, super profits are $\text{Rs. }18,000$, and the normal rate of return is $10\%$.

Kumar, Lakshya, Manoj, and Naresh are partners sharing profits in the ratio of $3:2:1:4$. Kumar retires and his share is acquired by Lakshya and Manoj in the ratio of $3:2$. The gaining ratio of the remaining partners (Lakshya, Manoj, and Naresh) is:

A partnership comes into existence as a result of an agreement among the partners. This written agreement is legally called the:

Which of the following is NOT a general feature of a partnership firm?

A and B are partners in a firm with fixed capitals of $\text{Rs. }4,00,000$ and $\text{Rs. }5,00,000$ respectively. After preparing the final accounts, it was discovered that interest on capital @ $10\%\text{ p.a.}$ as provided in the partnership deed was omitted. To rectify this error through an adjustment entry, A's Current Account should be:

Ravi, one of the partners, provided a loan of $\text{Rs. }1,00,000$ to the firm. In the absence of a partnership deed, interest on this partner's loan is allowed at what rate?

At the time of a firm's dissolution, a machine costing $\text{Rs. }20,000$ along with cash of $\text{Rs. }5,000$ were given to creditors of $\text{Rs. }30,000$ in full settlement of their claim. In this case, the Realisation Account will be debited with what amount for this settlement transaction?

A and B are partners sharing profits equally with capitals of $\text{Rs. }45,000$ each. They admit C as a new partner for a $\frac{1}{3}\text{rd}$ share in profits. C brings in $\text{Rs. }60,000$ as his capital. Find the value of the firm's total Goodwill based on this transaction.

For distributing profits made during a financial year among partners, which account is debited?

Which account is credited if the net assets taken over exceed the agreed purchase consideration at the time of purchasing a business?

A and B are partners sharing profits in the ratio of $3:2$. They admit C for a $\frac{1}{5}\text{th}$ share in future profits, which he acquires equally from both A and B. What will be the new profit-sharing ratio?

"The business of a partnership concern may be carried on by all the partners or any one of them acting for all." Which core feature of partnership does this statement indicate?

When the business of a partnership firm becomes illegal due to changes in regulations or laws, it leads to dissolution under which category?

Under the fixed capital method of a partnership concern, which two accounts are maintained for each partner?

The total sum due to a retiring partner or to the legal executors (in case of death) includes which of the following, along with their capital account balance, share of goodwill, and revaluation profit?

If, at the time of admission of a new partner, profit and loss account appears in the books, it will be transferred to:

Which section of the Indian Partnership Act, 1932 defines the term "Partnership"?

Based on Case Study 2, find the value of Normal Profit.

Based on Case Study 2, what is the value of the Average Profit?

Based on Case Study 2, calculate the final value of Goodwill.

Based on Case Study 2, what is the specific value of the Super Profit?

Based on Case Study 2 data, if the normal profit were instead given as $\text{Rs. }60,000$, what would be the revised calculated Normal Rate of Return?

Which Factor does not Affect the Value of Goodwill:

Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of $4:3:2$. Nirmal retires and the goodwill is valued at $\text{Rs. }72,000$. Keshav and Pankaj decided to share future profits and losses in the ratio of $5:3$. Gaining Ratio of Keshav and Pankaj is:

Arrange the following steps for calculating Goodwill under Capitalisation of Average Profits Method in correct sequence-(A) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets.(B) Compute the value of goodwill by deducting net assets from the capitalised value of average profits.(C) Ascertain the average profits based on the past few years' performance.(D) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalised value of average profits.Choose the correct answer from the options given below: