12th Principles of Accounting Chapter 7 Test

Here you can prepare 12th Class Principles of Accounting Chapter 7 Partnership Accounts-Admission of a Partner Test. Click the button for 100% free full practice test.

12th class Principle of Accounting chapter 7 online mcq test with answers for ICom part 2 Principle of Accounting Chapter 7 (Partnership Accounts-Admission of a Partner)

This online test contains MCQs about following topics:

. Admission of a new Partner . Goodwill and its Treatment in Books of Account . Methods of Valuation of Goodwill . Revaluation of Assets and Liabilities . Calculation of new Profit Sharing Ratio . Readjustment of Partners Capitals

ICOM Part 2 Accounting Ch 7 Test

12th class Principle of Accounting chapter 7 online mcq test with answers for ICom part 2 Principle of Accounting Chapter 7 (Partnership Accounts-Admission of a Partner)

Sr. # Questions Answers Choice
1 Goodwiil is an
  • A. Tangible asset
  • B. Intangible asset
  • C. Wasting asset
  • D. Fictitious asset
2 The value of goodwill is calculated by multiplying the average profit of a given number of past years by an agreed number under
  • A. Average profits method
  • B. Super profits method
  • C. Capitalization method
  • D. Revaluation method
3 The share of profit to a new partner in the future profits without any express agreement as to who will contribute to new partner's share of profit is implied that old partners contribute
  • A. Equally
  • B. In proportion of their capital
  • C. In their profit sharing ratio
  • D. None of these
4 The benefit and advantage of the good name or reputation of a business.
  • A. Liability
  • B. Goodwill
  • C. Amortization
  • D. Depreciation
5 Old profit sharing ratio minus new profit sharing ratio is equal to
  • A. Sacrificing ratio
  • B. Gaining ratio
  • C. Distributing ratio
  • D. None of these
6 What will be the value of goodwill on two years purchase of the average profit of the last three years? The profit earned during the last three years are Rs. 10000, Rs.12000 and Rs.14000
  • A. Rs.24000
  • B. Rs.20000
  • C. Rs.12000
  • D. Rs.36000
7 Goodwill is valued when
  • A. Profit is earned
  • B. Loss is suffered
  • C. One year is completed
  • D. New partner is admitted
8 X, Y and Z are partners in a firm. If B is to be admitted as a new partner
  • A. Old partnership has to be dissolved
  • B. Old firm has to be dissolved
  • C. Both old firm and partnership have to be dissolved
  • D. Neither firm nor parnership needs to be dissolved
9 On the admission of a new partner the decrease in the value of assets is debited to
  • A. Profit and loss adjustment account
  • B. Assets account
  • C. Old partners capital account
  • D. New partner capital account
10 A new partner may be admitted to a partnership
  • A. With the consent of all the old partners
  • B. With the consent of any one of the partners
  • C. With the consent of two third of the old partners
  • D. Without consent of old partners

Top Scorers of Principles of Accounting Icom Part 2 English Medium Chapter 7 Online Test


Ayesha Tariq

Lahore11 - Dec - 2021

11 Mins 58 Sec

Kashaf Sehar

Lahore19 - Jan - 2022

02 Mins 29 Sec

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