New Ratio and Sacrificing Ratio MCQ - Partnership accounts
This MCQ Test on the calculation of new ratio and sacrificing ratio at the time of admission of a new partner has 15 practice questions. Test your knowledge about the various methods for the calculation of new ratio and the sacrificing ratio. The quiz suits well for conceptual clarity for your board exams
CBSE class 12 accountancy MCQ questions
The below MCQ test is designed as per the latest syllabus prescribed by CBSE board. With the rise in weightage of MCQ questions, the practice of MCQ questions becomes very important. The quiz is equally useful for students of CUET exams.
How to attempt the quiz
One by one go through the below questions and select the right option. Do all the questions and in the end press submit. Instantly you will get your score and the explanation against each question. Go through your mistakes and reattempt the quiz any number of times as needed.
MCQ Quiz - Practice Questions
MCQ Quiz
Question 1
New Profit Sharing Ratio is the ratio in which partners share profits after admission of a new partner.
A
Correct Answer: True
New Profit Sharing Ratio is the ratio in which all partners including the incoming partner share future profits and losses.
Question 2
Sacrificing Ratio is calculated as Old Ratio minus New Ratio.
A
Correct Answer: True
Sacrificing Ratio = Old Profit Share - New Profit Share. It shows what each old partner has given up.
Question 3
If the new partner's share is given but sacrifice by old partners is not mentioned, old partners sacrifice in their:
B
Correct Answer: Old profit sharing ratio
Unless stated otherwise, old partners sacrifice in their old profit sharing ratio when new partner's share is acquired from them.
Question 4
Sacrificing ratio is used to distribute goodwill brought by the new partner among:
C
Correct Answer: Sacrificing partners only
Goodwill is compensation for sacrifice, so it is distributed only to partners who sacrifice their profit share in the sacrificing ratio.
Question 5
Gaining ratio is calculated when a partner retires or dies.
A
Correct Answer: True
Gaining Ratio = New Ratio - Old Ratio. It is used when partners gain share from retiring/deceased partner, unlike sacrificing ratio used on admission.
Question 6
If an old partner gains on admission of new partner, he will:
B
Correct Answer: Pay goodwill to sacrificing partners
A gaining partner must compensate the sacrificing partners proportionately for the profit share gained.
Question 7
When new partner acquires his share equally from all old partners, the sacrificing ratio is:
A
Correct Answer: Equal among old partners
When new partner takes share equally from all old partners, each old partner sacrifices equally regardless of their old ratio.
Question 8
New profit sharing ratio is calculated for:
C
Correct Answer: All partners including new partner
New profit sharing ratio includes all partners (old + new) as it shows how future profits will be shared in reconstituted firm.
Question 9
If one partner retains his original share on admission, the new partner's share and retained partner's share are:
B
Correct Answer: Deducted from 1 and balance distributed among remaining old partners in their old ratio
When one partner retains original share, his share and new partner's share are deducted from 1, and balance is divided among remaining partners in their old ratio.
Question 10
If the old partner gives 1/4th of his share to new partner then it means old partner sacrifices:
B
Correct Answer: 1/4th of his own old profit share
1/4th of share means 1/4th of partner's own share. If partner has 2/5, sacrifice = 1/4 × 2/5 = 2/20.
Question 11
If an old partner gives 1/4th from his share, it means partner sacrifices:
C
Correct Answer: 1/4 directly
1/4th from share means direct sacrifice of 1/4. If partner has 2/5 and gives 1/4 from it, his new share = 2/5 - 1/4 = 3/20.
Question 12
Sacrificing ratio is always equal to old profit sharing ratio when:
A
Correct Answer: New partner's share is given without details of sacrifice
When only new partner's share is given without sacrifice details, old partners sacrifice in their old ratio, making sacrificing ratio = old ratio.
Question 13
If both old ratio and new ratio are given, sacrificing ratio is calculated as:
B
Correct Answer: Old Ratio - New Ratio
Sacrifice = Old Share - New Share. Positive result means sacrifice, negative means gain.
Question 14
If a partner gifts his profit share to new partner, the new partner will:
B
Correct Answer: Not pay goodwill for gifted share
Gifts are free from consideration. New partner pays goodwill only for the share acquired through sacrifice, not for gifted share.
Question 15
When new partner takes share in particular ratio from old partners, new share of old partner is:
B
Correct Answer: Old Share - Sacrificed Share
New Profit Share = Old Profit Share - Profit Share Sacrificed to new partner in particular ratio.
