

Partnership Accounting MCQs for Class 12: Questions, Answers & Tips
MCQs for Accountancy Class 12 Chapter 2 are designed to help students revise partnership accounting concepts efficiently. They focus on important areas such as reconstitution of firms, admission of a partner, goodwill treatment, and profit-sharing adjustments. Practicing these MCQs strengthens exam preparation for CBSE board and various competitive exams, and helps clarify partnership fundamentals for real-world applications.
Partnership Accounting Concepts | Explanation |
---|---|
Reconstitution of Firm | Change in relationship among partners, e.g., by admission, retirement, or death of a partner. |
Admission of a Partner | Allowing a new partner to join, which requires adjustment in profit-sharing ratio and capital. |
Goodwill | Compensation for reputation; recorded or adjusted upon a partner's admission. |
Revaluation Account | Prepared to record profit/loss from changes in asset/liability values during reconstitution. |
Profit-sharing Ratio | Determines how partners share profits or losses; revised on admission of a new partner. |
MCQs for Accountancy Class 12 Chapter 2
Practicing MCQs for Accountancy Class 12 Chapter 2 is vital for scoring better in exams. These questions cover decision-making on admission, determining new profit-sharing ratios, goodwill calculations, and accounting adjustments. At Vedantu, students can find accurate MCQs and solutions based on the official CBSE syllabus.
Sample MCQs with Answers for Chapter 2: Reconstitution of a Firm – Admission of a Partner
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Which statement is true about sacrificing ratio?
(a) It is the old partners’ ratio after admission
(b) It is the ratio in which old partners surrender profit to the new partner
(c) It is the capital ratio
(d) None of the above
Answer: (b) It is the ratio in which old partners surrender profit to the new partner.
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Profit and Loss Account (Credit Balance) appearing in the old firm's Balance Sheet is transferred to:
(a) Partners’ Drawing Accounts
(b) Profit and Loss Appropriation Account
(c) Old Partners’ Capital Accounts in old ratio
(d) Reserve Fund
Answer: (c) Old Partners’ Capital Accounts in old ratio.
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Assertion (A): When a new partner is admitted, assets should be shown at their revised values.
Reason (R): Revaluation profit or loss will belong to the old partners.
(a) Both A and R are true, R is correct explanation
(b) Both A and R are true, R is not explanation
(c) A is true, R is false
(d) Both A and R are false
Answer: (a) Both A and R are true, and R is the correct explanation.
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In the absence of an agreement, the new partner’s share of goodwill is:
(a) Paid by new partner to old partners in capital ratio
(b) Paid in gaining ratio
(c) Not paid
(d) Paid only to existing partner with maximum capital
Answer: (b) Paid in gaining ratio.
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A and B share profits in the ratio 7:3. C is admitted; A sacrifices 1/7th and B 1/3rd of their share to C. The new ratio will be:
(a) 6:2:2
(b) 7:3:2
(c) 4:3:3
(d) 5:4:1
Answer: (a) 6:2:2.
Key Concepts and Rules for Accountancy MCQs (Chapter 2)
To solve MCQs on admission of a partner, students must know major rules:
- Goodwill brought in cash by new partners is shared among old partners in sacrificing ratio.
- Any unrecorded assets/liabilities are adjusted through the Revaluation Account.
- Partners’ capital and current accounts are adjusted based on fixed/fluctuating capital system.
- Profit-sharing ratio always needs recalculation on admission/retirement of any partner.
- Reserves and accumulated profits are distributed in old ratio at the time of admission.
Tips for Solving MCQs for Accountancy Class 12 Chapter 2
- Read each question and options carefully to avoid confusion from similar terms.
- Revise formulas for new ratio, sacrificing and gaining ratios.
- If unsure, eliminate obviously incorrect answers before making your choice.
- Focus on common CBSE-style MCQ traps, like similar sounding account names.
- Practice full-length MCQ sets and time yourself.
Downloadable Resources and Further Study Links
You can download more MCQs with answers as PDF for offline practice. For detailed step-by-step explanations, refer to textbooks and these resource links:
- DK Goel Solutions Class 12 Accountancy Chapter 2
- TS Grewal Solutions Class 12 Accountancy Chapter 2
- Admission of a Partner
- Reconstitution of Partnership Firm
- New Profit Sharing Ratio
- Goodwill
At Vedantu, students can find comprehensive MCQ practice sets, solutions, and notes for all commerce chapters.
Why Practice Chapter 2 MCQs for Accountancy Class 12?
MCQs for Accountancy Class 12 Chapter 2 help students master exam patterns, build confidence, and quickly evaluate their understanding. These questions simplify complex concepts related to partnership reconstitution and are essential for both school and competitive exam preparation. Practicing with expert-verified MCQs ensures strong conceptual clarity and better marks.
In summary, MCQs for Accountancy Class 12 Chapter 2 are crucial for revising partnership accounting topics, practicing examination questions, and understanding the CBSE exam format. Regular practice and referencing Vedantu’s resources will help students excel in school and competitive exams, and apply partnership concepts confidently in real-life business scenarios.
FAQs on Accountancy Class 12 Chapter 2 MCQs: Partnership Fundamentals, Deed & Goodwill
1. What are MCQs for partnership accounting?
MCQs for partnership accounting test your understanding of fundamental concepts. They cover key areas like forming a partnership, profit-sharing ratios, goodwill calculations, and the partnership deed. Mastering these MCQs improves exam readiness for CBSE Class 12 Accountancy.
2. How to prepare for class 12 accountancy MCQs?
Preparing for Class 12 Accountancy MCQs involves thorough concept understanding. Focus on key terms like goodwill, revaluation of assets, and profit-sharing ratios. Practice regularly using past papers and sample MCQs for Accountancy Class 12 Chapter 2. Utilize multiple-choice questions to identify weaker areas and improve time management for exams.
3. Are MCQs important for the CBSE exam?
Yes, MCQs are a crucial part of the CBSE Class 12 Accountancy exam. They test your understanding of partnership accounting concepts and problem-solving skills. Practicing MCQs improves exam technique and confidence. Prepare thoroughly using chapter-wise MCQs, including those focused on Chapter 2.
4. Can I download MCQs for chapter 2 in PDF?
Many online resources offer downloadable PDFs containing MCQs for Accountancy Class 12 Chapter 2. Look for reputable educational websites or platforms that align with the CBSE syllabus. Ensure the MCQs and answers are accurate and up-to-date.
5. What are the features of partnership in accountancy?
A partnership in accountancy is defined by key features: It's an agreement between two or more individuals; it's governed by a partnership deed; profits and losses are shared according to agreed ratios; and partners have unlimited liability. Understanding these features is crucial for partnership accounting MCQs.
6. What’s the logic behind revaluation of assets and liabilities during admission of a partner?
Revaluation of assets and liabilities is essential when a new partner joins an existing partnership. It ensures the new partner starts with a fair reflection of the business's true worth. This process adjusts the values of assets and liabilities to their current market values, affecting the capital accounts of existing partners.
7. How does partnership deed content affect profit-sharing in MCQs?
The partnership deed is a legally binding document that outlines how a partnership operates. It dictates the profit-sharing ratio amongst partners. Changes to the partnership deed, such as the admission of a new partner, can alter the profit-sharing ratio, impacting the distribution of profits or losses. Understanding this is crucial for solving related MCQs.
8. What exam tricks help identify the correct answer fastest in conceptual MCQs?
For conceptual MCQs, quickly eliminate obviously wrong options. Look for keywords that align with core definitions and concepts. Focus on understanding the fundamental principles of partnership accounting. Prioritize understanding over memorization, especially for questions on goodwill and revaluation.
9. Are these MCQs aligned with leading textbooks like DK Goel or TS Grewal?
Yes, these MCQs are designed to align with the concepts and problem-solving approaches found in standard textbooks like DK Goel and TS Grewal for Class 12 Accountancy. They cover the core syllabus and frequently tested areas in the CBSE exams.
10. What’s the real-world relevance of mastering partnership accounting MCQs?
Mastering partnership accounting MCQs provides a strong foundation for understanding business structures. It equips you with practical skills needed in various financial roles, improving your analytical and problem-solving capabilities. The principles you learn apply broadly in areas like asset valuation and profit distribution.

















