CHAPTER 3:- CHANGE IN PROFIT SHARING RATIO

AMONG EXISTING PARTNERS

TRUE OR FALSE TYPE QUESTIONS

Q.NO. QUESTIONS
1 Registration of partnership is optional.
A. True B. False
2 Sleeping partner are those who do not take part in conduct of the
business. A.True B.False
3 Interest as a charge means interest on capital is to be allowed whether the firm has
earned profit or incurred loss.
A.True B.False
4 The net profit of the firm is Rs. 8,00,000 partners are entitled to salary Rs. 1,00,000 p.a.
if 10% of divisible profit to be transferred to general reserve then amount will be Rs.
80,000.
A.True B.False
5 Unless otherwise specified, the partners have to share profits and losses in proportion of
the capital contributed by them.
A.True B.False
6 Change in existing profit sharing ratio will change the relationship among the
existing partners. (True/False)
7 Revaluation account is Personal account. (True/False)
8 Sacrificing partners capital is debited when there is loss. (True/False)
9 Decrease in the creditors will be shown on the debit side of Revaluation account.
(True/False)
10 Deferred revenue expenditure is partiallly written off in old ratio at the time of
change in profit sharing ratio. (True/False)
11 At the time of change in profit sharing ratio among the existing partners , an
unrecorded liability is credited to revaluation account. (T/F)
12 Change in profit sharing ratio of existing partners does not amount to
reconstitution of the partnership firm. (T/F)
13 At the time of change in profit sharing ratio, profit on revaluation is credited to
existing partners’ capital accounts in old ratio.(T/F)
14 Recording of an unrecorded asset on the reconstitution of partnership firm is a
gain to the existing partners. (T/F)
15 Sacrificing Ratio = New Ratio – Old Ratio (T/F)

KVS ZIET BHUBANESWAR 12/10/2021 Page 1

 ANSWER KEY
Q.NO ANSWER
1 True
2 True
3 True
4 False
5 Fasle
6 True
7 False
8 True
9 False
10 False
11 False
12 False
13 True
14 True
15 False

PREPARED BY THE PGTs ( COMMERCE ) OF BHUBANESWAR, GUWAHATI,

KOLKATA, RANCHI, SILCHAR AND TINSUKIA REGIONS.