Question : A and B are partners in a firm. Their balance sheet as at 31 st March, 2018 was as follows:

C was taken into partnership as from 1st April, 2018. C brought Rs.40,000 as his capital but he is unable to bring any amount for goodwill. New profit sharing ratio is 3: 2: 1. Following terms were agreed upon :
1. Claim on account of Workmen's Compensation is Rs.3,000.
2. To write off Bad Debts amounting to Rs.6,000.
3. Creditors are to be paid Rs.2,000 more.
4. Rs.2,000 be provided for an unforeseen liability.
5. Outstanding expenses be brought down to Rs. 1,200.
6. Goodwill is valued at $1 \frac{1}{2}$ year's purchase of the average profits of last three years. Profits of 3 years amounted to Rs.8,000; Rs. 10,000 and Rs. 18,000 .
Question:
Which account will be debited and crediting in Respect of treatment of goodwill.

Option 1: premium for goodwill debiting Rs 3,000 and Crediting B's capital account by Rs 3,000

Option 2: debiting C's current account Rs 3,000 and crediting B's capital account with Rs 3,000

Option 3: debiting Cs current account Rs 3,000 and crediting B and A Rs 1,500 each

Option 4: None of the above

Question : What journal entry will be made to write off the goodwill that was already present in the balance sheet at the time of partner retired?

Option 1: Retiring Partner’s Capital A/c          Dr.

               To Goodwill A/c

Option 2:  All Partner’s Capital A/cs (including retiring)         Dr. (in old ratio) 

                   To Goodwill A/c

Option 3: Remaining Partner’s Capital A/cs              Dr. (in gaining ratio) 

                         To Goodwill A/c

Option 4: Remaining Partner’s Capital A/cs         Dr. (in new ratio)

                To Goodwill A/c

Question : When a new partner brings his share of goodwill in cash, the amount is debited to - 

Option 1: Capital A/c of the new partner

Option 2: Cash A/c

Option 3: Goodwill A/c

Option 4: Capital A/cs of the old partners

Question : Which of the following accounts are opened when partners have fluctuating capital?

Option 1: Capital A/cs

Option 2: Current A/cs

Option 3: Both Capital A/cs and Current A/cs

Option 4: Either Capital of Current A/cs

Question : Nehru's approach to nation-building aimed to create a balance between which two aspects of society?  
 

Option 1: Urban and rural development  
 

Option 2: Tradition and modernity  
 

Option 3: Centralization and decentralization  

Option 4: Rich and poor  

Question : Case Study:

ABC Manufacturing believes in providing training and skill development opportunities to its employees. Which principle of scientific management is being exemplified here?

Option 1: Harmony, not discord

Option 2: Cooperation, not individualism

Option 3: Development of each person to their greatest efficiency

Option 4: Science, not the rule of thumb

Question : One advantage of outsourcing is:

Option 1: Higher labor costs

Option 2: Increased control over operations

Option 3: Access to specialized skills and expertise

Option 4: Limited flexibility in business operations

Question : How is goodwill recorded when a partner retires?

Option 1: Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio)

 To Retiring Partner’s Capital A/c (with his share of goodwill)

Option 2: Remaining Partner’s Capital A/cs Dr. (In New Ratio)

To Retiring Partner’s Capital A/c (with his share of goodwill)

Option 3: Goodwill A/c          Dr.

To Retiring Partner’s Capital A/c (with his share)

Option 4: Goodwill A/c              Dr.

To All Partner’s Capital A/cs (In Old Ratio)