Reconstitution of Partnership Quiz - CBSE Class 11 Accountancy

Free practice quiz: Reconstitution of Partnership (CBSE Class 11 Accountancy). 23 multiple-choice questions with answers and explanations. Play online, no sign-up needed.

Sample questions

1. What happens to the profit-sharing ratio of partners during the reconstitution of a partnership?

   1. It remains unchanged
   2. It can be altered
   3. It is decided by a third party
   4. It is only changed during dissolution
   Show answer

   Answer: B. It can be altered

2. When partners share profits in a new ratio upon reconstitution, which accounting equation is primarily affected?

   1. Assets = Liabilities + Owner's Equity
   2. Income = Expenses
   3. Revenue = Costs
   4. Expenses = Profit
   Show answer

   Answer: A. Assets = Liabilities + Owner's Equity

3. What happens to the profit-sharing ratio when a partner retires?

   1. It remains the same
   2. It is automatically re-evaluated
   3. The remaining partners must redefine it
   4. It shifts in favor of the retiring partner
   Show answer

   Answer: C. The remaining partners must redefine it

4. In a partnership reconstitution, which document is typically modified to reflect the updated terms of the partnership?

   1. Partnership deed
   2. Balance sheet
   3. Profit and loss account
   4. Trial balance
   Show answer

   Answer: A. Partnership deed

5. If the new profit-sharing ratio is not mentioned in the deed, what will happen?

   1. The existing ratio will apply
   2. The new partner will have no rights
   3. A default ratio will be applied
   4. The partnership will dissolve
   Show answer

   Answer: A. The existing ratio will apply

More quizzes

• Profit Sharing

Browse all Partnership Accounts quizzes