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.

This CBSE Class 11 Accountancy practice quiz has 23 multiple-choice questions on Reconstitution of Partnership. Try the 5 sample questions below (tap an option to check yourself), then play the full quiz 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 questions in this quiz

Answers and explanations are in the full quiz.

1. Which of the following is NOT a reason for reconstituting a partnership?
2. In a partnership, what is required when a partner decides to leave?
3. Which document is essential for recording changes during reconstitution?
4. What is a partnership firm?
5. Which of the following is a characteristic of a partnership?
6. When a new partner is admitted into the partnership, what formality is usually required?
7. In the process of reconstitution of partnerships, what should be re-evaluated?
8. What is the primary purpose of preparing a new partnership deed?
9. When a partner is admitted to a partnership, which one of the following is usually required to be calculated?
10. What is the impact on the profit-sharing ratio when a new partner is admitted into a partnership?
11. A partner decides to withdraw from a partnership firm. What is the immediate effect on the profit-sharing ratio of the remaining partners?
12. If a new partner is admitted into a partnership firm, how does that affect the existing partners’ capital accounts?
13. Which of the following is not required in the calculation of the new profit-sharing ratio after a partner exits?
14. When reconstituting a partnership, what is a crucial element to be documented to avoid disputes later?
15. What is the primary purpose of reconstitution of partnership?
16. Which of the following is not a reason for reconstituting a partnership?
17. If a partner withdraws from the partnership, how does it affect the profit-sharing ratio?
18. What document is essential to formalize changes in a partnership due to reconstitution?

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