Retirement And Death Of A Partner CBSE Questions & Answers

Retirement And Death Of A Partner

This is Accountancy class 12 Retirement and Death of a Partner CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
A Partner may retire from the business :
  • A
    All of these
    Correct
  • B
    With the consent of all the partners
  • C
    When partnership at will, He may give notice in writing
  • D
    With the effect of agreement
2
Which of the following is not given to the retiring partner?
  • A
    His Capital account balance
  • B
    Complete goodwill of the firm
    Correct
  • C
    His share of Loss on Revaluation
  • D
    His share of profit for the period
3
Which of the following is calculated at the time of Retirement of a Partner?
  • A
    Sacrifice of the employees
  • B
    Sacrifice of Retiring Partner
  • C
    Old Ratio
  • D
    Gaining Ratio
    Correct
4
When the New ratio is deducted with Old Ratio we get :
  • A
    Gain Ratio
    Correct
  • B
    New Ratio
  • C
    Old Ratio
  • D
    Sacrifice only
5
Goodwill given in the balance sheet is debited to the partners at the time of retirement in :
  • A
    Old Ratio
    Correct
  • B
    Sacrificing Ratio
  • C
    New Ratio
  • D
    Gain Ratio
6
When Retiring partners balance is treated as loan , he will get :
  • A
    Interest 7.5%
  • B
    Interest 10%
  • C
    Bank Rate (Fluctuating rate)
  • D
    Interest only 6% per annum
    Correct
7
X, Y and Z are partners sharing Profits and Losses in the ratio of 8 : 7 : 5. Z retires and his share is taken equally by X and Y. Find the new profit sharing ratio.
  • A
    It is 19 : 21
  • B
    It is 5 : 7
  • C
    It is 21 : 19
    Correct
  • D
    It is 7 : 5
8
Treatment of General Reserve at the time of retirement is :
  • A
    Debit the gainer partner
  • B
    Debit side of Capital account of all the partners
  • C
    Credit side of Capital account of all the partners
    Correct
  • D
    Only in Balance Sheet
9
Gaining Ratio is Applicable for :
  • A
    For Revaluation
  • B
    Retiring partners share of goodwill only
    Correct
  • C
    For the Calculation of profit
  • D
    For the distribution of Reserves and profits
10
New Profit sharing Ratio after retirement of a partner, can be calculated as :
  • A
    New Ratio ? Sacrificing Ratio
  • B
    Old Ratio + Acquired share
    Correct
  • C
    New Ratio ? Acquired share
  • D
    Gain Ratio ? Sacrificing Ratio
11
When a Partner dies , amount due to him will be paid to :
  • A
    Gainer partner
  • B
    Remaining Partners
  • C
    His Executor
    Correct
  • D
    None of These
12
When outgoing partner?s share is not settled and business is continued , we follow :
  • A
    Section 4 of Indian Partnership Act
  • B
    Section 17 of the Indian Partnership Act
  • C
    Section 13 of the Indian Partnership Act
  • D
    Section 37 of the Indian Partnership Act
    Correct
13
Decease partner?s share of profit is to be transferred to his account as :
  • A
    P/L Adjustment A/c
  • B
    P/L Suspense A/c
    Correct
  • C
    None of these
  • D
    P/L Appropriation A/c
14
Deceased partners share of profit is shown in :
  • A
    Credit side of his capital account and in the B/S asset side
    Correct
  • B
    Credit side of his capital account and in the B/S liability side
  • C
    Credit side of his capital account only
  • D
    Debit side of his capital account only
15
When balance is paid in installment to the executor and rate of interest is not given :
  • A
    Rate of Interest will be 12% p.a.
  • B
    Rate of Interest will be 5% p.a.
  • C
    Rate of Interest will be 6% p.a.
    Correct
  • D
    Rate of Interest will be 10% p.a.