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

A , B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 2. C died on 31st March 2010. What will be the new ratio of A and B :

A
5:3
Correct
B
1:1
C
3:2
D
None of these

On the death of a partners his executor is paid the share of profits of the dying partner for the relevant period where is the payment recorded

A
Revaluation Account
B
Profit and loss Suspense account
Correct
C
Realization account
D
Capital account

In ___________ policies sometimes the firm takes individual life policies on the lives of partners instead of one single Joint life policy

A
All
B
Joint Life policy
C
Individual life policies
Correct
D
Group life policies

In case of Individual life policy the insurance company pays the _____ sum assured on the life policy of the deceased partner only.

A
Half
B
90 percent
C
75 percent
D
Full
Correct

Life Policy Life policies on the lives of the partners is taken by a firm to arrange money to settle the account of ___ partner

A
Admitted
B
Full
Correct
C
Retired
D
All partners

Two types of life policy are

A
Group life policies and Joint life policy
B
life policies and Joint life policy
C
Individual life policies and Child life policy
D
Individual life policies and Joint life policy
Correct

__________ method in which the profits up to the date of death for the current year are calculated on the basis of current year's sales up to the date of death by using the formula

A
Both of these
B
Sale basis
Correct
C
Time basis
D
None of these

The deceased partners claim is transferred to whose account.

A
Executer’s
Correct
B
Retired partners
C
Continuing partner’s
D
All partners

Loan of the retiring partner is disposed off according to

A
Conditions among partners
B
Equally
C
Both B and C
Correct
D
Pre decoded terms

Loan of the retiring partner is disposed off according to the pre decided terms and conditions among the partners. In such cases interest is _____ to the Loan A/c on the basis of the amount outstanding at the beginning of each year

A
No to be entered
B
None of these
C
Debited
D
Credited
Correct

Why there is need to calculate New profit share ratio

A
Both
B
None
C
After a partner retires his share profit taken over by continuing partners decrease their profit share
D
After a partner retires his share profit taken over by continuing partners increase their profit share
Correct

In which situation the new ratio of the remaining partners will be calculated by striking out the share of retiring partner :

A
When gaining ratio is given
B
In the absence of gaining ratio
Correct
C
In the absence of Sacrificing ratio
D
When Sacrificing ratio is given

If the gaining share is given first calculate the share acquired by the each continuing partner and then should be added to continuing partners respective share to find out the which ratio of the remaining partner

A
Gaining
B
Sacrificing
C
Old
D
New
Correct

The continuing partners may agree on a specified new profit sharing ratio so in that case the specified ratio will be the

A
New ratio
Correct
B
Old ratio
C
Gaining ratio
D
Sacrificing ratio

Unrecorded Legal charges will be:

A
Will be shown in Balance sheet
B
Credited to the Revaluation account
C
Debited to the Revaluation account
Correct
D
Credited to the partners account