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A partner may wish withdrawn from a firm for various reasons like old age, on health ground, misunderstanding with other partners. Such a situation is called:
  • A
    Admission of a partner
  • B
    Death of a partner
  • C
    Retirement of a partner
    Correct
  • D
    Dissolution of partnership firm
2
A retired partner is not liable for the debits incurred by the firm ________ retirement
  • A
    During
  • B
    Before
  • C
    After
    Correct
  • D
    None
3
Goodwill given in the old Balance Sheet will be:
  • A
    Distributed by Gainer partners
  • B
    Credited to old Partners Capital accounts
  • C
    Written off by the Sacrificing partners
  • D
    Written off by the old partners
    Correct
4
A retiring partner has the right of getting back his share in the firm’s property , so there are some problems are mainly
  • A
    Computation of retiring partner’s interest in the firm
  • B
    Both
    Correct
  • C
    Payment of retirement due to him
  • D
    Non of these
5
There are some adjustments are to be done at the time of retiring partner (a) New profit sharing ratio of continuing partners (b) Accounting treatment of goodwill (c) Sacrificing ratio of continuing partners (d) Accounting treatment of joint life policy. Which of the above adjustments are the be done
  • A
    a , b and d
    Correct
  • B
    a, c , b
  • C
    a, b , c, d
  • D
    b, c and d
6
Name the ratio in which new profit sharing ratio in which continuing partner will share future profits after retiring partners leaves the firm
  • A
    Sacrificing ratio
  • B
    Old ratio
  • C
    New profit sharing ratio
    Correct
  • D
    Gaining ratio
7
How will you calculate New profit sharing ratio
  • A
    New share = Old share + acquired gaining share
    Correct
  • B
    New share = Sacrificing share + acquired gaining share
  • C
    New share = Gaining share + acquired gaining ratio
  • D
    New share = Old share + acquired Sacrificing share
8
Gaining ratio is the ratio in which continuing partners have ______ the share from the outgoing partner
  • A
    Acquired
    Correct
  • B
    All
  • C
    Acquired and Sacrificed
  • D
    Sacrificed
9
Retiring partner’s share of goodwill is calculated as follows :
  • A
    Value of firm’s goodwill x Sacrificing partner's share
  • B
    Value of firm’s goodwill x All partners share
  • C
    Value of firm’s goodwill x Gainer partner's share
  • D
    Value of firm’s goodwill x His Share of profit
    Correct
10
A partnership come to an end immediately whenever a partner dies although the firm may continue with the remaining partners by purchasing the share of ____ partner
  • A
    Retired
  • B
    All
  • C
    Admitted
  • D
    Deceased
    Correct
11
Calculation of sharing of profit up to date of death will be calculated on the basis of
  • A
    Time basis
  • B
    Both
    Correct
  • C
    None
  • D
    Turnover basis
12
Deceased partner share of profit can be calculated on the basis of average profit
  • A
    \(Average{\text{ }}\Pr ofit{\text{ = }}\frac{{Time{\text{ }}till{\text{ }}death}}{{30}}{\text{ }} \times {\text{ }}All{\text{ }}partner's{\text{ }}proportion{\text{ }}of{\text{ }}profit\)
  • B
    \(Average{\text{ }}\Pr ofit{\text{ = }}\frac{{Time{\text{ }}till{\text{ }}death}}{{12/365}}{\text{ }} \times {\text{ }}Deceased{\text{ }}partner's{\text{ }}proportion{\text{ }}of{\text{ }}profit\)
    Correct
  • C
    None of these
  • D
    \(Total{\text{ }}\Pr ofit{\text{ = }}\frac{{Time{\text{ }}till{\text{ }}death}}{{12/365}}{\text{ }} \times {\text{ }}All{\text{ }}partner's{\text{ }}proportion{\text{ }}of{\text{ }}profit\)
13
The outgoing partner’s share in the profits may be adjusted through
  • A
    Profit and Loss suspense account
    Correct
  • B
    Profit and Loss Appropriation account
  • C
    Profit and Loss account
  • D
    Profit and Loss Adjustments account
14
Amount due to a deceased partner shown by his Capital Account is transferred to ____ account
  • A
    Retired Partners Account
  • B
    All partners Account
  • C
    His Executor’s Account
    Correct
  • D
    Continuing Partners Account
15
How deceased partners executors account settled :
  • A
    Paid off immediately
  • B
    Paid in installments without interest
  • C
    Paid in installments with interest
  • D
    All
    Correct