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
Unless agreed otherwise it is presumed that the continuing partner gaining share will be in their ____ Profit sharing ratio
  • A
    Equally
  • B
    Old
    Correct
  • C
    New
  • D
    Sacrificing
2
If any partner brings any premium over and above his capital contribution at the time of his admission such premium should be distributed to other ______ partner
  • A
    Admitted
  • B
    Existing
    Correct
  • C
    Deceased
  • D
    Retire
3
Among whom the profit and on what basis the profit of the revaluation account distributed in case if retirement
  • A
    Continuing partner
  • B
    Admitted partners
  • C
    Retired partners
  • D
    All Partners (including retiring partner)
    Correct
4
What are the forms to pay claim of the retiring partner
  • A
    Partly in cash or partly in as loan
  • B
    Fully transferred to loan account
  • C
    All
    Correct
  • D
    Fully Cash
5
If the retiring partner not be paid fully immediately on retirement how should his capital account be shown in subsequent Balance Sheet
  • A
    Loan account on assets side
  • B
    Loan account on liabilities side
    Correct
  • C
    Capital account on liabilities side
  • D
    Creditors account on liabilities side
6
A, B and C are partners in a firm sharing profits in the ratio 3:2:1.Goodwill has been valued at Rs.60000 on C’s retirement S and T decided to share profit and losses equally. Who will gain in the above transaction
  • A
    C
    Correct
  • B
    Both A and B
  • C
    B
  • D
    A.
7
How sacrificing ratio is differ from gaining ratio on the basis of mode of calculation
  • A
    It calculated by taking difference between old and new ratio
    Correct
  • B
    It calculated by taking difference between new and old ratio
  • C
    It calculated by taking difference between old and gaining ratio
  • D
    It calculated by taking difference between gaining and new ratio
8
How situation of retirement is differ from death of a partner
  • A
    All
  • B
    Retirement is usually planned
    Correct
  • C
    Retirement is usually at the end of every year
  • D
    Retirement is usually unplanned
9
L, M and N are partners sharing ratio 3:2:1. M died N the son of M is of the opinion that the rightful owner of his fathers share of profit and the profit of the firm be shared between L and N equally. L does not agree settle the dispute according to Partnership Act 1932.
  • A
    Distribute profit sharing ratio between L and N in the ratio of 1:11
  • B
    Distribute profit sharing ratio between L and N equally
  • C
    Distribute profit sharing ratio between L and N in the ratio of 3:1
    Correct
  • D
    Distribute profit sharing ratio between L and N in the ratio of 3:2
10
Why is outgoing partner entitled to a share of goodwill of the firm
  • A
    Goodwill earned by the firm is the effort of new partners
  • B
    Goodwill earned by the firm is the effort of all the partners
    Correct
  • C
    Goodwill earned by the firm is the effort of only one the partners
  • D
    Goodwill earned by the firm is the effort of retired partners
11
Why executors account prepared
  • A
    As deceased partner can’t receive his share
    Correct
  • B
    As deceased partner not want to take
  • C
    As deceased partner is not directly entitled to it
  • D
    All
12
Preliminary expenses given in the Asset side of Balance sheet will be:
  • A
    Debited to sacrificing partners
  • B
    Debited to old partners
  • C
    Debited to all partners capital A/c
    Correct
  • D
    Credited to all partners capital account
13
Anu, Rohit and Chandan are partners carrying on an illegal business without forming a partnership deed. Wants to retire but Anu and Rohit are not willing to give his share. Their profit sharing ratio is 3:2:1. Identify the values which should have been incorporated while formulating partnership.
  • A
    Responsibility towards society
  • B
    Respect for law
  • C
    All
    Correct
  • D
    Righteous behavior
14
Anil, Boby and Chetan are partners in a firm. Boby died on 28 February, 2012. On his death, his wife (legal executor) needs money for her son’s operation next week. His share of profit was to be calculated on the basis of last three years’ average profits. The profits were 2009- Rs.20, 000; 2010- Rs.30,000 and 2011- Rs.60,000. Goodwill is calculated on the basis of 2 years’ purchase of last three years’ average profit. The firm decides to settle the executor’s account immediately and absorb his wife as an employee in the firm. Which value is exhibited in the firm’s decision?
  • A
    All
    Correct
  • B
    Humanity
  • C
    Concern for the bereaved wife and family
  • D
    Sympathy
15
Joint Policy It is taken jointly by the firm on the lives of all the partners. If any of the partner’s _____, the insurance company pays whole of the amount.
  • A
    Dies
    Correct
  • B
    Retired
  • C
    Admitted
  • D
    None