CBSE Class 12 Accountancy Retirement or Death of a Partner Worksheet Set 02

Question. A, B and C share profits and losses of the firm equally. B retires from business and his share is purchased by A and C in the ratio of 2 : 3. New profit sharing ratio between A and C respectively would be : 
(a) 01 : 01
(b) 02 : 02
(c) 07 : 08
(d) 03 : 05

Answer: C

Question. P, Q and R are partners sharing profits in the ratio of 4 : 3 : 2. Q retires and his share was taken up by P and R in the ratio 3 : 2. New profit sharing ratio will be :
(a) 16 : 29
(b) 29 : 16
(c) 3 : 2
(d) 2 : 3

Answer: B

Question. On the admission of a new partner, increase in the value of assets is debited to
(a) Revaluation A/c
(b) Profit & Loss Account
(c) Assets Account
(d) None of the options

Answer: C

Question. A, B and C are partners sharing profit or loss in the ratio of 2 : 3 : 4. A retires and after A’s retirement B and C agreed to share profit or loss in the ratio of 3 : 4 in future. Their gaining ratio will be :
(a) 2 : 3
(b) 4 : 3
(c) 3 : 4
(d) 1 : 1

Answer: C

Question. X, Y and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. X retired and the new profit sharing ratio between Yand Z will be 5 : 4. On Xs retirement the goodwill of the firm was valued at ₹54,000. Journal entry will be :
(a) Y’s Capital A/c Dr. 24,000 Z’s Capital A/c Dr. 30,000 To X’s Capital A/c 54,000
(b) Y’s Capital A/c Dr. 15,000 Z’s Capital A/c Dr. 12,000 To X’s Capital A/c 27,000
(c) Y’s Capital A/c Dr. 12,000 Z’s Capital A/c Dr. 15,000 To X’s Capital A/c 27,000
(d) X’s Capital A/c Dr. 27,000 To Y’s Capital A/c 12,000 To Z’s Capital A/c 15,000

Answer: C

Question. P, Q and R were partners sharing profits in the ratio of their Capital ‘ contribution which were ₹6,00,000; ₹4,00,000 and ₹5,00,000 respectively. Their books are closed on 31st March every year. P dies on 24th August, 2018. Under the partnership deed, deceased partner is entitled to his share of profit/loss to the date of death based on the average profits of preceding three years. Profits were 2015 ₹50,000; 2016 ₹1,20,000 (Loss); 2017 ₹30,000 and 2018 ₹60,000. P’s share of profit/loss will be :
(a) ₹3,200
(b) ₹6,400
(c) ₹12,000
(d) ₹4,800

Answer: D

Question. A, B and C are partners sharing profits in the ratio of 5 : 2 : 1. If the new ratio on the retirement of A is 3 : 2, what will be the gaining ratio?
(a) 11: 14
(b) 3 : 2
(c) 2 : 3
(d) 14:11

Answer: D

Question. What treatment is made of accumulated profits and losses on the retirement of a partner?
(a) Credited to all partner’s capital accounts in old ratio.
(b) Debited to all partner’s capital accounts in old ratio.
(c) Credited to remaining partner’s capital accounts in new ratio.
(d) Credited to remaining partner’s capital accounts in gaining ratio.

Answer: A

Question. Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in
(a) Gaining Ratio
(b) Capital Ratio
(c) Sacrificing Ratio
(d) Profit-Sharing Ratio

Answer: A

Question. A, B, and C are partners in a company sharing profit and loss in the ratio of 2:2:2. On March 31, 2018, C died. Accounts are closed on December 31st every year. The sale for the year 2017 was ₹6,00,000 and profits were ₹60,000. The sales for the period from Jan 1, 2018, to March 31, 2018, were ₹2,00,000. The share of the deceased partner in the current year’s profits on the basis of sale is
(a) ₹20,000
(b) ₹8,000
(c) ₹3,000
(d) ₹4,000

Answer: D

Question. A, B, and C share profits and losses of the company equally. B retires form business and his share is purchased by A and C in the ratio of 2:3. New profit sharing ratio between A and C respectively would be
(a) 1:1
(b) 2:2
(c) 7:8
(d) 3:5

Answer: C

Question. Gaining Ratio’ means : 
(a) Old Ratio – New Ratio
(b) New Ratio – Old Ratio
(c) Old Ratio – Sacrificing Ratio
(d) New Ratio – Sacrificing Ratio

Answer: B

Question. On retirement of a partner, goodwill will be credited to the Capital Account of:
(a) Retiring Partner
(b) Remaining Partners
(c) All Partners
(d) None of the Above

Answer: A

Question. On retirement, the value of goodwill is credited to:
(a) All partners.
(b) Continuing partners.
(c) Retiring partner.
(d) None of the above.

Answer: C

Question. At the time of retirement of a partner, profit on revaluation will be credited to:
(a) Capital Account of retiring partner
(b) Capital Account of remaining partners
(c) Capital Account of all partners

Answer: C

Question. A, B and C are partners in the firm, if D is admitted as a new partner
(a) Old partnership is reconstitute
(b) Old firm is dissolved
(c) Both
(d) None of the options

Answer: A