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

Download printable Accountancy Class 12 Worksheets in pdf format, CBSE Class 12 Accountancy Retirement or Death of a Partner Worksheet Set B has been prepared as per the latest syllabus and exam pattern issued by CBSE, NCERT and KVS. Also download free pdf Accountancy Class 12 Assignments and practice them daily to get better marks in tests and exams for Grade 12. Free chapter wise worksheets with answers have been designed by Standard 12 teachers as per latest examination pattern

## Worksheet for Class 12 Accountancy Part 1 Chapter 4 Reconstitution of a Partnership Firm Retirement/Death of a Partner

Class 12 Accountancy students should refer to the following printable worksheet in Pdf for Part 1 Chapter 4 Reconstitution of a Partnership Firm Retirement/Death of a Partner in Grade 12. This test paper with questions and solutions for Standard 12 Accountancy will be very useful for tests and exams and help you to score better marks

### Part 1 Chapter 4 Reconstitution of a Partnership Firm Retirement/Death of a Partner Class 12 Accountancy Worksheet Pdf

Retirement and Death of a Partner

Retirement of a Partner

Multiple Choice Questions

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

Question. On the retirement of a partner, profit on revaluation of assets and liabilities should be credited to the capital Accounts of:
(a) Retiring partner in their old ratio
(b) All partners in their old ratio
(c) Remaining partners in new ratio
(d) Remaining partners in old ratio

Question. On the retirement of Hari from the firm ‘Hari, Ram and Sharma’ the Balance Sheet showed a debit balance of ₹ 12,000 in the Profit and Loss Account. For calculating the amount payable to Hari, the balance will be transferred:
(a) To the credit of the capital accounts of Hari, Ram and Sharma equally.
(b) To the debit of the capital accounts of Hari, Ram and Sharma equally.
(c) To the credit of the capital accounts of Ram and Sharma equally.
(d) To the debit of the capital accounts of Hari, Ram and Sharma equally.

Question. On retirement of a partner , reserves should be transferred to the Capital Accounts of:
(a) Retiring partner
(b) Remaining partners
(c) All partners
(d) None of these

Question. P, Q and R are partners sharing profits in the ratio of 4:3:1. P retires and his share is taken by Q and R equally. Calculate new profit sharing ratio of Q and R:
(a) 1:1
(b) 4:3
(c) 3:4
(d) 5:3

Question. Which of the following is debited to partner’s capital accounts at the time of retirement of a partner?
(a) General Reserve
(b) Profit on revaluation
(c) Accumulated losses
(d) Accumulated profits

Question. On retirement of a partner increase in the value of assets is recorded in:
(a) Revaluation a/c
(b) Cash a/c
(c) Old partner’s capital a/c
(d) None of the above

Question. State whether the following statements are true or false:
(a) At the time of retirement and death, undistributed profits or losses and reserves are distributed among all the partners in their old profit sharing ratio.
(b) The firm is under obligation to pay an agreed rate of interest for the unpaid balance to the retiring partner.
(c) Gaining ratio is calculated at the time of retirement or death of a partner and change in profit sharing ratio.

Question. Advance or loan taken by the partner from the firm is ______ to the deceased partner’s ________.

Question. In case of retirement when the firm pays an amount in excess of total amount due to the retiring partner, then excess amount is treated as ______.

Question. Unless agreed otherwise, it is presumed that the continuing partners gain in their_____ and hence their________ is same as their old profit sharing ratio.

Question. X, Y and Z are partners sharing profits and losses in the ratio 5:4:3. Calculate the new ratios when (i) X retires, (ii) Y retires and (iii) Z retires.

Question. A, B and C are partners in a firm sharing profits in the ratio of 5:4:3. B retired and his share was divided equally between A and C. Calculate the new profit sharing ratio of A and C.

Question. A, B and C are partners sharing profits in the ratio of 1/4 : 2/5 :7/20. A retires and his share is taken up by B and C in the ratio of 1:2. Calculate the new ratio.

Question. M, N and O are partners, sharing profits in the ratio 2:1:2. O retires. O’s share is entirely taken by N. Calculate new ratio.

Question. Madhu, Surabhi and Nikhil are partners without any partnership deed. Madhu retires. Calculate the future ratio of continuing partners if they agreed to acquire her share
(i)in the ratio of 5:3
(ii) equally.
Also mention their gaining ratio.

Question. A, B and C were partners sharing profits in the ratio of 2/6, ½ and 1/6. A retires and surrenders 2/3 of his share in favour of B and remaining in favour of C. Calculate new ratio and gaining ratio.

Question. A, B, C and D were partners sharing profits in the ratio of 2:1:3:4. B retires and his share is acquired by A and C in the ratio of 4:1. Calculate the new ratio and the gaining ratio.

Question. Bharti, Kirti and Priti are partners sharing profits in the ratio of 2:3:4. Priti retires and for this purpose goodwill is valued at one and half year’s purchase of average super profits of last three years, which are as under :
First Year ₹.50,000
Second Year ₹. 55,000
Third Year ₹.75,000
The normal profits for similar firms is ₹.45,000
Record the necessary journal entries.
(Hint : Priti’s share of Goodwill ₹.10,000)

Question. X, Y and Z are partners sharing profits in the ratio of 2:3:5. Goodwill is appearing in their books at a value of ₹.60,000. X retires and on the day of X’s retirement goodwill is valued at ₹.45,000. Y and Z decided to share future profits equally. Pass the necessary Journal entries.
(Hint: Y gains 2/10)

Question. A, B and C are partners sharing profits in the ratio of 4:3:2. B decides to retire and surrenders his share to A and C in the ratio of 3:1. The goodwill of the firm is valued at 1.5 years purchase of super profits based on average profits of the last three years which were ₹.2,00,000. ₹.2,40,000 and ₹.3,10,000 respectively. The normal profits for similar firms are ₹.1,70,000. Goodwill already appears in the books of the firm at ₹.72,000. The profit for the first year after B’s retirement was ₹.5,40,000. Give the necessary journal entries to adjust goodwill and to distribute profits.

Question. Ramesh, Naresh and Suresh were partners in a firm sharing profits in the ratio of 5:3:2. Naresh retired and the new profit sharing ratio between Ramesh and Suresh was 2:3. On Naresh’s retirement the goodwill of the firm was valued at ₹ 1,20,000. Pass necessary journal entry for the treatment of goodwill on Naresh’s retirement without opening the goodwill account.

Question. A, B and C are partners sharing profits and losses in the ratio of 4:3:1 respectively. B retires selling his share of profit to A and C for ₹ 8,100; ₹.3,600 being paid by A and ₹ 4,500 by C. The profit for the year after B’s retirement was ₹ 10,500. You are required (i)to give necessary journal entries to record the above said sale of B’s share to A and C, (ii)to calculate the new profit sharing ratio, and (iii) distribute the profit between A and C.

Please click on below link to download CBSE Class 12 Accountancy Retirement or Death of a Partner Worksheet Set B

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