NCERT Class 12 Accountancy Chapter 4 Reconstitution of a Partnership Firm – Admission of a Partner Extra Questions

NCERT Class 12 Accountancy Chapter 4 Reconstitution of a Partnership Firm – Admission of a Partner Extra Questions and Answers

Reconstitution of a Partnership Firm Retirement Death of a Partner Extra QuestionClass 12 Accountancy Chapter 4 Extra Questions and Answers – Reconstitution of a Partnership Firm – Admission of a Partner. Here in this Page Class XII Students can Learn Extra Questions & Answer 4th Chapter Accountancy Part I fully Inside.

We Provided Here Reconstitution of a Partnership Firm – Admission of a Partner Accountancy Chapter 4 MCQ Questions, Very Short Type Questions and Short Type Questions.

Class 12 Accountancy Chapter 4 Extra Question with Answer – Reconstitution of a Partnership Firm – Admission of a Partner

Accountancy Chapter 4 Reconstitution of a Partnership Firm – Admission of a Partner Class 12 Inside 3 marks, 2 Marks & And 1 Marks Important Questions and Answers.

Board

NCERT
Class

12

Book Title

Accountancy Part I
Chapter

4

Chapter Name

Reconstitution of a Partnership Firm – Admission of a Partner
Topic

Extra Questions

(Q1) Define Gaining ratio.

Ans: Gaining ratio is the ratio in which the retiring partner’s share is acquired by continuing partners.

Gaining Ratio = New ratio – Old ratio.

 

(Q2) State the treatment made to accumulated profit and losses on the retirement of a partner.

Ans: Accumulated profits are credited to capital accounts of old partners in their old ratio and accumulated losses are debited to their capital accounts in old ratio.

 

(Q3) At which does the retiring partner gets his share of goodwill at retirement?

Ans: The retiring partner gets his share of goodwill in his profit ratio during retirement.

 

(Q4) State the rate at which the interest is payable on the amount removing unpaid to the executor of deceased partner.

Ans: The interest on the remaining unpaid amount is paid @6% to the executor of a deceased partner.

 

(Q5) Mention any two rights of a retiring partner.

Ans: A retiring is entitled to get the following rights:

(i) Share of goodwill at the time of retirement

(ii) The profit or loss from revolution of asset and liabilities due to retirement.

 

(Q6) Mention any one point of difference between gaining ratio and sacrificing ratio.

Ans: Gaining ratio is the ratio in which the removing partners acquire the retiring or deceased partner’s share whereas sacrificing ratio is the in which the old partners surrenders a part of their share for the new partner.

 

(Q7) Name the account which is opened to credit the share of profit of the deceased partner.

Ans: The account opened for credit of share of profit of the deceased partner to his capital account is “Profit and loss suspense account”.

 

(Q8) Show the treatment of goodwill that already exists in the books of account of partnership firm at the time of retirement.

Ans: The old goodwill which already exists in the books of the firm has to be written off among all partners. The journal entry as follows:

All partner’s capital A/c  Dr (in old ratio)

To Goodwill A/c (Being, old goodwill written off)

 

(Q9) Mention any two items that are credited to the deceased partner’s capital account.

Ans: Two items that are credited to deceased partner’s capital account are as follows:

(i) His share of profit on the revaluation of assets and liabilities

(ii) His share of the increase in the value of goodwill of the firm.

 

(Q10) Mention any two items that are debited to the deceased partner’s capital account.

Ans: Two items to be debited to the deceased partner’s capital account are as follows:

(i) His share of drawings and interest on drawings

(ii) His share of loss on the revaluation of assets and liabilities.

 

In case you are missed :- Previous Chapter Extra Questions

 

(Q11) Define retirement of a partner.

Ans: Retirement of a partner is one of the modes of reconstituting the firm under which the existing partnership deed comes to an end and is replaced by a new deed among the existing partners.

 

(Q12) Give the journal entry for deceased partner’s share in profit till date of his death.

Ans: Profit and loss suspense A/c Dr

To deceased partner’s capital A/c

(Being, the capital A/c of decease partner credited with his share of capital)

 

(Q13) Give the journal entry for recording goodwill on the death or retirement of a partner.

Ans: Removing partner’s capital A/c Dr

To, retiring or deceased partner’s capital A/c.

(Being, retiring partner’s share of goodwill debited to removing partner’s capital A/c in gaining ratio).

 

(Q14) On retirement or death of a partner, how is the new profit sharing ratio determined among the existing partners?

Ans: The new profit sharing ratio among the existing partners are decided mutually on retirement or death of a partner.

 

(Q15) At the time of retirement, is it always necessary to compute the gaining ratio?

Ans: No, it is not always necessary o compute the gaining ratio during retirement of a partner when the remaining partners share profits in old ratio pre-retirement.

 

(16) X, Y, Z are partners sharing profits in ratio of 1/2, 2/5, 1/10. Find the new ratio if z retires.

Ans: The new ratio between X and Y = 5:

Old ratio = 1/2 : 2/5 : 1/10 or 5:4:1

 

(Q17) On the retirement of Hary, the balance sheet showed a debit balance o RS 14,000 in the P/L. How will this balance be —– with?

Ans: The debit of P/L A/C i.e. – RS 14,000 has to be debited to all the partner’s capital account including Hary’s in old profit sharing ratio.

 

(Q18) Can a retiring partner or the legal representative of a deceased partner claim a share in the subsequent profits of the firm?

Ans: If the amount due to a retiring partner or legal representative partner of deceased partner is not paid in full, then they can have a claim over the share in subsequent profit of the firm in proportion to the balance amount.

 

(Q19) Mention the two methods of calculation partner’s share of profit from the date of last balance sheet to the date of his death.

Ans: There are two methods that is practiced for calculation of deceased partner’ share of profit. They are as follows:

(i) On the basis of last year’s profit or average profit of past few year’s  i.e on the basis of time.

(ii) On the basis of sales of the firm.

 

(Q20) Define the term “executor of a deceased partner.”

Ans: An executor is a person o institution who acts as a legal representative of a deceased partner to carry out the process of distribution o profits and other claims of a deceased partner. An executor cannot be a person of —- mind or a minor.

In case you are missed :- Next Chapter Extra Questions

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Updated: April 8, 2023 — 12:44 pm

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