Reconstitution of a Partnership Firm Retirement Death of a Partner MCQ Questions Class 12 Accountancy Chapter 4
NCERT MCQ Questions for Class 12 Accountancy Chapter 4 Reconstitution of a Partnership Firm Retirement Death of a Partner. Reconstitution of a Partnership Firm Retirement Death of a Partner MCQ Questions with Answers from Class 12 Accountancy.
(1) The ratio in which the retiring partner’s share is acquired by continuing partners is called ——-.
(a) Sacrificing ratio
(b) Profit sharing ratio
(c) Gaining ratio
(d) Both (b) and (c)
Ans: (c) Gaining ratio
(2) In case of retirement, accumulated profits and losses are —— old partners in old ratio.
(a) Credited (Profit) and debited (loss) in current account
(b) Credit (profit) and debited (loss) in capital account
(c) Only credited to current account
(d) Transferred to share of capital
Ans: (b) Credit (profit) and debited (loss) in capital account.
(3) Retiring partner is untitled to goodwill as per ——.
(a) his/her share of capital contribution
(b) Share of premium for goodwill brought at admission to the firm.
(c) His/her share of profit in firm
(d) Both (a) and (b)
Ans: (c) His/her share of profit in firm
(4) Gaining ratio is calculated as ——–.
(a) Old ratio – new ratio
(b) Old ratio/New ratio
(c) New ratio – old ratio
(d) New ratio ÷ old ratio
Ans: (c) New ratio – old ratio
(5) Retiring partners share of goodwill ———-.
(a) Debited to current A/c
(b) Credited to his/her current A/c
(c) Credited to his/her capital A/c
(d) Debited to capital A/c
Ans: (c) Credited to his/her capital A/c
(6) The share of profit/loss on revaluation of asset and liabilities during retirement of a partner is transferred to ——-.
(a) Credited (Profit) and debited (loss) in capital account
(b) Profit & loss A/c
(c) Credited (Profit) & debited (loss) to current A/c
(d) Both (a) and (b)
Ans: (a) Credited (Profit) and debited (loss) in capital account
(7) X, Y, Z are partners in the firm with profit sharing ratio of 2:3:1. The new ratio on —- retirement will be ——.
(a) 1:2
(b) 2:1
(c) 1:1
(d) None of these
Ans: (b) 2:1
(8) Retirement of a partner implies ——–.
(a) End of existing partnership deed and replacing it
(b) Revaluation of assets and liabilities of the firm
(c) Dissolution of the partnership firm
(d) Both (a) and (b)
Ans: (d) Both (a) and (b).
(9) In case of death of a partner, the sum due to executors includes ——-.
(a) Interest on capital, salary/commission upto date of his/her death
(b) His/her share in the gain/loss revaluation of assets & liabilities upto the date of death.
(c) Share of goodwill/accumulated profit etc upto the date of death.
(d) All of the above
Ans: (d) All of the above.
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(10) In absence of any information regarding profit sharing ratio in which the remaining partners acquire the share of decreased partner is ——–.
(a) New profit sharing ratio
(b) Gaining ratio
(c) Old profit sharing ratio
(d) Sacrificing ratio
Ans: (c) Old profit sharing ratio.
(11) K, L, M and N are partners sharing profits in the ratio of 4:2:1:4. K retires and his share id acquired by and M in the ratio of 3:2. The gaining ratio in this case is ——–.
(a) 4:2:0
(b) 2:1:4
(c) 2:1:0
(d) 3:2:0
Ans: (d) 3:2:0.
(12) Akash, Aman and Amar are partners sharing profits in the ratio of 3/8, 1/2 and 2/8. Akash retires and surrenders 2/3rd of his share in favour of Aman & Amar gets the remaining share. The gaining ratio between the remaining partners are ——–.
(a) 1:2
(b) 1:1
(c) 2:1
(d) 1:3
Ans: (c) 2:1
(13) If the firm agrees to settle the retiring/decreased partners account by paying him/her in excess of the amount due to him/her in capital A/c after taking into consideration all adjustment, then it is the case of ——-.
(a) Hidden Goodwill/Goodwill
(b) Share of accumulated profits
(c) Share of commission
(d) Share of interested on capital
Ans: (a) Hidden Goodwill/Goodwill.
(14) Mary, Subhash and Vipul are partners in a firm sharing profits in the ratio of 3:2:1. Profits for the year ending on 31.03.2020 is Rs 2,00,000. Vipul decides to retire on 31st July 2020 and the new profit sharing ratio is decide as 1:1. Calculate Vipul’s share of profit from the period of 01.04.2020 to 31.07.2020 ——–.
(a) Rs 11,111
(b) Rs 10,000
(c) Rs 12,111
(d) Rs 15,111
Ans: (a) Rs 11,111
(15) This section of Indian partnership Act 1932, States that the outgoing partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profit earned with his/her money.
(a) Section 36
(b) Section 37
(c) Section 32
(d) Section 35
Ans: (b) Section 37.
(16) In case of death of a partner, the decreased partner’s share of profit, interest on capital etc is transferred to ——.
(a) Existing partner’s capital A/c
(b) Decreased partner’s capital A/c
(c) His/her executor’s A/c
(d) Firms Account
Ans: (c) His/her executor’s A/c
(17) The decreased partner’s share of profit is calculated on the basis of —–.
(a) Average of post year’s profit
(b) Capital contribution of him/her
(c) Sales for the year
(d) Either (a) or (c) depending on partnership Deed
Ans: (d) Either (a) or (c) depending on partnership Deed.
(18) New profit sharing ratio in case of retirement/death of a partner is ———-.
(a) Existing ratio
(b) Old share + Acquired share from outgoing partner.
(c) Equivalent to gaining ratio
(d) Sacrificing ratio
Ans: (b) Old share + Acquired share from outgoing partner.
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