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Reconstitution of Partnership: Retirement of a Partner

Board » Bihar Board » Class 12th » English Medium » Commerce » Accountancy » L-6: Reconstitution of Partnership: Retirement of a Partner

Objective Questions (MCQs)

Question
Multiple Choice
Verified
ID- 4526

1. X, Y, and Z are partners sharing profits in the ratio of 3:4:3 .Y retires and X and Z share their profits in an equal ratio. The new ratio of X and Z will be:

  • (A) 1 : 2
  • (B) 2 : 1
  • (C) 3 : 1
  • (D) 1 : 1
Multiple Choice
Verified
ID- 4527
BSEB, 2013

2. A, B, and C are equal partners in a firm. B retires and the remaining partners decide to share profits of the new firm in the ratio of 5:4. Gaining ratio will be:

  • (A) 2 : 1
  • (B) 1 : 2
  • (C) 4 : 5
  • (D) 5 : 4
Multiple Choice
VVI
Verified
ID- 4528

3. The balance of the joint life policy account as shown in the balance sheet represents:

  • (A) Annual premium of JLP
  • (B) Surrender value of policy
  • (C) Total premium paid by firm
  • (D) Amount receivable on the maturity of the policy
Multiple Choice
VVI
Verified
ID- 4529
BSEB, 2015

4. Profit and loss on revaluation at the time of retirement are shared by:

  • (A) Remaining Partners
  • (B) All Partners
  • (C) New Partners
  • (D) None of these
Multiple Choice
Verified
ID- 4530
BSEB, 2012

5. Abhishek, Rajat, and Vivek are partners sharing profits in the ratio of 5:3:2 . If Vivek retires, the new profit-sharing ratio between Abhishek and Rajat will be:

  • (A) 3 : 2
  • (B) 5 : 3
  • (C) 5 : 2
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4531

6. On the retirement of a partner, profit on revaluation of Assets and Liabilities should be credited to the Capital Accounts of:

  • (A) All partners in the old profit-sharing ratio
  • (B) The remaining partners in their old profit-sharing ratio
  • (C) The remaining partners in their new profit-sharing ratio
  • (D) None of these
Multiple Choice
Verified
ID- 4532

7. Anand, Bahadur, and Chander are partners sharing profit equally. On Chander's retirement, his share is acquired by Anand and Bahadur in the ratio of 3:2. The new profit sharing ratio between Anand and Bahadur will be:

  • (A) 8 : 7
  • (B) 4 : 5
  • (C) 3 : 2
  • (D) 2 : 3
Multiple Choice
VVI
Verified
ID- 4533

8. On the retirement of a partner any accumulated profit should be credited to the capital accounts of:

  • (A) All partners in old profit-sharing ratio
  • (B) Remaining partners in new profit-sharing ratio
  • (C) Retiring partner only in his share
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4534
BSEB, 2015, 19

9. Gaining ratio is calculated:

  • (A) At the time of admission of a new partner
  • (B) At the time of retirement of a partner
  • (C) On the dissolution of partnership firm
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4535
BSEB, 2015, 17, 19

10. On the retirement of a partner, the full amount of goodwill may be credited to the capital accounts of:

  • (A) Retiring Partners
  • (B) Remaining Partners
  • (C) All partners
  • (D) None of these
Multiple Choice
Verified
ID- 4536

11. A, B, and C have been sharing profits in the ratio of 8:5:3 retires. B takes 3/16th share from A and C takes 5/16 share from A. The new profit sharing ratio will be:

  • (A) 1:1
  • (B) 10:6
  • (C) 9:7
  • (D) 5:3
Multiple Choice
Verified
ID- 4537

12. How unrecorded assets are treated at the time of retirement of a partner?

  • (A) Credited to Revaluation Account
  • (B) Credited to Capital Account of Retiring Partner
  • (C) Debited to Revaluation Account
  • (D) Credited to Partner's capital Accounts
Multiple Choice
Verified
ID- 4538

13. Outgoing partner is compensated for parting with the firm's future profits in favor of the remaining partners. The remaining partners contribute to such compensation in:

  • (A) Gaining Ratio
  • (B) Capital Ratio
  • (C) Sacrificing Ratio
  • (D) Profit-sharing Ratio
Multiple Choice
Verified
ID- 4539

14. A, B, and C are partners in 3:4:2. B wants to retire from the firm. The profit on revaluation on that date was ₹ 36,000. The new ratio of A and C is 5:3. Profit on revaluation will be distributed as:

  • (A) A ₹ 16,000 ; B ₹ 12,000 ; C ₹ 8,000
  • (B) A ₹ 12,000 ; B ₹ 16,000 ; C ₹ 8,000
  • (C) A ₹ 22,500 ; C ₹ 13,500
  • (D) A ₹ 23,625 ; C ₹ 12,375
Multiple Choice
VVI
Verified
ID- 4540

15. A joint life policy may be taken by the firm on the lives of ..........

  • (A) All the partners jointly
  • (B) All the partners separately
  • (C) All employees of the firm
  • (D) Both (i) and (ii)
Multiple Choice
Verified
ID- 4541

16. On the retirement of a partner, the retiring partner's capital account will be credited with:

  • (A) His/her share of goodwill
  • (B) Goodwill of the firm
  • (C) Share of goodwill of remaining partners
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4542

17. The amount of General Reserve is transferred to all partners' capital accounts in:

  • (A) New profit sharing ratio
  • (B) Capital ratio
  • (C) Old Profit-sharing Ratio
  • (D) None of these
Multiple Choice
Verified
ID- 4543
BSEB, 2013, 19

18. A, B and C are sharing profits in the ratio of 1/2: 1/3: 1/6, and C retired. The gaining Ratio will be:

  • (A) 2 : 1
  • (B) 2 : 3
  • (C) 3 : 2
  • (D) 1 : 2
Multiple Choice
VVI
Verified
ID- 4544

19. A Life insurance policy taken on joint lives of all partners is:

  • (A) Joint life policy
  • (B) Single life policy
  • (C) Firm's life policy
  • (D) Group Policy
Multiple Choice
VVI
Verified
ID- 4545

20. If the retiring partner is not paid in the full amount due to him immediately on retirement the balance is transferred to:

  • (A) Loan A/c
  • (B) Capital A/c
  • (C) Bank A/c
  • (D) Suspense A/c
Multiple Choice
Verified
ID- 4546

21. X, Y, and Z are equal partners in a firm. Z retires from the firm. The new profit sharing ratio between X and Y is 1:2 . The gaining ratio will be:

  • (A) 3 : 2
  • (B) 2 : 1
  • (C) 4 : 1
  • (D) Only Y gains by 1/3
Multiple Choice
VVI
Verified
ID- 4547

22. At the time of retirement of a partner, the capital gain of the retiring partner shall be credited to:

  • (A) His/her share of goodwill
  • (B) Goodwill of firm
  • (C) In the ratio of goodwill of remaining partners
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4548

23. At the time of retirement of a partner, a firm gets ............. from the insurance company against joint life policy taken jointly for all the partners.

  • (A) Policy Amount + Bonus
  • (B) Surrender Value
  • (C) Policy Amount
  • (D) None of these
Multiple Choice
Verified
ID- 4549

24. A, B, and C are partners. Their capitals are ₹ 1,00,000, ₹ 75,000 and ₹ 50,000 respectively. On C's retirement, his share is acquired by A and B in the ratio of 6:4 Gaining Ratio will be:

  • (A) 3 : 2
  • (B) 2 : 2
  • (C) 2 : 3
  • (D) None of these
Multiple Choice
Verified
ID- 4550

25. x, y, and z are partners and share profits in the ratio of 5:3:2. y retires and x takes 1/10 from y and z takes 1/5 from y. The new profit sharing ratio will be:

  • (A) 7 : 13
  • (B) 13 : 7
  • (C) 3 : 2
  • (D) 1 : 1
Multiple Choice
Verified
ID- 4551

26. The old profit-sharing ratio among Rajender, Satish, and Tejpal were 2:2:1. The new profit-sharing ratio after Satish's retirement is 3:2. The gaining ratio is:

  • (A) 3 : 2
  • (B) 2 : 1
  • (C) 1 : 1
  • (D) 2 : 3
Multiple Choice
VVI
Verified
ID- 4552

27. Goodwill is paid out to the retiring partner in:

  • (A) Old Profit-sharing Ratio
  • (B) Capital Ratio
  • (C) Equal Ratio
  • (D) None of these
Multiple Choice
Verified
ID- 4553

28. Hari, Roy, and Prasad are partners and the profit sharing ratio is 3:5:1. Roy now wants to retire and his share is taken by Prasad. Find the new ratio of Hari and Prasad:

  • (A) 1 : 2
  • (B) 2 : 1
  • (C) 3 : 5
  • (D) Equal
Multiple Choice
VVI
Verified
ID- 4554
BSEB, 2017, 19

29. The gaining Ratio is:

  • (A) New Ratio - Sacrificing Ratio
  • (B) Old Ratio - Sacrificing Ratio
  • (C) New Ratio - Old Ratio
  • (D) Old Ratio - New Ratio
Multiple Choice
Verified
ID- 4555

30. P, Q, and R are partners and share profit in the ratio of 5:3:2. R retires and surrenders 3/5th of his share in favour of P and 2/5th of the share to Q. Find a new profit sharing ratio:

  • (A) 7 : 3
  • (B) 1 : 2
  • (C) 31 : 19
  • (D) None of these
Multiple Choice
Verified
ID- 4556

31. In the absence of any information regarding the acquisition of a share in the profit of the deceased partner by the remaining partners, it is assumed that they will acquire her/his share:

  • (A) Old Profit-sharing Ratio
  • (B) New Profit-sharing Ratio
  • (C) Equal Ratio
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4557

32. Surrender value of an insurance policy means that value:

  • (A) Which is received on death of a partner
  • (B) Which is received when a policy matures
  • (C) Which can be received before the due date of the policy
  • (D) None of the above
Multiple Choice
VVI
Verified
ID- 4558

33. On the retirement of a partner, the amount of General Reserve is transferred to all partner's capital accounts in .....................

  • (A) New Profit-sharing Ratio
  • (B) Capital Ratio
  • (C) Old Profit-sharing Ratio
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4559

34. On the retirement of a partner, his share of goodwill is written off among continuing partners in their:

  • (A) New Profit sharing Ratio
  • (B) New Capital Ratio
  • (C) Gaining Ratio
  • (D) None of these
Multiple Choice
Verified
ID- 4560

35. Govind, Hari and Pratap are partners. On the retirement of Govind, Goodwill already appears on the Balance Sheet at ₹ 24,000. The goodwill will be written off:

  • (A) By debiting all partner's capital accounts in their old profit sharing ratio
  • (B) By debiting remaining partner's capital accounts in their new profit sharing ratio
  • (C) By debating retiring partner's capital account from his share of goodwill
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4561

36. Partnership Act provides that interest on the amount of capital balance left by the retired partner be paid at:

  • (A) 5 %
  • (B) 6 %
  • (C) Bank Rate
  • (D) 8 %
Multiple Choice
Verified
ID- 4562

37. A, B, and C are partners with a profit-sharing ratio of 5:3:2. A retires. Find the gaining ratio:

  • (A) 3 : 2
  • (B) 5 : 3
  • (C) 5 : 2
  • (D) None of these
Multiple Choice
Verified
ID- 4563

38. X, Y, and Z are partners sharing profits in the ratio of 1/4, 2/5, and 7/20. Z retires from the firm. The new profit sharing ratio will be:

  • (A) 5 : 8
  • (B) 8 : 5
  • (C) 1 : 4
  • (D) None
Multiple Choice
Verified
ID- 4564

39. If J.L.P. premium is treated as business expenses, it appears in:

  • (A) Profit and Loss Account
  • (B) Balance Sheet
  • (C) Both
  • (D) None of these