Practice the MCQ Questions for Class 12 MCQ Questions of Retirement or Death of a Partner with Answers here. if practiced properly can help you to get higher marks and revise the whole syllabus. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern.
We have provided Reconstitution of Partnership Firm: Retirement or Death of a Partner Class 12 Accountancy MCQ Questions with Answers to help students understand the concept very well. Every Multiple choice question has 4 options. one of them from that 4 is right answer. The appropriate answers are also given to check your preprataions.
Practice the MCQ Questions for Class 12 MCQ Questions of Retirement or Death of a Partner with Answers here. if practiced properly can help you to get higher marks and revise the whole syllabus. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern.
We have provided Reconstitution of Partnership Firm: Retirement or Death of a Partner Class 12 Accountancy MCQ Questions with Answers to help students understand the concept very well. Every Multiple choice question has 4 options. one of them from that 4 is right answer. The appropriate answers are also given to check your preprataions.
1. 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
2. A, B, and C are partners in the ratio of 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
3. 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
4. P, Q, and R have been sharing profits in the ration of 8:5:3. P retires. Q takes 3/16th share from P and R take 5/16th share from P. New profit sharing ratio will be
A) 1:1
B) 10:6
C) 9:7
D) 5:3
5. A, B, and C are equal partners. C retires. He surrenders 3/5th of his share in favour of A and 2/5th in favour of B. New ratio will be
A) 3:2
B) 8:7
C) 7:8
D) 2:3
6. P, Q, and R are sharing profit and losses equally. R retires and the goodwill is appearing in the book at ₹30,000. Goodwill of the firm is valued at ₹1,50,000. Calculate the net amount to be credited to R’s capital A/c
A) ₹ 60,000
B) ₹ 50,000
C) ₹ 40,000
D) ₹ 10,000
7. 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
8. ‘Gaining Ratio’ means :
(A) Old Ratio – New Ratio
(B) New Ratio – Old Ratio
(C) Old Ratio – Sacrificing Ratio
(D) New Ratio – Sacrificing Ratio
9. 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.
10. At the time of retirement of a partner, profit on revaluation will be credited to :
(A) Capital Account of retiring partner
(B) Capital Accounts of all partners in the old profit sharing ratio.
(C) Capital Accounts of the remaining partners in their old profit sharing ratio
(D) Capital Accounts of the remaining partners in their new profit sharing ratio
11. What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?
(A) Retiring Partner’s Capital A/c Dr. To Goodwill A/c
(B) All Partner’s Capital A/cs (including retiring) Dr. (in old ratio) To Goodwill A/c
(C) Remaining Partner’s Capital A/cs Dr. (in gaining ratio) To Goodwill A/c
(D) Remaining Partner’s Capital A/cs Dr. (in new ratio) To Goodwill A/c
12. What journal entry will be recorded for deceased partner’s share in profit from the closure of last balance sheet till the date of his death?
(A) Profit and Loss A/c To Deceased Partner’s Capital A/c Dr.
(B) Deceased Partner’s Capital A/c To Profit and Loss A/c Dr.
(C) Deceased Partner’s Capital A/c To Profit and Loss Suspense A/c Dr.
(D) Profit and Loss Suspense A/c To Deceased Partner’s Capital A/c Dr.
13. 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
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 ration 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
15. 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 of 2:3. New profits sharing ratio between A and C respectively would be
(a) 01:01
(b) 02:02
(c) 07:08
(d) 03:05
16. P, Q, and R have been sharing profits in the ration of 8:5:3. P retires. Q takes 3/16th share from P and R take 5.16th share from P. New profit sharing ratio will be
(a) 01:01
(b) 10:6
(c) 9:7
(d) 5:3
17. A, B, and C are equal partners. C retires. He surrenders 3/5th of his share in favour of A and 2/5th in favour of B. New ratio will be
(a) 3:2
(b) 8:7
(c) 7:8
(d) 2:3
18. A, B, and C are partners with profit sharing ratio 4:3:2. B retires and goodwill was valued ₹1,08,000. If A and C share profits in 5;3, find out the goodwill shared A and C in favour of B
(a) ₹ 22,500 and ₹ 13,500
(b) ₹ 16,500 and ₹ 19,500
(c) ₹ 67,500 and ₹ 40,500
(d) ₹ 19,500 and ₹ 16,500
19. Gaining Ratio’ means :
(A) Old Ratio – New Ratio
(B) New Ratio – Old Ratio
(C) Old Ratio – Sacrificing Ratio
(D) New Ratio – Sacrificing Ratio
20. In the absence of any information regarding the acquisition of share in profit of the retiring / deceased partner by the remaining partners. It is assumed that they will acquires his/her shares :
(a) Old Profit Sharing ratio
(b) New Profit Sharing ratio
(c) Equal Ratio
(d) None of these
21. An account operated to ascertain the loss or gain at the time of death of a Partner is called
(a) Realisation Account
(b) Executors Account
(c) Revaluation Account
(d) Deceased Partners capital account
22. 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
23. P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and P and R decide to share future profits equally. Gaining Ratio will be :
(A) 5 : 3
(B) 1 : 1
(C) 1 : 3
(D) 3 : 1
24. A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2:1. On March, 31, 2018 C died. Accounts are closed on December 31st every year. The sales for the year 2017 was Rs. 6,00,000 and the profits were Rs. 60,000. The sales for the period for the period January 1, 2018 to March 31st 2018 were Rs.2,00,000. The share of deceased Partner in the current year’s profit on the basis of sales is
(a) Rs.20,000
(b) Rs. 8,000
(c) Rs. 3,000
(d) Rs. 4,000
25. On retirement / death of a partner, the retiring / deceased Partner’s capital account will be credited with:
(a) his / her share of goodwill
(b) Goodwill of the firm
(c) Shares of goodwill of remaining Partners
(d) None of these
