Class 12 Accountancy Chapter 4 (Part 2) - Retirement/death of a partner MCQs

Class 12 Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQ Question Answers for CUET 2024

1. Question

a.b

b.c

c.d

d.a

2. If the firm has agreed to settle the retiring or deceased partner’s account by paying him a lump sum amount, then the amount paid to him in excess of what is due to him, based on the balance in his capital account after making necessary adjustments in respect of accumulated profits and losses and revaluation of assets and liabilities, etc., shall be treated as his share of goodwill. This Goodwill can be referred to

a.Combined Goodwill

b.Investment

c.Inherent Goodwill

d.Hidden Goodwill

3. Section 37 of the Indian Partnership Act, 1932 is applicable, which states that the outgoing partner has an option to receive either interest @ _______ till the date of payment or such share of profits which has been earned with his/her money

a.18 % p.a.

b.12.5 % p.a.

c.6 % p.a.

d.12 % p.a.

4. Question

a.d

b.b

c.c

d.a

5. Question

a.d

b.b

c.a

d.c

6. The problem of calculating gaining ratio arises primarily when the _______of the continuing partners is specified

a.Old Profit-sharing ratio

b.New profit-sharing ratio

c.Gain ratio

d.Sacrifice Ratio

7. How goodwill is recorded on the retirement of a partner?

a.Goodwill A/c Dr. To Retiring Partner’s Capital A/c (with his share)

b.Goodwill A/c Dr. To All Partner’s Capital A/cs (In Old Ratio)

c.Remaining Partner’s Capital A/cs Dr. (In New Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)

d.Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)

8. On retirement/death of a partner, the retiring/deceased partner’s capital account will be credited with (a)

a.His/her share of goodwill.

b.Goodwill of the firm.

c.Profit From Writing Off Goodwill

d.Shares of goodwill of remaining partners.

9. Unrecorded assets in case of retirement of part is

a.Credited to Retiring partner’s capital account

b.Debited To Revaluation account

c.Credited to Partner’s capital account

d.Credited to Revaluation account

10. The following deductions, if any, may have to be made from Retiring Partners

a.All of the above

b.His Share his share of accumulated losses

c.His share of loss up to the date of retirement/death

d.His share of loss on revaluation of assets and liabilities

11. 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 Rs. 36000. New ratio of A and C is 5: 3. Profit on revaluation will be distributed as:

a.A 25000; C 15000

b.A 18000; B 13000; C 8000

c.A 22500; C 13000

d.A 12000; B 16000; C 8000

12. The amount mentioned in balance sheet, due to retiring partner is called as _______

a.Capital

b.Legacies

c.Will

d.Loan

13. Which of the following is Incorrect?

a.For transfer of accumulated losses, Profit and loss A/c’s Is Debited

b.For increase in the amount of liabilities, Revaluation A/c Is Debited

c.For increase in the value of assets, Assets A/c Is Debited

d.For an unrecorded liability, Revaluation A/c Is Debited

14. Chaman, Raman and Suman are partners sharing profits in the ratio of 5:3:2. Raman retires, the new profit-sharing ratio between Chaman and Suman will be 1:1. The goodwill of the firm is valued at Rs. 1,00,000 Raman’s share of goodwill will be adjusted

a.By debiting Raman’s Capital account with Rs. 30,000

b.By debiting Chaman’s Capital account and Suman’s Capital Account with Rs 15,000 each.

c.By debiting Chaman’s Capital account and Suman’s Capital Account with Rs. 21,429 and 8,571 respectively

d.By debiting only Suman’s Capital Account with Rs. 30,000.

15. Increase in the liability at the time of retirement Of a Partner

a.Debited to Profit and loss

b.Debited to Revaluation account

c.Credited to Partner’s capital account

d.Credited to P&L Appropriation account

16. At the time of retirement of a partner, account is prepared.

a.Profit and loss A/c

b.Revaluation A/c