Death Of A Partner MCQs With Solved Answer 12 Cbse and ISC

Death Of A Partner MCQs With Solved Answer 12 Cbse and ISC:

Death of a partner MCQs with Solved answer 12 CBSE and ISC (Question 1 to5)

1. A, B, and C are partners sharing profits in the ratio of 3:2:1 . A dies on 31st July 2022.
The profits of the firm for the year ending 31st March 2022, were 84,000. what will be A’s share of profit until his death, When profit is calculated On the basis of Last year’s Profit:

(a) ₹14,000
(b) ₹7,000
(c) ₹9,000
(d) ₹21,000

2. A, B, and C are partners sharing profits in the ratio of 3:2:1 . A dies on 31st July 2022. The profits of the firm for the year ending 31st March 2022, were 84,000.
What will be A’s share of profit until his death, When profit is calculated On the basis of Last year’s Sales of ₹4,20,000 and Current year sales up to 31st July are ₹1,80,000:

(a) ₹14,000
(b) ₹9,000
(c) ₹18,000
(d) ₹21,000
3. A, B, and C are partners sharing profits in the ratio of 3:2:1. C died on 30th April 2022.
Goodwill is to be calculated on the basis of 3 years purchase of the preceding 5 years’ average profits.
The profits were 2021  2,40,000, 2020 1,60,000, 2019 2,00,000, 2018 1,00,000 and 2017 – 50,000. what will be C’s share of Goodwill?

(a) ₹4,50,000

(b) ₹1,50,000

(c) ₹75,000

(d) ₹6,250

4. In case of death of a partner, the profit may be estimated on the basis of ………….

(a) Time basis

(b) Sales basis

(c) a and b both

(d) None of these.

5. The balance in the capital account of the deceased partner is transferred to his …………………. account.

(a) Executor’s

(b) Relative’s

(c) Government

(d) Remaining Partner capital.

Answer – Question Number 1 To 5

Solution:
A’s Profit = Preceding year’s profit × Proportionate Period × Share of A
= ₹ 84,000 × 4/12 × 3/6
= ₹ 14,000

Solution:
= ₹ 84,000 × 1,80,000/4,20,000
= ₹ 36,000
= ₹ 36,000 × 3/6
= ₹ 18,000

Solution:
Average Profit = 2,40,000 + 1,60,000 + 2,00,000 + 1,00,000 + 50,000/5
= ₹1,50,000
Goodwill = ₹ 1,50,000 × 3 = ₹ 4,50,000
C’s share = 4, 50, 000×1/6 = ₹ 75,000

4. Answer- (c) a and b both

Retirement of a partner MCQs with solved answer 12 cbse

Death of a partner MCQs with Solved answer 12 CBSE and ISC (Question 6 to11)

6. The difference between the lump sum amount paid to executors of the deceased partner and his adjusted capital is treated as :
(a) Hidden profit

(b) Hidden Reserve

(c) Hidden Goodwill

(d) None of these.

7. Items that may not have to be deducted from a Deceased Partner’s Capital Account while computing the amount payable to his legal  representatives :

( a ) Share of purchased goodwill written off.

( b ) Share of loss from the date of the last Balance Sheet upto the date of his death .

( c ) Share of Accumulated Losses .

( d ) Share of profit in Revaluation of Assets and Liabilities.

( e ) Drawings up to the date of death

8. A, B, and C are partners sharing profits in the ratio of 3:2:1. C died on 30th April 2022.
Goodwill is to be calculated on the basis of 3 years purchase of the preceding 5 years’ average profits.
The profits were 2021  2,40,000, 2020 1,60,000, 2019 2,00,000, 2018 1,00,000 and 2017 – 50,000. what will be C’s share of Goodwill?

(a) ₹4,50,000

(b) ₹1,50,000

(c) ₹75,000

(d) ₹6,250

9. A, B and C were partners sharing profits in the ratio of 6:4:5. On
1st April, 2022, B died and the new profit sharing ratio between A
and C was decided as 11:4.
On B’s died, the goodwill of the firm valued at ₹ 1,80,000. Pass journal entry for treatment of goodwill on B’s died will be passed?

(a) A’s Capital A/c Dr. 60,000
To B’s Capital A/c                       48,000
To C’s Capital A/c                        12,000

(b) A’s Capital A/c Dr. 60,000
To B’s Capital A/c                       36,000
To C’s Capital A/c                        24,000

(c) A’s Capital A/c Dr. 60,000
To B’s Capital A/c                       60,000

(d) None of these.

10. A, B & C share profit and losses in the ratio 3:2:1. On C’s death his share is taken by A and B in the ratio of 2:1 new ratio of A and B will be………….

(a) 11:7

(b) 3:2

(c) 2:1

(d) 3:1

11. On Turnover or Sales Basis the profits up to the date of death for the current year are calculated on the basis of current year’s sales up to the date of death by using the formula……………

(a)

(b)

(c)

(d)  None of these.

Answer – Question Number 6 To 11

7. Answer- ( d ) Share of profit in Revaluation of Assets and Liabilities.
9. Answer- (a) A’s Capital A/c Dr. 60,000
To B’s Capital A/c                       48,000
To C’s Capital A/c                        12,000

Working Note: