Retirement Of A Partner MCQs With Solved Answer 12 Cbse

Retirement Of A Partner MCQs With Solved Answer 12 Cbse-

Retirement of a partner MCQs with Solved answer 12 cbse (Question 1 to5)

1.A, B and C are partner in a firm sharing profits and losses equally. B retires from the firm and his share is purchased by A and C in the ratio of 2:3 New Profti sharing ratio between A and C respectively would be:-
(a) 1:1

(b) 2:2
(c) 7:8

(d) 3:5

2.The accounting procedure at the retirement of a partners involves:-
(a) Revaluation of Assets and liabilities

(b)Ascertain his share of Goodwill
(c) Finding the amount due to him

(d) All of these

3.Amout due to outgoing partner is shown on the balance sheet as his:-
(a) liabilities

(b) Assets
(c) Capital

(d) liability  as Outgoing partner’s Loan

4.A, B & C share profit and losses in the ratio 3:2:1. On C’s retires his share is taken by A and B in the ratio of 2:1. new ratio?
(a) 3:2

(b) 4:2
(c) 2:1

(d) 11:7

5.A, B & C share profit and losses in the ratio 3:2:1. On C’s retires his share is taken by A and B in the ratio of 2:1.  Gaining ratio?
(a) 3:2

(b) 4:2
(c) 2:1

(d) 11:7

Answer – Question Number 1 To 5 

1.Answer- (c) 7:8

2.Answer- (d) All of these

3.Answer- (d) liability  as Outgoing partner’s Loan

4.Answer- (d) 11:7

5.Answer- (c) 2:1

Also Practice : Financial Statement of Not-For-Profit Organisations MCQs with Solved answer 12 cbse

Retirement Of A Partner MCQs With Solved Answer 12 Cbse-

Retirement of a  partner MCQs with Solved answer 12 cbse (Question 6 to 10)

6.A, B and C were partners sharing profits in the ratio of 6:4:5. On
1st April, 2016, B retired from the firm and the new profit sharing ratio between A and C was decided as 11:4. On B’s retirement, the goodwill of the firm valued at Rs. 90,000. Journal entry for treatment of goodwill on B’s retirement?
(a) A’s Capital A/c Dr. 30,000
To B’s Capital A/c 24,000
To C’s Capital A/c 6,000

(b) A’s Capital A/c Dr. 24,000

 C’s Capital A/c 6,000
To B’s Capital A/c 30,000

(c) A’s Capital A/c Dr. 24,000
To B’s Capital A/c 20,000
To C’s Capital A/c 4,000

(d) None of these

7.A partner retires either ….
(a) with the consent of all partners

(b)As per terms of the agreement
(c) At his or her own will

(d) All of these

8.The ratio in which retiring partner’s share is distributed amongst continuing partners is known as …
(a) Sacrificing Ratio

(b) Gaining Ratio
(c) New Ratio

(d) Old Ratio

9.Gaining ratio?
(a) New Ratio – Existing Ratio or Old Ratio

(b) Old Ratio – New  Ratio
(c) Old Ratio + New  Ratio

(d) New Ratio + Existing Ratio or Old Ratio

10.A, B and C are partners in the firm sharing profits in the ratio of 3 : 2 : 1. B retired and his share was divided equally between A and C. New profit sharing ratio of A and C
(a) 3:2

(b) 4:2
(c) 2:1

(d) 1:2

Answer – Question Number 6 To 10

6.Answer- (a) 

7.Answer- (d) All of these

8.Answer- (b) Gaining Ratio

9.Answer- (a) New Ratio – Existing Ratio or Old Ratio

10.Answer- (c) 2:1

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Retirement Of A Partner MCQs With Solved Answer 12 Cbse-

Retirement of a partner MCQs with Solved answer 12 cbse (Question 11 to 15)

11.The Share of Goodwill of the retiring partner is debited to remaining partners in their… 

(a) Sacrificing Ratio

(b) Gaining Ratio
(c) New Ratio

(d) Old Ratio

12. At the time of retirement of a partner, if goodwill appears in the Balance sheet, it must be written off and all partner’s capital account debited in their ….

(a) Sacrificing Ratio

(b) Gaining Ratio
(c) New profit sharing Ratio

(d) Old profit sharing Ratio

13. At the time of retirement of a partner, profit on revaluation of assets and reassessment of liabilities should be credited to …
(a) All partner’s capital account

(b) Retiring  partner’s capital account
(c) Remaining  partner’s capital account

(d) None of these

14. At the time of retirement of a partner , profit on revaluation of assets and resaaessment of liabilities should be credited to …
(a) All partner’s capital account in their old ratio

(b) Retiring  partner’s capital account in his/her sacrificing  ratio
(c) Remaining  partner’s capital account in their new ratio

(d) None of these

15.A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively with the capital balance of Rs. 60,000 for A ,Rs. 60,000 for B,  Rs. 40,000 for C. B declared to retire from the firm and balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 10,050 then what amount will be transferred to the loan account of C?
(a) Rs. 82,020.
(b) Rs. 50,820.
(c) Rs. 25,820.
(d) Rs. 58,820.

Answer – Question Number 11 To 15 

11.Answer- (b) Gaining Ratio

12.Answer- (d) Old profit sharing Ratio

13.Answer- (a) All partner’s capital account

14.Answer- (a) All partner’s capital account in their old ratio

15.Answer- (a) Rs. 82,020.

Also Practice : Fundamentals of partnership MCQs and Answer

Retirement Of A Partner MCQs With Solved Answer 12 Cbse-

Retirement of a partner MCQs with Solved answer 12 cbse (Question 16 to 20)

16. A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 60,000. The contribution of A and C to compensate B will be…

(a) Rs. 20,000 and Rs. 10,000.
(b) Rs. 16,000 and Rs. 8,000.
(c) They will not contribute any thing.
(d) Information is insufficient for any comment

17. Vikas, Kapil and Anil are partners in a firm sharing profits or losses in 3:2:1. Vikas retires and Rs. 36,000 was debited to goodwill account of the firm. If new profit sharing ratio is 2:1, then the amount of goodwill debited respectively to Kapil’s and Anil’s capital account will be….
(a) Rs.12,000: Rs.6,000.
(b) Rs.9,000: Rs.9,000.
(c) Rs.4,500: Rs.4,500.
(d) Nothing is to be debited to their account.

18.Retirement or death of a partner will create a situation for the continuing partners, which is known as: 

(a) Dissolution of Partnership
(b) Dissolution of Partnership firm
(c) Winding up of business
(d) None of the above.

19.The retiring partners’ claim consists of….

(a)The credit balance of Capital Account/Current Account;

(b)His/her share in the Goodwill of the firm;

(c)His/her share in the Gain/Profit on Revaluation;

(d) His/her share in General Reserve and Accumulated Profit

(e) All of these. 

20.Adjustment required at the time of Retirement of a partner…….

(a) Calculation of new profit sharing ratio, gaining ratio and sacrificing ratio.

(b) Adjustment with regard to goodwill including hidden goodwill. 

(c)Adjustment with regard to undistributed profits and losses. 

(d)Preparation of Revaluation Account on retirement of a partner. 

(e)Calculation and payment of amount due to the retiring partner.

(f) ) All of these. 

Answer – Question Number 16 To 20 

16.Answer- (b) Rs. 16,000 and Rs. 8,000.

17.Answer- (a) Rs.12,000: Rs.6,000.

18.Answer- (a) Dissolution of Partnership

19.Answer-  (e) All of these 

20.Answer- (f) ) All of these. 

Retirement Of A Partner MCQs With Solved Answer 12 Cbse-

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