CBSE Class 12 Accountancy Reconstitution of Partnership Firm: Retirement / Death of a Partner Quiz 4

1. On the retirement of a partner, 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

2. Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation in:

A Gaining Ratio B Capital Ratio C Sacrificing Ratio D Profit-sharing Ratio

3. 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

4. How unrecorded assets are treated at the time of retriement 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

5. 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

6. On 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

7. Joint life policy 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 (a) and (b)

8. A, Band Care 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

9. A, B are C are sharing profits in the ratio of \(\frac{1}{2}: \frac{1}{3} \div \frac{1}{6}\) C retired. Gaining ratio will be :

A 2 : 1 B 2 : 3 C 3 : 2 D 1 : 2

10. 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