CBSE Class 12 Accountancy Reconstitution of Partnership Firm: Retirement / Death of a Partner Quiz 5

1. Abhishek, Rajat and Vivek are partners sharing profits in the ratio of 5 : 3 : 2. If Vivek retires, the new profit sharing ratio between Abhishek and Rajat will be:

A 3 : 2 B 5 : 3 C 5 : 2 D None of these

2. The balance of Joint Life Policy Account and Joint Life Policy Reserve A/c is:

A Always Equal B Always Unequal C Not Necessary D None of these

3. Anand, Bahadur and Chander are partners sharing profit equally. On Chander’s retirement, his share is acquired by Anand and Bahadur in the ratio of 3: 2. The new profit-sharing ratio between Anand and Bahadur will be:

A 8 : 7 B 4 : 5 C 3 : 2 D 2 : 3

4. Profit and loss on revaluation at the time of retirement is shared by:

A Remaining Partners B All Partners C New Partner D None of these

5. X, Y, Z are equal partners in a firm. Z retires from the firm. The new profit-sharing ratio between X and Y is 1:2. The gaining ratio will be:

A 3 : 2 B 2 : 1 C 4 : 1 D Only Y gains by 1/3

6. X, Y, Z are partners sharing profits in the ratio of 3 : 4 : 4. Y retires and X and Z share their profits in equal ratio. New ratio of X and Z will be :

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

7. A, B and C are partners. Their capitals are ₹ 1,00,000, ₹ 75,000 and ₹ 50,000 respectively. On C’s retirement his share is acquired by A and B in the ratio of 6 : 4 Gaining ratio will be :

A 3 : 2 B 2 : 2 C 2 : 3 D None of these

8. At the time of retirement of partner, firm gets from the insurance company against joint policy taken jointly for all the partners :

A Policy Amount + Bonus B Surrender Value C Policy Amount D None of these

9. Gaining Ratio is :

A New Ratio-sacrificing ratio B Old Ratio-sacrificing ratio C New ratio-old ratio D Old ratio-new ratio

10. Partnership Act provides that interest on amount of capital balance left by the retired partner be paid at:

A 5% B 6% C Bank Rate D 8%