CBSE Class 12 Accountancy Reconstitution of Partnership Firm: Retirement / Death of a Partner Quiz 6

1. Heri, Roy and Prasad are partners and profit-sharing ratio is 3: 5:1. Roy now wants to retire and his share is taken by Prasad. Find the new ratio of Hari and Prasad:

A 1 : 2 B 2 : 1 C 3 : 5 D Equal

2. A, B and C are partners with profit-sharing ratio as 5 :3 :2. A retires. Find the gaining ratio :

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

3. Surrender value of an insurance policy means that value:

A Which is received an death of a partner B Which is received when a policy matures C Which can be received before the due date of the policy D None of the above

4. P, Q and R are partners and share profit in the ratio of 5:3:2. R retires and surrenders 3/5th of his share in favour of P and 2/5th of the share to Q. Find new profit sharing ratio:

A 7 : 3 B 1 : 2 C 31 : 19 D None of these

5. Govind, Hari and Pratap are partners. On retirement of Govind, the goodwill already appears in the Balance Sheet at ₹ 24,000. The goodwill will be written off:

A By debiting all Partners’ Capital Accounts in their old profit-sharing ratio B By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio C By debiting retiring Partner’s Capital Account from his share of goodwill D None of these

6. Goodwill is paid out of the retiring partner in :

A Old Profit-sharing Ratio B Capital Ratio C Equal Ratio D None of these

7. On retirement of a partner, his share of goodwill is written off among continuing partners in there :

A New Profit-sharing Ratio B New Capital Ratio C Gaining Ratio D None of these

8. 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 Shares of goodwill of remaining partners D None of these