Accounting Multiple Choice Questions with answers | Download PDF for MCQs

 

MCQs BASED ON "Dissolution of Partnership Firm"

1. On the retirement of a partner, profit on the adjustment in the value 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


2. In the event of death of a partner, the accumulated profits and losses are shared by the partners in their:

(a) Old Profit-sharing ratio

(b) New Profit-sharing Ratio

(c) Capital Ratio


3. On the death of a partner, the amount of Joint Life Policy is credited to the Capital Accounts of:

(a) Only the deceased partner

(b) All partners including the deceased partner

(c) Remaining partners, in the new profit sharing ratio

(d) Remaining partners, in their old profit sharing ratio

4. The executors will be paid interest on the amount due from the date of death of the partner A:

(a) 4%

(b) 5 %

(b) 6%

(d) 7%


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) Die remaining partners in their new profit-sharing ratio


6. In the event of death of partner, the accumulated profits and losses are shared by the partners in their:

(a) Old Profit-sharing, Ratio

(b) New Profit-sharing Ratio

(c) Capital Ratio


7. On the death of a partner, the amount of Joint Life Policy is credited to the Capital Accounts of:

(a) Only the deceased partner

(b) All partners including the deceased partner

(c) Remaining partner, in the new profit sharing ratio

(d) Remaining partner, in their old profit sharing ratio


8. The executors will be paid interest on the amount due from the date of death of the partner a :

(a) 4%

(b) 5%

(c) 6%

(d) 7%


9. On retirement/death of a partner, the retiring/deceased 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


10. Govind, Hari and Pratap are partner 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 partner's 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 partners' capital accounts from his share of goodwill

(d) None of these


11. On retirement/death of a partner, the remaining partner(s) who have gained due to change in profit sharing ratio should compensate the :

(a) Retiring partner only

(b) Remaining partners (who have sacrificed) as well as retiring partners

(c) None of these.


12. The old profit sharing ratio among Rajender, Satish and Tejpal were 2 : 2 : 1. The new profit sharing ratio after Satish's retirement is 3 : 2. The gaining ratio is :

(a) 3 : 2

(b) 2 : 1

(c) 1: 1

(d) 2 : 3


13. The old profit sharing ratio of A. B and C was 2 : 2 : 1. The new profit sharing ratio after B's retirement of A & C is 3 : 2. The gaining ratio of A & C will be —

(a) 3 : 2

(b) 1 : 1

(c) 2 : 1

(d) 2 : 3


14. A, B and C are partners sharing profits in the ratio 4 : 3 : I . A retires and his share is taken by B & C equally. Calculate new profit sharing ratio of B & C—

(a) 5 : 3

(b) 1 : 1

(c) 4 : 3

(d) 3 4


15. A, B, C are partners sharing profits in the ratio 3 : 5 : 7 respectively. C retires and his share taken up by, A & B in the ratio of 3 : 2. The new ratio would be—

(a) 5 : 4

(b) 1 : 1

(c) 12 : 13

(d) 3 : 2


16. X, Y, Z are partners sharing profits in the ratio 5 : 3 2. Z dies. The gaining ratio of X & Y will be—

(a) 1 : 3

(b) 2 : 3

(c) 3 : 1

(d) 5 : 3


17. X. Y and Z are partners sharing profits in the ratio of 4 : 3 : 2. Y retires. X and Z decided to share the profits in the ratio of 2 : 1 in future. Gaining ratio of X and Z will be—

(a) 1:1

(b) 3 : 2

(c) 2 : 1

(d) 3 : 1


18. A. B and C were partners sharing profits in the ratio of 3 : 2 : 1. C retires and his share was taken by, A & B in the ratio of 3 : 2. The new profit sharing ratio of A & B will be—

(a) 3 : 5

(b) 1 : 1

(c) 5 : 3

(d) 3 : 2


19. X. Y and Z are partners sharing profits in the ratio of 5 : 4 : 1. What will be the new ratio of the remaining partners if Z retires ?

(a) 5 : 4

(b) 3 : 2

(c) 1 : 1

(d) 5 : 1


20. A, B and C are partners in the ratio of 3 : 5 : 7 respectively. C retires and his share was taken up by A & B in the ratio of 3 : 2. New profit sharing ratio will be—

(a) 5 : 7

(b) 12 : 13

(c) 3 : 5

(d) 7 : 3


21. A, B and C were partners sharing profits in the ratio of 5 : 4 : 1 . A retires from the firm. New profit sharing ratio will be—

(a) 5 : 4

(b) 3 : 1

(c) 4 : 1

(d) 5 : 1


22. X, Y and Z were partners sharing profits in the ratio of 4 : 3 : 2. X retires. Assuming Y & Z will share profits in the ratio of 2 : 1 Gaining ratio will be :

(a) 2 : 1

(b) 4 : 3

(c) 3 : 2

(d) 3 : 1


23. A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C retires and his capital after making adjustments for reserves and profits on revaluation is ₹ 2,30,000. A & B agreed to pay him ₹ 2,50,000 in full and final settlement of his claims. The amount of goodwill be—

(a) ₹ 50,000

(b) ₹ 2,00,000

(c) ₹ 20,000

(d) ₹ 1,00,000


24. X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. X dies on 30th April, 2018. The sales and profits during 2017 were ₹ 1,50,000 and 30,000 respectively. The sales upto 30th April, 2018 was amounted to ₹ 70,000. Calculate X's share of profit —

(a) ₹ 10,000

(b) ₹ 3,000

(c) ₹ 5,000

(d) ₹ 7,000


Answers to Retirement or death of partner

1. A

2. B

3. B

4. C

5. A

6. A

7. B

8. C

9. A

10. A

11. B

12. C

13. B

14. A

15. C

16. D

17. C

18. D

19. A

20. B

21. C

22. D

23. C

24. D


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