Partnership Accounts – Death of a Partner 0 Partnership Accounts - Death of a Partner 1 / 30 Q.30 After the death of a partner, entire amount due to deceased partner is paid to legal representative of the deceased partner TRUE FALSE 2 / 30 Q.29 The legal representative of a deceased partner is entitled to share General Reserve of the firm. TRUE FALSE 3 / 30 Q.28 After the death of a partner, it is necessary to revalued the assets and liabilities of the partnership firm TRUE FALSE 4 / 30 Q.27 It is necessary to prepare a Profit and Loss Adjustment A/c and balance sheet immediately on the death of a partner to ascertain his share of Profit and the amount due to him TRUE FALSE 5 / 30 Q.26 When a partner dies, all amounts due to him are transferred to the capital Account of surviving partners. TRUE FALSE 6 / 30 Q.25 A partnership firm is automatically dissolved on the death of its partners TRUE FALSE 7 / 30 Q.24 Deceases partner's legal representative's loan A/c appears in the balance sheet of the new firm on assets side. TRUE FALSE 8 / 30 Q.23 A deceased partner must be paid interest on his capital TRUE FALSE 9 / 30 Q.22 A deceased partner is not entitled to goodwill. TRUE FALSE 10 / 30 Q.21 It is not possible to revalue the assets and liabilities of the firm on death of a partner. TRUE FALSE 11 / 30 Q.20 Deceased Partner's share in profit upto the date of his death will be debited to his capital A/c TRUE FALSE 12 / 30 Q.19 On the death of a partner, his share in the goodwill is divided equally among continuing partners TRUE FALSE 13 / 30 Q.18 Total amount due to deceased partner is paid in cash to executor immediately after his death TRUE FALSE 14 / 30 Q.17 Death of a partner is like a compulsory retirement TRUE TRUE 15 / 30 Q.16 If goodwill is written off a retiring partner's capital account is debited TRUE FALSE 16 / 30 Q.15 An amount due to a deceased partner is transferred to his executor's loan A/c TRUE FALSE 17 / 30 Q.14 The capital account of a retiring partner always shows a debit balance. TRUE FALSE 18 / 30 Q.13 Retiring partner is not entitled to his share of general reserve TRUE FALSE 19 / 30 Q.12 Retiring partner is entitled to his share of goodwill TRUE FALSE 20 / 30 Q.11 The balance on the Capital A/c of a partner, on his death is transferred to ______ A/c Legal Heir's Loan Relatives Other Partner's Capital None of these 21 / 30 Q.10 Death is a compulsory______ Admission Retirement Dissolution None of these 22 / 30 Q.9 Deceased partner's legal representative loan A/c. is shown in the balance sheet on _____ side. Liabilities Assets Credit None of these 23 / 30 Q.8 Profit and Loss Suspense account is shown in the new balance sheet on _____ side. Liabilities Assets Debit None of these 24 / 30 Q.7 On death of partner, his share of profit from the date of balance sheet to the date of his death is debited to ______ account. Capital Current Profit and Loss Suspense Profit and Loss Adjustment 25 / 30 Q.6 M, N and S are partners in a firm having joint life policy of Rs.10,00,000 on which premium has been paid by a firm. M dies and his legal representatives want the whole amount of the policy whereas N and S want to distribute the amount among all the partners. M's representatives are correct N and S are correct All are wrong Insurance Company will decide 26 / 30 Q.5 An amount received from the Insurance Company against the joint life policy is ________ Debited to deceased partner Credited to deceased partner Credited to continuing partner's capital A/c Credited to all partners capital A/c in their profit sharing ratio 27 / 30 Q.4 Share of profit of a deceased partner till the date of death is_______ Debited to P/L Adjustment A/c Credited to P/L Adjustment A/c Loan Debited to P/L Suspense A/c Credited to P/L Suspense A/c 28 / 30 Q.3 Gain ratio is the ratio in which_______ The old partner gain on admission of a new partner The goodwill of a new partner on admission is credited to old partners The continuing partner's benefits on retirement or death of a partner None of the above 29 / 30 Q.2 Gain ratio is calculated on_______ Admission of a partner Retirement of a partner Death of a partner Retirement or death of a partner 30 / 30 Q.1 A ,B & C takes a joint life policy for Rs.30,000 their profit sharing ratio is 5;3:2. After death of B , what is the amount payable to each partner A- Rs.22,000 & B- Rs.8,000 A- Rs.14,000 & B- Rs.16,000 A- Rs 15,000 & B- Rs.9,000 & C- Rs.6,000 A- Rs.10,000 & B- Rs.8,000 & C- Rs.10,000 Your score is LinkedIn Facebook Twitter VKontakte