Partnership Accounts – Retirement of a Partner 0 Partnership Accounts - Retirement of a Partner 1 / 32 Q.30 Increase in assets at the time of retirement of partner is______ Debited to goodwill account Debited to profit & loss account Debited to revaluation account Credited to revaluation account 2 / 32 Q.29 The capital account of the retiring partner closes only when full amount due to him is paid TRUE FALSE 3 / 32 Q.28 Retiring partner is not entitled to share in General Reserve and accumulated profit of the firm TRUE FALSE 4 / 32 Q.27 If the balance due on Capital Account of the partner is not paid, same is to be transferred to his Loan Account TRUE FALSE 5 / 32 Q.26 Retiring partner is not entitled to share in the Goodwill of the firm. TRUE FALSE 6 / 32 Q.25 The retiring partner must be paid interest on his capital Account upto the date of his retirement TRUE FALSE 7 / 32 Q.24 If the goodwill Account is written off, goodwill Account is debited. TRUE FALSE 8 / 32 Q.23 On retirement of a partner, remaining partner will share the Goodwill in their capital ratio TRUE FALSE 9 / 32 Q.22 Balance appearing in the Revaluation Account is transferred to Capital Account of the partner's, if Current Account is not operated. TRUE FALSE 10 / 32 Q.21 When assets increase in value, Revaluation Account is debited by the amount of difference TRUE FALSE 11 / 32 Q.20 Profit on revaluation account is transferred to continuing partners capital account only TRUE FALSE 12 / 32 Q.18 Revaluation account is also called as Realisation account TRUE FALSE 13 / 32 Q.17 Amount due to a retiring partner if not paid appears as his loan in the books of the firm TRUE FALSE 14 / 32 Q.16 Retiring partners share in profit upto the date of his retirement will be debited to profit and loss suspense account TRUE FALSE 15 / 32 Q.15 Gain ratio means old ratio minus new ratio TRUE FALSE 16 / 32 Q.14 A,B and C are sharing, in the ratio of 5:3:2 and if C retires their new ratio will be ______ 3:02 5:02 5:03 1:03 17 / 32 Q.13 New ratio = Old ratio +_______ ratio Sacrifice Gain Capital Current 18 / 32 Q.12 Gain Ratio = _______ Ratio less Old ratio. New Sacrifice Equal Capital 19 / 32 Q.11 Retiring partner's share of goodwill is _______ to continuing Partner's capital accounts. Credited Debited Added None of them 20 / 32 Q.10 Revaluation A/c is also known as _____account. P & L Adjustment Suspense Capital Current 21 / 32 Q.9 The balance on the Capital A/c of retired is transferred to his_____ Account if it is not paid. Loan Personal Wife?s loan Son?s 22 / 32 Q.8 If the goodwill is raised to the extent of retiring partners share _______ account to be debited. Cash Goodwill Partner`s capital a/c Retiring partner`s capital 23 / 32 Q.7 Increase in the value of assets should be _______ to profit and loss adjustment account. Debited Credited Added None of these 24 / 32 Q.6 When goodwill is raised at its full value and it is written off _______ account is to be credited. Cash Goodwill All partners capital account Loan 25 / 32 Q.5 X,Y and Z are partners sharing profits in the ratio of 5:3:2, if Y retires then new ratio will be _______. 5:02 5:03 3:02 1:01 26 / 32 Q.4 The profit or loss revaluation on retirement of partner is share by ________. All the partners The remaining partners Only retiring partner None of these 27 / 32 Q.3 A , B and C are partners sharing profit and losses in the ratio 2:2:1. B retries and goodwill was valued at Rs.60,000 Find the contribution of A & C to compensate B Rs.24,000 & Rs.20,000 Rs.16,000 & Rs.8,000 They will not contribute any thing information's insufficient for any comment 28 / 32 Q.2 A partner can retire reaching the age of superannuation on the balance in the capital account reaching a certain amount in accordance with the partnership deed on the condition of his nominee becoming a partner 29 / 32 Q.1 Balances of M/s R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.3,00,000 ; H- Rs.2,00,000 :K- Rs.1,00,000.R decided to retire form the firm & the remaining partners decided to carry on ,JLP of the partners surrendered & cash obtained Rs.60,000.What will be the treatment for JLP ? Rs.60,000 credited to Revaluation account Rs.60,000 credited to joint life policy account Rs.60,000 debited to R's capital account Either (b) or (c) 30 / 32 Q.3 A , B and C are partners sharing profit and losses in the ratio 2:2:1. B retries and goodwill was valued at Rs.60,000 Find the contribution of A & C to compensate B Rs.24,000 & Rs.20,000 Rs.16,000 & Rs.8,000 They will not contribute any thing information's insufficient for any comment 31 / 32 Q.2 A partner can retire reaching the age of superannuation on the balance in the capital account reaching a certain amount in accordance with the partnership deed on the condition of his nominee becoming a partner 32 / 32 Q.1 Balances of M/s R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.3,00,000 ; H- Rs.2,00,000 :K- Rs.1,00,000.R decided to retire form the firm & the remaining partners decided to carry on ,JLP of the partners surrendered & cash obtained Rs.60,000.What will be the treatment for JLP ? Rs.60,000 credited to Revaluation account Rs.60,000 credited to joint life policy account Rs.60,000 debited to R's capital account Either (b) or (c) Your score is LinkedIn Facebook Twitter VKontakte
