Retirement or Death of a partner Test

Result

Retirement or Death of a partner Test - 2

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Capital employed by a partnership firm is Rs10,00,000.Its average profit is Rs 1,20,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?

A
Rs 1,00,000

B
Rs 12,000

C
Rs 1,12,000

D
Rs 20,000

Solution

Rs 20,000
Question 2
1 / -0

Outgoing partner is not entitled to take _______

A
Complete goodwill of the firm

B
His share of profit for the period

C
His share of Loss on Revaluation

D
His Capital account balance

Solution

Outgoing partner cannot take complete goodwill of the firm. Outgoing partner is entitled for the followings:
(i) His capital account balance
(ii) His share of profit reserves & gains etc.
(iii) Revaluation profit or loss
(iv) His share of goodwill
Note: outgoing partner is entitled for his share of goodwill only and not the complete goodwill of the firm.
Question 3
1 / -0

Profit or loss on revaluation is shared among the partners in:

A
new profit sharing ratio

B
old profit sharing ratio

C
capital ratio

D
equal ratio

Solution

old profit sharing ratio
Question 4
1 / -0

When the New ratio is deducted with Old Ratio we get:

A
Old Ratio

B
Sacrifice only

C
New Ratio

D
Gain Ratio

Solution

Gaining ratio is calculated by deducting the old ratio from the new ratio. The following formula is used to calculate the gain ratio.
Gaining ratio = New ratio – old ratio
Question 5
1 / -0

Revaluation A/c is prepared to find out the profit or loss on :

A
sale of goods

B
revaluation of assets and liabilities

C
sale of fixed assets

D
sale of services

Solution

revaluation of assets and liabilities
Question 6
1 / -0

Gaining Ratio is Applicable for:

A
For the Calculation of profit

B
For Revaluation

C
Retiring partner’s share of goodwill only

D
For the distribution of Reserves and profits

Solution

The main purpose of calculating gaining ratio at the time of retirement of a partner is to adjust his amount of goodwill. After calculating his share of goodwill, gainer partners will be debited and outgoing partner will be credited.
Question 7
1 / -0

New Profit sharing Ratio after retirement of a partner, can be calculated as:

A
Gain Ratio – Sacrificing Ratio

B
New Ratio – Sacrificing Ratio

C
Old Ratio + Acquired share

D
New Ratio – Acquired share

Solution

To calculate the new profit sharing ratio at the time of retirement, following formula should be used: New Share = Old Share + Acquired Share.

Sometimes these acquired share is in negative. it means that there is some sacrifice by the partner and some other partner is gaining more share in the future profit.
Question 8
1 / -0

Goodwill Given in the old Balance Sheet will be:

A
Credited to old Partners Capital accounts

B
Written off by the Sacrificing partners

C
Distributed by Gainer partners

D
Written off by the old partners

Solution

Goodwill given in the old balance sheet will be written off by all the partners (including retiring partner) at the time of retirement of a partner. Goodwill will be written off in the old ratio of all the partners.

As it is fictitious assets so we write it on debit side of partners capital account and reduce partners capital with that effect. So asset goddiwll gone and liabilities capital reduce. debit =credit.
Question 9
1 / -0

Gaining ratio is the ratio in which continuing partners have ______ the share from the outgoing partner

A
Acquired and Sacrificed

B
Sacrificed

C
Acquired

D
Both Acquired and Sacrificed

Solution

When a partner retires from the firm, his share will be acquired by the continuing partners. The ratio in which they acquire the share of retired partner, is known as gaining ratio.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Retirement or Death of a partner Test - 2

Result

Retirement or Death of a partner Test - 2

Score

-

Rank

-

SHARING IS CARING

Question 1

Rs 1,00,000

Rs 12,000

Rs 1,12,000

Rs 20,000

Solution

Question 2

Complete goodwill of the firm

His share of profit for the period

His share of Loss on Revaluation

His Capital account balance

Solution

Question 3

new profit sharing ratio

old profit sharing ratio

capital ratio

equal ratio

Solution

Question 4

Old Ratio

Sacrifice only

New Ratio

Gain Ratio

Solution

Question 5

sale of goods

revaluation of assets and liabilities

sale of fixed assets

sale of services

Solution

Question 6

For the Calculation of profit

For Revaluation

Retiring partner’s share of goodwill only

For the distribution of Reserves and profits

Solution

Question 7

Gain Ratio – Sacrificing Ratio

New Ratio – Sacrificing Ratio

Old Ratio + Acquired share

New Ratio – Acquired share

Solution

Question 8

Credited to old Partners Capital accounts

Written off by the Sacrificing partners

Distributed by Gainer partners

Written off by the old partners

Solution

Question 9

Acquired and Sacrificed

Sacrificed

Acquired

Both Acquired and Sacrificed

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.