Retirement or Death of a partner Test

Result

Retirement or Death of a partner Test - 20

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

Retirement /death of a partner leads to ____________.

A
Gain in profit sharing ratio of remaining partners

B
Loss in profit sharing ratio of remaining partners

C
No change in profit sharing ratio of remaining partners

D
None of the above

Solution

Gaining ratio is equal to new profit ratio-old profit ratio, retire or death of partner leads to gain in profit sharing ratio of remaining partners.

Question 2

1 / -0

X, Y, and Z are three partners. On the retirement of X assets and liabilities are revalued as under provision for doubtful debts reduced by Rs.1250, stock in trade increased by Rs.550, Building in increased by rs 4500. The remaining partner decides to re-state the assets and liabilities at the old book value after the retirement of X.The revaluation would be given effect by ___________.

Y a/c Dr.,Z a/c Dr (each) Rs.1050,Credit X Rs.2100

Y a/c Dr,Z a/c Dr (each) Rs.1400,Credit X Rs.2800

Y a/c Dr,Z a/c Dr (each) Rs.2100,Credit X Rs.4200

Y a/c Dr,Z a/c Dr (each) Rs.700,Credit X Rs.1400

Solution

Revaluation A/c on the retirement of X

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Partner's Capital A/c ( X's Capital 2100) (Y's Capital 2100) ( Z's Capital 2100)	6300	By Provision for doubtful debts A/c By Stock in trade A/c By Building A/c	1250 550 4500
	6300		6300

X' share of revaluation gain = Total revaluation gain * X's share

X' share of revaluation = Rs. 6300 * (1/3) = Rs. 2100

Adjustment entry to give effect for revaluation is :

Y's A/c Dr. 1050

Z's A/c Dr. 1050

To X's A/c 2100

Question 3
1 / -0

Increase in any asset at the time of retirement of a partner is ______________.

A
credited to revaluation A.c.

B
debited to revaluation A/c .

C
debited to profit and loss A/c.

D
debited to goodwill A/c.

Solution

At the time retirement if assets are increase or if liabilities are decrease then journal entries are of retire partner is credited to revaluation a/c.
Question 4
1 / -0

R,S,G are three partners sharing profit and loss in the ration of 8:7:5,S retires and his share of profit is taken by R,G in the ratio of 1:2. Find the new profit sharing ratio.

A
2:1

B
31:25

C
29:31

D
1:2

Solution

New ratio
R gets share =existing ratio + get
R's get = 7/20*1/3=7/60
R's new ratio=8/20+7/60
=31/60
G's get 5/20*2/3=10/60
G's new ratio=5/20+10/60
=15/60=10/60=25/60
SO,
NEW RATIO IS 31:25
Question 5
1 / -0

The amount which a new partner pays for the sacrifice made by other partners is called _______.

A
capital reserve

B
goodwill

C
reserve capital

D
reserve

Solution

At the time of admission of new partner, old partners sacrifices some of their profit share. To compensate old partners, new partner is liable to bring in goodwill either in cash or kind which is distributed among old partners in their sacrificing ratio.
The necessary journal entry will be:
1. Bank/Cash A/c Dr.
To Goodwill A/c
2. Goodwill A/c Dr.
To Old partner's capital A/c (Individually in their sacrificing ratio)
Question 6
1 / -0

Goodwill brought in by a new partner is a _______.

A
tangible asset

B
fictitious asset

C
dummy asset

D
intangible but real asset
Question 7
1 / -0

A,B, and C are three partners sharing profit and loss in the ratio of 4:3:2. A retires and B and C decides to share future profit in the ratio of 2:1. Find the gaining ratio.

A
1:3

B
1:1

C
2:1

D
3:1

Solution

Old ratio ( A, B and C) = 4 : 3 : 2
New ratio (B and C) = 2 : 1
Gaining ratio = New ratio - Old ratio
B's gain = (2/3) - (3/9) = 3/9
C's gain = (1/3) - (2/9) = 1/9
Therefore, gaining ratio (B and C) = 3/9 and 1/9 or 3 : 1
Question 8
1 / -0

A,B and C ate three partners sharing profit and loss in the ratio of 3:2:1.B retires from the firm . What is the gaining ratio of the remaining partners?

A
3:1

B
1:2

C
2:1

D
1:3

Solution

First find new ratio i.e 3:1
gaining ratio of A=new ratio-old ratio
=3/4-3/6
=18/24-12/24=6/24
gaining ratio of C=new ratio -old ratio
=1/4-1/6
=6/24-4/24=4/24
gain ratio=6/24:4/24
=3:1
Question 9
1 / -0

A company purchased a new Plant and Machinery worth $$RS. 1$$ crore from $$XYZ$$ Associates and issued him $$1100000$$ equity shares of $$Rs. 10$$ each. The excess of consideration over and above the purchase price will be treated as ___________.

A
goodwill

B
discount

C
premium

D
capital reserve
Question 10
1 / -0

Which of these terms is not true in respect of goodwill?

A
Real Assets

B
Intangible Assets

C
Fixed Assets

D
Fictitious Assets

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 - 20

Result

Retirement or Death of a partner Test - 20

Score

-

Rank

-

SHARING IS CARING

Question 1

Gain in profit sharing ratio of remaining partners

Loss in profit sharing ratio of remaining partners

No change in profit sharing ratio of remaining partners

None of the above

Solution

Question 2

Y a/c Dr.,Z a/c Dr (each) Rs.1050,Credit X Rs.2100

Y a/c Dr,Z a/c Dr (each) Rs.1400,Credit X Rs.2800

Y a/c Dr,Z a/c Dr (each) Rs.2100,Credit X Rs.4200

Y a/c Dr,Z a/c Dr (each) Rs.700,Credit X Rs.1400

Solution

Question 3

credited to revaluation A.c.

debited to revaluation A/c .

debited to profit and loss A/c.

debited to goodwill A/c.

Solution

Question 4

2:1

31:25

29:31

1:2

Solution

Question 5

capital reserve

goodwill

reserve capital

reserve

Solution

Question 6

tangible asset

fictitious asset

dummy asset

intangible but real asset

Question 7

1:3

1:1

2:1

3:1

Solution

Question 8

3:1

1:2

2:1

1:3

Solution

Question 9

goodwill

discount

premium

capital reserve

Question 10

Real Assets

Intangible Assets

Fixed Assets

Fictitious Assets

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.