Retirement or Death of a partner Test

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Retirement or Death of a partner Test - 38

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Weekly Quiz Competition

Question 1
1 / -0

A & B are equal partners.They admit C and D as partners with 1/5th and 1/6th share respectively. What is the profit sharing ratio of all the partners?

A
27:18:3:6

B
28:17:5:6

C
5:4:5:6

D
19:19:12:10

Solution
Question 2
1 / -0

A, B & C partners in a firm sharing profits and losses in the ratio of 4:3:2. B decided to retire from the firm B gives his share to A only. What is the gain ratio?

A
1/3:0

B
1/9:0

C
11:7

D
2:1

Solution

Old share ( A, B and C ) = 4: 3 : 2
B's share = 3/9
Share of B taken by A only = 3/9
New profit sharing ratio of A = Old share + Share taken from B
= (4/9) + (3/9)
= (7/9)
Gaining ratio = New share - Old share
= (7/9) - ( 4/9)
= ( 3/9)
Therefore, gaining ratio of A is 1/3:0
In the given question, C is not getting any share of B at his retirement, therefore only A will gain here.
Question 3
1 / -0

N & Z are partners sharing profits and losses in the ratio 5:3. They admitted S and agreed to give him 3/10th of the profit. What is the new ratio after S's admission?

A
34:20:12

B
42:22:29

C
35:21:24

D
35:42:17
Question 4
1 / -0

A & B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C requires 1/5 from A and 1/10 from B, new sharing ratio will be:

A
5:6:3

B
2:4:6

C
18:24:38

D
17:11:12

Solution
Question 5
1 / -0

N, S & Z are partners. They withdraw a fixed sum of Rs. $$2,000$$ per month as follows:
N draws at the beginning of each month, S withdraws at the middle of each month and Z withdraws at the end of each month. Rate of interest on drawings is $$8\%$$ p.a. Interest on drawings for the $$3$$ partners respectively will be.

A
$$87, 80$$ & $$73$$

B
$$1,040,$$ $$960$$ & $$880$$

C
$$880, 960$$ & $$1,040$$

D
$$867, 800$$ & $$733$$

Solution

Calculation of interest on drawings:
$$A=2,000\times 12\times 8\%\times \dfrac{6.5}{12}=1,040$$
$$B=2,000\times 12\times 8\%\times \dfrac{6}{12}=960$$
$$C=2,000\times 12\times 8\%\times \dfrac{5.5}{12}=880$$.
Question 6
1 / -0

A and B are partners sharing profits in the ratio of $$7 : 3$$. A surrenders $$1/7$$th of his share and B surrenders $$1/3$$rd of his share in favour of C, a new partner. The new profit sharing ratio and sacrificing ratio will be _________.

A
NR $$1 : 3 : 1$$, SR $$1 : 1$$

B
NR $$2 : 2 : 1$$, SR $$1 : 1$$

C
NR $$3 : 1 : 1$$, SR $$7 : 3$$

D
NR $$3 : 1 : 1$$, SR $$1 : 1$$

Solution

Old ratio (A and B) = 7 : 3
Sacrifice ratio of A = (7/10) * (1/7) = 1/10
Sacrifice ratio of B = (3/10) * (1/3) = 1/10
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (7/10) - (1/10) = 6/10
B's new ratio = (3/10) - (1/10) =2/10
C's share = A's sacrifice + B's sacrifice
= (1/10) + (1/10) = (2/10)
New profit sharing ratio = 6 : 2 : 2 or 3 : 1 : 1
Sacrificing ratio of A and B = 1 : 1
Question 7
1 / -0

A, B & C share profits and losses in the ratio of $$1:1:1$$. B retired from business and his share is purchased by A & C in $$40:60$$ ratio. New profit sharing ratio between A & C would be ________.

A
$$1:1$$

B
$$2:3$$

C
$$7:8$$

D
$$3:5$$

Solution

Old ratio (A, B and C) = 1 : 1 : 1
B's share = 1/3
B's share taken by A = (1/3) * (4/10) = 4/30 or 2/15
B's share taken by C = (1/3) * (6/10) = 6/30 or 3/15
New ratio = Old ratio + Share taken from B
A's new share = (1/3) + (2/15) = 7/15
C's new share = (1/3) + (3/15) = 8/15
Therefore, new profit sharing ratio between A and C is 7 : 8
Question 8
1 / -0

A, B and C are partners in the ratio of $$3: 2: 1$$. W is admitted with a $$1/6$$th share in profits. C would retain his original share. The new profit sharing ratio will be ______.

A
$$8 : 12 : 5 : 5$$

B
$$10 : 6 : 4 : 4$$

C
$$12 : 8 : 5 : 5$$

D
None of these

Solution

Old ratio (A, B and C) = 3 : 2 : 1
W is admitted for 1/6th share
A's contribution in favour of W = 3/30 (note 1)
B's contribution in favour of W = 2/30 (note 1)
New ratio = Old ratio - Sacrificing ratio
A's new share = (3/6) - (3/30) = 12/30
B's new share = (2/6) - (2/30) = 8/30
C's share = 1/6 or 5/30 (it remains unchanged)
W's share = 1/6 or 5/30
Therefore, new profit sharing ratio of A, B C and W is 12 : 8 : 5 : 5
Notes:
1. In silent question, A and B will contribute in favour of in old ratio.
Question 9
1 / -0

A and B are partners sharing profits in the ratio of $$3: 2$$. They admit C who takes $$2/7$$th from A and $$1/7$$th from B. The new profit sharing ratio will be _______.

A
$$15 : 9 : 11$$

B
$$15 : 11 : 9$$

C
$$11 : 9 : 15$$

D
$$9 : 11 : 15$$

Solution

Old ratio (A and B) = 3 : 2
C is admitted for 3/7 th share
A's sacrifice in favour of C = 2/7
B's sacrifice in favour of C = 1/7
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (3/5) - (2/7) = 11/35
B's new share = (2/5) - (1/7) = 9/35
C's share = A's sacrifice + B's sacrifice
= (2/7) + (1/7)
= 3/7 or 15/35
Therefore, new profit sharing ratio of A, B and C is 11 : 9 : 15
Question 10
1 / -0

Accumulated profits/losses & reserves are shared by the old partners in their ________.

A
Capital ratio

B
New profit sharing ratio

C
Sacrificing ratio

D
Old profit sharing ratio

Solution

Profits and losses of previous years which are not distributed to the partners are called accumulated profits and losses. Any reserve and accumulated profits and losses belong to the old partners and hence these should be distributed to the old partners in the old profit sharing ratio.

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Re-Attempt Weekly Quiz Competition

Retirement or Death of a partner Test - 38

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Retirement or Death of a partner Test - 38

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SHARING IS CARING

Question 1

27:18:3:6

28:17:5:6

5:4:5:6

19:19:12:10

Solution

Question 2

1/3:0

1/9:0

11:7

2:1

Solution

Question 3

34:20:12

42:22:29

35:21:24

35:42:17

Question 4

5:6:3

2:4:6

18:24:38

17:11:12

Solution

Question 5

$$87, 80$$ & $$73$$

$$1,040,$$ $$960$$ & $$880$$

$$880, 960$$ & $$1,040$$

$$867, 800$$ & $$733$$

Solution

Question 6

NR $$1 : 3 : 1$$, SR $$1 : 1$$

NR $$2 : 2 : 1$$, SR $$1 : 1$$

NR $$3 : 1 : 1$$, SR $$7 : 3$$

NR $$3 : 1 : 1$$, SR $$1 : 1$$

Solution

Question 7

$$1:1$$

$$2:3$$

$$7:8$$

$$3:5$$

Solution

Question 8

$$8 : 12 : 5 : 5$$

$$10 : 6 : 4 : 4$$

$$12 : 8 : 5 : 5$$

None of these

Solution

Question 9

$$15 : 9 : 11$$

$$15 : 11 : 9$$

$$11 : 9 : 15$$

$$9 : 11 : 15$$

Solution

Question 10

Capital ratio

New profit sharing ratio

Sacrificing ratio

Old profit sharing ratio

Solution

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