Retirement or Death of a partner Test

Result

Retirement or Death of a partner Test - 39

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

A and B are partners sharing profits and losses in the ratio of $$3: 2$$. They admit C into the partnership for one-fourth share of the profits while A and B as between themselves are sharing profits & losses equally. The new profit sharing ratio will be _______.

A
NR $$3 : 3 : 2$$, SR $$1 : 9$$

B
NR $$4 : 2 : 2$$, SR $$9 : 1$$

C
NR $$3 : 3 : 2$$, SR $$9 : 1$$

D
None of these

Solution

Old ratio (A and B) = 3 : 2
C is admitted for 1/4 share
Let the combined share of A, B and C = 1
Combined share of A and B after C's admission = 1 - C's share
= 1 - (1/4) = 3/4
New share :
A = (3/4) * (1/2) = 3/8
B = (3/4) * (1/2) = 3/8
C = 1/4
Therefore, A : B : C = 3/8 : 3/8 : 1/4
= 3 : 3 : 2
Sacrificing ratio = Old ratio - New ratio
A's sacrifice = (3/5) - (3/8) = 9/24
B's sacrifice = (2/5) - (3/8) = 1/24
Therefore, sacrificing ratio of A and b is 9 : 1
Question 2
1 / -0

X and Y shared profit and losses in the ratio of 3:2. With effect from 1st April they agreed to share profits equally. The goodwill of the firm was valued at Rs 30,000. The necessary single adjusting entry will involve.

A
Debit Y and Credit X by Rs 3,000

B
Debit X and Credit Y with Rs 3,000

C
Debit X and Credit Y with Rs 300

D
Debit Y and Credit X with Rs 300
Solution
Earlier Goodwill was shared among X and Y in ratio 3:2
i.e. 30000*3/5=18000
30000*2/5=12000
With effect from 1st April, goodwill is to be shared equally
30000*1/2= Rs.15000 each.
X = 18000-3000=15000
Y= 12000+3000=15000
Hence, Y's A/c will be credited by 3000 and X's A/c will be debited.
Question 3
1 / -0

A and B are partners sharing profits in the ratio of $$4: 1$$. C is admitted for $$1/4$$th share in profits which he acquires wholly from A. The new profit sharing ratio will be _________.

A
$$4 : 11 : 5$$

B
$$10 : 5 : 5$$

C
$$8 : 7 : 5$$

D
$$11 : 4 : 5$$

Solution

Old share (A and B) = 4 : 1
C is admitted for 1/4 Share
A sacrifices in favour of C = 1/4
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (4/5) - (1/4) = 11/20
B's new share = (1/5) - 0 = 1/5 or 4/20
C's share = 1/4 or 5/20
Therefore, new profit sharing ratio of A, B and C = 11 : 4 : 5
Question 4
1 / -0

A and B are partners sharing profits in the ratio of $$3: 2$$. C is admitted into the firm for $$1/5$$th share in the profit which he acquires equally from A and B. The new profit sharing ratio will be ________.

A
$$3 : 5 : 2$$

B
4:4:2

C
$$5 : 3 : 2$$

D

Solution

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

Accumulated profits/losses & reserves on the retirement of a partner are shared by the partners in their __________.

A
Capital ratio

B
New profit sharing ratio

C
Old profit sharing ratio

D
Gaining ratio

Solution

The retiring partner is entitled to his share of profits or losses in old ratio that have arisen till the date of his retirement.
Accumulated profits or losses are transferred to the capital account of all partners including retiring or deceased partners in their old profit sharing ratio.
Question 6
1 / -0

A and B are partners sharing profits in the ratio of $$1 : 2$$. They admit C for $$1/5$$th share and decide to share future profits equally. The new profit sharing ratio will be _______.

A
$$2 : 2 : 1$$

B
$$3 : 1 : 1$$

C
$$1 : 3 : 1$$

D
None of these

Solution

Old ratio (A and B) = 1 : 2
C is admitted for 1/5 share of profit
Let the combined share of all partners after C's admission = 1
Combined share of A and B in the new firm = 1 - C's share
= 1 - (1/5)
= (4/5) * (1/2)
= 4/10 each
New ratio of A, B and C = 4/10, 4/10 and 1/5
= 4 : 4 : 2 or 2 : 2 : 1
Question 7
1 / -0

A, B and C share profits as $$1/2$$ to A,$$1/3$$ to B, $$1/6$$ to C. B retires, and his share is taken up by A and C in the ratio of $$1 : 3$$. The new profit sharing ratio will be ________.

A
$$\displaystyle \frac{1}{2} : \frac{1}{6}$$

B
$$5 : 7$$

C
$$7 : 5$$

D
none of these

Solution

Old ratio (A, B and C) = 1/2 : 1/3 : 1/6 or 3 : 2 : 1
Share of B = 2/6
Share of B taken by A = (2/6) * (1/4) = 2/24
Share of B taken by C = (2/6) * (3/4) = 6/24
New ratio = Old ratio + Share taken from B
A's new ratio = (3/6) + (2/24) = 14/24
C's new ratio = (1/6) + (6/24) = 10/24
Therefore, new ratio of A and C = 14 : 10 or 7 : 5
Question 8
1 / -0

A, B and C are partners sharing profits in the ratio of $$1/2, 1/3$$ and $$1/6$$. B retires. A and C decide to share future profits in the ratio of $$3: 2$$. The gaining ratio will be ______.

A
$$3 : 2$$

B
$$2 : 3$$

C
$$7 : 3$$

D
$$3 : 7$$

Solution

Old ratio (A, B and C) = 1/2 : 1/3 : 1/6 or 3 : 2 : 1
New ratio (A and C) = 3 : 2
Gaining ratio = New ratio - Old ratio
A's gain = (3/5) - (3/6) = 3/30 or 1/10
C's gain - (2/5) = (1/6) = 7/30
Therefore, gaining ratio of A and C = 3 : 7
Question 9
1 / -0

A, B and C are partners sharing profits in the ratio of $$1/2, 2/5$$ and $$1/10$$. B retires and his share is taken up by A and C in the ratio of $$1 : 5$$. The new profit sharing ratio of A and C will be __________.

A
$$\displaystyle \frac{1}{2} : \frac{1}{10}$$

B
$$13 : 17$$

C
$$17 : 13$$

D
none of these

Solution

Old ratio (A, B and C) = 1/2 : 2/5 : 1/10 or 5 : 4 : 1
Share of B = 4/10
Share of B taken by A = (4/10) * (1/6) = 4/60 or 1/15
Share of B taken by C = (4/10) * (5/6) = 20/60
New ratio = Old ratio + Share taken from B
A's new ratio = (5/10) + (4/60) = 34/60
C's new ratio = (1/10) + (20/60) = 26/60
Therefore, new ratio of A and C = 34 : 26 or 17 : 13
Question 10
1 / -0

A, B and C share profits in the ratio of $$4/9, 1/3$$ and $$2/9$$. B retires. The new ratio, if A purchases B's share, will be __________.

A
$$4 : 2$$

B
$$2 : 7$$

C
$$7 : 2$$

D
none of these

Solution

Old ratio (A, B and C) = 4/9 : 1/3 : 2/9 or 4 : 3 : 2
B's share = 3/9 purchased by A
New share = Old share + Share taken from B
A's new share = (4/9) + (3/9) = 7/9
C's new share = (2/9) + 0 2/9
Therefore, new profit sharing ratio of A and C = 7 : 2

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 - 39

Result

Retirement or Death of a partner Test - 39

Score

-

Rank

-

SHARING IS CARING

Question 1

NR $$3 : 3 : 2$$, SR $$1 : 9$$

NR $$4 : 2 : 2$$, SR $$9 : 1$$

NR $$3 : 3 : 2$$, SR $$9 : 1$$

None of these

Solution

Question 2

Debit Y and Credit X by Rs 3,000

Debit X and Credit Y with Rs 3,000

Debit X and Credit Y with Rs 300

Debit Y and Credit X with Rs 300

Solution

Question 3

$$4 : 11 : 5$$

$$10 : 5 : 5$$

$$8 : 7 : 5$$

$$11 : 4 : 5$$

Solution

Question 4

$$3 : 5 : 2$$

4:4:24:4:2

$$5 : 3 : 2$$

6:2:2

Solution

Question 5

Capital ratio

New profit sharing ratio

Old profit sharing ratio

Gaining ratio

Solution

Question 6

$$2 : 2 : 1$$

$$3 : 1 : 1$$

$$1 : 3 : 1$$

None of these

Solution

Question 7

$$\displaystyle \frac{1}{2} : \frac{1}{6}$$

$$5 : 7$$

$$7 : 5$$

none of these

Solution

Question 8

$$3 : 2$$

$$2 : 3$$

$$7 : 3$$

$$3 : 7$$

Solution

Question 9

$$\displaystyle \frac{1}{2} : \frac{1}{10}$$

$$13 : 17$$

$$17 : 13$$

none of these

Solution

Question 10

$$4 : 2$$

$$2 : 7$$

$$7 : 2$$

none of these

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.

4:4:2