Retirement or Death of a partner Test

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Retirement or Death of a partner Test - 9

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Weekly Quiz Competition

Question 1
1 / -0

Why executor’s account is prepared

A
As deceased partner is not directly entitled to it

B
As deceased partner not want to take

C
As deceased partner can’t receive his share

D
Both As deceased partner is not directly entitled to it and As deceased partner not want to take

Solution

Share of a deceased partner will be transferred to his executor or legal heirs because partner is already died and he cannot receive his share. Executor of deceased partner receives share of profit on behalf of a deceased partner.
Question 2
1 / -0

Preliminary expenses given in the Asset side of Balance sheet will be:

A
Debited to all partners capital A/c in old ratio

B
Debited to old partners in gaining ratio

C
Debited to sacrificing partners

D
Credited to all partners capital account

Solution

At the time of retirement or death of a partner, while adjusting the capital accounts, preliminary expenses given in the balance sheet should be debited to all the partners in their old profit sharing ratio.
Question 3
1 / -0

Anu, Rohit and Chandan are partners carrying on an illegal business without forming a partnership deed.Chandan Wants to retire but Anu and Rohit are not willing to give his share. Their profit sharing ratio is 3:2:1. Identify the values which should have been incorporated while formulating partnership.

A
Both Respect for law and Responsibility towards society

B
Respect for law

C
Responsibility towards society

D
Righteous behavior

Solution

The valued identified here are:
•Respect for law
•Responsibility towards society
•Righteous behavior
Question 4
1 / -0

Reason for preparing Profit and Loss suspense Account is to ___________

A
Adjust the Revaluation profit

B
Adjust the Revaluation loss

C
Adjust the profit of deceased partner

D
Adjust the capital of deceased partner

Solution

The main purpose of Preparing Profit and Loss Suspense Account is to adjust the profit of deceased partner.This is just a tempriorly account.It is to be shown on the cr. side of capital account of partners.
Question 5
1 / -0

Which of the following is not a temporary account?

A
Profit and Loss Suspense Account

B
Revaluation Account

C
Capital Account of the partners

D
Both Capital Account of the partners and Revaluation Account

Solution

Following Accounts are temporary accounts which are prepared only for the settlement:
•Revaluation Account
•Profit and Loss Suspense Account
Question 6
1 / -0

A, M and B are partners in a firm sharing profit and losse in the ratio of 3:2:2 B has desired to retire from the firm and desires his son should be admitted as partner in his place. The partnership deed is silent A and M agrees to the change and sharing profit and loss in the same ratio. Do you think the change will be as per the law and why?

A
No not to be admitted as per the law

B
Both Yes because it is done through the consent of all the partners and No not to be admitted as per the law options

C
Permission from court is required

D
Yes because it is done through the consent of all the partners

Solution

A new partner can be admitted with consent of all the partners. Once all the partners are ready, court will never interfere in such settlements.
Question 7
1 / -0

_______ can be calculated on the basis of time and sales.

A
Goodwill of the firm

B
Deceased partner’s share of profit

C
Revaluation loss

D
Revaluation Profit

Solution

Deceased partner’s share of profit can be calculated on the basis of the time and sales. His share of profit will be transferred to his capital account.
Question 8
1 / -0

S, R and T are partners in a firm sharing profits in the ratio 3:2:1.Goodwill has been valued at ₹60000 on R’s retirement S and T decided to share profit and losses equally .What should the amount of R’s share of goodwill

A
₹20000

B
₹15000

C
₹25000

D
₹30000

Solution

R’s share of goodwill will be calculated as follows:
Total goodwill = Rs.60,000
R’s Share = 2/6
R’s Share of Goodwill = 60,000 x 2/6 = Rs. 20,000

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Re-Attempt Weekly Quiz Competition

Retirement or Death of a partner Test - 9

Result

Retirement or Death of a partner Test - 9

Score

-

Rank

-

SHARING IS CARING

Question 1

As deceased partner is not directly entitled to it

As deceased partner not want to take

As deceased partner can’t receive his share

Both As deceased partner is not directly entitled to it and As deceased partner not want to take

Solution

Question 2

Debited to all partners capital A/c in old ratio

Debited to old partners in gaining ratio

Debited to sacrificing partners

Credited to all partners capital account

Solution

Question 3

Both Respect for law and Responsibility towards society

Respect for law

Responsibility towards society

Righteous behavior

Solution

Question 4

Adjust the Revaluation profit

Adjust the Revaluation loss

Adjust the profit of deceased partner

Adjust the capital of deceased partner

Solution

Question 5

Profit and Loss Suspense Account

Revaluation Account

Capital Account of the partners

Both Capital Account of the partners and Revaluation Account

Solution

Question 6

No not to be admitted as per the law

Both Yes because it is done through the consent of all the partners and No not to be admitted as per the law options

Permission from court is required

Yes because it is done through the consent of all the partners

Solution

Question 7

Goodwill of the firm

Deceased partner’s share of profit

Revaluation loss

Revaluation Profit

Solution

Question 8

₹20000

₹15000

₹25000

₹30000

Solution

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