Success Roar Classes

Free Online MCQs Questions of Class – 12 Accountancy Chapter 4 – Retirement or Death of a Partner

Free Online MCQs Questions of CBSE Class 12 Accountancy Chapter 4 – Retirement or Death of a Partner with Answers. Free Online MCQs Questions for Class 12 Accountancy with Answers was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Accountancy Chapter 4 – Retirement or Death of a Partner Multiple Choice Questions with Answers to know their preparation level on Success Roar Classes Website itself.

A partnership may be change not just by the admission of partner but also due to death or retirement of any partner. What accounting treatment is required to be done in this case. How to distribute goodwill. The following questions cover all these types of treatments relating to retirement or death of a partner.

Free Online MCQs Questions of Class -12 Accountancy

Chapter 4 – Retirement or Death of a Partner with Answers

1. Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in:

(A) Gaining Ratio

(B) Capital Ratio

(C) Sacrificing Ratio

(D) Profit Sharing Ratio

2. ‘Gaining Ratio’ means:
(A) Old Ratio – New Ratio
(B) New Ratio – Old Ratio
(C) Old Ratio – Sacrificing Ratio
(D) New Ratio – Sacrificing Ratio

3. At the time of retirement of a partner, profit on revaluation will be credited to:
(A) Capital Account of retiring partner
(B) Capital Accounts of all partners in the old profit sharing ratio.
(C) Capital Accounts of the remaining partners in their old profit sharing ratio
(D) Capital Accounts of the remaining partners in their new profit sharing ratio

4. What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?
(A) Retiring Partner’s Capital A/c Dr. To Goodwill A/c
(B) All Partner’s Capital A/cs (including retiring) Dr. (in old ratio) To Goodwill A/c
(C) Remaining Partner’s Capital A/cs Dr. (in gaining ratio) To Goodwill A/c
(D) Remaining Partner’s Capital A/cs Dr. (in new ratio) To Goodwill A/c

5. On retirement of a partner, goodwill will be credited to the Capital Account of:
(A) Retiring Partner
(B) Remaining Partners
(C) All Partners
(D) None of the Above

6. On the death of a partner, the amount due to him will be credited to :
(A) All partner’s Capital Accounts
(B) Remaining partner’s Capital Accounts
(C) His Executor’s Account
(D) Governments’ Revenue Account

7. How goodwill is recorded on the retirement of a partner?
(A) Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)
(B) Remaining Partner’s Capital A/cs Dr. (In New Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)
(C) Goodwill A/c Dr. To All Partner’s Capital A/cs (In Old Ratio)
(D) Goodwill A/c Dr. To Retiring Partner’s Capital A/c (with his share)

8.  A, B and C are partners sharing profits in the ratio of 5 : 2 : 1. If the new ratio on the retirement of A is 3 :2, what will be the gaining ratio?
(A) 11: 14
(B) 3 : 2
(C) 2 : 3
(D) 14 : 11

9. P, Q and R are partners sharing pro¦ts in the ratio of 5 : 4 : 3. Q retires and P and R decide to share future profits equally. Gaining Ratio will be:
(A) 5 : 3
(B) 1 : 1
(C) 1 : 3
(D) 3 : 1

10. X, Y and Z have been sharing profits in the ratio of 4 : 2 : 1 Z retires. X and Y take Z’s share equally. New profit sharing ratio will be :
(A) 5 : 2
(B) 5 : 3
(C) 9 : 5
(D) 4 : 2

MCQs Questions of CBSE Class 12 Accountancy Chapter 4 – Retirement or Death of a Partner

Answer Key

  1. (a)    2. (b)    3. (b)   4. (b)   5. (a)   6. (c)    7. (a)   8. (d)    9. (c)   10. (c)

Share and Enjoy !

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
error: Content is protected !!