NCERT Class 12 Accountancy MCQ Chapter 3 Reconstitution of a Partnership Firm – Retirement/Death of a Partner Solutions, AHSEC Class 12 Accountancy Multiple Choice Question Answer to each chapter is provided in the list so that you can easily browse throughout different chapters NCERT Class 12 Accountancy MCQ Chapter 3 Reconstitution of a Partnership Firm – Retirement/Death of a Partner Question Answer and select needs one.
NCERT Class 12 Accountancy MCQ Chapter 3 Reconstitution of a Partnership Firm – Retirement/Death of a Partner
Also, you can read the SCERT book online in these sections NCERT Class 12 Accountancy Multiple Choice Solutions by Expert Teachers as per SCERT (CBSE) Book guidelines. AHSEC Class 12 Accountancy MCQ Solutions. These solutions are part of SCERT All Subject Solutions. Here we have given HS 2nd Year Accountancy Objective Type Question Answer for All Subjects, You can practice these here.
Reconstitution of a Partnership Firm – Retirement/Death of a Partner
Chapter: 3
| PART – Ⅰ |
MULTIPLE CHOICE QUESTION ANSWER
1. Which of the following would be transferred to the capital account of a retiring partner?
(i) Goodwill adjustment.
(ii) Future profit shares.
(iii) Liabilities.
(iv) Bank overdraft.
Ans: (i) Goodwill adjustment.
2. Which of the following is NOT deducted from the retiring or deceased partner’s share?
(i) Debit balance of their current account.
(ii) Their share of accumulated profits.
(iii) Their share of loss on revaluation of assets and liabilities.
(iv) Salary due to the partner up to the date of retirement/death.
Ans: (ii) Their share of accumulated profits.
3. At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner, in absence of any agreement among partners, when (s)he opts for interest and not share of profit.
(i) 12% p.a.
(ii) 8%p.a.
(iii) 6%p.a.
(iv) 7.5%p.a.
Ans: (iii) 6%p.a.
4. What is the new profit-sharing ratio of Naveen and Tarun if Suresh retires, and his share is to be divided between Naveen and Tarun in the ratio of 2:1?
(i) 5:5
(ii) 7:3
(iii) 3:2
(iv) 10:0
Ans: (ii) 7:3
5. When Suresh retires, and his share is required by Naveen and Tarun in the ratio 2:1, how is the share acquired by each partner?
(i) Suresh’s share is divided equally between Naveen and Tarun.
(ii) Naveen acquires 2/3 of Suresh’s share, and Tarun acquires 1/3.
(iii) Naveen acquires 1/2 of Suresh’s share, and Tarun acquires 1/2.
(iv) Tarun acquires 2/3, and Naveen acquires 1/3.
Ans: (ii) Naveen acquires 2/3 of Suresh’s share, and Tarun acquires 1/3.
6. What does the new share of a continuing partner after a partner’s retirement or death consist of?
(i) The partner’s own share in the firm.
(ii) The share acquired from the retiring/deceased partner.
(iii) Both the partner’s own share and the acquired share from the outgoing partner.
(iv) Only the share acquired from the retiring/deceased partner.
Ans: (iii) Both the partner’s own share and the acquired share from the outgoing partner.
7. Vikram, Anil, and Rajesh are partners in a firm sharing profits in the ratio of 3:2:1. Anil retires from the firm, and his share of profit is to be divided between Vikram and Rajesh in the ratio of 2:1. What will be the new profit-sharing ratio between Vikram and Rajesh?
(i) 4:2
(ii) 5:1
(iii) 2:1
(iv) 6:4
Ans: (iv) 6:4
8. In a partnership, the share of the retiring partner is calculated. If the retiring partner’s capital account has a credit balance of ₹50,000 and the goodwill of the firm is valued at ₹20,000, which of the following entries will be passed?
(i) Debit Goodwill ₹20,000, Credit Retiring Partner’s Capital ₹20,000.
(ii) Debit Retiring Partner’s Capital ₹20,000, Credit Goodwill ₹20,000.
(iii) Debit Goodwill ₹20,000, Credit Partner’s Loan ₹20,000.
(iv) Debit Retiring Partner’s Capital ₹20,000, Credit Partner’s Loan ₹20,000.
Ans: (ii) Debit Retiring Partner’s Capital ₹20,000, Credit Goodwill ₹20,000.
9. If a partner dies and their share of profit till the date of death is calculated, and the share is ₹4,000, how would this be recorded in the accounts of the firm?
(i) Credit the deceased partner’s capital account by ₹4,000.
(ii) Debit the deceased partner’s capital account by ₹4,000.
(iii) Credit the deceased partner’s executor’s account by ₹4,000.
(iv) Debit the deceased partner’s executor’s account by ₹4,000.
Ans: (iii) Credit the deceased partner’s executor’s account by ₹4,000.
10. A partnership firm has three partners: A, B, and C. Their profit-sharing ratio is 3:2:1. C dies, and his share is to be taken over by A and B in the ratio of 2:1. If C’s capital account has a balance of ₹90,000, how much will A and B each acquire from C’s share?
(i) A will acquire ₹60,000, B will acquire ₹30,000.
(ii) A will acquire ₹45,000, B will acquire ₹45,000.
(iii) A will acquire ₹30,000, B will acquire ₹60,000.
(iv) A will acquire ₹40,000, B will acquire ₹50,000.
Ans: (i) A will acquire ₹60,000, B will acquire ₹30,000.
11. The goodwill of a partnership firm is valued at ₹50,000. If Partner X retires and his share of goodwill is ₹20,000, how will the accounting entry for goodwill be passed if the share of goodwill is to be adjusted in the capital accounts of the continuing partners?
(i) Debit X’s capital ₹20,000, Credit Goodwill ₹20,000.
(ii) Debit Goodwill ₹20,000, Credit X’s capital ₹20,000.
(iii) Debit Goodwill ₹50,000, Credit X’s capital ₹20,000, and Y and Z’s capital accounts ₹15,000 each.
(iv) Debit X’s capital ₹20,000, Credit Y and Z’s capital accounts ₹15,000 each.
Ans: (iii) Debit Goodwill ₹50,000, Credit X’s capital ₹20,000, and Y and Z’s capital accounts ₹15,000 each.
12. The retiring partner’s share of profit is to be adjusted in the capital accounts of the continuing partners. If the profit-sharing ratio of the remaining partners is 3:2, and the retiring partner’s share is ₹30,000, how much will each continuing partner contribute to the retiring partner’s share?
(i) ₹15,000 each.
(ii) ₹10,000 each.
(iii) ₹18,000 by one and ₹12,000 by the other.
(iv) ₹9,000 each.
Ans: (iii) ₹18,000 by one and ₹12,000 by the other.
13. Nita, Jaya, and Nisha are partners sharing profits and losses in the ratio of 1:1:1. Jaya retires from the firm. Anita and Nisha decided to share the profit in future in the ratio 4:3. Calculate the gaining ratio.
(i) 4:3
(ii) 5:2
(iii) 2:3
(iv) 3:4
Ans: (ii) 5:2
14. In case of the retirement of a partner, the share of goodwill is acquired by the remaining partners in the ratio of 4:5. What is the effect on the new profit-sharing ratio?
(i) It will remain the same as before.
(ii) The new ratio will be directly proportional to the goodwill share acquired.
(iii) It will be decided on the basis of the remaining partners’ mutual agreement.
(iv) None of the above.
Ans: (ii) The new ratio will be directly proportional to the goodwill share acquired.
15. In the case of B’s retirement, if the value of goodwill is Rs. 60,000 and A and C continue the business in the ratio of 3:1, how much will A and C’s capital accounts be debited for the share of goodwill?
(i) A’s capital account will be debited by Rs. 30,000, and C’s by Rs. 30,000.
(ii) A’s capital account will be debited by Rs. 15,000, and C’s by Rs. 5,000.
(iii) A’s capital account will be debited by Rs. 10,000, and C’s by Rs. 10,000.
(iv) A’s capital account will be debited by Rs. 20,000, and C’s by Rs. 10,000.
Ans: (ii) A’s capital account will be debited by Rs. 15,000, and C’s by Rs. 5,000.
