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e}),u.define("jquery.select2",["jquery","jquery-mousewheel","./select2/core","./select2/defaults","./select2/utils"],function(i,e,r,t,o){var a;return null==i.fn.select2&&(a=["open","close","destroy"],i.fn.select2=function(t){if("object"==typeof(t=t||{}))return this.each(function(){var e=i.extend(!0,{},t);new r(i(this),e)}),this;if("string"!=typeof t)throw new Error("Invalid arguments for Select2: "+t);var n,s=Array.prototype.slice.call(arguments,1);return this.each(function(){var e=o.GetData(this,"select2");null==e&&window.console&&console.error&&console.error("The select2('"+t+"') method was called on an element that is not using Select2."),n=e[t].apply(e,s)}),-1 Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner - Exam Friends 12 Commerce Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Bihar Board 12th Accountancy Objective Questions and Answers
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Free PDF Download of BSEB/ CBSE Business Studies Multiple Choice Questions for Class 12 with Answers Chapter 2 Principles of Management. Business Studies MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Business Studies Principles of Management MCQs Pdf with Answers to know their preparation level. Also Class 10 Click Here
Question 1.
On the retirement of a partner any accumulated profit should be credited to the capital accounts of:
(A) All partners in old profit-sharing ratio
(B) Remaining partners in new profit-sharing ratio
(C) Retiring partner only in his share
(D) None of these
Answer:
(A) All partners in old profit-sharing ratio
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 2.
On the retirement of a partner, full amount of goodwill may be credited to the capital accounts of:
(A) Retiring partners
(B) Remaining partners
(C) All partners
(D) None of these
Answer:
(C) All partners
Question 3.
Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation in:
(A) Gaining Ratio
(B) Capital Ratio
(C) Sacrificing Ratio
(D) Profit-sharing Ratio
Answer:
(A) Gaining Ratio
Question 4.
Gaining ratio is calculated :
(A) At the time of admission of a new partner
(B) At the time of retirement of a partner
(C) On the dissolution of partnership firm
(D) None of these
Answer:
(B) At the time of retirement of a partner
Question 5.
How unrecorded assets are treated at the time of retriement of a partner ?
(A) Credited to Revaluation Account
(B) Credited to Capital Account of Retiring Partner
(C) Debited to Revaluation Account
(D) Credited to Partner’s Capital Accounts
Answer:
(A) Credited to Revaluation Account
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 6.
On the retirement of a partner, profit on revaluation of assets and liabilities should be credited to the Capital Accounts of:
(A) All partners in the old profit-sharing ratio
(B) The remaining partners in their old profit-sharing ratio
(C) The remaining partners in their new profit-sharing ratio
(D) None of these
Answer:
(A) All partners in the old profit-sharing ratio
Question 7.
On retirement of a partner, the retiring Partner’s Capital Account will be credited with:
(A) His/her share of goodwill
(B) Goodwill of the firm
(C) Share of goodwill of remaining partners
(D) None of these
Answer:
(A) His/her share of goodwill
Question 8.
Joint life policy be taken by the firm on the lives of:
(A) All the partners jointly
(B) All the partners separately
(C) All employees of the firm
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)
Question 9.
A, Band Care equal partners in a firm. B retires and the remaining partners decide to share profits of the new firm in the ratio of 5:4. Gaining ratio will be:
(A) 2:1
(B) 1:2
(C) 4:5
(D) 5:4
Answer:
(A) 2:1
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 10.
A, B are C are sharing profits in the ratio of 12:13÷16 C retired. Gaining ratio will be :
(A) 2:1
(B) 2: 3
(C) 3:2
(D) 1:2
Answer:
(C) 3:2
Question 11.
The amount of General Reserve is transferred to all partner’s capital accounts in:
(A) New Profit-sharing Ratio
(B) Capital Ratio
(C) Old Profit-sharing Ratio
(D) None of these
Answer:
(C) Old Profit-sharing Ratio
Question 12.
Abhishek, Rqjat and Vivek are partners sharing profits in the ratio of 5:3:2. If Vivek retires, the new profit sharing ratio between Abhishek and Rajat will be:
(A) 3:2
(B) 5:3
(C) 5:2
(D) None of these
Answer:
(B) 5:3
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 13.
The balance of Joint Life Policy Account and Joint Life PQlicy Reserve A/c is:
(A) Always Equal
(B) Always Unequal
(C) Not Necessary
(D) None of these
Answer:
(C) Not Necessary
Question 14.
Anand, Bahadur and Chander are partners sharing profit equally. On Chander’s retirement, his share is acquired by Anand and Bahadur in the ratio of 3: 2. The new profit-sharing ratio between Anand and Bahadur will be:
(A) 8:7
(B) 4:5
(C) 3:2
(D) 2:3
Answer:
(A) 8:7
Question 15.
Profit and loss on revaluation at the time of retirement is shared by:
(A) Remaining Partners
(B) All Partners
(C) New Partner
(D) None of these
Answer:
(B) All Partners
Question 16.
X, Y, Z are equal partners in a firm. Z retires from the firm. The new profit-sharing ratio between X and Y is 1:2. The gaining ratio will be:
(A) 3:2
(B) 2:1
(C) 4:1
(D) Only Y gains by 1/3
Answer:
(D) Only Y gains by 1/3
Question 17.
X, Y, Z are partners sharing profits in the ratio of 3 : 4 : 4. Y retires and X and Z share their profits in equal ratio. New ratio of X and Z will be :
(A) 1:2
(B) 2:1
(C) 3:1
(D) 1:1
Answer:
(D) 1:1
Question 18.
A, B and C are partners. Their capitals are ₹ 1,00,000, ₹ 75,000 and ₹ 50,000 respectively. On C’s retirement his share is acquired by A and B in the ratio of 6 : 4 Gaining ratio will be :
(A) 3 : 2
(B) 2 : 2
(C) 2 : 3
(D) None of these
Answer:
(A) 3 : 2
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 19.
At the time of retirement of partner, firm gets from the insurance company against joint policy taken jointly for all the partners :
(A) Policy Amount + Bonus
(B) Surrender Value
(C) Policy Amount
(D) None of these
Answer:
(B) Surrender Value
Question 20.
Gaining Ratio is :
(A) New Ratio-sacrificing ratio
(B) Old Ratio-sacrificing ratio
(C) New ratio-old ratio
(D) Old ratio-new ratio
Answer:
(C) New ratio-old ratio
Question 21.
Partnership Act provides that interest on amount of capital balance left by the retired partner be paid at:
(A) 5%
(B) 6%
(C) Bank Rate
(D) 8%
Answer:
(B) 6%
Question 22.
Heri, Roy and Prasad are partners and profit-sharing ratio is 3: 5:1. Roy now wants to retire and his share is taken by Prasad. Find the new ratio of Hari and Prasad:
(A) 1 : 2
(B) 2 : 1
(C) 3 : 5
(D) Equal
Answer:
(A) 1 : 2
Question 23.
A, B and C are partners with profit-sharing ratio as 5 :3 :2. A retires. Find the gaining ratio :
(A) 3 : 2
(B) 5 : 3
(C) 5 :2
(D) None of these
Answer:
(A) 3 : 2
Question 24.
Surrender value of an insurance policy means that value:
(A) Which is received an death of a partner
(B) Which is received when a policy matures
(C) Which can be received before the due date of the policy
(D) None of the above
Answer:
(C) Which can be received before the due date of the policy
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 25.
P, Q and R are partners and share profit in the ratio of 5:3:2. R retires and surrenders 3/5th of his share in favour of P and 2/5th of the share to Q. Find new profit sharing ratio:
(A) 7 : 3
(B) 1 : 2
(C) 31 : 19
(D) None of these
Answer:
(C) 31 : 19
Question 26.
Govind, Hari and Pratap are partners. On retirement of Govind, the goodwill already appears in the Balance Sheet at ₹ 24,000. The goodwill will be written off:
(A) By debiting all Partners’ Capital Accounts in their old profit-sharing ratio
(B) By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio
(C) By debiting retiring Partner’s Capital Account from his share of goodwill
(D) None of these
Answer:
(A) By debiting all Partners’ Capital Accounts in their old profit-sharing ratio
Question 27.
Goodwill is paid out of the retiring partner in :
(A) Old Profit-sharing Ratio
(B) Capital Ratio
(C) Equal Ratio
(D) None of these
Answer:
(A) Old Profit-sharing Ratio
Question 28.
On retirement of a partner, his share of goodwill is written off among continuing partners in there :
(A) New Profit-sharing Ratio
(B) New Capital Ratio
(C) Gaining Ratio
(D) None of these
Answer:
(C) Gaining Ratio
Question 29.
On retirement of a partner, the retiring partner’s capital account will be credited with :
(A) His/her share of goodwill
(B) Goodwill of the firm
(C) Shares of goodwill of remaining partners
(D) None of these
Answer:
(A) His/her share of goodwill
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 30.
On retirement of a partner’s the amount of General Reserve is transferred to all partner’s capital account in:
(A) New Profit Sharing Ratio
(B) Capital Ratio
(C) Old Profit Sharing Ratio
(D) None of these
Answer:
(C) Old Profit Sharing Ratio
Question 31.
X, Y and Z were partners sharing profits in the ratio of 5:3:2. Goodwill does not appear in the books but it is agreed to be worth 1,00,000 Rs.. X retires from the firm and Y and Z decide to share profits equally. X’s share of goodwill will be debited to Y’s and Z’s Capital A/cs in………ratio:
(A) 12:12
(B) 2:3
(C) 3 : 2
(D) None of these
Answer:
(B) 2:3
Question 32.
x,y are z are partners and share profits in the ratio of 5:3:2.y retires and x takes 1/10 fromy and z takes 1/5 from y. The new profit sharing ratio will be :
(A) 7: 13
(B) 13:7
(C) 3 : 2
(D) 1 : 1
Answer:
(C) 3 : 2
Question 33.
The old profit-sharing ratio among Rajender, Satish and Tejpal were 2:2:1. The new profit-sharing ratio after Satish’s retirement is 3 :2. The gaining ratio is :
(A) 3:2
(B) 2 : 1
(C) 1 : 1
(D) 2 : 3
Answer:
(C) 1 : 1
Question 34.
The amount due to the deceased partner is paid to his……….
(A) Father
(B) Friend
(C) Wife
(D) Executors
Answer:
(D) Executors
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 35.
In case of death of a partner, the whole amount standing to the credit of his capital account is transferred to :
(A) Capital Accounts of all partners
(B) Capital Accounts of remaining partners
(C) His Executor’s Account
(D) Account of the Government
Answer:
(C) His Executor’s Account
Question 36.
On the death of a partner in a firm payments are made to;
(A) Capital A/c
(B) Executor’s A/c
(C) Current A/c
(D) Loan A/c
Answer:
(B) Executor’s A/c
Question 37.
X, Y and Z share profits in the ratio of 12:13:16,Z dies. New ratio of X and Y will be :
(A) 3:2.
(B) 2:3
(C) 2 : 1
(D) None of these
Answer:
(A) 3:2.
Question 38.
The executors of deceased partner will be paid interest on the amount due from the date of death of the partner at:
(A) 5% p.a.
(B) 6% p.a.
(C) 7% p.a.
(D) 8% p.a.
Answer:
(B) 6% p.a.
Question 39.
In the event of death of a partner, the accumulated profits and losses are shared by the partners in their:
(A) Old Profit-sharing Ratio
(B) New Profit-sharing Ratio
(C) Capital Ratio
(D) None of these
Answer:
(A) Old Profit-sharing Ratio
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 40.
On the death of a partner, the amount of Joint Life Insurance Policy is credited to the Capital Accounts of:
(A) Only the deceased partner
(B) All partners including the deceased partner
(C) Remaining partners, in the new profit-sharing ratio
(D) Remaning partners, in their old profit-sharing ratio
Answer:
(B) All partners including the deceased partner
Question 41.
On death of a partner, the remaining partner(s) who have gained due to change in profit-sharing ratio should compensate the:
(A) Deceased partner
(B) Remaning partners (who have sacrificed) as well as decreased partner
(C) Remaining partners (who have sacrificed)
(D) None of these
Answer:
(A) Deceased partner
Question 42.
B, C and D are partners sharing profit in the ratio 7:5:4. D died on 30th June, 2016 and profits for the year 2015-16 were ₹ 12,000. How much share in profits for the period 1st April, 2016 to 30th June, 2016 will be credited to D’s Account:
(A) ₹ 3,000
(B) ₹ 750
(C) Nil
(D) ₹ 1,000
Answer:
(B) ₹ 750
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 43.
A, B and C are partners sharing profits and losses in the ratio of 2 : 2 :1. C died on 31st March, 2016. The profits of the financial year ending 31st March, 2016 is ₹ 64,000. The share of the deceased partner in the profits will be:
(A) ₹ 9,200
(B) ₹ 12,800
(C) ₹ 3,100
(D) ₹ 6,100
Answer:
(B) ₹ 12,800
Question 44.
JLP of the partners is a/an…………..account
(A) Nominal
(B) Personal
(C) Liability
(D) Asset
Answer:
(D) Asset
Question 45.
Joint Life Policy amount received by a frim is distributed in:
(A) Opening Capital Ratio
(B) Closing Capital Ratio
(C) Old Profit-sharing Ratio of Partners
(D) New Profit-sharing Ratio
Answer:
(C) Old Profit-sharing Ratio of Partners
Question 46.
A, B and C are partners sharing profits in the ratio of 3:2:1. They had a Joint Life Policy of ₹ 3,00,000. Surrender value of JLP in Balance Sheet is ₹ 90,000. C dies what is share of each partner in JLP ?
(A) ₹ 1,05,000 ; ₹ 70,000; ₹ 35,000
(B) ₹ 45,000 ; ₹ 30,000; ₹ 15,000
(C) ₹ 1,50,000 ; ₹ 1,00,000 ; ₹ 50,000
(D) ₹ 1,95,000 ; ₹ 1,30,000 ; ₹ 65,000
Answer:
(C) ₹ 1,50,000 ; ₹ 1,00,000 ; ₹ 50,000
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 47.
X, Y and Z are partners sharing profits in te ratio of 7 : 5 :4. On 30th June, 2015 Z died and profits for the year ending 31st March, 2016 were ₹ 2,40,000. How much share in profits for the period 1st April to 30th June, 2015 will be credited to Z’s account assuming the profit occurred evenly throughout the year ;
(A) ₹ 60,000
(B) ₹ 15,000
(C) ₹ 20,000
(D) Nil
Answer:
(B) ₹ 15,000
Question 48.
Revaluation Account is prepared at the time of …………
(A) Admission of a partner
(B) Retirement of a partner
(C) Death of a partner
(D) All of the above
Answer:
(D) All of the above
Question 49.
As per section 37 to the Indian Partnership Act, 1932, the executors would be entitled at their choice to interest calculated from the date of dealth till the date of payment on the final amount due to the deceased partner at………..percent per annum.
(A) 7
(B) 4
(C) 6
(D) 8
Answer:
(C) 6
Question 50.
X, Y and Z are the partners sharing profits in the ratio 2:1:1. Firm has a joint life policy of ₹ 1,20,000 and in the balance sheet it is appeaming at the surrender value, i.e., ₹ 20,000. On the death of X how this JLP will be distributed among partners:
(A) 50,000 : 25,000 : 25,000
(B) 60,000 : 30,000 : 30,000
(C) 40,000 : 35,000 : 25,000
(D) whole ₹ 1,20,000 to A
Answer:
(B) 60,000 : 30,000 : 30,000
Question 51.
On death of a partner, the firm gets for joint life policy taken for all partners.
(A) Policy amount
(B) Surrender value
(C) Policy amount of deceased partner
(D) Surrender value of all partners
Answer:
(A) Policy amount
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 52.
A, B and C are partners sharing profits and losses in the ratio of 3 : 2 :1. On 1.3.2016 C died. The average profits of the firm for last four years were ₹ 72,000 Books are closed on 31st December. C’s share of profit till the date of his death will be:
(A) ₹ 2,000
(B) ₹ 12,000
(C) ₹ 1,400
(D) ₹ 24,000
Answer:
(A) ₹ 2,000
Question 53.
A, B and C are partners sharing profits and losses in the ratio of 3 : 2 :1. C dies and goodwill of the firm is valued at ₹ 60,000. The amount payable to the executor’s of the deceased partner will be :
(A) ₹ 30,000
(B) ₹ 25,000
(C) ₹ 10,000
(D) ₹ 20,000
Answer:
(C) ₹ 10,000
Question 54.
M, L and A are partners sharing profits in the ratio of 9:4:3. They have taken a joint life policy of ₹ 96,000. A dies. What is the share of A in the JLP amount ?
(A) ₹ 18,000
(B) ₹ 24,000
(C) ₹ 54,000
(D) ₹ 20,000
Answer:
(A) ₹ 18,000
Question 55.
Which account is prepared at the time retirement or death of a partner to show the changes in the value of assets and liabilities:
(A) Revaluation A/c
(B) Realisation A/c
(C) Partner’s Capital A/c
(D) None of these
Answer:
(A) Revaluation A/c
Question 56.
What are the methods of calculating share of the deceased partner in the profit of the firm upto the date of death:
(A) On time basis
(B) On sales basis
(C) Both (A) and (B)
(D) None of these
Answer:
(C) Both (A) and (B)
Bihar Board 12th Accountancy Objective Answers Chapter 4 Reconstitution of Partnership Firm: Retirement / Death of a Partner
Question 57.
If three partners A, B & C are sharing profits as 5:3:2, then on the dealth of a partner A, how much B & C will pay to A’s executor on account of goodwill ? Good-will is to be calculated on the basis of 2 years purchase of last 3 years average profits. Profits for the last three years are 10,80,000 Rs. :
(A) ₹ 2,16,000 and ₹ 1,42,000
(B) ₹ 2,44,000 and ₹ 2,16,000
(C) ₹ 3,60,000 and ₹ 2,16,000
(D) ₹ 2,16,000 and ₹ 1,44,000
Answer:
(D) ₹ 2,16,000 and ₹ 1,44,000
Question 58.
On death of a partner, his excutor is paid the profits of
the deceased partner for the relevant period. This payment is recorded in Profit & Loss A/c :
(A) Adjustment
(B) Appropriation
(C) Suspense
(D) Reserve
Answer:
(C) Suspense
12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 412th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4
12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 412th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 4 12th Accountancy Objective Answers Chapter 412th Accountancy Objective Answers Chapter 4
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