MCQs For NCERT Class 12 Accountancy Chapter 4 Reconstitution Of A Partnership Firm Retirement Death Of A Partner

Please refer to the MCQ Questions for Class 12 Accountancy Chapter 4 Reconstitution Of A Partnership Firm Retirement Death Of A Partner with Answers. The following Reconstitution Of A Partnership Firm Retirement Death Of A Partner Class 12 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Accountancy with Answers for all chapters in your NCERT Class 12 Accountancy book.

Reconstitution Of A Partnership Firm Retirement Death Of A Partner Class 12 MCQ Questions with Answers

See below Reconstitution Of A Partnership Firm Retirement Death Of A Partner Class 12 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question.Gaining ratio is used to distribute —————— in case of retirement of a partner.           
(a) Goodwil 
(b) Revaluation Profit or Loss
(c) (a)Profit and Loss Account (Credit Balance)
(d) Both b and c

Question.P, Q and R are partners sharing profits in the ratio of 8:5:3. P retires. Q takes 3/16^th share from P and R takes 5/16^th share from P. What will be the new profit sharing ratio?       
(a)1:1
(b)10:6
(c)9:7
(d)5:3 

Question.X, Y and Z are partners in a firm. Y retires and his claim including his capital and his share of goodwill is R. 1,20,000. He is paid partly in cash and partly in kind. A vehicle at Rs. 60,000 unrecorded in the books of the firm and the balance in cash is given to him to settle his account. The amount of cash to be paid to Y will be:         
(a)80,000
(b)60,000
(c)40,000
(d)30,000

Question.At the time of retirement of a partner, share of retiring partner’s goodwill will be credited to —————- Capital Account(s).             
(a)Remaining Partner(s) 
(b)Retiring Partner’s
(c)Both Sacrificing and Gaining Partner(s)
(d)Gaining Partner(s)

Question.X, Y and Z are partners sharing profits and losses in the ratio of 4:3:2. Y retires and surrenders 1/9^th of his share in favour of X and the remaining in favour of Z. The new profit sharing ratio will be:         
(a)1:8
(b)13:14
(c)8:1
(d)14:13

Question.Anil, Bimal and Chetan are partners sharing their profits and losses in the ratio of 4:3:2. On 1.7.2013, Chetan retired and on that date the capitals of Anil, Bimal and Chetan after all necessary adjustments stood at Rs. 75,000, Rs. 65,000 and Rs. 45,000 respectively. Anil and Bimal continued to carry the business for 6 months without settling Chetan’s account. During the period of six months ending 31^st December,2013, a profit of Rs. 50,000 is earned by the firm. Keeping Chetan’s interest in mind, the amount payable to Chetan will be:       
(a)1,350
(b)13,36
(c)12,16 
(d)1,362

Question.A and B were partners. They shared profits as A- ½; B- 1/3 and carried to reserve 1/6. B died. The balance of reserve on the date of death was Rs. 30,000. B’s share of reserve will be:           
(a)10,000
(b)8,000
(c)12,000
(d)9,000 

Question.A, B and C were partners. Their partnership deed provided that they were to share profits as; A 26 per cent; B 34 per cent; C 40 per cent ; and that if a partner retires, his capital should remain in the business for a stated period at a fixed rate of interest, but that the retiring partner’s share should be credited with an amount for Goodwill, based upon one and a half year’s average profits, for the five years prior to his death, but be subject to deduction of 5 per cent from the book debts. C retired, and the profits of the firm for five years were agreed at Rs. 20,000; Rs. 30,000; Rs. 15,000 (loss); Rs. 5,000 (loss); and Rs. 45,000 respectively. Book Debts stood at Rs. 90,000.The share of Goodwill to be credited to C’s Account will be:               
(a)2,700
(b)6,300
(c)7,200
(d)3,600

Question.P, Q and R were partners in a firm in the ratio of 5:4:3. They admit S for 1/7 share. It is agreed that Q would retain his original share. ———– will be the sacrificing ratio between P and R.         
(a)5:4 
(b)1:1 
(c)5:3
(d)4:3

Question.When the balance sheet is prepared after retirement (subsequent to preparation of Revaluation Account), ————- values are shown in it.         
(a)Historical
(b)Realisable
(c)Market
(d)Revalued

Question.On retirement of a partner, debtors of Rs. 34,000 were shown in the Balance sheet. Out of this Rs. 4,000 became bad. One debtor became insolvent. 70% were recovered from him out of Rs. 10,000. Full amount is expected from the balance debtors. On account of this item loss in revaluation account will be:             
(a)10,200
(b)3,000
(c)7,000
(d)4,000

Question.If goodwill is already appearing in the books of accounts at the time of retirement, then it should be written off in ————-.         
(a)New Ratio
(b)Gaining Ratio
(c)Sacrificing Ratio
(d)Old Ratio

Question.If at the time of retirement, there is some unrecorded asset, it will be ————- to ————- Account. 
(a)Debited, Revaluation
(b)Credited, Revaluation
(c)Debited, Goodwill
(d)Credited, Partners’ Capital

Question.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)Sacrificing Ratio 
(b)Gaining Ratio 
(c)Capital Ratio
(d)Profit Sharing Ratio

Question.As per Section 37 of the Indian Partnership Act, 1932, interest @ ———– is payable to the retiring partner if full or part of his dues remain unpaid.         
(a)9% m.
(b)12% p.m.
(c)6% p.m.
(d)None of the abov

Question.At the time of retirement, amount remaining in Investment Fluctuation Reserve after meeting the fall in value of Investment is:           
(a)Credited in Sacrificing Ratio
(b)Credited in New Profit Sharing Ratio
(c)Credited in Old Profit Sharing Ratio
(d)Credited in Gaining Ratio

Question.As per section ———— of the Indian Partnership Act, a retiring partner becomes entitled to profits after retirement if his dues remain unpaid         
(a)Section 73 
(b)Section 26
(c)Section 4
(d)Section 37

Question.Match the following with respect to the treatment of goodwill:  

(a) i- C, ii-A, iii-B
(b) i- A, ii-B, iii-C
(c) i- B, ii-A, iii-C
(d) i- B, ii-C, iii-A

Question. 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 only
(b)  Remaining partners (who have sacrificed) as well as deceased partner
(c) Remaining partners only (who have sacrificed)
(d) None of the above

Question. Kiran, umesh and Aditya were in Partnership firm. Suddenly on October 31,2018, Kiran died. Amount payable to her on that date amounted to Rs. 1,05,000. Rs. 5000 was paid immediately and balance was paid in 4 equal annual instalments along with interest @ 12% p.a.starting from 31^st October 2019. Calculate the interest due as on 31^st March, 2019. Financial year was followed as accounting year by the firm.             
(a) Rs. 2,500
(b) Rs.3,000
(c) Rs.4,500
(d) Rs. 3,750

Question. A, B and C were partners sharing profits and losses in the ratio of 2:2:1. Books are closed on 31^st March every year. C died on November 5, 2018. Under the Partnership deed the executors of the deceased partner are entitled to his share of profit to the date of death calculated on the basis of last year’s profit. Profit for the year ended 31^st March, 2018 was Rs. 2,14,000. C’s share of profit will be               
(a) Rs.28,000
(b) Rs.32,000
(c) Rs.28,800 
(d) Rs.48,000

Question. An account operated to ascertain the loss or gain at the time of death of a Partner is called         
(a) Realisation Account
(b) Executors Account
(c) Revaluation Account
(d) Deceased Partners capital account

Question. Karan, Aman and Girish were Partners with capitals of Rs. 3,00,000’; Rs.2,50,000 and Rs.2,00,000 respectively as on 31^st March, 2018. Aman died, partners decided to pay the entire amount to Aman’s Executor but they only had Rs.50,000 cash and rest of the amount was to be brought in by Karan and Girish in such a way that their future capital will be equal. Calculate the amount to be brought in by Karan and Girish.         
(a) Rs.50,000 by Karan and Rs.1,50,000 by Girish
(b) Rs.50,000 by Girish and Rs.1,50,000 by Karan
(c) Rs.25,000 by Karan and Rs.1,25,000 by Girish
(d) Rs.25,000 by Girish and Rs.1,25,000 by Karan

Question. Which account is opened to transfer deceased  partner’s  share of profit to his capital account           
(a) P&L Adjustment account
(b) P&L Appropriation account
(c) P&L Suspense account
(d) None of the above

Question. A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2:1. On March, 31, 2018 C died. Accounts are closed on December 31^st every year. The sales for the year 2017 was Rs. 6,00,000 and the profits were Rs. 60,000. The sales for the period for the period January 1, 2018 to March 31^st 2018 were Rs.2,00,000. The share of deceased Partner in the current year’s profit on the basis of sales is           
(a) Rs.20,000
(b) Rs. 8,000
(c) Rs. 3,000
(d) Rs. 4,000

Question. What is A’s gaining or sacrificing ratio:
(A) 1/10 Gain
(B) 1/10 Sacrifice
(C) 4/10 Gain 
(D) 4/10 Sacrifice     

Question. P, Q and R sharing profit and losses in the ratio of 8:5:3. P retire from the firm, Q takes 3/16 from P and R takes 5/16 from P. New profit-sharing ratio between Q and R will be
(A) 1:1
(B) 10:6
(C) 9:7
(D) 5:3   

Question. X Y and Z were partners in a firm sharing profit in the ratio ½, 1/3, and 1/6 respectively. Z decided to retire from the firm on the date workman compensation reserve of Rs 120000 was appearing in the balance sheet of the firm. The claim on account of workmen compensation was determined at Rs 67500 excess of amount over the claim will be
(A) Debited to revaluation account
(B) Credited to revaluation account
(C) Debited to partner capital account
(D) Credited to partner capital account   

Question. Match the following cases of retirement of a partner

A) i-b, ii-c, iii-a
B) i-c, ii-a, iii-b
C) i-b, ii-a, iii-c
D) i-a, ii-b, iii-c   

Question. How much of the existing goodwill will be transferred to K’s Capital Account?
(A) Rs 18,000
(B) Rs 30,000
(C) Rs 12,000
(D) Rs 72,000   

Question. 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) Government’s revenue account.    

Question. The share of goodwill of the retiring partners debited to remaining partners in their —-
(A) Capital ratio
(B) New ratio
(C) Gaining ratio
(D) Sacrifice ratio   

Question. What amount of goodwill will be transferred to K’s capital account as compensated by A and S?
(A) Rs 96,000
(B) Rs 72,000
(C) Rs 24,000
(D) Rs18,000     

True And False :

Question. At the time of retirement or death of a partner, the undistributed profits or losses and reserve are distributed among all partners in their old profit-sharing ratio.     

Question. Provident Fund is credited to all partners in their old ratio at the time of Retirement of a Partner.