CUET 2023 Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQ Question and Answers – MCQs for Practice by Meenu Saini | May 25, 2022 | General | 0 comments Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQ Question Answers for CUET 2023 1. Question a.cb.dc.ad.b Loading... 2. One of the various matters that need adjustments at the time of retirement of partnersa.Preparing financial statementsb.Treatment of Joint Life Policy.c.Calculation of goodwill of the new firm and its accounting treatment.d.B & C Loading... 3. On retirement/death of a partner, the retiring/deceased partner’s capital account will be credited with (a)a.His/her share of goodwill.b.Shares of goodwill of remaining partners.c.Profit From Writing Off Goodwilld.Goodwill of the firm. Loading... 4. Question a.bb.ac.dd.c Loading... 5. The problem of calculating gaining ratio arises primarily when the _______of the continuing partners is specifieda.Sacrifice Ratiob.Gain ratioc.New profit-sharing ratiod.Old Profit-sharing ratio Loading... 6. The amount mentioned in balance sheet, due to retiring partner is called as _______a.Willb.Capitalc.Loand.Legacies Loading... 7. At the time of retirement of a partner, goodwill will be credited in _______ partner’s capital Account.a.Gainingb.All of thesec.Oldd.Retiring Loading... 8. After the death of an existing partner, shares of remaining partner willa.All of these.b.Decreasec.Remains Samed.Increase Loading... 9. If the firm has agreed to settle the retiring or deceased partner’s account by paying him a lump sum amount, then the amount paid to him in excess of what is due to him, based on the balance in his capital account after making necessary adjustments in respect of accumulated profits and losses and revaluation of assets and liabilities, etc., shall be treated as his share of goodwill. This Goodwill can be referred toa.Hidden Goodwillb.Investmentc.Combined Goodwilld.Inherent Goodwill Loading... 10. The following deductions, if any, may have to be made from Retiring Partnersa.His share of loss up to the date of retirement/deathb.His Share his share of accumulated lossesc.His share of loss on revaluation of assets and liabilitiesd.All of the above Loading... 11. Chaman, Raman and Suman are partners sharing profits in the ratio of 5:3:2. Raman retires, the new profit-sharing ratio between Chaman and Suman will be 1:1. The goodwill of the firm is valued at Rs. 1,00,000 Raman’s share of goodwill will be adjusteda.By debiting only Suman’s Capital Account with Rs. 30,000.b.By debiting Chaman’s Capital account and Suman’s Capital Account with Rs 15,000 each.c.By debiting Chaman’s Capital account and Suman’s Capital Account with Rs. 21,429 and 8,571 respectivelyd.By debiting Raman’s Capital account with Rs. 30,000 Loading... 12. Unrecorded assets in case of retirement of part isa.Credited to Retiring partner’s capital accountb.Credited to Revaluation accountc.Credited to Partner’s capital accountd.Debited To Revaluation account Loading... 13. How goodwill is recorded on the retirement of a partner?a.Goodwill A/c Dr. To Retiring Partner’s Capital A/c (with his share)b.Goodwill A/c Dr. To All Partner’s Capital A/cs (In Old Ratio)c.Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)d.Remaining Partner’s Capital A/cs Dr. (In New Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill) Loading... 14. Question a.cb.bc.ad.d Loading... 15. Which of the following is Incorrect?a.For increase in the amount of liabilities, Revaluation A/c Is Debitedb.For transfer of accumulated losses, Profit and loss A/c’s Is Debitedc.For an unrecorded liability, Revaluation A/c Is Debitedd.For increase in the value of assets, Assets A/c Is Debited Loading... 16. A, B and C are partners in 3: 4: 2. B wants to retire from the firm. The profit on revaluation on that date was Rs. 36000. New ratio of A and C is 5: 3. Profit on revaluation will be distributed as:a.A 12000; B 16000; C 8000b.A 25000; C 15000c.A 18000; B 13000; C 8000d.A 22500; C 13000 Loading... 17. Increase in the liability at the time of retirement Of a Partnera.Credited to P&L Appropriation accountb.Debited to Revaluation accountc.Debited to Profit and lossd.Credited to Partner’s capital account Loading... 18. At the time of retirement of a partner, account is prepared.a.All of these.b.Profit and loss A/cc.Balance sheetd.Revaluation A/c Loading... 19. Question a.db.cc.ad.b Loading... 20. Section 37 of the Indian Partnership Act, 1932 is applicable, which states that the outgoing partner has an option to receive either interest @ _______ till the date of payment or such share of profits which has been earned with his/her moneya.12.5 % p.a.b.12 % p.a.c.18 % p.a.d.6 % p.a. Loading... Loading... Also See : Accountancy Part 1 Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQs Accountancy Chapter 2 (Part 1) – Accounting for partnership: basic concepts MCQs Accountancy Chapter 3 (Part 1) – Financial statements of a company MCQs Accountancy Chapter 4 (Part 1) – Analysis of financial statements MCQs Accountancy Chapter 5 (Part 1) – Accounting ratios MCQs Accountancy Chapter 6 – Cash flow statement MCQs Accountancy Part 2 Accountancy Chapter 1 (Part 2) – Accounting for not for profit organisation MCQs Accountancy Chapter 2 (Part 2) – Issue and redemption of debentures MCQs Accountancy Chapter 3 (Part 2) – Reconstitution of a partnership firm – admission of a partner MCQs Accountancy Chapter 5 (Part 2) – Dissolution of partnership firm MCQs Submit a Comment Cancel replyYou must be logged in to post a comment.