Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQ Question Answers for Various Entrance Exams

 

1. 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 to
a.
b.
c.
d.

2. The problem of calculating gaining ratio arises primarily when the _______of the continuing partners is specified
a.
b.
c.
d.

3. Question
a.
b.
c.
d.

4. Increase in the liability at the time of retirement Of a Partner
a.
b.
c.
d.

5. At the time of retirement of a partner, goodwill will be credited in _______ partner’s capital Account.
a.
b.
c.
d.

6. After the death of an existing partner, shares of remaining partner will
a.
b.
c.
d.

7. 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 money
a.
b.
c.
d.

8. At the time of retirement of a partner, account is prepared.
a.
b.
c.
d.

9. Which of the following is Incorrect?
a.
b.
c.
d.

10. Question
a.
b.
c.
d.

11. Unrecorded assets in case of retirement of part is
a.
b.
c.
d.

12. One of the various matters that need adjustments at the time of retirement of partners
a.
b.
c.
d.

13. How goodwill is recorded on the retirement of a partner?
a.
b.
c.
d.

14. On retirement/death of a partner, the retiring/deceased partner’s capital account will be credited with (a)
a.
b.
c.
d.

15. The amount mentioned in balance sheet, due to retiring partner is called as _______
a.
b.
c.
d.

16. Question
a.
b.
c.
d.

17. The following deductions, if any, may have to be made from Retiring Partners
a.
b.
c.
d.

18. 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 adjusted
a.
b.
c.
d.

19. 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.
b.
c.
d.

20. Question
a.
b.
c.
d.


 


 
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