Practice Test

Q1) Gain ratio is calculated on_______ Show Answer

Q2) Gain ratio is the ratio in which_______ Show Answer

Q3) Share of profit of a deceased partner till the date of death is_______ Show Answer

Q4) An amount received from the Insurance Company against the joint life policy is ________ Show Answer

Q5) M, N and S are partners in a firm having joint life policy of Rs.10,00,000 on which premium has been paid by a firm. M dies and his legal representatives want the whole amount of the policy whereas N and S want to distribute the amount among all the partners. Show Answer

Q6) On death of partner, his share of profit from the date of balance sheet to the date of his death is debited to ______ account. Show Answer

Q7) Profit and Loss Suspense account is shown in the new balance sheet on _____ side. Show Answer

Q8) Deceased partner's legal representative loan A/c. is shown in the balance sheet on _____ side. Show Answer

Q9) Death is a compulsory______ Show Answer

Q10) The balance on the Capital A/c of a partner, on his death is transferred to ______ A/c Show Answer

Q11) Retiring partner is entitled to his share of goodwill Show Answer

Q12) Retiring partner is not entitled to his share of general reserve Show Answer

Q13) The capital account of a retiring partner always shows a debit balance. Show Answer

Q14) An amount due to a deceased partner is transferred to his executor's loan A/c Show Answer

Q15) If goodwill is written off a retiring partner's capital account is debited Show Answer

Q16) Death of a partner is like a compulsory retirement Show Answer

Q17) Total amount due to deceased partner is paid in cash to executor immediately after his death Show Answer

Q18) On the death of a partner, his share in the goodwill is divided equally among continuing partners Show Answer

Q19) Deceased Partner?s share in profit upto the date of his death will be debited to his capital A/c Show Answer

Q20) It is not possible to revalue the assets and liabilities of the firm on death of a partner. Show Answer

Q21) A deceased partner is not entitled to goodwill. Show Answer

Q22) A deceased partner must be paid interest on his capital Show Answer

Q23) Deceases partner's legal representative's loan A/c appears in the balance sheet of the new firm on assets side. Show Answer

Q24) A partnership firm is automatically dissolved on the death of its partners Show Answer

Q25) When a partner dies, all amounts due to him are transferred to the capital Account of surviving partners. Show Answer

Q26) It is necessary to prepare a Profit and Loss Adjustment A/c and balance sheet immediately on the death of a partner to ascertain his share of Profit and the amount due to him Show Answer

Q27) If there is no provision in the partnership deed, partnership firm is automatically dissolved on the death of any of its partners. Show Answer

Q28) After the death of a partner, it is necessary to revalued the assets and liabilities of the partnership firm Show Answer

Q29) The legal representative of a deceased partner is entitled to share General Reserve of the firm. Show Answer

Q30) After the death of a partner, entire amount due to deceased partner is paid to legal representative of the deceased partner Show Answer

Q31) After the death of a partner, continuing partners will share Goodwill in their new proportion. Show Answer