Practice Test

Q1) The profit or loss revaluation on retirement of partner is share by ________. Show Answer

Q2) X,Y and Z are partners sharing profits in the ratio of 5:3:2, if Y retires then new ratio will be _______. Show Answer

Q3) When goodwill is raised at its full value and it is written off _______ account is to be credited. Show Answer

Q4) Increase in the value of assets should be _______ to profit and loss adjustment account. Show Answer

Q5) If the goodwill is raised to the extent of retiring partners share _______ account to be debited. Show Answer

Q6) The balance on the Capital A/c of retired is transferred to his_____ Account if it is not paid. Show Answer

Q7) Revaluation A/c is also known as _____account. Show Answer

Q8) Retiring partner's share of goodwill is _______ to continuing Partner?s capital accounts. Show Answer

Q9) Gain Ratio = _______ Ratio less Old ratio. Show Answer

Q10) New ratio = Old ratio +_______ ratio Show Answer

Q11) A,B and C are sharing, and if C retires their new ratio will be ______ Show Answer

Q12) Gain ratio means old ratio minus new ratio Show Answer

Q13) Retiring partners share in profit upto the date of his retirement will be debited to profit and loss suspense account Show Answer

Q14) Amount due to a retiring partner if not paid appears as his loan in the books of the firm Show Answer

Q15) Revaluation account is also called as Realisation account Show Answer

Q16) Retirement of a partner leads to dissolution of the firm unless otherwise agreed upon Show Answer

Q17) Profit on revaluation account is transferred to continuing partners capital account only Show Answer

Q18) When assets increase in value, Revaluation Account is debited by the amount of difference Show Answer

Q19) Balance appearing in the Revaluation Account is transferred to Capital Account of the partner's, if Current Account is not operated. Show Answer

Q20) On retirement of a partner, remaining partner will share the Goodwill in their capital ratio Show Answer

Q21) If the goodwill Account is written off, goodwill Account is debited. Show Answer

Q22) The retiring partner must be paid interest on his capital Account upto the date of his retirement Show Answer

Q23) Retiring partner is not entitled to share in the Goodwill of the firm. Show Answer

Q24) If the balance due on Capital Account of the partner is not paid, same is to be transferred to his Loan Account Show Answer

Q25) Retiring partner is not entitled to share in General Reserve and accumulated profit of the firm Show Answer

Q26) The capital account of the retiring partner closes only when full amount due to him is paid Show Answer