Practice Test

Q1) Retiring or outgoing partner Show Answer

Q2) A , B and C are partners sharing profit and losses in the ratio 4: 3 : 2 . B retries and goodwill Rs.10,800 shown in the books of account .If A & C share profits of B in 5:3 , find the gain ratio Show Answer

Q3) A , B and C are partners sharing profit and losses in the ratio 4: 3:2 . B retries and goodwill Rs.10,800 shown in the books of account .If A & C share profits of B in 5;3,then find the value of goodwill shared between A & C Show Answer

Q4) A , B and C are partners sharing profit and losses in the proportion 1/2 ,1/3 , 1/6 . B retries the new profit sharing ratio between A & C is 3:2 & the reserve of Rs.12,000 is divided amount the partners in the ratio Show Answer

Q5) The capital of A, B and D are Rs.1,00,000 Rs.75,000 and Rs.50,000 respectively with the profit sharing ratio 3:2:1.B retries on the basis of his shares purchased by other partners keeping the total capital intact. The new ratio between A & D is 3:1.Find the capital of A & D after purchasing B's share Show Answer

Q6) Outgoing partner is compensated for parting with firm's future profits in favour of remaining partners .In what ratio do the remaining partners contribute to such compensation amount Show Answer

Q7) Joint life policy is taken by the firm on the life of Show Answer

Q8) At the time of retirement of the partner ,firm gets__from the insurance company against the joint life policy taken jointly for all the partners Show Answer

Q9) At the time of retirement of the partner ,firm gets__from the insurance company against the joint life policy for each partners Show Answer

Q10) A ,B & C takes a joint life policy ,after 5 years B retries from the firm. old profit sharing ratio is 2;2:1.After retirement A & C decides to share profit equally .They had taken a Joint life policy of Rs.2,50,000 with the surrender value Rs.50,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life premium is fully charged to revenue as & when paid Show Answer

Q11) A ,B & C takes a joint life policy ,after 5 years B retries from the firm. old profit sharing ratio is 2;2:1.After retirement A & C decides to share profit equally .They had taken a Joint life policy of Rs.2,50,000 with the surrender value Rs.50,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at the surrender value Show Answer

Q12) A ,B & C takes a joint life policy ,after 5 years B retries from the firm. old profit sharing ratio is 2;2:1.After retirement A & C decides to share profit equally .They had taken a Joint life policy of Rs.2,50,000 with the surrender value Rs.50,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at the surrender value along with reserve Show Answer

Q13) A , B and C are partners sharing profit and losses in the ratio 2:2:1. B retries and goodwill was valued at Rs.30,000 Find the contribution of A & C to compensate B Show Answer

Q14) Claim of the retiring partner is payable in the following form Show Answer

Q15) A , B and C are partners sharing profit and losses in the ratio 2: 2:1 .with the capital of Rs.50,000 for A & B for C Rs.25,000. B retries and the balance in reserve on the date was Rs.15,000 . If the goodwill of the firm was valued as Rs.30,000 & profit on revaluation was Rs.7,050 then what will be the amount to be transferred to loan account of B Show Answer

Q16) A , B and C are partners sharing profit and losses in the ratio 3:2:1.A retries & firm received the joint life policy as Rs.7,500 appearing in the balance sheet at Rs.10,000. JLP is credited & cash debited with Rs.7,500,what will be the treatment for the balance in JLP ? Show Answer

Q17) A , B and C are partners sharing profit and losses in the ratio 3:2:1 .C retries on the decided date and goodwill of the firm is Rs.60,000 .Find the amount payable to retiring partner on account of goodwill Show Answer

Q18) A , B and C are partners sharing profit and losses in the ratio 3:2:1 .A retries on the decided date and goodwill of the firm is Rs.24,000 & goodwill account is to be raised which is not appearing in the balance sheet.what will be the treatment for goodwill Show Answer

Q19) Balances of M/s R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.3,00,000 ; H- Rs.2,00,000 :K- Rs.1,00,000.R decided to retire form the firm & the remaining partners decided to carry on ,JLP of the partners surrendered & cash obtained Rs.60,000.What will be the treatment for JLP ? Show Answer

Q20) Balances of R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.2,00,000 ; H- Rs.3,00,000 :K- Rs.2,00,000.JLP reserve Rs.80,000 & JLP Rs.80,000 R decided to retire form the firm & the remaining partners decided to carry on ,JLP of the partners surrendered & cash obtained Rs.80,000.What will be the treatment for JLP ? Show Answer

Q21) Balances of R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.2,00,000 ; H- Rs.3,00,000 :K- Rs.2,00,000. R decided to retire form the firm & the remaining partners decided to share future profits equally ,Goodwill of the entire firm be valued at Rs.1,40,000 & no Goodwill account being raised Show Answer

Q22) Balances of R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.2,00,000 ; H- Rs.3,00,000 :K- Rs.2,00,000.JLP reserve Rs.80,000 & JLP Rs.80,000 H decided to retire form the firm & the remaining partners decided to share future profits equally ,JLP of the partners surrendered & cash obtained Rs.80,000.Goodwill of the firm is Rs.1,40,000 & goodwill account is to be raised .revaluation loss was Rs.10,000.amount due to A is to be settled on the following basis 50 % on retirement & the balance 50% within 1 year .The total capital of the firm is to be the same as before retirement .Individual capitals in their profit sharing ratio. Find the balances of partner's capital account Show Answer

Q23) Balances of R ,H ,K sharing profit and losses in the ratio 2:3:2 to their capital stood as follows R- Rs.10,00,000 ; H- Rs.15,00,000 :K- Rs.10,00,000.JLP Rs.3,50,000 .H decided to retire form the firm & the remaining partners decided to share future profits sharing ratio of 3;2,JLP of the partners surrendered & cash obtained Rs.3,50,000.what would be the treatment for JLP/ Show Answer

Q24) A , B and C are partners sharing profit and losses in the ratio 9:4:3 .They took a joint life policy of Rs.25,000 for A ,Rs.20,000 for B, Rs.51,000 for C.What is the share of C in the JLP amount ? Show Answer

Q25) If Joint Life policy appears in the balance sheet at surrender value, then the firm will Show Answer

Q26) In the absence of proper agreement, representative of the deseased partner is entitled to the dead partner's share in the following items Show Answer

Q27) As per section 37 of the Indian Partnership Act,1932,the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at __% p.a Show Answer

Q28) A , B and C are partners sharing profit and losses in the ratio 2:1:1 .firm took a joint life policy of Rs1,20,000 in the balance sheet it is appearing at the surrender value i.e. Rs.20,000.On the death of A,how this JLP will be shared among the partners Show Answer

Q29) R , J & D are partners sharing profit and losses in the ratio 7:5:4. D died on 30.06.2006.It was decided to value the goodwill on the basis of 3 year's purchase of last 5 years avg. profit .if the profits are Rs.29,600:Rs.28,700 ; Rs.28,900 ;Rs.24,000 & Rs.26,800.What will be D's share of goodwill ? Show Answer

Q30) R, J & D are partners sharing profit and losses in the ratio 7:5:4. D died on 30.06.2006.& profit for the accounting year 2005-06 were Rs.24,000.How much share in the profits for the period 1st April 2006 to 30th June will be credited to D' account Show Answer

Q31) If A , B and C are partners sharing profit and losses in the ratio 5:3:2 ,.then on the death of A,how much B & C will pay to A's executer on account of goodwill .Goodwill is to be calculated on the basis of 2 year's purchase of last 3 years avg. profit .if the profits are Rs.3,29,000:Rs.3,46,000 ; Rs.4,05,000 Show Answer

Q32) To provide funds to pay to the retiring partner or to the representative of a deceased partner ,generally partners; Show Answer

Q33) At the time of death of a partner ,firm gets __from the insurance company against the JLP taken jointly for all the partners Show Answer

Q34) At the time of death of a partner ,firm gets __from the insurance company against the JLP taken severely for each of the partners Show Answer

Q35) When premium paid on JLP taken up severely for each partner ,the amount received on death of a partner would be firm's profit .It is also necessary to credit partner's capital account with ___of the policy on the lines of the remaining partners Show Answer

Q36) All the following except one is the method of recording JLP Show Answer

Q37) A ,B & C takes a joint life policy their profit sharing ratio is 2:2:1. After death of B , A & C decides to share profit equally .They had taken a Joint life policy of Rs.2,50,000 with the surrender value Rs.50,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value? Show Answer

Q38) A ,B & C takes a joint life policy their profit sharing ratio is 2:2:1..After death of B, A & C decides to share profit equally .They had taken a Joint life policy of Rs.2,50,000 with the surrender value Rs.50,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value along with reserve Show Answer

Q39) On the death of a partner ,his executor is paid the share of profit of the dying partner partner for the relevant period.This payment is recorded in profit & loss__account Show Answer

Q40) A ,B & C takes a joint life policy for Rs.30,000 their profit sharing ratio is 5;3:2. After death of B , what is the amount payable to each partner Show Answer

Q41) Joint life policy Show Answer

Q42) Premium on joint life policy taken up in the lives of all the partners Show Answer

Q43) The objective of taking a Joint life policy by the partnership firm is Show Answer

Q44) a partner may retire with the consent of Show Answer

Q45) a partner may retire from the existing firm Show Answer

Q46) A partner can retire Show Answer

Q47) In case of a partnership at will , a partner may retire by giving Show Answer

Q48) for firm's acts after retirement ,a retiring partner Show Answer

Q49) public notice of retirement must be given Show Answer

Q50) unless otherwise agreed , a retiring partner can Show Answer

Q51) where a partner retires ,& the remaining partners carry on the business with the firm's property without any final settlements of account ,the outgoing partner is entitled to Show Answer

Q52) death of a partner has effect of Show Answer

Q53) in case of death of a partner Show Answer

Q54) the heir of the deceased partner Show Answer

Q55) Retiring partner's share of goodwill is debited to remaining partners in their Show Answer

Q56) profit & loss an revaluation of assets /liabilities of a retirement of a partner is shared by the partner in their Show Answer

Q57) Accumulated profit & loss & reserves on retirement of a partner are shared by the partners in their Show Answer

Q58) in case of revaluation account is prepared ,the asset & liabilities appear in the books of reconstituted firm at their Show Answer

Q59) At the time of retirement of a partner , firm gets ______.from the insurance co. against JLP jointly for all partners Show Answer

Q60) At the time of retirement of a partner , firm gets _____from the insurance co. against JLP jointly for several partners Show Answer

Q61) X , Y , Z are partners sharing profit & loss in the ratio of 4/9:1/3:2/9 respectively .Y retires , The gaining ratio & the new profit sharing ratio will be Show Answer

Q62) A , B , C are partners sharing profit & loss in the ratio of 4/9:1/3:2/9 respectively .B retires , The new profit sharing ratio if B's share is purchased by A will be Show Answer

Q63) A , B , C are partners sharing profit & loss in the ratio of 1/2:2/5:1/10 respectively .B retires & his shares is taken up by A & C in the ratio 1:5 , The new profit sharing ratio of A & C will be Show Answer

Q64) A , B , C are partners sharing profit & loss in the ratio of 1/2:1/3:1/6 respectively .B retires & his shares is taken up by A & C in the ratio 1:3 , The new profit sharing ratio will be Show Answer

Q65) X , Y , Z are partners sharing profit & loss in the ratio of 4/9:1/3:2/9 respectively .Y retires , & his shares is taken up by X & Z in the ratio 13:11 , The new profit sharing ratio will be Show Answer

Q66) A , B , C are partners sharing profit & loss in the ratio of 4:3:2 respectively .B retires , A & C decide to share profits in the future in the ratio of 5:3.The gaining ratio will be Show Answer

Q67) A , B , C are partners sharing profit & loss in the ratio of 1/2:1/3:1/6 respectively .B retires , A & C decide to share profits in the future in the ratio of 3:2.The gaining ratio will be Show Answer

Q68) A , B , C & D are partners sharing profit & loss in the ratio of 3:3:2:2 respectively .D retires , A , B & C decide to share profits in the future in the ratio of 3:2:1.The gaining ratio will be Show Answer

Q69) X , Y , Z are partners sharing profit & loss in the ratio of 1/2:1/8:3/8 respectively .Z retires , & surrenders 4/9th of his shares in the favour of X & remaining in favour of Y ., The new profit sharing ratio will be Show Answer

Q70) A , B , C are partners sharing profit & loss in the ratio of 4/9:1/3:2/9 respectively .B retires , & surrenders 1/9th of his shares in the favour of A & remaining in favour of C ., The new profit sharing ratio will be Show Answer

Q71) X , Y , Z are partners sharing profit & loss in the ratio of 4/9:1/3:2/9 respectively . Y retires , & surrenders 13/24th of his shares in the favour of X & remaining in favour of Y ., The gaining ratio will be Show Answer

Q72) A , B , C are partners sharing profit & loss in the ratio of 4/9:1/3:2/9 respectively .B retires , & surrenders 1/9th of his shares in the favour of A & remaining in favour of C ., The new profit sharing ratio will be Show Answer

Q73) X , Y , Z are partners sharing profit & loss in the ratio of 25:15:9 respectively . Y retires ,It is decided that the profit sharing ratio between X & Z will be the same as existing between Y & Z,. ., The gaining ratio will be Show Answer

Q74) X , Y , Z are partners sharing profit & loss in the ratio of 9:6:4 respectively . Y retires ,It is decided that the profit sharing ratio between X & Z will be the same as existing between Y & Z,. ., The gaining ratio will be Show Answer

Q75) A ,B & C are partners with profit sharing ratio of 4:3:2 .B retires & goodwill of Rs. 10,800 was valued .If A & C share the future profits in the ratio of 5:3 ,then the amount of goodwill to be shared between A & C will be Show Answer

Q76) C , D and E are partners sharing profit and losses in the proportion 1/2 ,1/3 , 1/6 . D retries the new profit sharing ratio between C & E is 3:2 & the reserve of Rs.24,000 is divided amount the partners in the ratio Show Answer

Q77) A ,B & C takes a joint life policy ,after 5 years B retries from the firm. old profit sharing ratio is 2;2:1.After retirement A & C decides to share profit equally .They had taken a Joint life policy of Rs.5,00,000 with the surrender value Rs.,100,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life premium is fully charged to revenue as & when paid Show Answer

Q78) A ,B & C takes a joint life policy ,after 5 years B retries from the firm. old profit sharing ratio is 2;2:1.After retirement A & C decides to share profit equally .They had taken a Joint life policy of Rs.5,00,000 with the surrender value Rs.,100,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life premium is maintained at the surrender value ? Show Answer

Q79) A ,B & C takes a joint life policy ,after 5 years B retries from the firm. old profit sharing ratio is 2;2:1.After retirement A & C decides to share profit equally .They had taken a Joint life policy of Rs.5,00,000 with the surrender value Rs.,100,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life premium is maintained at the surrender value along with reserve ? Show Answer

Q80) A , B and C are partners sharing profit and losses in the ratio 2:2:1. B retries and goodwill was valued at Rs.60,000 Find the contribution of A & C to compensate B Show Answer

Q81) A , B and C are partners sharing profit and losses in the ratio 2: 2:1 .with the capital of Rs.1,00,000 for A & B for C Rs.50,000. B retries and the balance in reserve on the date was Rs.30,000 . If the goodwill of the firm was valued as Rs.60,000 & profit on revaluation was Rs.14,100 then what will be the amount to be transferred to loan account of B Show Answer

Q82) A , B and C are partners sharing profit and losses in the ratio 3:2:1 .C retries on the decided date and goodwill of the firm is Rs.1,20,000 .Find the amount payable to retiring partner on account of goodwill Show Answer

Q83) A , B and C are partners sharing profit and losses in the ratio 3:2:1 .A retries on the decided date and goodwill of the firm is Rs.48,000 & goodwill account is to be raised which is not appearing in the balance sheet.what will be the treatment for goodwill Show Answer

Q84) A , B and C are partners sharing profit and losses in the ratio 3:2:1.A retries & firm received the joint life policy as Rs.15,000 appearing in the balance sheet at Rs.20,000.JLP is credited & cash debited with Rs.15,000,what will be the treatment for the balance in JLP ? Show Answer

Q85) Balances of M/s A ,B ,C sharing profit and losses in the ratio to their capital stood as follows A- Rs.6,00,000 ; B- Rs.4,00,000 :C- Rs.2,00,000.A decided to retire form the firm & the remaining partners decided to carry on ,JLP of the partners surrendered & cash obtained Rs.1,20,000.What will be the treatment for JLP ? Show Answer

Q86) Balances of R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.4,00,000 ; H- Rs.6,00,000 :K- Rs.4,00,00.JLP reserve Rs.1,60,000 & JLP Rs.1,60,000 R decided to retire form the firm & the remaining partners decided to carry on in equal ratio ,JLP of the partners surrendered & cash obtained Rs.1,60,000.What will be the treatment for JLP ? Show Answer

Q87) Balances of A ,B ,C sharing profit and losses in the ratio to their capital stood as follows A- Rs.4,00,000 ; B- Rs.6,00,000 :C- Rs.4,00,00. A decided to retire form the firm & the remaining partners decided to share future profits equally ,Goodwill of the entire firm be valued at Rs.2,80,000 & no Goodwill account being raised Show Answer

Q88) Balances of R ,H ,K sharing profit and losses in the ratio to their capital stood as follows R- Rs.4,00,000 ; H- Rs.6,00,000 :K- Rs.4,00,000 .JLP reserve Rs.1,60,000 & JLP Rs.1,60,000 R decided to retire form the firm & the remaining partners decided to share future profits equally ,JLP of the partners surrendered & cash obtained Rs.1,60,000.Goodwill of the firm is Rs.2,80,000 & goodwill account is to be raised .revaluation loss was Rs.20,000.amount due to A is to be settled on the following basis 50 % on retirement & the balance 50% within 1 year .The total capital of the firm is to be the same as before retirement .Individual capitals in their profit sharing ratio. Find the balances of partner's capital account Show Answer

Q89) Balances of R ,H ,K sharing profit and losses in the ratio 2:3:2 to their capital stood as follows R- Rs.20,00,000 ; H- Rs.30,00,000 :K- Rs.20,00,00.JLP Rs.7,00,000 .H decided to retire form the firm & the remaining partners decided to share future profits sharing ratio of 3;2,JLP of the partners surrendered & cash obtained Rs.7,00,000.what would be the treatment for JLP Show Answer

Q90) at the time of death of a partner ,firm gets___from the insurance company against the joint life policy taken severely for each of the partners Show Answer

Q91) A , B and C are partners sharing profit and losses in the ratio 9:4:3 .They took a joint life policy of Rs.5,44,000.C died. What is the share of C in the JLP amount ? Show Answer

Q92) A , B and C are partners sharing profit and losses in the ratio 2:1:1 .firm took a joint life policy of Rs.2,40,000 in the balance sheet it is appearing at the surrender value i.e. Rs.40,000.On the death of A,how this JLP will be shared among the partners Show Answer

Q93) A ,B & C are partners sharing profit and losses in the ratio 7:5:4. C died on 30.06.2006.It was decided to value the goodwill on the basis of 3 year's purchase of last 5 years avg. profit .if the profits are Rs.53,600:Rs.57,400 ; Rs.57,800 ;Rs.48,000 & Rs.26,800.What will be C's share of goodwill ? Show Answer

Q94) R, J & D are partners sharing profit and losses in the ratio 7:5:4. D died on 30.06.2006.& profit for the accounting year 2005-06 were Rs.48,000.How much share in the profits for the period 1st April 2006 to 30th June will be credited to D' account Show Answer

Q95) If A , B and C are partners sharing profit and losses in the ratio 5:3:2 ,.then on the death of A,how much B & C will pay to A's executer on account of goodwill .Goodwill is to be calculated on the basis of 2 year's purchase of last 3 years avg. profit .if the profits are Rs.6,58,000:Rs.6,92,000 ; Rs.8,10,000 Show Answer

Q96) A ,B & C takes a joint life policy their profit sharing ratio is 2;2:1. After death of B , A & C decides to share profit equally .They had taken a Joint life policy of Rs.5,00,000 with the surrender value Rs.1,00,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value? Show Answer

Q97) A ,B & C takes a joint life policy their profit sharing ratio is 2;2:1..After death of B, A & C decides to share profit equally .They had taken a Joint life policy of Rs.5,00,000 with the surrender value Rs.1,00,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value along with reserve Show Answer

Q98) A ,B & C takes a joint life policy for Rs.60,000 their profit sharing ratio is 5;3:2. After death of B , what is the amount payable to each partner Show Answer

Q99) When Goodwill is revalued at the time of admission of a Partner, how Goodwill is distributed amongst the old Partners - Show Answer

Q100) Account which is debited when new Partner brings cash for share of Goodwill - Show Answer

Q101) When the incoming Partners brings his share of Goodwill in cash, it is adjusted by crediting to - Show Answer