Practice Test

Q1) If Joint Life policy appears in the balance sheet at surrender value, then the firm will Show Answer

Q2) 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

Q3) 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

Q4) 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

Q5) 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

Q6) 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

Q7) 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

Q8) 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

Q9) All the following except one is the method of recording JLP Show Answer

Q10) 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

Q11) 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

Q12) 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

Q13) 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

Q14) Joint life policy Show Answer

Q15) Premium on joint life policy taken up in the lives of all the partners Show Answer

Q16) The objective of taking a Joint life policy by the partnership firm is Show Answer

Q17) death of a partner has effect of Show Answer

Q18) in case of death of a partner Show Answer

Q19) the heir of the deceased partner Show Answer

Q20) 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

Q21) 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

Q22) 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

Q23) 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

Q24) 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

Q25) 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

Q26) 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

Q27) 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

Q28) 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

Q29) Gain ratio is calculated on_______ Show Answer

Q30) Gain ratio is the ratio in which_______ Show Answer

Q31) Share of profit of a deceased partner till the date of death is_______ Show Answer

Q32) An amount received from the Insurance Company against the joint life policy is ________ Show Answer

Q33) 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

Q34) 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

Q35) Profit and Loss Suspense account is shown in the new balance sheet on _____ side. Show Answer

Q36) Deceased partner's legal representative loan A/c. is shown in the balance sheet on _____ side. Show Answer

Q37) Death is a compulsory______ Show Answer

Q38) The balance on the Capital A/c of a partner, on his death is transferred to ______ A/c Show Answer

Q39) Retiring partner is entitled to his share of goodwill Show Answer

Q40) Retiring partner is not entitled to his share of general reserve Show Answer

Q41) The capital account of a retiring partner always shows a debit balance. Show Answer

Q42) An amount due to a deceased partner is transferred to his executor's loan A/c Show Answer

Q43) If goodwill is written off a retiring partner's capital account is debited Show Answer

Q44) Death of a partner is like a compulsory retirement Show Answer

Q45) Total amount due to deceased partner is paid in cash to executor immediately after his death Show Answer

Q46) On the death of a partner, his share in the goodwill is divided equally among continuing partners Show Answer

Q47) Deceased Partner's share in profit upto the date of his death will be debited to his capital A/c Show Answer

Q48) It is not possible to revalue the assets and liabilities of the firm on death of a partner. Show Answer

Q49) A deceased partner is not entitled to goodwill. Show Answer

Q50) A deceased partner must be paid interest on his capital Show Answer

Q51) Deceases partner's legal representative's loan A/c appears in the balance sheet of the new firm on assets side. Show Answer

Q52) A partnership firm is automatically dissolved on the death of its partners Show Answer

Q53) When a partner dies, all amounts due to him are transferred to the capital Account of surviving partners. Show Answer

Q54) 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

Q55) After the death of a partner, it is necessary to revalued the assets and liabilities of the partnership firm Show Answer

Q56) The legal representative of a deceased partner is entitled to share General Reserve of the firm. Show Answer

Q57) After the death of a partner, entire amount due to deceased partner is paid to legal representative of the deceased partner Show Answer

Q58) After the death of a partner, continuing partners will share Goodwill in their new proportion. Show Answer

Q59) The executors of the deceased partner are entitled to a share of profit earned by the firm from the date of last balance sheet and to the date of death.Which of the entry will be passed for this purpose ? (Name of the deceased partner was Mr.X) Show Answer

Q60) The effect of the revaluation of aasets and liabilities is recorded in_______ Show Answer

Q61) In which of the following account,accounting entriees are made on the basis of the different between book value and revalued figures ? Show Answer

Q62) R,J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th june 2016. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs.29,600; Rs.28,700; Rs.28,900; Rs.24,000 and Rs.26,800. What will be D’s share of goodwill? Show Answer