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

Q26) a partner may retire with the consent of Show Answer

Q27) a partner may retire from the existing firm Show Answer

Q28) A partner can retire Show Answer

Q29) In case of a partnership at will , a partner may retire by giving Show Answer

Q30) for firm's acts after retirement ,a retiring partner Show Answer

Q31) public notice of retirement must be given Show Answer

Q32) unless otherwise agreed , a retiring partner can Show Answer

Q33) 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

Q34) Retiring partner's share of goodwill is debited to remaining partners in their Show Answer

Q35) profit & loss an revaluation of assets /liabilities of a retirement of a partner is shared by the partner in their Show Answer

Q36) Accumulated profit & loss & reserves on retirement of a partner are shared by the partners in their Show Answer

Q37) in case of revaluation account is prepared ,the asset & liabilities appear in the books of reconstituted firm at their Show Answer

Q38) At the time of retirement of a partner , firm gets _____from the insurance co. against JLP jointly for several partners Show Answer

Q39) 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

Q40) 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

Q41) 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

Q42) 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

Q43) 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

Q44) 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

Q45) 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

Q46) 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

Q47) 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

Q48) 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

Q49) 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

Q50) 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

Q51) 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

Q52) 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

Q53) 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

Q54) 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

Q55) 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

Q56) 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

Q57) 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

Q58) 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

Q59) 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

Q60) 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

Q61) 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

Q62) 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

Q63) 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

Q64) 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

Q65) 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

Q66) 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

Q67) 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

Q68) The profit or loss revaluation on retirement of partner is share by ________. Show Answer

Q69) 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

Q70) When goodwill is raised at its full value and it is written off _______ account is to be credited. Show Answer

Q71) Increase in the value of assets should be _______ to profit and loss adjustment account. Show Answer

Q72) If the goodwill is raised to the extent of retiring partners share _______ account to be debited. Show Answer

Q73) The balance on the Capital A/c of retired is transferred to his_____ Account if it is not paid. Show Answer

Q74) Revaluation A/c is also known as _____account. Show Answer

Q75) Retiring partner's share of goodwill is _______ to continuing Partner's capital accounts. Show Answer

Q76) Gain Ratio = _______ Ratio less Old ratio. Show Answer

Q77) New ratio = Old ratio +_______ ratio Show Answer

Q78) A,B and C are sharing, in the ratio of 5:3:2 and if C retires their new ratio will be ______ Show Answer

Q79) Gain ratio means old ratio minus new ratio Show Answer

Q80) Retiring partners share in profit upto the date of his retirement will be debited to profit and loss suspense account Show Answer

Q81) Amount due to a retiring partner if not paid appears as his loan in the books of the firm Show Answer

Q82) Revaluation account is also called as Realisation account Show Answer

Q83) Retirement of a partner leads to dissolution of the firm unless otherwise agreed upon Show Answer

Q84) Profit on revaluation account is transferred to continuing partners capital account only Show Answer

Q85) When assets increase in value, Revaluation Account is debited by the amount of difference Show Answer

Q86) Balance appearing in the Revaluation Account is transferred to Capital Account of the partner's, if Current Account is not operated. Show Answer

Q87) On retirement of a partner, remaining partner will share the Goodwill in their capital ratio Show Answer

Q88) If the goodwill Account is written off, goodwill Account is debited. Show Answer

Q89) The retiring partner must be paid interest on his capital Account upto the date of his retirement Show Answer

Q90) Retiring partner is not entitled to share in the Goodwill of the firm. Show Answer

Q91) If the balance due on Capital Account of the partner is not paid, same is to be transferred to his Loan Account Show Answer

Q92) Retiring partner is not entitled to share in General Reserve and accumulated profit of the firm Show Answer

Q93) The capital account of the retiring partner closes only when full amount due to him is paid Show Answer

Q94) A partner may retire________ Show Answer

Q95) Gain ratio = ________Minus________ Show Answer

Q96) The amount due to the retiring partner can be paid by_______ Show Answer

Q97) Before a partner retires,reserve created out of profits or balances in profit and loss account must be transferred to the capital accounts of all the partners in________ Show Answer

Q98) Balance in revaluation account is transferred to old partners in________ Show Answer

Q99) Increase in liability at the time of retirement of partner is_______ Show Answer

Q100) Decrease in liability at the time of retirement of partner is________ Show Answer

Q101) Increase in assets at the time of retirement of partner is______ Show Answer

Q102) Decrease in assets at the time of retirement of partner is_______ Show Answer

Q103) A,B and C are partners in a firm sharing profits and losses in the ratio of 4:3:2.B decided to retire from the firm.Calculate the new profits sharing ratio of A and C if B gives his share to A and C in the original ratio of A and C. Show Answer

Q104) A,B and C are partners in a firm sharing profits and losses in the ratio of 4:3:2.B decided to retire from the firm.Calculate the new profits sharing ratio of A and C if B gives his share to A and C in the equal proportion. Show Answer

Q105) A,B and C are partners in a firm sharing profits and losses in the ratio of 4:3:2.B decided to retire from the firm.Calculate the new profits sharing ratio of A and C if B gives his share to A and C in the ratio of 3:1. Show Answer

Q106) A,B and C are partners in a firm sharing profits and losses in the ratio of 4:3:2.B decided to retire from the firm.Calculate the new profit sharing ratio of A and C if B gives his share to A only Show Answer

Q107) A,B and C are partners with profits sharing ratio 4:3:2.B retires.If A & C share profits of B in 5:3,then find the new profit sharing ratio Show Answer

Q108) A,B and C are partners sharing profits and losses in the ratio of 3:2:1.B retired from the firm.What is the gain ratio of the partners A and C ? Show Answer

Q109) X,Y and Z are partners sharing profits and losses in the ratio of 3:2:1.Y retired from the firm.Net profit sharing ratio between X & Z is 5:3.What is the ratio of the partners X and Z ? Show Answer

Q110) A,B and C are partners in a firm sharing profits and losses in the ratio of 4:3:2.B decided to retire from the firm.B gives his share to A and C in equal proportion .What is the gain ratio ? Show Answer

Q111) A,B and C are partners in a firm sharing profits and losses in the ratio of 4:3:2.B decided to retire from the firm.B gives his share to A and C in ratio of 3:1 What is the gain ratio ? Show Answer

Q112) A,B and C are partners in a firm sharing profits and losses in the ratio of 4:3:2.B decided to retire from the firm.B gives his share to A only.What is the gain ratio ? Show Answer

Q113) A,B & C are equal partners.C wanted to retire for which value of goodwill is considered as Rs.90,000 The necessary journal entry will be_____ Show Answer

Q114) P,Q & R are three partners sharing profit & loss in 5:3:2 ratio.P retires from the firm.Q & R decided to continue in new ratio 3:2.On the date of retirement stock,sundry debtors and provision for bad debts stand in the books at Rs.50,000,45,000 & 4,500.The partners decided to revalue assets as under. Stock to be reduced to 90%.provision for bad debts to be brought to 15%. Find the distribution of profit/loss on revaluation. Show Answer

Q115) A, B and C were partners sharing profits and losses in he ratio of 3:2:1. A retired and goodwill of the firm is to be valued at Rs.24,000. What will be the treatment for goodwill? Show Answer