CBSE Questions for Class 12 Commerce Accountancy Reconstitution Of A Partnership Firm - Retirement / Death Of A Partner Quiz 3 - MCQExams.com

what are accumulated profits ?
  • Profits not transferred to profit & loss
  • Profits not transferred to Reserve
  • Profits not transferred to capital accounts
  • Profits not transferred to cash accounts
Normal Profit = ________________
  • Normal Rate of Return/100
  • Capital Employed/100
  • Capital Employed X Normal Rate of Return/100
  • Super Profit/100
Money value of the reputation of business is known as ______.
  • Copyright
  • Goodwill
  • Patents
  • Trademark
Interest on capital of partner is a _________.
  • Loss to business
  • Profit to business
  • Loss to partners
  • Loss to tax department
Give journal entry of:
General reserve, transferred to partners capital accounts:
  • partner's capital A/c Dr.

    To General Reserve a/c
  • General Reserve A/c Dr.

    To partner's capital a/c
  • General Reserve A/c Dr.

    To cash a/c
  • cash a/c Dr.

    To General Reserve A/c
A partner may retire from the firm ________.
  • if there is an agreement to this effect
  • if all partner consent to his retirement
  • by notice of a partner in case of a partnership at will
  • all of the above
Monetary value of business reputation is called _______.
  • Liability
  • Goodwill
  • Premises
  • Bank balance
At time of admission overstated asset  is transferred to _______account. 
  • Credit side of capital account
  • Debit side of capital account
  • credit side of revaluation account
  • none of the above
P and Q are two partners sharing profit and loss equally. P draws Rs. 2,000 at the end of each month for 6 months whereas Q draws Rs. 4,000 at the beginning of each month for six months. Assuming that interest on drawing is to be charged @ 5% p.a interest on drawing of Q will be _____.
  • Rs. 350
  • Rs. 380
  • Rs. 410
  • Rs. 301
General reserve, transferred to partners capital accounts in ___ ratio.
  • new
  • old
  • sacrifice
  • gain
A retiring partner is liable for all acts of the firm __________.
  • for all acts of the firm.
  • for all acts of the firm upto the date of his retirement.
  • ceases to liable for all past and present acts.
  • past, present and future acts of the firm
A new partner, along with other partners get ____________.
  • right to share future profit of the firm
  • right to share future assets of the firm
  • both (a) and (b)
  • either (a) or (b)
On admission of A, a new partner, the value of closing stock was brought down by Rs.6,The revaluation a/c will be ______.
  • Debited by Rs. 6000
  • Debited by Rs. 6500
  • Debited by Rs. 650
  • Debited by Rs. 655
On retirement of a partner, the existing balance of general reserve and accumulated profit is transferred to all the partners capital a/c in the ____________.
  • Gaining ratio
  • Sacrificing ratio
  • Old profit sharing ratio
  • New profit sharing ratio
To which account is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner?
  • Partners current capital A/c
  • Partners fixed capital A/c
  • Revaluation A/c
  • Profit and loss adjustment A/c
Interest allowed on the capital of partner is charged to ________.
  • profit and loss A.c
  • profit and loss appropriation A/c
  • profit and loss adjustment
  • revaluation A/c
To ascertain profit or loss on retirement / death of  a partner _____________ is prepared.
  • realization a/c
  • profit and loss a/c
  • revaluation a/c
  • profit and loss adjustment a/c
How are unrecorded assets treated at the time of retirements of  partners?
  • Debit to Revaluation A/c
  • Credited to Revaluation A/c
  • Credit to partners Capital A/c
  • Credited to capital A/c of retiring partners only
Increase in liability at the time of retirement of a partner is _________.
  • credited to revaluation A/c
  • debited to revaluation A/c
  • debited to profit and loss A/c
  • debited to goodwill A/c
On death of a partner, the representative of the deceased partner are entitled to share profit from _________.
  • beginning of the financial year upto the date of death.
  • from date of death to the date of finalization of A/c.
  • for the full year.
  • for six month.
When a partner retires, his share of profit is __________.
  • shared by other partner(s).
  • given to his legal successors.
  • vested in the partner.
  • vests with the official liquidator.
___________ account is opened for revaluation of assets and liabilities at the time of admission of a partner into a firm.
  • Profit and loss A/c
  • Revaluation A/c
  • Realization A/c
  • Profit and loss appropriation A/c
P, Q and R are three partners in a partnership firm X retirement stock, Sunday debtors and provision for bad debts stand in the books of A/c at Rs. 50,000,Rs.45000 and Rs.4500 respectively. The partners decided to revalue assets as under. Stock-in-trade to be reduced to 90%, provision for bad debts to be brought to  15% of Sundry debtors. The entry for revaluation of stock-in-trade will be ________.
  • Revaluations A/c Dr. Rs.5000,Stock in trade credit by Rs.5000.
  • Profit and loss A/c Dr. Rs.5000,Stock in trade credit by Rs.5000
  • Partners Capital A/c Rs.5000 to revaluation A/c Rs.5000
  • Revaluation A/c Rs.45000, stock-in-trade Cr. Rs.45000.
Profit or loss on revaluation of assets and liabilities is transferred to __________.
  • capital a/c of a new partner
  • capital a/c of all partner
  • capital a/c of old partner
  • capital a/c of senior partner
A,B, C and D are four partners in a firm sharing profits and loss in the ratio of 18:15:18:3, D retires from the firm and his share of profit is purchased by the remaining partners A,B and C as 1/54,1/54 and 1/54.
What is the gaining ratio remaining partners?
  • 1:1:1
  • 3:9:1
  • 1:9:3
  • 3:1:9
Profit or loss on revaluation of assets and liabilities is distributed in the __________ ratio.
  • Gaining
  • Sacrificing
  • Old profit sharing
  • New profit sharing
Decreased in liability at the time of retirement of a partner is _________.
  • debited to revaluation A/c.
  • credited to revaluation A/c.
  • debited to profit and loss A/c.
  • debited to goodwill A/c.
Decrease in assets at the time if retirement of a partner is ________.
  • credited to revaluation A/c.
  • debited to revaluation A/c.
  • debited to profit and loss A/c.
  • debited to goodwill A/c.
Gain Ratio is _______.
  • old profit sharing ratio - new profit sharing ratio
  • old profit sharing ratio
  • new profit sharing ratio
  • new profit sharing ratio - old profit sharing ratio
X, Y, and Z are three partners. On the retirement of X  assets and liabilities are revalued as under provision for doubtful debts reduced by Rs.1250, stock in trade increased by Rs.550, Building in increased by rsThe remaining partner decides to re-state the assets and liabilities at the old book value after the retirement of X.The revaluation would be given effect by ___________.
  • Y a/c Dr.,Z a/c Dr (each) Rs.1050,Credit X Rs.2100
  • Y a/c Dr,Z a/c Dr (each) Rs.1400,Credit X Rs.2800
  • Y a/c Dr,Z a/c Dr (each) Rs.2100,Credit X Rs.4200
  • Y a/c Dr,Z a/c Dr (each) Rs.700,Credit X Rs.1400
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