MCQ Questions on Retirement and Death of a Partner: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Retirement and Death of a Partner and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.
MCQ Questions on Retirement and Death of a Partner
1. Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in
(a) Gaining Ratio
(b) Capital Ratio
(c) Sacrificing Ratio
(d) Profit-Sharing Ratio
Answer
Answer: (a)
2. How is goodwill recorded on the retirement of a partner?
| A) Remaining Partner’s Capital A/cs | Dr. (In gaining ratio) |
| To Retiring Partner’s Capital A/c | (with his share of goodwill) |
| B) Remaining Partner’s Capital A/cs | Dr. (In new ratio) |
| To Retiring Partner’s Capital A/c | (with his share of goodwill) |
| C) Goodwill A/c | Dr. |
| To AllPartner’s Capital A/cs | (In old ratio) |
| D) Goodwill A/c | Dr. |
| To Retiring Partner’s Capital A/c | (with his share) |
Answer
Answer: (a)
3. A, B, and C are partners in 3:4:2. B wants to retire from the firm. The profit on revaluation on that date was ₹36,000. The new ration of A and C is 5:3. Profit on revaluation will be distributed as
(a) A ₹16,000, B ₹12,000, C ₹8,000
(b) A ₹12,000, B ₹16,000, C ₹8,000
(c) A ₹22,500, C ₹13,500
(d) A ₹23,625, C ₹12,375
Answer
Answer: (b)
4. A, B, and C share profits and losses of the company equally. B retires form business and his share is purchased by A and C in the of 2:3. New profits sharing ratio between A and C respectively would be
(a) 01:01
(b) 02:02
(c) 07:08
(d) 03:05
Answer
Answer: (c)
5.P, Q, and R have been sharing profits in the ration of 8:5:3. P retires. Q takes 3/16th share from P and R take 5.16th share from P. New profit sharing ratio will be
(a) 01:01
(b) 10:6
(c) 9:7
(d) 5:3
Answer
Answer: (a)
6. A, B, and C are equal partners. C retires. He surrenders 3/5th of his share in favour of A and 2/5th in favour of B. New ratio will be
(a) 3:2
(b) 8:7
(c) 7:8
(d) 2:3
Answer
Answer: (b)
7. P, Q, and R are sharing profit and losses equally. R retires and the goodwill is appearing in the book at ₹30,000. Goodwill of the firm is valued at ₹1,50,000. Calculate the net amount to be credited to R’s capital A/c
(a) ₹ 60,000
(b) ₹ 50,000
(c) ₹ 40,000
(d) ₹ 10,000
Answer
Answer: (c)
8. A, B, and C are partners with profit sharing ratio 4:3:2. B retires and goodwill was valued ₹1,08,000. If A and C share profits in 5;3, find out the goodwill shared A and C in favour of B
(a) ₹ 22,500 and ₹ 13,500
(b) ₹ 16,500 and ₹ 19,500
(c) ₹ 67,500 and ₹ 40,500
(d) ₹ 19,500 and ₹ 16,500
Answer
Answer: (d)
9. A, B, and C are partners in a company sharing profit and loss in the ratio of 2:2:2. On March 31, 2018, C died. Accounts are closed on December 31st every year. The sale for the year 2017 was ₹6,00,000 and profits were ₹60,000. The sales for the period from Jan 1, 2018, to March 31, 2018, were ₹2,00,000. THe shareof the deceased partner in the current year’s profits on the basis of sale is
(a) ₹20,000
(b) ₹8,000
(c) ₹3,000
(d) ₹4,000
Answer
Answer: (d)
10. A, B, and C were partners sharing profit and loss in the ratio of 2:2:1. Books are closed on 31st March every year. C dies on the 5th of November 2018. Under the partnership deed, the executors of the deceased partner are entitled to his profit to the date of death, calculated on the basis of last year’s profit. Profit for the year ended 31st March 2018 was ₹2,40,000. C’s share of profit will be
(a) ₹28,000
(b) ₹32,000
(c) ₹28,800
(d) ₹48,000
Answer
Answer: (c)