Gujarat Board GSEB Class 12 Commerce Accounts Important Questions Part 1 Chapter 6 Retirement / Death of a Partner Important Questions and Answers.

GSEB Class 12 Accounts Important Questions Part 1 Chapter 6 Retirement / Death of a Partner

Answer the following questions in one sentence :

Question 1.
As per Indian Partnership Act., In which circumstances partner retires from the firm ?
Answer:
As per Indian Partnership Act any partner can retires on following circumstances :

1. With the consent all partners unanimously.
2. By giving notice of retirement to other partners of the firm.
3. As per the terms and conditions of contracrt of partnership.
4. If any one partner becomes insolvant.
5. Due to the death of any partner
6. Subject to provision in partnership deed, a partner can be expelled by other partners.

Question 2.
Why an active partner is required to give public notice regarding his retirement ?
Answer:
An active partner is required to give public notice regarding his retirement because, otherwise he is responsible for the liabilities towards third parties arising from the activities after his retirement.

Question 3.
At the time of retirement which reserves are not to be distributed among partners ?
Answer:
Following balances of reserves are not, be distributed among partners. Provision of reserves against assets like investment fluctuation fund, bad debts reserve and depreciation fund and maintenance reserve etc. are not to be distributed between partners at the time of retirement.

Question 4.
When a retire partner didn’t get the dues amount immediately by the firm then which account that amount will be recorded ?
Answer:
When retires partners not got the dues amounts immediately then it will be taken as loan A/c of partner and it will be shown in new balance sheet of firm under the heading of liabilities.

Question 5.
Where does the balance of capital is to be taken of the deceased partner ?
Answer:
The balance of capital of deceased partner is to be taken at executor’s account.

Select the appropriate option for each questions :

Question 1.
An active partner is require to give public notice for his retirement as it is ……………….
(A) Legal
(B) Advisable
(C) Compulsory
(D) Voluntary
Answer:
(C) Compulsory

Question 2.
Share of retiring partner is distributed among continuing partners, then formula to find new
profit-loss ratio is ……………..
(A) Old share + Sacrifice
(B) Old share + gain
(C) New share – sacrifice
(D) New share + gain
Answer:
(B) Old share + gain

Question 3.
In which ratio the share of goodwill of retired partner is debited to old partners ?
(A) In old ratio
(B) In sacrifice ratio
(C) In new ratio
(D) In gain ratio
Answer:
(D) In gain ratio

Question 4.
In which ratio the balance of adjusted profit and loss distributed among partners capital account, at the time of retirement of partner ?
(A) In capita ratio
(B) In sacrifice ratio
(C) In old profit-loss ratio
(D) In profit -loss gain ratio
Answer:
(C) In old profit-loss ratio

Question 5.
At the time of retirement of a partner, credit balance of profit and loss account shown in balance
sheet is shown in …………………
(A) Capital accounts of all partners, on credit side, in old profit and loss ratio
(B) Capital accounts of all partners, on debit side, in old profit and loss ratio.
(C) Capital account of retiring partner, on credit side
(D) Capital account of continuing partners on debit side, in their gain ratio.
Answer:
(A) Capital accounts of all partners, on credit side, in old profit and loss ratio

Question 6.
Where will you show balance of accounts like bad debts reserve and discount reserve on debtors at the time of retirement of a partner ?
(A) On the debit side of profit and loss account
(B) Liability side of the balance sheet
(C) Credit side of profit and loss adjustment account
(D) Assets side of the balance sheet
Answer:
(D) Assets side of the balance sheet

Question 7.
How can workmen profit sharing fund is recorded after the retirement in the balance sheet ?
(A) As a liability
(B) As an Assets
(C) As a receivable
(D) As a reserve
Answer:
(A) As a liability

Question 8.
State the period upto which the retired partner is liable to receive the part of profit from the firm.
(A) Life time
(B) Upto financial last year
(C) Last date of financial year to the date of retirement
(D) Agreement of all partners.
Answer:
(C) Last date of financial year to the date of retirement

Question 9.
What is subtracted from the total outstanding amount, at the time of retirement or death of a partner ?
(A) Interest on capital
(B) Interest on debit balance of current account
(C) Loan given to firm
(D) Interest on loan given to firm.
Answer:
(B) Interest on debit balance of current account

Question 10.
When the firm in unable to pay partly or fully amount of retired person, then in which account amount will be recorded through his permission ?
(A) Capital A/c
(B) Loan A/c
(C) Current A/c
(D) Profit & Loss A/c
Answer:
(B) Loan A/c

Question 11.
The payable amount of retirer partner is keep as a loan, then which account is to be debited ?
(A) Capital A/c
(B) Profit & Loss Adjustment A/c
(C) Bank A/c
(D) Suspense A/c
Answer:
(A) Capital A/c

Question 12.
A, B & C are partners sharing profit-loss in 5 : 3 : 2 ratio. C retires then find the new profit-loss ratio.
(A) 3 : 2
(B) 2 : 3
(C) 5 : 3
(D) 5 : 2
Answer:
(C) 5 : 3

Question 13.
X, Y and Z are partners sharing profit – loss in 3 : 2 : 1 ratio. Z retires then find the new profit and loss sharing ratio of X and Y.
(A) 3 : 2
(B) 2 : 1
(C) 2 : 3
(D) 1 : 3
Answer:
(A) 3 : 2

Question 14.
Ram, shyam and Gopal are partners sharing profit-loss in(frac {1}{2}), (frac {1}{3}) and (frac {1}{6}). Shyam retires. Then find the new profit-loss sharing ratio of Ram and Gopal.
(A) 3 : 2
(B) 3 : 1
(C) 2 : 3
(D) 1 : 3
Answer:
(B) 3 : 1

Question 15.
Sagar, Sarita and Sangam are partners sharing profit and loss in 5 : 3 : 2 ratio, Sangam retires. Sangam’s share is taken up by Sagar and Sarita in 2 : 3 ratio. Find the new profit-loss sharing ratio.
(A) 5 : 3
(B) 29 : 21
(C) 31 : 19
(D) 21 : 29
Answer:
(B) 29 : 21

Question 16.
Ganga, Jamna and Saraswati are partners sharing profit and loss in the ratio of 1: 3 : 6. Ganga retire. Find the gain ratio of Jamna and Sarswati.
(A) 1 : 6
(B) 1 : 2
(C) 2 : 1
(D) 1 : 3
Answer:
(B) 1 : 2

Question 17.
Ramesh, Naresh and Mahesh are partners sharing profit and loss in(frac {2}{5}), (frac {5}{10}) and (frac {1}{10}) ratio. Mahesh retires. New profit sharing ratio will be decided for Ramesh & Naresh is 1 : 1. What will be the gaining ratio for continuing partners ?
(A) 4 : 5
(B) 5 : 4
(C) Whole gain will be received by Ramesh
(D) Whole gain will be received by Naresh.
Answer:
(C) Whole gain will be received by Ramesh

Question 18.
If partnership deed is silent, at which rate interest is payable on unpaind amount payable to the retiring partner ?
(A) 5%
(B) Bank rate
(C) 6%
(D) Zero
Answer:
(C) 6%

Question 19.
Amar, Akbar and Anthony are partners of a firm. Goowill is valued at ₹ 45,000 at the time of retirement of Anthony. How much goodwil amount will be credited to Anthony capital account ?
(A) ₹ 45,000
(B) ₹ 15,000
(C) ₹ 22,500
(D) ₹ 30,000
Answer:
(B) ₹ 15,000

Question 20.
Tanmaya, Manthan and Dhananjay are partners sharing profit-loss in the ratio 1/2,1/3 and 1/6. On
30-6-2017 Dhananjay died. Calculate the deceased partners’ profit share on the basis of last year’s profit ₹ 60,000. Accounting year ends on 31-3-2017.
(A) ₹ 10,000
(B) ₹ 60,000
(C) ₹ 2,500
(D) ₹ 1,667
Answer:
(C) ₹ 2,500