Commerce Exam  >  Commerce Tests  >  Accountancy Class 12  >  Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Commerce MCQ

Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Commerce MCQ


Test Description

12 Questions MCQ Test Accountancy Class 12 - Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions

Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions below.
Solutions of Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions questions in English are available as part of our Accountancy Class 12 for Commerce & Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions solutions in Hindi for Accountancy Class 12 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions | 12 questions in 24 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Class 12 for Commerce Exam | Download free PDF with solutions
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 1

Read the following information and answer the given questions:

Rohit, Karan and Karim are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Karan retires and surrenders 5/25th share in favour of Rohit. The goodwill of the firm is valued at 2 years’ purchase of Super Profit based on average profits of the last three years. The profits for the last three years are ₹50,000, ₹55,000 and ₹60,000, respectively. The normal profits for the similar firm are ₹30,000. Goodwill already appears in the books of the firm at ₹75,000.

Q. What amount will be brought in by Rohit as goodwill for Karan?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 1
The goodwill is to be brought in by Rohit himself as he is the only gaining partner.

Karan's share of Goodwill = ₹50,000 x 5/25 = ₹10,000

Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 2

Read the following information and answer the given questions:

Rohit, Karan and Karim are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Karan retires and surrenders 5/25th share in favour of Rohit. The goodwill of the firm is valued at 2 years’ purchase of Super Profit based on average profits of the last three years. The profits for the last three years are ₹50,000, ₹55,000 and ₹60,000, respectively. The normal profits for the similar firm are ₹30,000. Goodwill already appears in the books of the firm at ₹75,000.

Q. Who is the gaining partner?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 2
As Karan surrenders his full 5/25th share to Rohit, thus Rohit is a gaining partner only.
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 3

Read the following information and answer the given questions:

Rohit, Karan and Karim are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Karan retires and surrenders 5/25th share in favour of Rohit. The goodwill of the firm is valued at 2 years’ purchase of Super Profit based on average profits of the last three years. The profits for the last three years are ₹50,000, ₹55,000 and ₹60,000, respectively. The normal profits for the similar firm are ₹30,000. Goodwill already appears in the books of the firm at ₹75,000.

Q. What value of existing goodwill will be transferred to Karan’s Capital Account?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 3
Existing goodwill is shared among the partners in the old profit sharing ratio.
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 4

Read the following information and answer the given questions:

Rohit, Karan and Karim are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Karan retires and surrenders 5/25th share in favour of Rohit. The goodwill of the firm is valued at 2 years’ purchase of Super Profit based on average profits of the last three years. The profits for the last three years are ₹50,000, ₹55,000 and ₹60,000, respectively. The normal profits for the similar firm are ₹30,000. Goodwill already appears in the books of the firm at ₹75,000.

Q. What is the value of new goodwill determined?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 4
Actual Average Profit = 50,000 + 55,000 + 60,000 / 3 = ₹55,000

Normal Profit = ₹30,000Super Profit = Average Profit – Normal Profit

= ₹55,000 – ₹30,000

= ₹25,000

Firm’s Goodwill = ₹25,000 × 2 = ₹50,000

Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 5

Analyse the case given below and answer the questions that follow :

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at the value of ₹60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Give the answers to the questions given below:

Q. What amount of goodwill will be transferred to Karan’s Capital account?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 5
The new goodwill is shared in the new profit sharing ratio
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 6

Analyse the case given below and answer the questions that follow :

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at the value of ₹60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Give the answers to the questions given below:

Q. What is Alia’s gaining or sacrificing ratio:

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 6
Alia = 5 / 10 - 2 / 5 = -1 / 10(Sacrifice)
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 7

Analyse the case given below and answer the questions that follow :

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at the value of ₹60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Give the answers to the questions given below:

Q. How much will be transferred to Karan’s Capital Account of the existing goodwill?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 7
The existing goodwill will be transferred in the old profit sharing ratio.
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 8

Analyse the case given below and answer the questions that follow :

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at the value of ₹60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Give the answers to the questions given below:

Q. What is Shilpa’s gaining or sacrificing ratio:

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 8
Shilpa = 3 / 5 - 2 / 10 = 4 / 10 (Gain)
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 9

Read the following information and answer the given questions:

Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.

After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.

Q. What will be the final amount of the claim to be paid to Angad?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 9

Angad’s Share = ₹50,000 + ₹4,000 (profit on revaluation)

= ₹54,000

Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 10

Read the following information and answer the given questions:

Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.

After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.

Q. What is the profit on revaluation?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 10
As there are no other things to be entered in the Revaluation Account, thus, profit on revaluation will be ₹12,000.
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 11

Read the following information and answer the given questions:

Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.

After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.

Q. To which account will the unrecorded piece of furniture be adjusted?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 11
Unrecorded piece of furniture be adjusted in a revaluation account because assets are increasing.
Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 12

Read the following information and answer the given questions:

Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Angad retires and his claim, including his capital and entitlements from the firm including his share of Goodwill of the firm, is ₹50,000.

After this amount was determined, it was found that there was an unrecorded piece of furniture valued at ₹12,000 which had to be recorded. Upon recording this piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece of furniture and the balance in cash.

Q. What will be the share of Angad in profit on revaluation?

Detailed Solution for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions - Question 12
Angad’s Share = ₹12000× 2 / 6 = ₹ 4,000
47 videos|109 docs|56 tests
Information about Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions Page
In this test you can find the Exam questions for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Reconstitution of a Partnership Firm : Retirement/Death of a Partner- Case Based Type Questions, EduRev gives you an ample number of Online tests for practice

Up next

47 videos|109 docs|56 tests
Download as PDF

Up next

Download the FREE EduRev App
Track your progress, build streaks, highlight & save important lessons and more!