Commerce  >  Accountancy Practice Tests: CUET Preparation  >  Test: Retirement Of A Partner - 2 Download as PDF

Test: Retirement Of A Partner - 2


Test Description

30 Questions MCQ Test Accountancy Practice Tests: CUET Preparation | Test: Retirement Of A Partner - 2

Test: Retirement Of A Partner - 2 for Commerce 2022 is part of Accountancy Practice Tests: CUET Preparation preparation. The Test: Retirement Of A Partner - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Retirement Of A Partner - 2 MCQs are made for Commerce 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Retirement Of A Partner - 2 below.
Solutions of Test: Retirement Of A Partner - 2 questions in English are available as part of our Accountancy Practice Tests: CUET Preparation for Commerce & Test: Retirement Of A Partner - 2 solutions in Hindi for Accountancy Practice Tests: CUET Preparation course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Retirement Of A Partner - 2 | 30 questions in 30 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Practice Tests: CUET Preparation for Commerce Exam | Download free PDF with solutions
1 Crore+ students have signed up on EduRev. Have you?
Test: Retirement Of A Partner - 2 - Question 1

A, B and C were partners sharing profits and losses in the ratio of 3:2:1. A retired and firm received the joint life policy as Rs. 7,500 appearing in the balance sheet at R.s 10,000. JLP is credited and cash debited with Rs. 7,500, what will be the treatment for the balance in Joint Life Policy. 

Test: Retirement Of A Partner - 2 - Question 2

A, B and C are partners sharing profits equally. A retires and goodwill appearing in the books at Rs. 3,000 is valued at Rs. 6,000. A will get credit of :

Test: Retirement Of A Partner - 2 - Question 3

A, B and C are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2 respectively. The balance of capital is Rs. 50,000 for A and B each and Rs. 40,000 for C. B declares to retire from the firm. The goodwill of the firm is valued at Rs. 30,000 and profit on revaluation of assets is Rs. 5,000. The firm also has a balance in the reserve account for Rs. 15,000 on that date. What amount will be payable to B?

Test: Retirement Of A Partner - 2 - Question 4

Balances of A, B and C sharing profits and losses in proportion to their capitals, stood as  A -Rs. 2,00,000; B - Rs. 3,00,000 and C - Rs. 2,00,000; Joint Life Policy Reserve  A/c Rs. 80,000 and Joint Life Policy A/c Rs. 80,000. A desired to retire form the firm and the remaining partners  decided to carry on in equal  ratio, Joint life policy of the partners surrendered and cash obtained Rs. 80,000. What will be the treatment for Joint Life Policy Reserve A/c?

Test: Retirement Of A Partner - 2 - Question 5

X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs. 5,00,000 with a surrender value of Rs. 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z decided to share profits and losses in 2:1. The amount of Joint life policy will be transferred as: 

Test: Retirement Of A Partner - 2 - Question 6

Claim of the retiring partner is payable in the following form

Test: Retirement Of A Partner - 2 - Question 7

A, B and C takes a Joint Life Policy, after five years B retires from the firm. Old profit sharing ratio is 2:2:1. After retirement A and C decides to share profits 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 amount if joint life policy is maintained at surrender along with the reserve?

Test: Retirement Of A Partner - 2 - Question 8

A, B, and C are partners with capitals of Rs. 1,00,000, Rs. 75,000 and Rs. 50,000. On C’s retirement his share is acquired by A and B in the ration of 6:4. Gaining ratio will be:

Test: Retirement Of A Partner - 2 - Question 9

 A, B and C are partners sharing profits and losses in the ratio of 3:2:1. C retires on a decided date and Goodwill of the firm is to be valued at Rs. 60,000. Find the mount payable to retiring partner on account of goodwill

Test: Retirement Of A Partner - 2 - Question 10

Balance of A, B and C sharing profits and losses in proportionate to their capitals, stood as follows: Capital Accounts: A Rs. 2,00,000; B Rs. 30,00,000 and C Rs. 2,00,000. JLP Reserve and JLP at Rs. 80,000. A desired to retire form the firm, B and C share the future profits equally. Joint life Policy of the partners surrendered and cash obtained Rs. 0,000. Goodwill of the entire firm be valued at Rs. 1,40,000 and no Goodwill account being raised. Revaluation Loss was Rs. 10,000. Amount due to A is to be settled on the following basis: 50% on retirement and the balance 50% within one year. The total capital of the firm is to be the same as before retirement. Individual capitals in their Profit sharing ratio. Find the balance of Partner’s Capital Account.

Test: Retirement Of A Partner - 2 - Question 11

 A, B, C are partners sharing profits the ratio of 2:2:1. A’s capital is Rs. 50,000, B’s Capital Rs. 70,000 and C Rs 35,000. B retires from the firm and balance in reserve on the date was Rs. 25,000. If goodwill of the firm was Rs. 30,000 and profit on revaluation was Rs. 7,500 then amount payable to B is: 

Test: Retirement Of A Partner - 2 - Question 12

Under _________ the premium paid is treated as an ordinary expense and joint life policy does not appear as an asset in the Balances Sheet of the firm:

Test: Retirement Of A Partner - 2 - Question 13

A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B: 

Test: Retirement Of A Partner - 2 - Question 14

If a partner dies, then JLP will be reckoned at ________.

Test: Retirement Of A Partner - 2 - Question 15

If the firm gets dissolved due to retirement of one the partners, then what amount of JLP will be credited in partner’s capital A/c?

Test: Retirement Of A Partner - 2 - Question 16

How unrecorded assets are treated at the time of retirement of a partner?

Test: Retirement Of A Partner - 2 - Question 17

A, B and C takes a Joint Life Policy, after five years B retires from the firm. Old profit sharing ratio is 2:2:1. After retirement A and C decides to share profits 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 amount if joint life premium is fully charged to revenue as and when paid?

Test: Retirement Of A Partner - 2 - Question 18

Under _________ the premium paid is treated as an ordinary expense and joint life policy does not appear as an asset in the Balances Sheet of the firm:

Test: Retirement Of A Partner - 2 - Question 19

A, B, and C are partners with capitals of Rs. 1,00,000, Rs. 75,000 and Rs. 50,000. On C’s retirement his share is acquired by A and B in the ration of 6:4. Gaining ratio will be:

Test: Retirement Of A Partner - 2 - Question 20

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

Detailed Solution for Test: Retirement Of A Partner - 2 - Question 20

Old ratio ( A, B and C) = 4 : 3 : 2

B's profit share = 3/9 or 1/3

A and C decided to take his share in the ratio of 5 : 3

Share of B taken by A = (1/3) * (5/8) = 5/24

Share of B taken by C = (1/3) * (3/8) = 1/8 or 3/24

New profit sharing ratio = Old ratio + Share taken from B

A's new share = (4/9) + (5/24) = 47/72

C's new share = (2/9) + (1/8) = 25/72

Therfore, new profit share = 47 : 25

Test: Retirement Of A Partner - 2 - Question 21

A, B and C are partners with profits sharing ratio 4:3:2. B retires and Goodwill Rs. 10,800 was shown in books of account. If A & C shares profits of B in 5:3, then find the value of goodwill shared between A and C. 

Detailed Solution for Test: Retirement Of A Partner - 2 - Question 21

1. Calculation of gaining ratio 

Old ratio (A, B and C) = 4 : 3 : 2

B retires from the firm

New artio (A and C ) = 5 : 3

Gaining ratio = New ratio - Old ratio

A's new share = (5/8) - (4/9) = (45 - 32) /72 = 13/72

C's new share = (3/8) - (2/9) = (27 - 16) / 36 = 11/72

gaining ratio = 13 : 11

2. Adjustment of goodwill 

C's share of goodwill = (10800 * 3) / 9 = 3600

This share of goodwill is to be debited to remaining partners' capital account in their gaining ratio (i.e., 13 : 11 )

Journal entry for the above will be:

A's capital A/c                    Dr.          1950

C's capital A/c                    Dr.          1650

To B's capital A/c                            3600

Test: Retirement Of A Partner - 2 - Question 22

A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B: 

Test: Retirement Of A Partner - 2 - Question 23

X, Y, Z were partners sharing profits in ratio 5:3:2. Goodwill does not appear in books, but it is agreed to be worth Rs. 1,00,000. X retires from the firm and Y and Z decide to share future profits equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/cs in ratio: 

Test: Retirement Of A Partner - 2 - Question 24

 A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B. 

Test: Retirement Of A Partner - 2 - Question 25

X, Y, Z are partners sharing profits in the ratio 3:4:3 Y retires, and X and Z share his profits in equal ratio. Find the new ratio of X and Z. 

Test: Retirement Of A Partner - 2 - Question 26

Balances of Ram, Hari & Mohan sharing profits and losses in the ratio 2:3:2 stood as follows: Capital Account: Ram Rs. 10,00,000; Hari Rs. 15,00,000; Mohan Rs. 10,00,000 Joint Life Policy Rs. 3,50,000. Hari desired to retire from the firm and the remaining partners decided to carry on with the future profit sharing ratio of 3:2. Joint Life Policy of the partners surrendered and cash obtained Rs. 3,50,000.  What would be the treatment for JLP A/c?

Test: Retirement Of A Partner - 2 - Question 27

A, B and C are partners sharing profits equally. A retires and goodwill appearing in the books at Rs. 3,000 is valued at Rs. 6,000. A will get credit of :

Test: Retirement Of A Partner - 2 - Question 28

Claim of the retiring partner is payable in the following form

Test: Retirement Of A Partner - 2 - Question 29

Joint Life Policy is taken by the firm on the life(s) of …………………..

Test: Retirement Of A Partner - 2 - Question 30

Balances of M/s. Ram, Rahul and Rohit sharing profits and losses in proportion to their capitals, stood as Ram Rs. 3,00,000; Rahul Rs. 2,00,000 and Rohit Rs. 1,00,000. Ram desired to retire form the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for JLP?

Use Code STAYHOME200 and get INR 200 additional OFF
Use Coupon Code
Information about Test: Retirement Of A Partner - 2 Page
In this test you can find the Exam questions for Test: Retirement Of A Partner - 2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Retirement Of A Partner - 2, EduRev gives you an ample number of Online tests for practice