Test: Death Of A Partner - 1


30 Questions MCQ Test Principles and Practice of Accounting | Test: Death Of A Partner - 1


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QUESTION: 1

On death of a partner, his executor is paid the share of profits of the dying partner for the relevant period. This payment is recorded in Profit & Loss ………..Account

Solution:
QUESTION: 2

 R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?

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QUESTION: 3

 If Joint Life Policy in the Balance Sheet at surrender value, then the firm will be 

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QUESTION: 4

As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at ……. Percentage per annum

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QUESTION: 5

A, B and C are partners sharing profits in the ratio of 3:2:1. They had a Joint Life Policy of Rs. 3,00,000. Surrender value of JLP in Balance Sheet is Rs. 90,000. C dies. What is share of each partner in JLP?

Solution:
QUESTION: 6

At the time of death of a partner firm gets________ from the insurance company of the Joint Life Policy taken jointly for all the partners. 

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QUESTION: 7

The amount due to the deceased partner is paid to his: 

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QUESTION: 8

A, B and C takes a Joint Life Policy their profit sharing ratio is 2:2:1. On death of B, 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 the surrender value?

Solution:
QUESTION: 9

At the time of death of a partner, firm gets………...from the insurance company against the Joint Life Policy taken jointly for all the partners

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QUESTION: 10

If three partners A, B & C are sharing profits as 5:3:2, then on the death of a partner A, how much B & C will pay to A’s executer on account of goodwill. Goodwill is to be calculative on the basis of 2 years purchase of last 3 years average profits. Profits for last three years are: Rs. 3,29,000; Rs. 3,46,000 and Rs. 4,05,000.

Solution:
QUESTION: 11

 A, B, C are partners sharing profits in the ratio 1:1:2. C died on 30th June 2006 and profits for the accounting year ended on 31st December 2006 were Rs. 24,000. How much share in profits will be credited to C’s Account. 

Solution:
QUESTION: 12

 A, B, C are partners sharing profits and loss in 5:3:2. The firm’s balance sheet as on 31.3.2007 shows Reserve Balance of Rs. 25,000. Profit of the last year Rs. 50,000. Joint Life policy of Rs. 10,00,000, Fixed, assets of Rs. 12,00,000. On 1st June C died and on same date assets were revalued. The executors of C will get along with capital: 

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QUESTION: 13

After the death of a partners, amount payable is received by: 

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QUESTION: 14

When premium paid on JLP taken up severely for each partner, the amount received on death of a partner would be firm’s profit. It is also necessary to credit Partner’s Capital Account with …………. Of the policy on the lives of the remaining partners

Solution:
QUESTION: 15

B, C, D are partners sharing profits in the ratio 7:5:4. D died on 30th June 2006 and profits for the year 2005-2006 were Rs. 12,000. How much share in profits for the period 1st April 2006 to 30th June 2006 will be credited to D’s Account?

Solution:
QUESTION: 16

How is the premium paid on the JLP of partners treated? It is ______ to the _______accounts:

Solution:
QUESTION: 17

At the time of death of a partner, firm gets ………….. from the insurance company against the Joint Life Policy taken severely for each of the partner. 

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QUESTION: 18

Joint Life Policy amount received by a firm is distributed in _________.

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QUESTION: 19

JLP of the partners is a/ an ___________account:

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QUESTION: 20

In case of death of a partner, share of goodwill of deceased partner, will be borne by the remaining partners in:

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QUESTION: 21

The balance of joint life policy account as shown in the balance sheet represents: 

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QUESTION: 22

In the absence of proper agreement, representative of the diseased partner is entitled to the Dead partner’s share in the following items.

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QUESTION: 23

X, Y and Z are the partners sharing profits in the ratio of 7:5:4. On 30th June, 2008 Z died and profit for the year ending 31st March, 2009 were Rs. 2,40,000. How much share in profits for the period 1st April 2008 to 30th June 2008 will be credited to Z’s account assuming the profit occurred evenly throughout the year?

Solution:
QUESTION: 24

R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006 and profits for the accounting year 2005-2006 were Rs. 24,000. How much share in profit for the period 1st April 2006 to 30th June 2006 will be credited to D’s Account 

Solution:
QUESTION: 25

To provide funds to pay to the retiring partner or to the representatives of a deceased partner, generally partners: 

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QUESTION: 26

 

Match the following items from column A with column B

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QUESTION: 27

 A, B and C are the partners sharing profits and losses in the ratio 2:1:1. Firm has a joint life policy of Rs. 1,20,000 and in the balance sheet it is appearing at the surrender value i.e. Rs. 20,000. On the death of A, how this JLP will be shared among the partners.

Solution:
QUESTION: 28

 A, B and C are partners sharing profits and losses in the ratio 9:4:3. They took joint life policy of Rs. 25,000 for A, Rs. 20,000 for B and Rs. 51,000 for C. what is the share of C in the JLP amount?

Solution:
QUESTION: 29

A, B and C are partners sharing profits and losses in the ratio 2:2:1. C dies on 31st March 2007. The profits of the financial year ending 31st March 2007 is Rs. 64,000. The share of the deceased partner in the profits will be: 

Solution:
QUESTION: 30

All of the following except one is the method of recording joint life Policy

Solution:

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