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Test: Retirement And Death Of A Partner - 1 - Commerce MCQ


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10 Questions MCQ Test Accountancy Class 12 - Test: Retirement And Death Of A Partner - 1

Test: Retirement And Death Of A Partner - 1 for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Retirement And Death Of A Partner - 1 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Retirement And Death Of A Partner - 1 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Retirement And Death Of A Partner - 1 below.
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Test: Retirement And Death Of A Partner - 1 - Question 1

This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Retirement and Death of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations

Q  How can a partner get retirement from the partnership firm?

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 1

A partner can get retirement in the following ways:
(1) With the consent of all the partners
(2) Due to ill health
(3) Agreement/contract is over
(4) By giving notice

Test: Retirement And Death Of A Partner - 1 - Question 2

Outgoing partner is not entitled to take _______

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 2

Outgoing partner cannot take complete goodwill of the firm. Outgoing partner is entitled for the followings:
(i) His capital account balance
(ii) His share of profit reserves & gains etc.
(iii) Revaluation profit or loss
(iv) His share of goodwill
Note: outgoing partner is entitled for his share of goodwill only and not the complete goodwill of the firm.

Test: Retirement And Death Of A Partner - 1 - Question 3

Which of the following is calculated at the time of Retirement of a Partner?

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 3

At the time of retirement of death of a partner we need to calculate the gaining ratio of the existing partners. The main purpose of calculating gaining ratio is to adjust the share of goodwill at the time of retirement or death of a partner.

Test: Retirement And Death Of A Partner - 1 - Question 4

When the New ratio is deducted with Old Ratio we get:

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 4

Gaining ratio is calculated by deducting the old ratio from the new ratio. The following formula is used to calculate the gain ratio.
Gaining ratio = New ratio – old ratio

Test: Retirement And Death Of A Partner - 1 - Question 5

Goodwill given in the balance sheet is debited to the partners at the time of retirement in:

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 5

At the time of retirement, goodwill given in the balance sheet should be debited to the partners in their old profit sharing ratio (including the outgoing partner).

Test: Retirement And Death Of A Partner - 1 - Question 6

X, Y and Z are partners sharing Profits and Losses in the ratio of 8 : 7 : 5. Z retires and his share is taken equally by X and Y. Find the new profit sharing ratio.

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 6

21 : 19

Test: Retirement And Death Of A Partner - 1 - Question 7

Gaining Ratio is Applicable for:

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 7

The main purpose of calculating gaining ratio at the time of retirement of a partner is to adjust his amount of goodwill. After calculating his share of goodwill, gainer partners will be debited and outgoing partner will be credited.

Test: Retirement And Death Of A Partner - 1 - Question 8

New Profit sharing Ratio after retirement of a partner, can be calculated as:

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 8

To calculate the new profit sharing ratio at the time of retirement, following formula should be used: New Share = Old Share + Acquired Share

Test: Retirement And Death Of A Partner - 1 - Question 9

Goodwill Given in the old Balance Sheet will be:

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 9

Goodwill given in the old balance sheet will be written off by all the partners (including retiring partner) at the time of retirement of a partner. Goodwill will be written off in the old ratio of all the partners.

Test: Retirement And Death Of A Partner - 1 - Question 10

Gaining ratio is the ratio in which continuing partners have ______ the share from the outgoing partner

Detailed Solution for Test: Retirement And Death Of A Partner - 1 - Question 10

When a partner retires from the firm, his share will be acquired by the continuing partners. The ratio in which they acquire the share of retired partner, is known as gaining ratio.

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