MCQ - Joint Life Policy CA Foundation Notes | EduRev

Principles and Practice of Accounting

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Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Page 2


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Multi Choice Questions (M.C.Q) 
Q.1. Joint  Life   Policy  is  taken  by  the  firm on  the life(s) 
of ______ 
a) All the partners jointly 
(b) All the partners severely 
c) On the life of all the partners and employees of the firm. 
d) (a) and (b) 
Ans. d) (a) and (b) 
Page 3


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Multi Choice Questions (M.C.Q) 
Q.1. Joint  Life   Policy  is  taken  by  the  firm on  the life(s) 
of ______ 
a) All the partners jointly 
(b) All the partners severely 
c) On the life of all the partners and employees of the firm. 
d) (a) and (b) 
Ans. d) (a) and (b) 
MCQ’s 
Page 4


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Multi Choice Questions (M.C.Q) 
Q.1. Joint  Life   Policy  is  taken  by  the  firm on  the life(s) 
of ______ 
a) All the partners jointly 
(b) All the partners severely 
c) On the life of all the partners and employees of the firm. 
d) (a) and (b) 
Ans. d) (a) and (b) 
MCQ’s 
MCQ.1 
Q.1. X, Y and Z takes a Joint Life Policy after five years Y retires from the firm.  Old 
profit sharing ratio is 2:2:1.  After retirement X and Z decides to share profits equally.  
They  had taken a JLP of ?2,50,000 with the surrender value ?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 & when paid? 
a) ?50,000 credited  to all the partners in old ratio 
(b) ?2,50,000 credited  to all the partners in old ratio 
c) ?2,00,000 credited  to all the partners in old ratio 
d) No treatment is required 
Ans. a) ?50,000 credited  to all the partners in old ratio 
Page 5


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Multi Choice Questions (M.C.Q) 
Q.1. Joint  Life   Policy  is  taken  by  the  firm on  the life(s) 
of ______ 
a) All the partners jointly 
(b) All the partners severely 
c) On the life of all the partners and employees of the firm. 
d) (a) and (b) 
Ans. d) (a) and (b) 
MCQ’s 
MCQ.1 
Q.1. X, Y and Z takes a Joint Life Policy after five years Y retires from the firm.  Old 
profit sharing ratio is 2:2:1.  After retirement X and Z decides to share profits equally.  
They  had taken a JLP of ?2,50,000 with the surrender value ?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 & when paid? 
a) ?50,000 credited  to all the partners in old ratio 
(b) ?2,50,000 credited  to all the partners in old ratio 
c) ?2,00,000 credited  to all the partners in old ratio 
d) No treatment is required 
Ans. a) ?50,000 credited  to all the partners in old ratio 
MCQ.2 
Q.2. X, Y and z takes a Joint Life Policy , after 5 years Y retires from the firm.  Old profit 
sharing ratio is 2:2:1.  After retirement X and Z decides to share profits equally. They 
had taken a JLP  of ?2,50,000  with the surrender value  ?50,000 .  What will be the 
treatment in the partner’s capital account on receiving the JLP amount, if  the JLP is 
maintained at the surrender alongwith the reserve?  
a) ?50,000 credited  to all the partners in old ratio 
(b) ?2,50,000 credited  to all the partners in old ratio 
c) ?2,00,000 credited  to all the partners in old ratio 
d) Distributed JLP Reserve Account in old profit sharing ratio. 
Ans. d) Distributed JLP Reserve Account in old profit sharing 
ratio. 
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