Retirement of Partner
- How unrecorded assets are treated at the time of retirement of a partner?
(a) Credited to revaluation account
(b) Credited to capital account of retirement partner only
(c) Debited to revaluation account
(d) Credited to partner’s capital account - A , B and C are partners sharing profit 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 :
(a) Rs. 20,000 and Rs.10,000
(b) Rs. 8,000 and Rs. 4,000
(c) No Contribution
(d) Rs. Rs. 15,000 and Rs. 15,000 - Outgoing partner is compensated for parting with firm’s future profit’s in favour of remaining partners. The remaining partners contribute to such compensation is:
(a) Going Ratio
(b) Capital Ratio
(c) Sacrificing Ratio
(d) Profit sharing Ratio - X, Y and are partners sharing profit and loss 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 en expenses. Y retired and X and Z decided to share profit and loss in 2 : 1. The amount of joint life policy will be transferred as:
(a) Credited to X, Y and Z’s capital account with Rs. 1,00,000 each
(b) Credited to X, Y, and Z’s capital account with Rs. 1,66,667 each
(c) Credited to X, Y, and Z’s capital account with Rs. 2,50,000each
(d) Credited to Y’s capital account with Rs. 3,00,000 - X, Y and Z are partners sharing profit and loss in the 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 decided to share future profit equally. X’s share of goodwill will be debited to Y’s and Z’s capital A/c in ratio:
(a) 1/2 : 1/2
(b) 2 : 3
(c) 3 : 2
(d) None - A, B ,and C are partners sharing profit in the ratio of 2 : 2 : 1. A’s capital is Rs. 50,000 B’s Capital Rs. 70,000 and C’s Capital Rs. 35,000. B’s 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:
(a) Rs. 70,820
(b) Rs. 76,000
(c) Rs. 75,000
(d) Rs. 95,000 - A, B and C are partner sharing profit and losses in the ratio of 1/2 , 3/10 and 1/5. B retires from the firm, A and C decided to share the future profit and losses in 3:2. Calculate gaining ratio.
(a) 1 :2
(b) 3 :2
(c) 2 :3
(d) None - A, B and C are partners with capital of Rs. 1,00,000, Rs. 75,000, Rs. 50,000. On C’s retirement his share is acquired by A and B in the ratio of 6:4. Gaining ratio will be:
(a) 3 :2
(b) 2 :2
(c) 2 :3
(d) None - At the time of retirement of a partner, firm gets ––––––––– from the insurance company against the joint life policy taken jointly for all the partners:
(a) Policy value for the retiring partner and surrender value for the rest
(b) Surrender value
(c) Policy amount
(d) None of these - A, B and C are partners sharing profit equally. A retires and goodwill appearing in the books at Rs. 3000 is valued at Rs. 6,000. A will get credit of:
(a) Rs. 2,000
(b) Rs. 3,000
(c) Rs. 500
(d) Rs. 1,000 - X, Y and Z are partners sharing profit in the ratio 3 : 4 : 3 Y retires, and X and Z share his profit in equal ratio. Find the new ratio of X and Z
(a) 1 : 2
(b) 2 : 1
(c) 3 : 1
(d) 1 : 1 - X , Y and Z are equal partners in a firm. Z retires from the firm. The new profit sharing ratio between X and Y is 1 :2. Find the gaining ratio.
(a) 3 : 2
(b) 2 : 1
(c) 4 : 1
(d) Only Y gain by 1 /3 - A, B and C were partners in film sharing profit and losses in the ratio of 2 :2 : 1. The capital balances of A, B and C are Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. B declared to retires from the firm on 1at April 2008, Balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050,then what amount will be transferred to the loan account of B.
(a) Rs. 70,820
(b) Rs. 50,820
(c) Rs. 25,820
(d) Rs. 20,820 - Hari, Ray, and Prasad are partners in the ratio of 3 :5 :1 respectively. Roy wants to retire. His share is being purchase by Prasad. What would be the new ratio of Hari and Prasad respectively?
(a) 1 :2
(b) 2 :1
(c) 3 :5
(d) Equal - If a partners dies, then JLP will be reckoned at ––––––––
(a) Surrender value
(b) Maturity value
(c) Policy value
(d) None - When the goodwill is raised at its full value and written off at retirement of a partner, the retirement of a partner, the remaining partners share goodwill in ––––––––––
(a) Old profit sharing ratio
(b) New profit sharing ratio
(c) Gaining ratio
(d) Equally - If firm gets dissolved due to retirement one the partners, then what amount of JLP will be credited in partner’s capital A/c?
(a) Maturity value
(b) Surrender value
(c) Policy value
(d) None of these - P, Q, and R, were partners sharing profit and losses in the ratio of 2:2: 1 respectively, with the balance of capital Rs. 75,000, Rs. 50,000 and Rs. 25,000 respectively on 1st April 2011. Q decided to retire from the firm on 31st March 2012. On that day the balance in the reserve account was Rs. 12,000. If the goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 10,000, then what amount would be transferred to the loan account of Q?
(a) Rs. 70,800
(b) Rs. 95,800
(c) Rs. 60,400
(d) Rs. 35,400 - A, B and C, are partners in a firm sharing profit 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 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?
(a) Rs. 15,000
(b) Rs. 55,000
(c) Rs. 65,000
(d) Rs. 75,0002.