Retirement and Death of a Partner Model Question Paper

12th Standard EM

    Reg.No. :
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Accountancy

Time : 02:00:00 Hrs
Total Marks : 50
    8 x 1 = 8
  1. A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the

    (a)

    End of the current accounting period

    (b)

    End of the previous accounting period

    (c)

    Date of his retirement

    (d)

    Date of his final settlement

  2. On retirement of a partner, general reserve is transferred to the

    (a)

    Capital account of all the partners

    (b)

    Revaluation account

    (c)

    Capital account of the continuing partners

    (d)

    Memorandum revaluation account

  3. ‘ A’ was a partner in a partnership firm. He died on 31st March 2019. The final amount due to him is Rs. 25,000 which is not paid immediately. It will be transferred to

    (a)

    A’s capital account

    (b)

    A’s current account

    (c)

    A’s Executor account

    (d)

    A’s Executor loan account

  4. A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill of the firm 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)

    Rs.10,000 and Rs. 20,000

    (d)

    Rs. 15,000 and Rs. 15,000

  5. X, Y and Z were partners sharing profits and losses equally. X died on 1st April 2019. Find out the share of X in the profit of 2019 based on the profit of 2018 which showed Rs. 36,000.

    (a)

    Rs. 1,000

    (b)

    Rs. 3,000

    (c)

    Rs. 12,000

    (d)

    Rs. 36,000

  6. A partner who retires from the firm is called an

    (a)

    Outgoing partner

    (b)

    admitted partner

    (c)

    death of a partner

    (d)

    none of these

  7. At the time to retirement Balance Sheet items like profit and loss account and General reserve must be transferred to

    (a)

    Revaluation Alc

    (b)

    Partners capital A/c

    (c)

    Both 'a and 'b'

    (d)

    None of the above

  8. The section related to the retirement of partner in Indian partnership Act is

    (a)

    30(a)

    (b)

    31(1)

    (c)

    21(c)

    (d)

    20(a)

  9. 6 x 2 = 12
  10. Vivin, Hari and Joy are partners sharing profits and losses in the ratio of 3:2:1. On 31.3.2017, Hari retired. On the date of retirement, the books of the firm showed a general reserve of Rs. 60,000. Pass the journal entry to transfer the general reserve.

  11. Rahul, Ravi and Rohit are partners sharing profits and losses in the ratio of 5:3:2. Rohit retires
    and the share is taken by Rahul and Ravi in the ratio of 3:2. Find out the new profit sharing ratio and gaining ratio.

  12. What is meant by retirement of a partner?

  13. What is the purpose of calculating gaining ratio?

  14. Ramu, Somu, Gopu are partners sharing profits in the ratio of 3:5:7. Gopu retires and the
    share is purchased by Ramu and Somu in the ratio of 3:1. Find the new profit sharing ratio and gaining ratio

  15. Who is an outgoing partner?

  16. 5 x 3 = 15
  17. Prince, Dev and Sasireka are partners in a firm sharing profits and losses in the ratio of 2:4:1. Their balance sheet as on 31st March, 2019 is as follows:
     

    Liabilities Rs. Rs. Assets Rs.
    Capital accounts     Buildings 40,000
    Prince 30,000   Plant 50,000
    Dev 50,000   Furniture 10,000
    Sasireka 20,000 1,00,000 Stock 15,000
    Profit and loss appropriation A/c   10,000 Debtors 20,000
    General reserve   15,000 Cash at bank 15,000
    Workmen compensation fund   17,000    
    Sundry creditors   8,000    
        1,50,000   1,50,000
  18. Rathna, Baskar and Ibrahim are partners sharing profits and losses in the ratio of 2:3:4 respectively. Rathna died on 31st December, 2018. Final amount due to her showed a credit
    balance of Rs. 1,00,000. Pass journal entries if,
    (a) The amount due is paid off immediately by cheque.
    (b) The amount due is not paid immediately.
    (c) Rs. 60,000 is paid immediately by cheque.

  19. List out the adjustments made at the time of retirement of a partner in a partnership firm.

  20. Distinguish between sacrificing ratio and gaining ratio.

  21. Balu, Chandru and Nirmal are partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31st March 2018, Nirmal retires from the firm. On the date of Nirmal’s retirement, goodwill appeared in the books of the firm at Rs. 60,000. By assuming fluctuating capital account, pass the necessary journal entry if the partners decide to
    (a) write off the entire amount of existing goodwill
    (b) write off half of the existing goodwill

  22. 3 x 5 = 15
  23. Mani, Rama and Devan are partners in a firm sharing profits and losses in the ratio of 4:3:3. Their balance sheet as on 31st March, 2019 is as follows:

    Liabilities Rs. Rs. Asset Rs.
    Capital accounts:     Buildings 80,000
    Mani 50,000   Stock 20,000
    Rama 50,000   Furniture 70,000
    Devan 50,000 1,50,000 Debtors 20,000
    Sundry creditors   20,000 Cash in hand 10,000
    Profit and loss A/c   30,000    
        2,00,000   2,00,000

    Mani retired from the partnership firm on 31.03.2019 subject to the following adjustments:
    (i) Stock to be depreciated by Rs. 5,000
    (ii) Provision for doubtful debts to be created for Rs. 1,000.
    (iii) Buildings to be appreciated by Rs. 16,000
    (iv) The final amount due to Mani is not paid immediately
    Prepare revaluation account and capital account of partners after retirement.

  24. Raghu, Ravi and Ramesh are partners in a firm sharing profits and losses in the ratio of 2:3:1. Their balance sheet as on 31st March, 2019 was as follows:

    Liabilities Rs. Rs. Asset Rs. Rs.
    Capital accounts:     Buildings   60,000
    Raghu 30,000   Machinery   70,000
    Ravi 40,000   Stock   20,000
    Ramesh 20,000 90,000      
    Reserve fund   36,000 Debtors 18,000  
    Sundry creditors   33,000 Less Provision for bad debts 1,000  
        1,76,000     1,76,000

    Ramesh retires on 31.3.2019 subject to the following conditions:
    (i) Goodwill of the firm is valued at Rs.24,000
    (ii) Machinery to be depreciated by 10%
    (iii) Buildings to be appreciated by 20%
    (iv) Stock to be appreciated by Rs. 2,000
    (v) Provision for bad debts to be raised by Rs.1,000
    (vi) Final amount due to Ramesh is not paid immediately
    Prepare the necessary ledger accounts and show the balance sheet of the firm after retirement.

     

  25. Chandru, Vishal and Ramanan are partners in a firm sharing profits and losses equally.
    Their balance sheet as on 31st March, 2018 is as follows:

    Liabilities Rs Rs Asset Rs Rs
    Capital accounts:     Furniture   60,000
    Chandru 60,000   Machinery   1,20,000
    Vishal 70,000   Sundry debtors 33,000  
    Ramanan 70,000 2,00,000 Less: Provision for doubtful debts 3,000 30,000
    Bills payable   80,000 Bills receivable   50,000
          Cash at bank   20,000
        2,80,000     2,80,000

    Ramanan retired on 31st March 2019 subject to the following conditions:
    (i) Machinery is valued at Rs. 1,50,000
    (ii) Value of furniture brought down by Rs. 10,000
    (iii) Provision for doubtful debts should be increased to Rs. 5,000
    (iv) Investment of Rs. 30,000 not recorded in the books is to be recorded now.
    Pass necessary journal entries and prepare revaluation account.

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