Retirement and Death of a Partner Model Question Paper

12th Standard EM

    Reg.No. :
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Accountancy

Time : 01:00:00 Hrs
Total Marks : 50
    10 x 1 = 10
  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. A, B and C are partners sharing profits in the ratio of 4:2:3. Cretires. The new profit sharing ratio between A and B will be

    (a)

    4:3

    (b)

    3:4

    (c)

    2:1

    (d)

    1:2

  3. 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

  4. When a partner leaves from a partnership firm, it is known as

    (a)

    Admission

    (b)

    Retirement

    (c)

    dissolution

    (d)

    death

  5. The firm is reconstituted and other partners continue the partnership firm with a new

    (a)

    Contract

    (b)

    agreement

    (c)

    start business

    (d)

    none of these

  6. The policy amount received from the insurance company is used to settle the amount due to the

    (a)

    Increased partner

    (b)

    Deceased partner

    (c)

    Partnership at will

    (d)

    Partnership deed

  7. If the goodwill account is raised for 50,000, the amount is debited to

    (a)

    The capital accounts of partners

    (b)

    Goodwill account

    (c)

    Cash account

    (d)

    Loan account

  8. The net result of revaluation is adjusted through the__________ accounts of the partners

    (a)

    Capital

    (b)

    Real

    (c)

    Nominal

    (d)

    None of these

  9. ______is calculated to determine the amount of compensation to be paid by each of the continuing partners to the outgoing partners

    (a)

    Old ratio

    (b)

    Gaining ratio

    (c)

    New ratio

    (d)

    Sacrifice ratio

  10. Revaluation account is operated to find out gain or loss at the time of:

    (a)

    Admission of a partner

    (b)

    Retirement of a partner

    (c)

    Death of a partner

    (d)

    All of these

  11. 5 x 2 = 10
  12. 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
  13. What is the journal entry to be passed to transfer the amount due to the deceased partner to the executor of the deceased partner?

  14. What is New profit sharing ratio?

  15. If the retiring partner is not paid the full amount due to him immediately on retirement, how should his capital account be shown in subsequent balance sheet?

  16. Raji, Mohana, Sonu were partners in a firm sharing profits in the ration of 4;3;2 Mohana retired. Her share was taken over equally by Raji and Sonu. In which ratio will be profit or loss on revaluation of assets and liabilities on the retirement of Mohana be transferred to the capital accounts of the partners.

  17. 5 x 3 = 15
  18. Arya, Benin and Charles are partners sharing profits and losses in the ratio of 3:3:2. Charles
    retires and his share is taken up by Arya. Calculate the new profit sharing ratio and gaining
    ratio of Arya and Benin

  19. 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.

  20. Kumar, Kesavan and Manohar are partners sharing profits and losses in the ratio of 1/2, 1/3 and 1/6 respectively. Manohar retires and his share is taken up by Kumar and Kesavan equally.
    Find out the new profit sharing ratio and gaining ratio.

  21. Suresh, Senthamarai and Raj were partners in a firm sharing profits and losses in the ratio of 3:2:1. Suresh retired from partnership. The goodwill of the firm on the date of retirement was valued at Rs. 36,000. Pass necessary journal entries for goodwill on the assumption that the fluctuating capital system is followed.

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

  23. 3 x 5 = 15
  24. 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.

  25. Manju, Charu and Lavanya are partners in a firm sharing profits and losses in the ratio of 5:3:2. Their balance sheet as on 31st March, 2018 is as follows:

    Liabilities Rs Rs Asset Rs Rs
    Capital accounts:     Buildings   1,00,000
    Manju 70,000   Furniture   80,000
    Charu 70,000   Stock   60,000
    Lavanya 70,000 2,10,000 Debtors   40,000
    Sundry creditors   40,000 Bills receivable   50,000
    Profit and loss A/c   50,000 Cash at bank   20,000
        3,00,000     3,00,000

    Manju retired from the partnership firm on 31.03.2018 subject to the following adjustments:
    (i) Stock to be depreciated by Rs. 10,000
    (ii) Provision for doubtful debts to be created for Rs. 3,000.
    (iii) Buildings to be appreciated by Rs. 28,000
    Prepare revaluation account and capital accounts of partners after retirement

  26. Saran, Arun and Karan are partners in a firm sharing profits and losses in the ratio of 4:3:3. Their balance sheet as on 31.12.2016 was as follows:

    Liabilities Rs Rs Asset Rs Rs
    Capital accounts:     Buildings   90,000
    Saran 60,000   Machinery   40,000
    Arun 50,000   Investment   20,000
    Karan 40,000 1,50,000 Stock   12,000
    General reserve   15,000 Debtors 25,000  
    Creditors   35,000 Less: Provision
    Provision for
    bad debts
    1,000 24,000
          Cash at bank   44,000
        2,00,000     2,00,00

    Karan retires on 1.1.2017 subject to the following conditions:
    (i) Goodwill of the firm is valued at Rs. 21,000
    (ii) Machinery to be appreciated by 10%
    (iii) Building to be valued at Rs. 80,000
    (iv) Provision for bad debts to be raised to Rs. 2,000
    (v) Stock to be depreciated by Rs. 2,000
    (vi) Final amount due to Karan is not paid immediately
    Prepare the necessary ledger accounts and show the balance sheet of the firm after retirement.

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