# Accountancy MCQs for Class 12 with Answers Chapter 4 Retirement or Death of a Partner with Answer

Accounts MCQ Class 12 : Accountancy MCQs for Class 12 with Answers Chapter 4 “Retirement or Death of a Partner“. Practicing CBSE RBSE and NCERT Accountancy MCQ Questions for Class 12 with Answers is one of the best ways to prepare for the CBSE Class 12 board exam.

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## Accountancy MCQs for Class 12 with Answers Chapter 4 Retirement or Death of a Partner with Answer

Question 1.
At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner, in absence of any agreement among partners, when (s)he opts for interest and not share of profit.
(a) 12% p.a.
(b) 8%p.a.
(c) 6%p.a.
(d) 7.5%p.a.

Question 2.
Partnership will be dissolved if
(a) profit sharing ratio changed
(b) admission of a new partner
(c) retirement of a partner
(d) All of these

Question 3.
Gaining Ratio:
(a) Old Ratio – New Ratio
(b) New Ratio – Old Ratio
(c) Old Ratio + Old Ratio
(d) All of these.

Answer: (b) New Ratio – Old Ratio

Question 4. Accountancy MCQs for Class 12 with Answers Chapter 4
At the time retirement of a partner, ratio is calculated:
(a) old
(b) sacrifice
(c) gaining
(d) All of these.

Question 5.
After the death of an existing partner, shares of remaining partner will
(a) increase
(b) decrease
(c) not change
(d) All of these.

Question 6.
At the time of retirement of an existing partner, goodwill already shown in the books is written off in ratio.
(a) old
(b) new
(c) sacrifice
(d) gaining

Question 7.
Goodwill of the deceased partner will be debited in remaining partners’ capital Account in ratio.
(a) old
(b) new
(c) sacrifice
(d) gaining

Question 8.
At the time of retirement of a partner, goodwill will be credited in partner’s capital Account.
(a) old
(b) gaining
(c) retiring
(d) All of these.

Question 9.
At the time of retirement of a partner, account is prepared.
(a) revaluation A/c
(b) profit and loss A/c
(c) balance sheet
(d) All of these.

Question 10. Accountancy MCQs for Class 12 with Answers Chapter 4
The retiring/deceased partner must be compensated in the form of premium (goodwill) for the share of profit in favour of continued partners. .
(a) sacrificed
(b) gained
(c) obtained
(d) None of these.

Question 11.
A, B and C are partners sharing profits in ratio 4 : 3 : 2. B retires, selling his share of profit to A and C for ₹ 7200 (₹. 4,000 paid by A and B 3,200 paid by C). The new profit sharing ratio of A and C would be:
(a) 17:10
(b) 15:12
(c) 19 : 8
(d) None of these

Question 12.
Profit or loss on revaluation of assets and liabilities at the time of retirement of a partner is shared by
(a) all partners in their old ratio
(b) remaining partners in old ratio
(c) remaining partners in gaining ratio
(d) retired partner only

Answer: (a) all partners in their old ratio

Question 13.
At the time of death of a partner account is prepared.
(a) Representative Account
(b) Deceased Partner’s Capital A/c
(c) Profit and Loss Account
(d) All of these.

Question 14. “Accountancy MCQs for Class 12 with Answers Chapter 4
After retirement of a partner, share of remaining partner will
(a) increase
(b) decrease
(c) not change
(d) postpone.

Question 15.
Retirement of a partner is of partnership firm.
(a) dissolution
(b) winding up
(c) reconstitution
(d) None of these.

Question 16.
If there is any baiance left unpaid to the retiring / deceased partner, then interest @ will be given in the absence any provision of partnership deed.
(a) 6 %
(b) 57 %
(c) 5.5 %
(d) 6.5 %

Answer: (a) 6 % | “Accountancy MCQs for Class 12 with Answers Chapter 4″

Q1. What treatment is made of accumulated profits and losses on the retirement of a partner?

(A) Credited to all partner’s capital accounts in old ratio.
(B) Debited to all partner’s capital accounts in old ratio.
(C) Credited to remaining partner’s capital accounts in new ratio.
(D) Credited to remaining partner’s capital accounts in gaining ratio.

(A) Credited to all partner’s capital accounts in old ratio.

Q2. At the time of retirement of a partner, profit on revaluation will be credited to :

(A) Capital Account of retiring partner
(B) Capital Accounts of all partners in the old profit sharing ratio.
(C) Capital Accounts of the remaining partners in their old profit sharing ratio
(D) Capital Accounts of the remaining partners in their new profit sharing ratio

(B) Capital Accounts of all partners in the old profit sharing ratio.

Q3. What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?

(A) Retiring Partner’s Capital A/c Dr. To Goodwill A/c
(B) All Partner’s Capital A/cs (including retiring) Dr. (in old ratio) To Goodwill A/c
(C) Remaining Partner’s Capital A/cs Dr. (in gaining ratio) To Goodwill A/c
(D) Remaining Partner’s Capital A/cs Dr. (in new ratio) To Goodwill A/c

(B) All Partner’s Capital A/cs (including retiring) Dr. (in old ratio) To Goodwill A/c

Q4. What journal entry will be recorded for deceased partner’s share in profit from the closure of last balance sheet till the date of his death?

(A) Profit and Loss A/c To Deceased Partner’s Capital A/c Dr.
(B) Deceased Partner’s Capital A/c To Profit and Loss A/c Dr.
(C) Deceased Partner’s Capital A/c To Profit and Loss Suspense A/c Dr.
(D) Profit and Loss Suspense A/c To Deceased Partner’s Capital A/c Dr.

(D) Profit and Loss Suspense A/c To Deceased Partner’s Capital A/c Dr.

Q5. On retirement of a partner, goodwill will be credited to the Capital Account of:

(A) Retiring Partner
(B) Remaining Partners
(C) All Partners
(D) None of the Above

(A) Retiring Partner

Q6. On the death of a partner, the amount due to him will be credited to :

(A) All partner’s Capital Accounts
(B) Remaining partner’s Capital Accounts
(C) His Executor’s Account
(D) Governments’ Revenue Account

(C) His Executor’s Account

Q7. How goodwill is recorded on the retirement of a partner?

(A) Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)
(B) Remaining Partner’s Capital A/cs Dr. (In New Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)
(C) Goodwill A/c Dr. To All Partner’s Capital A/cs (In Old Ratio)
(D) Goodwill A/c Dr. To Retiring Partner’s Capital A/c (with his share)

(A) Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner’s Capital A/c (with his share of goodwill)

Q8. A, B and C are partners in 3 : 4 : 2. B wants to retire from the firm. The profit on revaluation on that date was ₹36,000. New ratio of A and C is 5 : 3. Profit on revaluation will be distributed as :

(A) A ₹16,000; B ₹12,000; C ₹8,000
(B) A ₹12,000; B ₹16,000; C ₹8,000
(C) A ₹22,500; C ₹13,500
(D) A ₹23,625; C ₹12,375

(B) A ₹12,000; B ₹16,000; C ₹8,000

Q9. The old profit-sharing ratio among Rajender, Satish and Tejpal were 2 : 2 : 1. The new profit-sharing ratio after Satish’s retirement is 3 : 2. The gaining ratio is :

(a) 3 : 2
(b) 2 : 1
(c) 1 : 1
(d) 2 : 3

(c) 1 : 1

Q10. The amount due to the deceased partner is paid to his……….

(a) Father
(b) Friend
(c) Wife
(d) Executors

(d) Executors

Q11. In case of death of a partner, the whole amount standing to the credit of his capital account is transferred to :

(a) Capital Accounts of all partners
(b) Capital Accounts of remaining partners
(c) His Executor’s Account
(d) Account of the Government

(c) His Executor’s Account

Q12. On the death of a partner in a firm payments are made to;

(a) Capital A/c
(b) Executor’s A/c
(c) Current A/c
(d) Loan A/c

(b) Executor’s A/c

Q13. Gaining Ratio:

(a) Old Ratio – New Ratio
(b) New Ratio – Old Ratio
(c) Old Ratio + Old Ratio
(d) All of these.

(b) New Ratio – Old Ratio

Q14. At the time retirement of a partner, ratio is calculated:

(a) old
(b) sacrifice
(c) gaining
(d) All of these.

(c) gaining

Q15. After the death of an existing partner, shares of remaining partner will

(a) increase
(b) decrease
(c) not change
(d) All of these.

(a) increase

Q16. At the time of retirement of an existing partner, goodwill already shown in the books is written off in ratio.

(a) old
(b) new
(c) sacrifice
(d) gaining

(a) old

Q17. Goodwill of the deceased partner will be debited in remaining partners’ capital Account in ratio.

(a) old
(b) new
(c) sacrifice
(d) gaining

(d) gaining

Q18. At the time of retirement of a partner, goodwill will be credited in partner’s capital Account.

(a) old
(b) gaining
(c) retiring
(d) All of these.

(c) retiring

Q19. At the time of retirement of a partner, account is prepared.

(a) revaluation A/c
(b) profit and loss A/c
(c) balance sheet
(d) All of these.

(a) revaluation A/c

Q20. The retiring/deceased partner must be compensated in the form of premium (goodwill) for the share of profit in favour of continued partners. .

(a) sacrificed
(b) gained
(c) obtained
(d) None of these.

(a) sacrificed

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