ACCOUNTANCY FOR CLASS 12 CHAPTER 4 RECONSTITUTION OF PARTNERSHIP FIRM: RETIREMENT/DEATH OF A PARTNER, MCQS ALONG WITH THE ANSWERS

Free Accountancy Multiple Choice Questions for Class 12 CBSE along with the answers Chapter 4: Reconstitution of Partnership Firm: Retirement/Death of a Partner. Accountancy MCQs for Class 12 chapter-wise with the answers are prepared based on the current exam pattern. Students will be able to tackle the MCQs with these answers to realise their spadework level.

1. Mr. Akhil, Ms. Bhavya, and Ms. Clara are partners. On the retirement of Mr. Akhil, the goodwill that is already appearing in the balance sheet at Rs. 44,00,000 will be written off _______.

(a) By debiting the capital accounts of the remaining partners in their new profit-sharing ratio

(b) By debiting the capital account of the retiring partners from his share of goodwill

(c) By debiting the capital accounts of all partners in their old profit-sharing ratio

(d) None of the above

Answer: (c) By debiting the capital accounts of all partners’ in their old profit-sharing ratio

2. On the retirement of a partner, the capital account of the retiring partner will be credited with _______.

(a) Goodwill of the firm

(b) Shares of goodwill of the remaining partners

(c) His/her share of goodwill

(d) None of the above

Answer: (c) His/her share of goodwill

3. The amount of a joint life insurance policy is credited into the capital accounts of _________ on account of the death of a partner.

(a) Deceased partner only

(b) The deceased partner as well as all the remaining partners

(c) In the new profit-sharing ratio of the remaining partners

(d) In the old profit-sharing ratio of the remaining partners

Answer: (b) The deceased partner as well as all the remaining partners

4. A, S, and R are partners sharing profit in the ratio 7:5:4. R died on 30th June 2019, and profits for the year 2018-19 were Rs. 12,000. How many shares in profits for the period 1st April 2019 to 30th June 2019 will be credited to R’s account?

(a) Rs. 750

(b) Rs. 5,000

(c) Rs. 7,000

(d) Nil

Answer: (a) Rs. 750

5. The distribution of a joint life policy amount is received by a firm in _________.

(a) Capital ratio’s closing balance

(b) Partner’s old profit-sharing ratio

(c) New Profit-sharing Ratio

(d) Capital ratio’s opening balance

Answer: (b) Partner’s old profit-sharing ratio

6. Abhi, Bhanu, and Clarin are partners sharing profits in the ratio of 3:2:1. Together they had a joint life policy of Rs. 3,00,000. The surrender value of the joint life policy in the balance sheet is Rs. 90,000. Clarin dies; what is the share of each partner in the joint life policy?

(a) Rs. 45,000 , Rs. 30,000, Rs. 15,000

(b) Rs. 1,50,000 , Rs. 1,00,000 , Rs. 50,000

(c) Rs. 1,95,000 , Rs. 1,30,000 , Rs. 65,000

(d) Rs. 1,05,000 , Rs. 70,000, Rs. 35,000

Answer: (b) Rs. 1,50,000 , Rs. 1,00,000 , Rs. 50,000

7. At the time of _______ revaluation, an account is prepared.

(a) Retirement of an existing partner

(b) Death of an existing partner

(c) Admission of a new partner

(d) All of the above

Answer: (d) All of the above

8. The deceased partner’s due amount is to be paid to the ________.

(a) Friends

(b) The Mother

(c) The executors

(d) The wife

Answer: (c) The executors

9. The old profit-sharing ratio among three partners, Ramesh, Sanjana, and Tilak, was 2:2:1. The new profit-sharing ratio after Sanjana’s retirement is 3:2. What is the gain ratio?

(a) 1:2

(b) 1:1

(c) 2:3

(d) 3:2

Answer: (b) 1:1

10. Esha, Yash, and Zack are partners sharing profits in the ratio of 7:5:4. On 30th June 2019, Zack died, and profits for the year ending 31st March 2020 were Rs. 24,00,000. How many shares in profits for the period 1st April to 30th June 2019 will be credited to Zack’s account, assuming the profit incurred evenly throughout the year?

(a) Rs. 6,00,000

(b) Rs. 1,50,000

(c) Rs. 2,00,000

(d) Nil

Answer: (b) Rs. 1,50,000

We trust that the Accountancy MCQs offered for Class 12 with responses Chapter 4: Reconstitution of Partnership Firm: Retirement/Death of a Partner will help you. Assuming you have any questions with answers to Class 12 CBSE Accountancy, Reconstitution of Partnership Firm: Retirement/Death of a Partner MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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