Introduction to Retirement

Q. Credit balance of Profit & Loss Account shown in the liabilities side is accumulated profit and at the time of admission of a new partner, it is fully distributed among old partners in their old ratio.

1. True
2. False

Q.

Write the various matters that need adjustments at the time of retirement of partners.

Q. What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.

Q.

What are the different ways in which a partner can retire from the firm?

Q. A group of 40 people want to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and name of the Act under whose provision it is given.

Q.

Why do firm revaluate assets and reassess their liabilities on retirement or on the event of death of a partner?

Q.

Do we need to revalue goodwill, if a partner retires?

1. Partially yes

2. Can't say

Q.

Do we need to re-evaluate the assets and liabilities at the time of retirement of a partner?

1. Can't say

2. No, we don't need to re-evaluate the profit sharing ratio at the time of retirement of a partner.

3. Yes, we need to re-evaluate the profit sharing ratio at the time of retirement of a partner.

4. None of these

Q. The maximum number of partners in a firm carrying on banking business cannot exceed:

1. 10
2. 5
3. 15
4. 20

Q.

Partners exit business due to

1. death of a partner

2. disputes between partners

3. retirement

4. All of these

Q. The partnership firm does not become an illegal association when _________.

1. The number of partners in a banking business exceeds 10
2. The number of partners in a non-banking business exceeds 10
3. The number of partners in a banking business exceeds 20
4. The number of partners in a non-banking business exceeds 20

Q. Is there any restriction on maximum number of partners? If yes, name the Act under which it is prescribed.

Q. A new partner may be admitted to a partnership ________.

1. with the consent of all partners
2. with the consent of any one of the partners
3. with the consent of two third of old partners
4. without consent of old partners

Q. The maximum number of partners allowed in a firm carrying on general business is _______.

1. 10
2. 20
3. 50
4. 100

Q.

The journal for distribution of losses is -

1. None of these

2. Reserves A/c Dr.

   To Partner's Capital A/c

3. Partner's Capital A/c Dr.

   To Profit and Losses A/c

4. Both : Reserves A/c Dr.

   To Partner's Capital A/c

   Partner's Capital A/c Dr.

   To Profit and Losses A/c

Q. Give the word / term or phrase which can substitute each of the following statement.

A partner who contributes only capital for the business but does not take any active part.

Q. The members of a partnership firm are individually called _______.

1. Firm
2. Partners
3. Directors
4. Friends

Q. Which feature of partnership binds all the partners to the agreement signed by one partner?

Q. The maximum number of partners is mentioned in _________.

1. the General Clauses Act
2. the Companies Act
3. the Societies Registration Act
4. the Partnership Act

Q. State whether the following statements are true or false :

Death of a partner is like a compulsory retirement

Q. Give the word / term or phrase which can substitute each of the following statement.

A partner who is engaged in day to day activities of the business.

Q. In case of divisible projects, which of the following can be used to maximise NPV?

1. Feasibility Set Approach
2. Profitability Index Approach
3. Internal Rate of Return
4. Any of the above

Q. 6) What is meant by Employees Stock Option Plan ?

Q. The name in which the partner of a firm carries on business is called ___________.

1. Firm name
2. Firm
3. Partnership
4. Association of persons

Q. Advertisement expenses written off by 25%. What will be its treatment in revaluation and partners capital account?

Q. Objective type questions :-
Answer in one sentence only.

Who is called a Minor Partner?

Q. Choose the correct answers from the alternatives given.
In case of a partnership at will, a partner may retire by giving ________.

1. an oral notice to that effect to any of the working partners
2. an oral notice to that effect to all other partners
3. a written notice to that effect to the registrar of firms
4. a written notice to that effect to all other partners
5. a written notice to that effect to any of the working partners

Q. Maximum number of persons for a valid partnership for banking business is?

1. $15$
2. $20$
3. $25$
4. $50$