Meaning of Retirement

Q.

What if the Partnership Deed Is Silent?

Q.

Current liabilities of a company are Rs 75, 000. If current ratio is 4:1 and liquid ratio is 1:1, calculate value of current assets, liquid assets and inventory.

Q.

Prepare the format of balance sheet and explain the various elements of balance sheet.

Q.

What Are the Provisions if There Is No Partnership Deed?

Q.

All the increases or decreases in the value of assets and liabilities are then recorded into which account?

1. Revaluation Account

2. Profit and Loss Account

3. Bank Account

4. Cash Account

Q. All increases or decreases in the value of assets and liabilities are recorded in account.

1. revaluation
2. realisation
3. partner's capital
4. bank

Q.

Explain the process of preparing income statement and balance sheet.

Q.

Describe the procedure to prepare Cash Flow Statement.

Q.

What is a Realisation Account?

Q. Short answer type question:
What is meant by retirement of a partner?

Q. Short answer type question:
How can a partner retire from the firm?

Q. A partner is allowed to retire from the firm ____________.

1. on the last date of accounting period
2. on the first date of accounting period
3. None of the Above
4. At any time during the course of the accounting period after giving proper notice

Q.

In the absence of information, the continuing partners take the share of retiring partner in the ___

1. None of the above

2. Gaining Ratio

3. Sacrificing ratio

4. Profit sharing ratio

Q. The actual value of liability is the present value of liability, the retiring partner is entitled to share the profit.

1. more than
2. less than
3. more or less than
4. equal to

Q. Short answer type question:
Is a retiring partner liable for firm's acts after his retirement?

Q. Objective Questions :
Answer in one Sentence :

How is a debit balance of profit and loss account dealt with on death of a partner?

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

Profit on revaluation account is transferred to continuing partners’ capital account only.

Q. Balance sheet prepared after the new partnership agreement, assets and liabilities are recorded at ___________.

1. Original Value
2. Revalued Figure
3. Current Cost
4. Realizable Value

Q. Choose the correct answers from the alternatives given.
For firms acts after retirement, a retiring partner ________.

1. continues to be liable to every third party (whether or not having knowledge that he was a partner) if no public notice in give
2. is not liable to third party who deals with the firm without knowing. that he was a partner even if no public notice is given of his retirement
3. is not liable to third party even if no public notice is given of his retirement
4. none of these

Q. Partner may retire from the firm _____________.

1. with the consent of all the partners
2. when the partnership is at will by giving notice in writing to all other partners of his intention to retire
3. in accordance with an express agreement by the partners
4. all of the above

Q.

On the retirement of a partner, the partnership firm will ___

1. Can't say

2. Be reconstituted

3. Remain same

4. None of these

Q.

Do you advise that assets and liabilities must be revalued at the time of admission of a partner? If so, why? Also describe how is this treated in the book of account?

Q. Revaluation Account (or alternatively Profit and Loss Adjustment Account) is a ____________ .

1. Real Account
2. Nominal Account
3. Personal Account
4. None of the above

Q. If the actual value of assets is more than the present estimate, partner is entitled to get his share corresponding to the increased value.

1. gaining
2. retiring
3. sacrificing
4. new

Q. In which circumstances a public notice is required to be given?

1. By a nominal partner that he is sharing profits only.
2. By a dormant partner that he is not taking part in management.
3. By incoming partner on his admission.
4. By a retiring partner on his retirement.

Q. State whether Revaluation Account is debited or credited to record the increase in the value of Plant and Machinery.

Q. Select the most appropriate alternative from those given below and rewrite the statement.

A partner who lends only his name to the firm is called as__________________ partner.
a) partner in profits only
b) partner by estoppel
c) nominal
d) minor.

Q. (a) List any four items that are shown under the sub-heading 'Cash and Cash Equivalents' as per Schedule III of the Companies Act, $2013$.
(b) What is meant by a 'Common Size Statement'?

Q.

The amount due to the retiring partner is paid according to ___

1. None of the above

2. ongoing partner`s decision

3. partnership deed

4. his choice

Q. Retirement of partner from a firm leads to__________.

1. closure of firm
2. end of partnership
3. dissolution of firm
4. all of the above