Chapter-4 ➤ Reconstitution of Partnership Firm: Retirement / Death of a Partner 1. x,y are z are partners and share profits in the ratio of 5 : 3 : 2. y retires and x takes 1/10 from y and z takes 1/5 from y. The new profit sharing ratio will be : 7 : 13 13 : 7 3 : 2 1 : 1 2. X, Y, Z are equal partners in a firm. Z retires from the firm. The new profit-sharing ratio between X and Y is 1 : 2. The gaining ratio will be: 3 : 2 2 : 1 4 : 1 Only Y gains by 1/3 3. On death of a partner, the firm gets for joint life policy taken for all partners. Policy amount Surrender value Policy amount of deceased partner Surrender value of all partners 4. Goodwill is paid out of the retiring partner in : Old Profit-sharing Ratio Capital Ratio Equal Ratio None of these 5. On retirement of a partner’s the amount of General Reserve is transferred to all partner’s capital account in: New Profit Sharing Ratio Capital Ratio Old Profit Sharing Ratio None of these 6. On the retirement of a partner any accumulated profit should be credited to the capital accounts of: All partners in old profit-sharing ratio Remaining partners in new profit-sharing ratio Retiring partner only in his share None of these 7. X, Y, Z are partners sharing profits in the ratio of 3 : 4 : 4. Y retires and X and Z share their profits in equal ratio. New ratio of X and Z will be : 1 : 2 2 : 1 3 : 1 1 : 1 8. On retirement of a partner, the retiring partner’s capital account will be credited with : His/her share of goodwill Goodwill of the firm Shares of goodwill of remaining partners None of these 9. On the death of a partner in a firm payments are made to; Capital A/c Executor’s A/c Current A/c Loan A/c 10. Surrender value of an insurance policy means that value: Which is received an death of a partner Which is received when a policy matures Which can be received before the due date of the policy None of the above Loading … Question 1 of 10
