Retirement and Death of a Partner
Commerce ⇒ Accountancy
Retirement and Death of a Partner starts at 12 and continues till grade 12.
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Explain the accounting treatment of Joint Life Policy at the time of death of a partner.
Explain the difference between retirement and death of a partner.
Explain the meaning of 'Gaining Ratio' in the context of retirement of a partner.
Explain the method of calculating the share of profit of a deceased partner up to the date of death.
A, B, and C are partners sharing profits in the ratio 2:2:1. C dies on 30th June. The profit for the year is Rs. 1,00,000. Calculate C’s share of profit till the date of death.
A, B, and C are partners sharing profits in the ratio 3:2:1. B retires. The goodwill of the firm is valued at Rs. 60,000. What is B’s share of goodwill?
A, B, and C are partners sharing profits in the ratio 3:2:1. B retires. The new ratio between A and C is 5:1. Calculate the gaining ratio.
A, B, and C are partners sharing profits in the ratio 4:3:2. C retires. The new ratio between A and B is 5:3. Calculate the gaining ratio.
Which account is credited when goodwill is raised at the time of retirement of a partner? (1) Goodwill Account, (2) Retiring Partner’s Capital Account, (3) All Partners’ Capital Accounts, (4) Revaluation Account
Which account is debited when goodwill is written off after the retirement of a partner? (1) Goodwill Account, (2) Remaining Partners’ Capital Accounts, (3) Retiring Partner’s Capital Account, (4) Revaluation Account
Which of the following is credited to the capital account of a retiring partner? (1) Share of goodwill, (2) Share of revaluation profit, (3) Share of accumulated profits, (4) All of the above
Which of the following is NOT a liability of the firm towards a retiring partner? (1) Share of goodwill, (2) Share of revaluation profit, (3) Share of future profits, (4) Share of accumulated profits
Fill in the blank: The amount due to a deceased partner is paid to his ______.
Fill in the blank: The amount due to a retiring partner is transferred to his ______ account until it is paid.
Fill in the blank: The share of goodwill of a retiring partner is borne by the ______ partners in their ______ ratio.
On retirement of a partner, accumulated profits and reserves are distributed among ______ partners in their ______ ratio.
True or False: On retirement of a partner, the partnership firm is compulsorily dissolved.
True or False: The amount due to a retiring partner can be paid in installments.
True or False: The legal heirs of a deceased partner automatically become partners in the firm.
True or False: The new profit sharing ratio is always the same as the old ratio after the retirement of a partner.
