Retirement and Death of a Partner

At the time of retirement of a partner, if Goodwill appears in the balance sheet it must be written off among all the partners in ................... Ratio

• the old profit sharing ratio

• The new profit sharing ratio

• The new profit sharing ratio

• in equal ratio

In the event of death of a partner, the amount of general reserve is transferred partners capital accounts in

• New profit sharing ratio

• Old profit sharing ratio

• in Capital ratio

• in equal ratio

On the death of a partner,credit balance of profit and loss account appearing in the balance sheet should be credited to the capital account of

• All partners including the deceased partner in their profit sharing ratio

• The remaining partners in the the new profit sharing ratio

• neither the deceased partner nor the remaining partners

• None

A ,B and C are partners sharing profits in the ratio 2:2:1 . C retired.The new profit sharing ratio between A and B will be

• 2:1

• 1:1

• 3:1

According to the section 37 of the Indian Partnership Act the interest payable to the deceased partner on the amount left by him will be

• 6% per annum

• 10% per annum

• Bank rate

• No interest

The share of goodwill of the retiring partner is debited to the remaining partner in which ratio

• Capital ratio

• New ratio

• Gaining ratio

• Gaining ratio equal ratio

P ,Q, R and S were partners sharing profits in the ratio of 2:3:5:2. S retires and his share is acquired by Q and R in the ratio of 3:2. Calculate new ratio and gaining ratio.

• N.R 10:21:29 G.R 3:2

• NR. 10:23:24 G.R 3:2

• NR 22:31:20 G R 6:6

• NONE

Name the accounts which is open to the credit the share of profits of deceased partners,till the time of his death to his capital account

(a)  

State two basis for determination of profit from the date of last balance sheet to the date of death or retirement

(a)  

Gaining ratio is calculated by

• Old ratio – new share

• Old share + acquired share

• New share + old share