Worksheetsretirement of partner
Total questions: 10
Worksheet time: 5mins
1. Retiring partner is compensated for parting with the firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in:
Gaining Ratio
Capital Ratio
Sacrificing Ratio
Profit Sharing Ratio
2.Gaining Ratio’ means :
Old Ratio – New Ratio
New Ratio – Old Ratio
Old Ratio – Sacrificing Ratio
New Ratio – Sacrificing Ratio
3. What treatment is made of accumulated profits and losses on the retirement of a partner?
Credited to all partner’s capital accounts in old ratio.
Debited to all partner’s capital accounts in old ratio.
Credited to remaining partner’s capital accounts in new ratio.
Credited to remaining partner’s capital accounts in gaining ratio.
4. At the time of retirement of a partner, profit on revaluation will be credited to :
Capital Account of retiring partner
Capital Accounts of all partners in the old profit sharing ratio.
Capital Accounts of the remaining partners in their old profit sharing ratio
Capital Accounts of the remaining partners in their new profit sharing ratio
5.At the time of retirement of a partner, calculation of new profit ratio is
not necessary
necessary
optional
None of the above
6.When the amount due to an outgoing partner is not paid immediately, then it is transferred to
Capital A/c
Loan A/c
Cash A/c
Revaluation A/c
7.If the amount due to the outgoing partner is transferred to loan account then he is entitled to interest at _____untill it is paid out.
9%
5%
6%
4%
8.If the goodwill account is raised for Rs.30,000, the amount is debited to
The capital accounts of partners
Goodwill Account
Cash Account
Revaluation Account
9.The accumulated reserves will be transferred to the old partners Capital account in the _______ ratio at the time of his retirement
old profit sharing
new profit sharing
sacrificing
gaining
10.A, B and C are sharing profits in the ratio of 2/5 : 2/5 : 1/5. C retired from business and his share was purchased equally by A and B. Then new profit sharing ratio shall be
A – 1/2 & B – 1/2
A – 3/5 & B – 2/5
A – 2/5 & B – 3/5
A-1/6 & B- 1/6
