Class 12 Accountancy MCQs Death of Partner
The following questions are based on Examination, for practice by the students, to prepare for Final Exams.
- Peter, Kaef and Ralaph have been sharing profits in the ratio of 8:3:5. Peter dies. Ralaph takes 3/8th share from Peter and Kaef takes 1/8th share from Peter. New profit-sharing ratio will be:
a) 1:1
b) 10:6
c) 9:7
d) 11:5
2. Amrita, Babita and Chinky are partners in a firm sharing profits and losses in the ratio of 2:2:1. On June 30, 2024 Chinky died. Accounts are closed on March 31st every year. The sales for the year 2023-24 was ₹ 5,00,000 and the profits were ₹ 50,000. The sales for the period for the period April 1, 2024 to June 30, 2024 were ₹1,80,000. The share of deceased Partner in the current year’s profit on the basis of sales is:
a) ₹10,000
b) ₹ 8,000
c) ₹ 4,000
d) ₹ 3,600
3. On death of a Partner, the remaining partner(s) who have gained due to change in profit sharing ratio should compensate the
a) Deceased partner only
b) Remaining partners only (who have sacrificed)
c)Â Remaining partners (who have sacrificed) as well as deceased partner
d) None of the above
4. Which account is opened to record deceased partner’s estimated share of profit?
a) P&L Adjustment account
b) P&L Appropriation account
c) P&L Suspense account
d) None of the above
5. Preeti, Ankit and Kirati were in Partnership firm. On October 31, 2022, Preeti died. Amount payable to her on that date amounted to ₹ 1,15,000. ₹ 15,000 was paid immediately and balance was paid in 4 equal annual instalments along with interest @ 12% p.a. starting from 31st October 2023. Calculate the interest due as on 31st March 2023.
a) ₹10,000
b) ₹12,000
c) ₹9,000
d) ₹16,000
6. Mahesh, Himesh and Santosh were Partners with capitals of ₹2,50,000, ₹2,50,000 and ₹1,50,000 respectively as on 31st March 2024. Himesh died, partners decided to pay the entire amount to Himesh’s Executor, but they only had ₹50,000 cash and rest of the amount was to be brought in by Mahesh and Santosh in such a way that their future capital will be equal. Calculate the amount to be brought in by Mahesh and Santosh.
a) ₹50,000 by Santosh and ₹1,50,000 by Mahesh
b) ₹50,000 by Mahesh and ₹1,50,000 by Santosh
c) ₹25,000 by Mahesh and ₹1,25,000 by Santosh
d) ₹25,000 by Santosh and ₹1,25,000 by Mahesh
7. Arun and Varun were partners. They shared profits as Arun-1/2, Varun-1/3 and carried to reserve 1/6. Varun died. The balance of reserve on the date of death was ₹45,000. Varun’s share of reserve will be:
a) ₹16,000
b) ₹18,000
c) ₹12,000
d) ₹15,000
8. Ankit, Vinod and Chetan were partners in a firm. Chetan died on 31st July 2024. His share of profit or losses was to be calculated on the basis of previous year’s profit or loss. Loss for the year ended 31st March 2024 was ₹8,10,000. Which of the following is correct option:
a) Chetan to be debited by ₹ 2,70,000
b) Chetan to be debited by ₹ 90,000
c) Chetan to be credited by ₹ 2,70,000
d) Chetan to be credited by ₹ 90,000
9. As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the deceased partner at:
a) 7 % p.a.
b) 4 % p.a.
c) 6 % p.a.
d) 12 % p.a.
10. A, B and C are partners. On A’s death, the goodwill already appears in the Balance Sheet at ₹24,000. The goodwill will be written-off:
a) by debiting all partners’ capital accounts in their old profit-sharing ratio.
b) by debiting remaining partners’ capital accounts in their new profit-sharing ratio.
c) by debiting retiring partners’ capital accounts from his share of goodwill.
d) none of these.
Class 12 Accountancy MCQs Death of Partner
11. X, Y and Z are partners sharing profits in the ratio of 5:3:2. Y retires, the new profit-sharing ratio between X and Z will be 1:1. The goodwill of the firm is valued at ₹1,00,000. Y’s share of goodwill will be adjusted:
a) by debiting X’s Capital account and Z’s Capital Account with ₹15,000 each.
b) by debiting X’s Capital account and Z’s Capital Account with ₹21,429 and 8,571 respectively.
c) by debiting only Z’s Capital Account with ₹30,000.
d) by debiting Y’s Capital account with ₹30,000.
12. Assertion (A): Unrecorded outstanding repair bill at time of death of partner is recorded on debit side of Revaluation a/c.
Reason (R): Increase in capital of partner is recorded on credit side of Capital account.
a) Assertion is true, reason is false.
b) Assertion is false, reason is true.
c) Both Assertion and reason are true, and reason is correct explanation of Assertion.
d) Assertion and reason both are true, but reason is not the correct explanation of Assertion.
On the basis of following para answer the questions that follow:
Harish, Ramesh and Hari are partners sharing profits and losses in the ratio of 14:5:6 respectively. Ramesh dies and his entire 1/5th share is taken over by Harish. The goodwill of the firm is valued at 2 years purchase of Super Profit based on average profits of last three years. The profits for the last three years are ₹50,000, ₹55,000 and ₹60,000, respectively. The normal profits for the similar firm are ₹30,000.
13. What is the value of goodwill determined by using super- profit method?
a) ₹ 50,000
b) ₹ 10,000
c) ₹ 30,000
d) ₹ 75,000
14. What is the correct option in this case:
a) Ramesh will be debited for Goodwill ₹ 50,000
b) Ramesh will be credited for Goodwill ₹ 50,000
c) Ramesh will be debited for Goodwill ₹ 10,000
d) Ramesh will be credited for Goodwill ₹ 10,000
15. What journal entry will be recorded for deceased Partner’s share in profit from the closure of last balance sheet till date of his death?
a) Profit and Loss A/c Dr.
To Deceased Partner’s Capital A/c
b) Deceased Partner’s Capital A/c Dr.
To Profit and Loss A/c
c) Deceased Partner’s Capital A/c Dr.
To Profit and Loss Suspense A/c
d) Profit and Loss Suspense A/c Dr.
To Deceased Partner’s Capital A/c
More questions will be added from time to time.
Class 12 Accountancy MCQs Death of Partner - Answers
- d) 11:5
- d) ₹ 3,600
- c)Â Remaining partners (who have sacrificed) as well as deceased partner
- c) P&L Suspense account
- b) ₹12,000
- b) ₹50,000 by Mahesh and ₹1,50,000 by Santosh
- c) ₹18,000
- b) Chetan to be debited by ₹ 90,000
- c) 6 % p.a.
- a) by debiting all partners’ capital accounts in their old profit-sharing ratio.
- c) by debiting only Z’s Capital Account with ₹30,000.
- d) Assertion and reason both are true but reason is not the correct explanation of Assertion.
- a) ₹ 50,000
- d) Ramesh will be credited for Goodwill ₹ 10,000
- (d) Profit and Loss Suspense A/c Dr.
To Deceased Partner’s Capital A/c
Class 12 Accountancy MCQs Retirement of Partner
Learning Games and Activities in Accountancy – Class 12