16. Titu, Mitu and Kitu are partners sharing profits in the ratio of 4:3:2. Mitu retired and his capital after making adjustment for reserves and profit on revaluation was determined to be ₹4,64,000. Titu and Kitu agreed to pay him ₹5,00,000 in settlement of his dues. For the excess amount given, Titu was debited by ₹19,500. Value of firm's goodwill will be:
a) ₹1,84,000
b) ₹1,06,000
c) ₹1,62,000
d) ₹1,08,000
17. Assertion: Retiring partner is entitled to his share of goodwill at the time of retirement.
Reason: goodwill earned by the firm is result of efforts of all existing partners in the past.
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.
18. Red, Blue and Green are partners sharing profits and losses in the ratio of 5: 3 :2. Red retires, and goodwill is valued at ₹60,000. New profit-sharing ratio of Blue and Green will be equal. For the adjustment of goodwill, Blue and Green’s capital accounts will be debited by:
a) ₹ 18,000 and ₹12,000 respectively.
b) ₹12,000 and ₹18,000 respectively.
c) ₹20,000 and ₹10,000 respectively.
d) ₹10,000 and ₹20,000 respectively.
19. A, B and C are partners in a firm. B retires and his claim including his capital and his share of goodwill is ₹ 1,20,000. He is paid partly in cash and partly in kind. A machine valued at ₹ 60,000 unrecorded in the books of the firm and the balance in cash is given to him to settle his account. The amount of cash to be paid to B will be:
a) ₹ 80,000
b) ₹ 60,000
c) ₹ 40,000
d) ₹ 30,000
20. Assertion (A): The partners whose profit shares have increased as result of change in profit sharing ratio are known as gaining partners.
Reason(R): Gaining ratio = new ratio - old ratio
a) Both A and R are correct, and R is the correct explanation of A.
b) Both A and R are correct, but R is not the correct explanation of A.
c) A is correct but R is wrong
d) A is wrong but R is correct.
More questions will be added from time to time...
Class 12 Accountancy MCQs Retirement of Partner - Answers
- d) 5:3
- d) 13:14
- b) Old Profit-Sharing Ratio
- d) None of the above
- b) ₹14,000
- c) ₹27,200
- d) Section 37
- c) Credited in Old Profit-Sharing Ratio
- b) Credited, Revaluation
- c) ₹2,40,000
- c) No Change in Cash Balance
- d) Either of (a) or (b)
- d) 8 : 7
- b) ₹ 2,20,000
- b) ₹ 3,00,000
- d) ₹1,08,000
- c) Both Assertion and reason are true and reason is correct explanation of assertion.
- b) ₹12,000 and ₹18,000 respectively
- b) ₹ 60,000
- a) Both A and R are correct, and R is the correct explanation of A.
Class 12 Accountancy MCQs Admission of Partner
Learning Games and Activities in Accountancy – Class 12