[CUET] MCQs of Death of a Partner Accountancy

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Multiple Choice Questions of Death of Partner with answers for CUET, CBSE, ISC Board Examination

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The amount due to deceased partner is transferred to the credit of

a) his current account
b) remaining partner’s capital accounts
c) his executor’s account
d) None of these

Ans – c)

Gaining Ratio is

a) Old Profit sharing ratio – New Profit Sharing Ratio
b) Old Profit Sharing Ratio + New Profit Sharing Ratio
c) New Profit Sharing Ratio + Old Profit Sharing Ratio
d) New Profit Sharing Ratio – Old Profit Sharing Ratio

Ans – d)

Aman, Manish and Karan were partners sharing profits in the ratio of 4:5:3. Karan
died and remaining partners decided to share profits in the ratio of 7:8, the
gaining ratio will be

a) 8:7
b) 4:5
c) 1:1
d) 2:1

Ans – a)

A, B and C were partners, shairing profit in the ratio of 3:2:1. B died on
30th June, 2022. profit share of the deceased partner from the begining of the
financial year was to be estimated based on sales up to the date of death and
profit of the previous year. Net Profit earned in the previous year was
20% of the net sale. Net sale for the period of three months ended 30th June,
2022 was ₹ 6,00,000. The profit share of B will be

a) ₹ 35,000
b) ₹ 40,000
c) ₹ 20,000
d) ₹ 60,000

Ans – b)

X, Y and Z were partners sharing profits in the ratio of 2:2:1. Y died on 3oth
June, 2022 and profit for the accounting year ended 31st March, 2022 was ₹
3,60,000. If profit share of deceased partner is to be calculated based on
previous year’s profit, amount of profit credited to Y’s Capital Account will
be

a) ₹ 72,000
b) ₹ 36,000
c) ₹ 1,44,000
d) ₹ 2,50,000

Ans – b)

Choose the odd one:

a) Revaluation Account
b) Realisation of Assets
c) Adjustment of Goodwill
d) Gaining Ratio

Ans – b)

The Partnership Deed does not have a cluase on rate of interest to be paid on amount due to
heirs of deceased partner. At what rate interest on the outstanding amount
shall be payable?

a) At the rate at which the banks grant loan.
b) At the rate of interest provided in the Partnership Act, 1932.
c) At the rate of interest demanded by the heirs of the deceased partner
d) 8% p.a.

Ans – b)

Which of the following is true?

a) Revaluation Account is unaffected when an unrecorded assets is taken over
by the executors of a deceased partner.

b) Revaluation Account is debited with the decrease in the value of creditors on the death of a partner.

c) Revaluation Account is credited when an unrecorded asset is sold on the death
of a partner

d) Revaluation Account is unaffected when revaluation expenses are paid by a partner

Ans – c)

Pawan, Karman and Harman were partners shairng profit equally. Pawan died
on 31st July, 2022. Journal entry passed for Pawan’s share of loss for the
intervening period will be:

a) Pawan’s Capital A/c Dr.
To Profit and Loss Suspence A/c

b) Pawan’s Capital A/c Dr.
To Karman’s Capital A/c

c) Pawan’s Capital A/c Dr.
To Profit and Loss A/c

d) Profit and Loss Suspence A/c Dr.
To Pawan’s Capital A/c

Ans – a)

RAj, Manoj and Vasu are partners sharing profits and losses in the ratio
of 3:2:1. Manoj died on 3oth June, 2022. Loss from 1st April, 2022 to 30th
June, 2022 was estimated at ₹ 45,000. Raj and Vasu decided to share future profits
in the ratio of 3:2 with effect from 1st July, 2022. The Journal entry to record
Manoj’s share of loss till the date of death is:

a) Manoj’s Capital A/c Dr. ₹15,000
To Raj’s Capital A/c ₹4500
To Vasu’s Capital A/c ₹10,500

b) Raj’s Capital A/c Dr. 15,000
To Vasu’s Capital A/c 15,000

c) Vasu’s Capital A/c Dr. ₹15,000
To Raj’s Capital A/c ₹15,000

d) Raj’s Capital A/c Dr. ₹15,000
To Manoj’s Capital A/c ₹15,000

Ans – a)

Balance of Revaluation Account, in case of fixed capitals, is transferre to

a) partner’s Capital Accounts
b) Partner’s Current Accounts
c) Profit and Loss Account
d) Realisation Account

Ans – b)

On the death of a partner, his share in the profits of the firm till the date
of his death is transferred to the

a) Debit of Profit and Loss Account
b) Credit of Profit and Loss Account
c) Debit of Profit and Loss Suspence Account
d) Credit of Proift and loss Suspence Account

Ans – c)

A, B and C are partners sharing profit and losses in the ratio of 2:2:1. B
died, at that time goodwill of the firm was valued at ₹30,000. What Contribution
has to be made by A and C in order to pay B’s Executor?

a) ₹20,000 and ₹10,000
b) ₹15,000 and ₹15,000
c) ₹8000 and ₹4000
d) ₹6,000 and ₹6,000

Ans – c)

Lisa, Monika and Nisha are partners in a firm, sharing profits in the ratio
of 2:2:1. Their capitals Accounts stood as ₹50,000, ₹50,000 and ₹25,000
respectively. Monika died, and balance in the reserve on that date was ₹15,000.
If Goodwill of the firm is ₹30,000 and profit on revaluation is ₹7,050,
What amount will be transferred to Monika’s Executors Account?

a) ₹50,820
b) ₹70,820
c) ₹8,820
d) ₹60,820

Ans – b)

A, Ba and C are partners. C exprired on 18th December, 2019 and as per the agreement,
surviving partners A and B directed the accountanat to prepare financial statements as
on 18th December, 2019 and accordingly the sahre of profit of C (Deceased
partner) was calculated as ₹ 12,00,000. Which account will be debited to
transfer C’s share of profit?

a) Profit and Loss Suspence Account
b) Profit and Loss Appropriation Account
c) Profit and Loss Account
d) None of these

Ans – b)

Loan by the deceased partner to the firm is transferred to

a) the debit of his current account
b) the credit of his capital account
c) the debit of Remaining Partner’s Capital Accounts
d) the credit of Remaining Partner’s Capital Accounts

Ans – b)